RAYA UNIVERSITY
COLLEGE OF SOCIAL SCIENCE AND HUMANITY
SCOOL OF SOCIAL AND COMPUTATIONAL
SCIENCE
COURSE TITLE: ENTREPRENEURSHIP
BUSINESS PLAN TITLE BILAL INJERA PRODUCTION
PREPARED BY: BILAL.
ID NUMBER :
SECTION
ADVISOR NAME: MR.
MAICHEW
[Type the document title]
[Year]
2017
[Type the document title]
[Year]
EXCUTIVE SUMMARY
The main goal of this business venture is to enhance long-term customer value by producing and
delivering high-quality enjera. The business aims to provide premium products to institutions
such as universities and industrial parks, which have a large number of end users, and quickly
establish itself as a leading bakery in the city. Essential equipment includes a mini-van, electric
bakers (locally known as Mitad), plastic packaging materials, plastic storage tanks for storing
teff flour, cartons, plastic mixers for teff flour, large plates, chairs, and tables. Additionally, a
permanent store, which will also serve as the baking location, may be leased.
Although demand for high-quality enjera from institutions is growing, there are only a few
suppliers in this market. These suppliers lack strong competition, resulting in poor-quality enjera
that is small in size and often mixed with other grains, lowering its overall quality. The majority
of local bakeries in the city are involved in this supply. The primary customers for enjera include
Welkite University, Welkite Polytechnic College, and various hotels and restaurants in the city.
Specific locations include Welkite University’s main campus, the Technology Institute campus,
the Agriculture campus, and the Referral campus, as well as the Industrial Park.
The production of enjera will take place in Welkite, specifically in the vicinity of the 01 sub-city,
to minimize transportation challenges and improve access to raw materials, as it is centrally
located for all destinations. In terms of staffing, 50 bakers, 1 quality assurance manager, 1
storekeeper, 1 driver, 1 accountant, 1 secretary, and 1 security guard will be hired on a
permanent basis. The general manager will oversee operations, manage transportation, and
gather feedback from customers. To launch the business, 1.5 quintals of teff will be purchased
and milled, with 45 quintals required for the first month to produce 360,000 enjera.
Securing a reliable bakery space is a crucial factor for the business’s success. A three-room
rental property will be used, with one room dedicated to storage, another for baking, and the
third for a restroom. To ensure quality, one employee will be hired to inspect the enjera products,
reporting directly to the general manager.
Before commencing operations, formal agreements will be made with customers. The primary
marketing strategy will involve delivering enjera directly to customers’ locations. The general
manager will be responsible for designing and implementing the marketing and transportation
strategies. Pricing will be based on the market cost of raw materials, product quality, and
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competitor pricing, ensuring a competitive profit margin. Promotion through mass media,
including social media platforms such as Facebook, will be a key part of the marketing efforts.
The first phase of the business will span three months, with an expected sale of 360,000 enjera
(12,000 enjera per day). If each enjera is sold for 5.00 ETB, this will result in daily revenue of
60,000 ETB. In terms of financial resources, the bulk of funding for the business will come from
a loan, with 30% of the capital provided by shareholder equity.
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[Type the document title]
[Year]
Table of Contents
EXCUTIVE SUMMARY...........................................................................................................................2
1 COMPANY DESCRIPTION..............................................................................................................1
1.1 Mission Statement.............................................................................................................................1
1.2 Product or service........................................................................................................................1
1.2.1 Description.................................................................................................................................1
1.2.2 Benefits to Customers................................................................................................................1
1.2.3 Differences from current offerings.............................................................................................1
1.3 Objectives...................................................................................................................................2
1.4 Keys to success.................................................................................................................................2
1.5 Technical feasibility....................................................................................................................2
1.5.1 Location and facility..................................................................................................................2
1.5.2 Entry Barriers.............................................................................................................................3
1.5.3 Supply and Distributions............................................................................................................3
1.5.4 Technological Factors................................................................................................................3
1.5.5 Seasonality.................................................................................................................................3
1.6 Market feasibility.......................................................................................................................3
1.6.1 Definition of overall Market......................................................................................................3
1.6.2 Customer Characteristics...........................................................................................................4
1.6.3 Customers’ Needs......................................................................................................................4
1.6.4 Purchasing Decision Process......................................................................................................4
1.7 Financial feasibility...........................................................................................................................5
1.7.1 Products Offered........................................................................................................................5
1.7.2 Pricing........................................................................................................................................5
1.7.3 Distribution................................................................................................................................5
1.7.4 Promotion...................................................................................................................................5
1.7.5 Sales Forecast..............................................................................................................................6
1.8 Management and Organization feasibility..................................................................................7
Members of the team are.....................................................................................................................7
Required skill level.............................................................................................................................7
1.8.1 Development team.....................................................................................................................7
1.8.2 Development cost.......................................................................................................................8
1.8.3 Development risk.......................................................................................................................8
Solutions for risk.................................................................................................................................8
IV
1.8.4 Quality assurance.......................................................................................................................8
1.8.5 Human resource plan................................................................................................................10
1.8.6 Facilities...................................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCE............................................................................................................................................12
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1 COMPANY DESCRIPTION
1.1 Mission Statement
This business plan focuses on the production and delivery of premium-quality enjera to meet
customer needs. The core objective of the venture is to consistently provide fresh, high-standard
enjera while ensuring customer satisfaction by delivering directly to their locations. The business
operates with a strong customer-first approach, maintaining regular communication with clients
to gather feedback and make necessary adjustments to both the quality and quantity of the
products. Additionally, the initiative aims to create job opportunities, particularly for
economically disadvantaged local women, thereby contributing to the community’s economic
development.
1.2 Product or service
1.2.1 Description
Our business venture focuses exclusively on producing enjera. This enjera is made from teff
flour and comes in two traditional varieties: the darker type, known locally as tikur enjera (made
from red teff, or "sergegna teff"), and the lighter, more common variety, called nech enjera
(made from "magna teff"). Among these, nech enjera is the preferred and widely consumed type
in the community. Therefore, our production will primarily focus on this variety. The darker
enjera will only be produced upon specific customer request.
1.2.2 Benefits to Customers
Because of our business idea aim is to satisfy customers wish and keep their need through
produce high quality and quantity of enjera make them happy by using our product. Also, this
business venture receive comment from end users and take appropriate response to the
comment to improve our business and keep customers use product all a time with great
satisfaction.
1.2.3 Differences from current offerings
Every company sets specific goals aimed at growth and maintaining strong customer
relationships. What sets our business apart is its commitment to producing large quantities of
high-quality enjera made exclusively from pure teff as the sole raw material. Additionally, we
ensure that our enjera is carefully packaged and delivered directly to customers using our own
transportation service, specifically a dedicated minivan
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1.3 Objectives
The overall goal of this business venture is to supply premium-quality enjera to major
institutions such as Welkite University and nearby industrial parks, while meeting customer
expectations and establishing a strong reputation as a leading enjera provider in the city within
five years
1.4 Keys to success
This is the analysis of plans that have to be implemented by the business venture to get the
best position of the competition. So, as our business venture is new and there are many
competent that are very familiar with this business idea, we have to be unique by supplying a
high quality enjera with an optimum price. In addition to this, there are some key ideas that
help to lead our business venture in the way success. These are: -
Work for continuous improvement of the product (enjera) in terms of quality and
quantity
Advertisement
Building a strong line of communication with the customers (feedback)
Statistical control of the business venture i.e. collecting the numerical value of the
sales per a certain amount of time to estimate the coming production.
Build a specialized and smart management system in the business venture
Legislate rules and regulations for the workers
Special discounts and sponsoring in some special cases i.e. Holly days
1.5Technical feasibility
1.5.1 Location and facility
Here we need to describe where we want to locate the site of our enterprise and what
facilities are needed. So, as our customers are at all directions of the city, we have chosen our
location at the centre of customer’s destinations of the product. This place has many facilities
such as; 24 hours of electricity, water, transportation, grinding- mill and availability of raw
materials (near to the market) but more of, the market area and the transportation simplicity
leads the selection of the location to be at piyasa.
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1.5.2 Entry Barriers
The entry barriers for this business are:
1.5.2.1 Financial budget
1.5.2.2 Comfortable site location area
1.5.2.3 License
1.5.2.4 Experts in the business are also one of the entry barriers
in terms of their well-known enterprise name.
1.5.2.5 Initiative to work
1.5.3 Supply and Distributions
The designed supply capacity of the enterprise is 12,000 enjera per day. And this amount of
enjera is distributed to the proposed destinations using a transportation system (i.e. the
minivans). The distribution is based on the demand of the destination sites or customers that is
first set as an agreement to accept daily by the destination.
1.5.4 Technological Factors
Nowadays, technology is the back bone for almost every activity in the society directly or
indirectly. For our business venture technological factors have a great role by means of
different activities. We use the products of technology like;
Mixer
Grinding mill
The electric bakery and
Even the transportation
1.5.5 Seasonality
As the selected sites for the destination of the enjera product are having a constant
consumer the supply of the product does not influenced by the seasonal variations. i.e. in the
campuses there are regular and summer students and in the park the workers stay at the site
throughout the year.
1.6 Market feasibility
1.6.1 Definition of overall Market
Although the demand for a high quality enjera from the end users is growing high from time
to time, only few experts are engaged in enjera supply as an enterprise in the city and as there
is no a good competent, the quality for their enjera is very poor. This decreased number of
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competent is because of lack of awareness about the business venture and due to the fact that
enjera is highly perishable in which its shelf life lasts only for two to three days. Welkite
University and the Welkite industry Park are is the leading customers of enjera suppliers
followed the city Hotels. Specially, since there are more than 25,000 of students in Welkite
University, it is the main market destination for the business. Satisfying the ultimate demand
from the users in the University will make a given enjera supplying enterprise more profitable
and increasing the satisfaction of the end users makes the enterprise lead the market.
1.6.2 Customer Characteristics
At the time being as we are also among the end users and we are the day to day customers for
the current suppliers we know about the characteristics of the customers more than the
current suppliers. So, as we are addressed by the university, it needs a good quality of enjera
with an optimum price. And also, as they need a large number of enjera, they are sensitive for
a minimum discount on the price.
1.6.3 Customers’ Needs
The customers need: -
Continuous supply
Lowered price
Increased quality and quantity
Transportation service
Special discount and Partial sponsorships in some cases i.e. holly days
1.6.4 Purchasing Decision Process
To make the enterprise a strong competent in the market, the purchasing decision plays a
great role in increasing the competency of the enterprise. So, the purchasing must be
performed by dealing the overall market. At the beginning few years of the enterprise the
purchasing of the raw materials like teff will be from teff distributers in the city performed by
dealing the market and by having a well determined contract agreement on a discount basis
based on our increased number of quintals of teff. But after the enterprise have a well-
developed economic potential and stay good in the market share it will have its own rural
branches to purchase teff products from the source at a lowered local price and transport by
its own transportation.
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1.7 Financial feasibility
1.7.1 Products Offered
The only product offered by the enterprise is teff enjera. Under this product we may prepare
two types of teff enjera; the white and black types of teff enjera prepared from the locally
named “Magna teff and black teff”.
1.7.2 Pricing
In the competition of the market the price is one of the key factors that can widen the market
share of the enterprise in addition to the quality and quantity of the product. But the price
must be optimum between the customers and our enterprise cost of total production. The
customers need is a lowered price with a better quality and our enterprise wants a high profit
gain. So, to optimize this variation we decided a price of 5.00 ETB with a better quality to
satisfy the customers need and to maximize the profit level we decided to increase the
quantity of products.
1.7.3 Distribution
The go on the distribution line up to the customers’ destination on time.
1.7.4 Promotion
Advertisement and publicity
As we are new in the market competition, we need more advertisement and publicity.
To complete this promotion, we have to choose mass-medias and involving in some
social and humanitarian activities.
1.6.2.1 Trade shows
This is by itself one of the characteristics of the marketing competency. This is to
show ourselves that we can provide a better product and service other than the rest
competitors in the market. And we are well prepared to apply the qualities listed
above.
1.6.2.2 Discounts and incentives
As we have discussed before, to be a strong competent we set a special discounts and
partial sponsorships in some case for our customers.
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1.7.5 Sales Forecast
The anticipated sales for the first three months are 360,000 enjera (12,000 enjera per day). With
each enjera priced at 5.00 ETB, the total daily revenue would be 60,000 ETB (12,000 enjera *
5.00 ETB). The overall production costs are detailed in the table below
Table 1: total production cost estimation per day
No. Input/service Quantity/day Single price Total price in
Birr
1 Teff 17,00 kgs 20/kg 34,000
2 Workers 50 100/day 5,000
3 Facilities (grinding mill, ----- ------ 3,000
electricity, water) and
other costs
4 For site rent (expressed ------ -------- 1,000
per day i.e. 20,000 per
month)
5 Total overall production -------- ------- 43,000
cost per day
From the above cost estimation, we can conclude that: -
The total profit per day is expressed as
Total sale per day – total production cost per day = total profit gain per day
60,000 birr – 43,000 birr = 17,000 birr per day
For a month
17,000 birr * 30 days = 510,000 birrs.
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1.8Management and Organization feasibility
The business venture has an organized management team, each member holding specific rights
and responsibilities to carry out tasks efficiently. The team is committed to performing its duties
properly in order to achieve the desired goal of establishing the company as a successful
enterprise within a short timeframe.
Members of the team are
General Manager controls over work flow of enterprise and make
agreement with merchants to receive raw materials to end users of
our product.
Kitchen workers.
Accountants and auditor.
Secretary.
Guard.
Driver.
Required skill level
The general manager, secretary, accountant, auditor, and driver all hold a Bachelor's degree
(BSc) and are active members of the company. In contrast, the kitchen bakers and security guard
have educational qualifications at Grade 4 and Grade 6 levels, respectively. As this is a newly
established venture, there is no immediate need for a detailed organizational structure. All
employees will report directly to the general manager. In terms of ownership, the business is
established as an enterprise formed by a group of graduating students.
1.8.1 Development team
As an enterprise there is need of team to achieve desired goal. This development
team coordinate the hierarchy of enterprise from top manager to worker to get
gradual incensement of quality and quantity of the product and customers
This situation is through giving appropriate training to bakery and give payment
for their work.
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1.8.2 Development cost
Every enterprise has its own development cost and mainly target on profit. To start the
business, 1.5 quintals of teff will be purchased and milled. We want 12,000 enjera baked
within a day within 43000ETB expense. And this enjera sold 60000ETB. Then net profit per
day is 5000 ETB. But a total of 45 quintals teff will be used during the first month order to
prepare 360,000 enjera. The price of product is 5ETB per enjera and there is a profit of
0.4167 ETB per enjera. Since 360,000 enjera baking per month so net profit within a month
is = 36000 enjera/month * 0.1467 ETB/enjera
= 150000 ETB/month.
This profit is very satisfied and leads enterprise diversified become accompany over
a short period of time.
1.8.3 Development risk
Every enterprise undergoes a product development process that plays a vital role in its success.
However, this journey often comes with various challenges that must be addressed with effective
solutions. In the case of the enjera bakery business, several potential risks may arise. These
include unexpected increases in the cost of raw materials, temporary unavailability of essential
utilities such as water and electricity, and the potential loss of customers or end users. Identifying
these risks early and preparing proper contingency plans is essential to ensure the sustainability
and growth of the business.
Solutions for risk
Make an agreement with customers through supply best quality and hi To ensure
smooth operations and reduce the impact of price fluctuations, the business will purchase raw
materials in bulk ahead of time, especially in anticipation of potential inflation. Additionally, to
minimize energy costs and promote sustainability, locally available energy sources such as
biogas and wood will be utilized, along with the use of water tankers to store an adequate water
supply. The business also plans to establish formal agreements with customers by consistently
supplying high-quality and large quantities of enjera to meet their demands and ensure long-term
satisfaction.
1.8.4 Quality assurance
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In order to maintain the quality of the products, a permanent quality
controller will be hired. The main duty and responsibility of this employee
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is to control and inspect the quality of the products regularly. Sustaining
good quality products is one of the major objectives of this business. Thus,
due attention will be given to quality enjera products like on:
Types of teff
Ingredient used for the product like absh which is local name.
1.8.5 Human resource plan
General
manager
Kitchen site Security Accountant
Secretary
Transportation and auditor
50 workers 1 guard
1secretariat
1 driver 1 accountant
Figure2.1 Bilal Enjera plc human resource
1.8.6 Facilities
This business venture benefits from several key infrastructural advantages, including reliable,
full-day electricity access, an adequate water supply, convenient transportation services, and the
availability of nearby grinding mills. These favorable conditions contribute to the potential
profitability of the venture within a short period. Entrepreneurs interested in partnering or
working with us are encouraged to reach out through the contact information provided below.
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CONCLUSION
Bilal Enjera is based in 01 kebele located in Welkite city within the Southern Region. The
business plan includes a comprehensive marketing strategy that outlines the marketing process,
identifies the target customers, and analyzes the main competitors in the market.
The organization will employ both skilled and unskilled workers, with the founder also taking an
active role as a self-employed contributor to the business.
To boost product sales and attract a larger customer base, various promotional methods will be
used, including advertising through billboards, local radio stations, newspapers, and social media
platforms such as Facebook. Additionally, a dedicated website will be developed to enhance the
business's online presence.
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REFERENCE
1) A business plan manual for entrepreneur
2) www.slideshare.com
3) www.google.com
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