OROMIYA,Maya ,Addeele A,

[Type text]
 INVESTMENT OF TRADE FOOD
By Jamal Ibrahim Xahir Addeele Sub City

[Type text]
Signature & Date ______________________

[Type text]
Contents

The aim of this proposal is to analyze the business performance, forecast the overall business activity for the next five
years and determining financial sources Total 6.88 mill 4.76 loan from bank and 2.12 own capitals and Area 20*20
(400m2) of house that will be required by the business. Retail trade is the business activity associated with the sale of
goods to the finalconsumer, the ultimate customer. It is the link between wholesalers or manufacturers and
theCustomers of the product. Typically retailers sell goods in large to quantities to consumers for personal use, not
for resale or business use.The entrepreneur Jamal Ibrahim Xahiri wants to engage in business of trading food items
particularly wheat product items. Wheat is cultivated as a cash crop, as it produces a good yield per unit area,
growswell in a temperate climate with a moderately short growing season, and yields versatile, high-quality flour.
The majority of wheat flour is used to make products including bread, pasta, cereal, pastries, cookies, crackers,
muffins, tortillas, and pitas.The business will trade, the major productof wheat like pasta, macaroni spaghetti and as
well as Rice which is also the family of wheat grainThe business will be established in Addeele Sub City . MS Jamal
Ibrahim Xahiri has been attracted by theexpanding business opportunity and conducive working environment in the
trade sector anddetermined to starthimtrade business in Addeele Sub City . Hehas rich experience in different
businessand now wants to engage in trade of wheat products business. The entrepreneur has set to service awide
range of client in Addeele Sub City . Heknow that there are several retailers all around the city andHehas spent time
and resources to conduct a thorough feasibility studies and market survey so asto be well positioned to favorably
compete withhimcompetitors. Hewill ensure that all the fooditems traded through the business are of the highest
quality. Hewants to build a business with awide range of client base that cuts across people of different financial
status.Currently the promoter has studied the market Hewants to engage in. The marketing are of the business is
Addeele . Therefore, the market for products under consideration is forecasted to growrapidly in the coming years as
the number of population increases. The entrepreneur prepared allrequirements for the business including shop site
and different necessary infrastructures. Howeverit has requires Birr4,000,000 to cover the financial requirement of
the business.

[Type text]
2Finally the very important part of the business financial analysis outputs indicated that the businessis profitable.
The most important indicators for this are profitability and liquidity. The business cangenerate positive net profit
through its all operations years. The business is liquid through of all itslifespan. According to payback and NPV
business decision factors the business passed all the twocapita; budgeting tools. The social economic benefit is great
by inviting more labor to the job sectorcontributing in increasing government revenue by tax contribution. In sum-up
the business isattractive and financeable.

1. BACK GROUND INFORMATION

1.1.The entrepreneur business history

Jamal Ibrahim Xahiri food items trade is established in Addeele Sub City . The entrepreneur has engaged trading of
Agricultural out come trade and other business for long period of time as it’s the information fromhim. He has
gathered many experience in general trade business. Due to good business performance registered and growing
market for different food items, He is initiated to engage in trade business of wheat product food items.

1.2.Business Name and related information

 Name :- Jamal Ibrahim Xahiri Wheat Product Trade

 Address:-Region: -OromiaZone: Maya Twon: Addeele Sub City :- Jamal Mobile:-:0976565171

1.3.VISION AND BUSINESS

Values and Culture

[Type text]
1.3.1. VISION OF THE BUSINESS

The business has set the vision of becoming one of best quality wheat product (food item) trader and recording
sustainable good profit. The vision of the business will be actualized through performing strict business principle
with quality product trade, good management and lobar force,customer satisfaction. In addition, different strategies
will be designed to realize the vision of the business.

1.3.2. BUSINESS VALUES AND CULTURE

Business culture refers to the set of behavioural and procedural norms that can be observed within a business which
includes its policies, procedures, ethics, values, employee behaviours and attitudes,

[Type text]
goals and code of conduct. It also makesup the “personality” of a business. In other way, it is alsothe business values
toward which activities of the business are directed and one of the mostimportant functions the business owner must
perform is setting objectives.Valuesare alsocertainly part of firm culture, but until the firm put them into action
they’re just words on paper. Infact, core values can negatively impact culture if they aren’t adhered to. Employees will
see this asthe business paying lip service and failing to live up to its own standards.A successful business culture is
one that is bought into by everyone from the newest intern to theCEO. It’s living and breathing your core values. The
job of the business is to make sure that everyemployee understands the expectationsand acts accordingly. A truly
great business culture is onethat inherently promotes curiosity, respect, and teamwork and employee health. A way
to really boost business culture is to put a concerted emphasis on diversity and inclusion. In simplified
terms,diversity and inclusion in the workplace is making a group of individuals, with completely different
backgrounds and experiences feel safe and accepted in expressing their uniqueness while at work.Allowing
employees to express their differences learn from each other and feel safe while doing itcreates a strong cultural
bond that breeds employee happiness and productivity.

1.3.3. BUSINESS OBJECTIVE OF JAMAL IBRAHIM XAHIRI

Food Item Trade

The Business objective is trading of Food Items and other related products to the individuals basedon their order
coupled with the small sales counter for the end customer. Through doing this theentrepreneur is expected to
generate income which in-fact will helphimto expandhimbusiness togiant food item supplier and then to the food
processing factory in future. The business has alsodifferent goals which it planned to meet in its trading period. These
goals include; generatingincome and other in direct benefits gained from the business

1.3.4. REVENUE GOALS AND REPEAT BUSINESS

[Type text]
This trading business can increase its revenue through advertising and promotions such as offering deals on specific
items on different days of the week. You can add to sales totals by carefullymonitoring and adapting to demand,
paying attention customer flow as well as sales patterns. Manychanges that bring in additional revenue require little
or no monetary outlay, such as adjusting yourhours to be open when you are likely to be busiest or creating displays
that tempt customers to buy

5additional product. Promotional offerings bring new customers in the door but monthly revenuetargets are more
easily met by encourages return visits. Excellent customer service andrewards/referral systems are major revenue
drivers. Therefore, the entrepreneur will generate andincrease his income through the above ways.

2.4.3.1.MINIMIZE COST

The income of this business is the amount left over after subtracting deductible expenses from salesrevenue. To
achieve this objective of maximizing income, Jamal Ibrahim Xahiri Wheat Products trade mustminimize cost of sales
without running out of popular activities. Because customer demand is rarelyconsistent, it is nearly impossible to
avoid cost altogether. However, keeping careful records ofwhich items sell fastest enables the business to predict
some sales patterns. The business canachieve additional accuracy by paying attention to variables that affect sales
patterns, such asholidays and season ether in winter or summer.

[Type text]
2.4.3.2.MARGIN GOALS

The trade business model of selling optimal product creates so much potential for revenuegeneration, the business
should closely monitor profit margins, or the percentage of sales thatexceeds operating expenses. Shop around for
low prices on product, but don't compromise qualityfor the sake of price if customers hold the business to a high
standard. Introduce efficiencies thatenable the business to sale more in less time, such as consolidating processes,
eliminating bottlenecks and achieving economies of scale. Maintaining margin is critical to any business model.

2.4.3.3. REPUTATION GOALS

Building a strong reputation is essential for objective of attracting a loyal clients and generating aconsistent sales
volume. Build your reputation by producing high-quality products and maintainingexcellent customer service.
Although it is tempting to sell product that are less than perfect, thesesales may cost more in the long run by
compromising the business reputation. Develop a specialty,and practice until the entrepreneur becomes an expert.
Build the reputation through social media,community events and local promotional opportunities. Creativity and
positive customerinteractions/reviews will boost business in the long run. In conclusion, Jamal Ibrahim Xahiri Wheat
products (food Items) trade business is believed that the trading business will have significant

6and economic benefits that accrue to the society, the region and the country beyond boasting thefinancial performance of the
entrepreneur.

[Type text]
5.2. PRODUCT/SERVICE DESCRIPTION:-Jamal Ibrahim Xahiri Wheat Products (food Item) trade business offers wide range of
Food Items. He set toservice a wide range of client in the Addeele . The product offerings are listed below

; Pasta

 Macaroni

 Spaghetti

 Endomin

 Rice

 Sugar and etc

THERE ARE DIFFERENT TYPES MACARONI AND PASTA PRODUCTS

Fusilli: - is a type of helix- or corkscrew-shaped pasta. It has bend shape and it is also sometimescalled rotini.

Pastini: - is a variety of pasta consisting of tiny pieces of pasta available in a varietyof shapes. It is the smallest type of pasta product
that most of the time suitable for the children.

3. KEY SUCCESS AND RISK FACTORS

A business key success factors also known as Critical Success Factors (CSF) refers to the mostimportant elements or factors that
contributes to the highest result, impact or outcome, in achievinga business goal and objectives. There are various Success factors for
wheat products (food Item)trade business established in Ethiopia in general and Addeele Sub City in particular.The key to success in
business will always depend on the entrepreneur skills and psychology inthese key critical success factors. In this business; access to

[Type text]
credit provision at lower interest rate,attractive investment policy and other packages, Continues increment in household income
andassociated expenditure patterns on such product, Government incentives and encouragements,increasing demand for the product
which mostly tied with the growth of population and growing per-capita income are the major success factors of the business at macro
level.

3.1. STRENGTH, WEAKNESS, OPPORTUNITY AND THREAT ANALYSIS OF THE PROJECT

1. Strength This business strength lies in the fact that it has wants to trade a wide range of wheat products thatcan meet the needs of a
wide range of customers. It has state of the art facility and equipment thathas positioned it to meet the demand of products even if the
demand tripled over night or if it had amassive order to meet and emergency delivery deadline. Another factor that counts to the
advantageis the background of the entrepreneur W/ro Sara Ibrahim; Hehas a robust experience in the business and also a pretty good
academic qualification to match the experience acquired which has placedhimone of the top management of the business.

2. Weakness

 The fact that the entrepreneur setting up the business in Addeele Sub City with the existence ofother same products traders might
likely pose a challenge for it in increasing sales volumein the market surrounding towns.

3. OPPORTUNITIES

 The opportunities available are unlimited. With increasing number of population and percapital income lots of people are
using/utilizing/ different products of wheat like pastamacaroni, Spaghetti, Endomin and others.

[Type text]
4. Treats

4. MARKET ANALYSIS

4.1. MARKET SEGMENTATION

Market segmentation is the practice of dividing the target market into approachable groups. Marketsegmentation creates subsets of a
market based on demographics, needs, priorities, commoninterests, and other psychographicor behavioral criteria used to better
understand the targetcustomers. By understanding the market segments, this business can leverage this targetingin product, sales, and
marketing strategies. Market segments can power the business’s producttraded cycles by informing how it trade offerings for different
segments like urban vs. semi- urbanor high income vs. low income or young vs old people.

4.1.1. BENEFITS OF MARKET SEGMENTATIONA.

The benefits of market segmentation for this business includes; Stronger marketing messages:This business has no longer to be
generic and vague. It should speak directly to a targeted group of people in ways they can relate to, because it understands their
characteristics, wants and needs. Targeted digital advertising:Market segmentation in this business helps to understand and define
the targeted groupcharacteristics, so it can direct its marketing efforts to specific ages, locations, buying habits,interests etc of its
customer. Developing effective marketing strategies:Knowing the target customer gives the business a head start about what
methods, tactics andsolutions they will be most responsive to. Increasing brand loyalty:When customers feel understood, uniquely
well served and trusting, they are more likely to stickwith your brand Identifying niche markets

Names. In fact the entrepreneur has different experience in business all most challenges listed abovemay not confronthimbusiness. 
InflationInflation, defined as the general rise in price level, has a heavy hand in determine the demand fortradable products under
consideration. Inflation is known in eroding the purchasing power ofmiddle income stratum of the population, which is taken to be the
major consumer and evendeterminer of the economic and political well-being of a nation. Then, if the purchasing power ofthe most
[Type text]
decisive segment of population and consumer of many products is eroded, the demand for products will be certain to shift down ward.
If new entrants in the trade or if existing companieswithin the are able to utilize the factors as well as avoid some of the costly barriers
in the trade,they will be able to bring joy to many homes for many years to come and the trade itself will enjoymany years of growth
hand success.

4.2.1. THE HEALTH BENEFITS OF PASTA AND MACARONI

Pasta is the perfect foundation for a healthy, nutritious and satisfying meal. Why? For starters, pastais the ideal partner for so many
other foods, including fibre rich vegetables and beans, heart healthyfish, antioxidant rich tomato sauce and protein packed cheeses,
poultry and lean meats. Pasta alsooffers:

 Sustained energy:

Carbohydrates like pasta provide glucose, the crucial fuel for your brain and muscles. And because pasta is an awesome source of
complex carbohydrates (unlike those of the refined and processedvariety – yuk), releasing energy at a slow andsustained level, you
don’t get the energy spikesassociated with simple sugars.

 low sodium and cholesterol free:

If you’re watching your cholesterol levels, pasta is perfect for you, being very low in sodium andcholesterol free. Per cup, enriched
varieties of pasta provide good sources of several essentialnutrients, including iron and B-vitamins

 folic acid:

Enriched pasta is fortified with folic-acid – essential for women of child-bearing age. A serving ofdry pasta supplies the equivalent of
roughly 100 micrograms of folic acid, or 25% of therecommended daily intake

 Balanced diet:

[Type text]
Pasta is part of a well-balanced diet, with current Australian Government guidelines suggesting35% of our daily calories intake should
come from complex carbohydrates such as pasta. Combine pasta with lean protein and vegetables for a complete meal that puts you
well on the path to hittingthose dietary goals!

4.3. THE NUTRITION VALUES OF RICE

Carbohydrate

Carbohydrates are the main source of energy for the body. The carbohydrates derived from plant- based foods that you eat. You can
immediately use carbohydrates for energy needed by the body, orconvert it into fat to be used as a backup energy source.
Carbohydrates are divided into three types,namely sugar, starch and fiber. No matter how big the amount is, all carbohydrates are
made ofcarbon, hydrogen and oxygen with a general formula that Cm (H2O) n.

Vitamin D

Vitamin D is one of the nutrients the body needs to maintain levels of calcium and phosphate. Thefat-soluble vitamin is needed to help
the body to absorb calcium, a mineral that is essential toestablish and protect the structure of bones and teeth.

Calcium

Calcium is one of the most minerals in the body, especially bones. Thus, calcium phosphorus becomes the most important component
in establishing and maintaining healthy bones. It formedcalcium phosphate, and as the base material of bones and teeth.

Fiber

Fiber is often associated with food that is effective to help your diet program. Fiber is a type ofmineral that is not easily digested and
absorbed by the body. Fiber is almost the same ascarbohydrates that can provide energy to the body, but the fiber is lower in calories.

[Type text]
Although it isdifficult to digest but increase the consumption of fiber can reduce the risk of cardiovasculardisease, diabetes, cancer,
and obesity. You can find fiber in vegetables, fruits, beans, legumes,grains, and wheat.

Iron

Iron is the vital substance needed by the body to fix the availability of the number of blood cellsevery day. In the body, these
substances work is very important for our survival, which helped thetransport of oxygen into the tissues of the lungs and transports
electrons in the formation of energyin cells. When transporting oxygen, iron needs the help of other nutrients such as the protein
whichlater merged to create hemoglobin (in red blood cells) and myoglobin (in the muscle fibers).

Sodium

Sodium is a mineral found in the body and in many foods. Sodium is an essential nutrient formaintaining blood volume, regulate the
water balance in the cells, and maintain nerve function.Kidney controlling sodium balance by increasing or lowering the sodium in the
urine. Excessivesodium intake is a factor known to affect blood pressure, but not everyone has the samevulnerabilities. Sensitivity to
sodium is highly individual and usually increases with age.

The Main Source of Energy

As explained before, it can be concluded that rice also becomes the main energy source for most ofthe human in the Asian. Also, rice
possesses a huge amount of carbohydrate which is used by thehuman body as fuel to do their activity. That’s why people in most of
Southeast Asia take rice astheir staple food.

4.4. DEMAND ANALYSIS

 Global Food Demand

[Type text]
Every business has to critically study the availability of real demand for the product they want to produce/trade. Consumer demand for
food 17agricultural and food policies. For consumers, changes in food prices and per capita income areinfluential determinants of
food demand. Estimates of consumer demand quantify the effects of prices and total expenditures on the demand for food. Over the
last century, the global populationhas quadrupled. In 1915, there were 1.8 billion people in the world.Today, according to the most
recent estimate by the UN, there are 7.3 billion people and we mayreach 9.7 billion by 2050. This growth, along with rising incomes
in developing countries (whichcause dietary changes such as eating more protein and meat) are driving upglobal food demand.Food
demand is expected to increase anywhere between 59% to 98% by 2050. This will shapeagricultural markets in ways we have not seen
before. Farmers worldwide will need to increasecrop production, either by increasing the amount of agricultural land to grow crops or
by enhancing productivity on existing agricultural lands through fertilizer and irrigation and adopting newmethods like precision
farming. However, the ecological and social trade-offs of clearing more landfor agriculture is often high, particularly in the tropics.
And right now, crop yields the amount ofcrops harvested per unit of land cultivated are growing too slowlyto meet the forecasted
demandfor food.Many other factors, from climate change to urbanization to a lack of investment, will also make itchallenging to
produce enough food. There is strong academic consensusthat climate change – driven water scarcity, rising global temperatures and
extreme weather will have severe long-termeffects on crop yields. These are expected to impact many major agricultural regions,
especiallythose close to the Equator. For example, the Brazilian state of Mato Grosso, one of the mostimportant agricultural regions
worldwide, may face an 18% to 23% reductionin soy and cornoutput by 2050, due to climate change. The Midwestern U.S. and
Eastern Australia two otherglobally important regions may also see a substantial declinein agricultural output due to extremeheat.Yet
some places are expected to (initially) benefit from climate change. Countries stretching overnorthern latitudes mainly China, Canada,
and Russiaare forecasted to experience longer andwarmer growing seasonsin certain areas. Russia, which is already a major grain
exporter, has hugeuntapped production potential because of large crop yield gaps(the difference between current and potential yields
under current conditions) and widespread abandoned farmland(more than 40 fertilizer.The agricultural sector also needs significant
long-term private investment and public spending.Many large institutional investors, including pension fundsand sovereign wealth

[Type text]
funds, havealready made major commitments to support global agricultural production and tradingin recentyears not least because
agricultural (land) investments have historically delivered strong returns,increased diversification, and outpaced inflation.Still,
investment in agriculture in most developing countries has declined over the last 30yearsand much less is spent on R&Dcompared to
developed countries resulting in low productivity and stagnant production. And because banking sectors in developing countries
givefewer loans to farmers(compared to the share of agriculture in GDP), investments by both farmersand large corporations are still
limited. To attract more financing and investment in agriculture, therisks need to be reduced by governments. Regulators need to
overhaul policies that limit inclusionof small, rural farmers into the financial system for example, soft loans (i.e., lending that is
moregenerous than market lending) and interest rate caps discourage bank lending. More supportive policies, laws, and public
spending on infrastructure would help create a favourable investmentclimate for agriculture.Global policy makers, corporations, and
consumers must put the global food balance higher up theagenda. International business leaders who are participating in this supply
chain have to bettercommunicate the need for policy changes and for developed countries to incentivize investment inregions where
there is the most potential for growth. Our food security will depend on it.

 Ethiopian Demand for Food

The Ethiopian population is increasing from year to year with 4% annual growth and has reached110M. This large number of
population created big demand for food which is opportunity both for producers and food item traders. It is unquestionable that there
is huge demand for food items likePasta, Macaroni, Rice Sugar and others which are commonly utilized the county. All the
abovelisted wheat product food are common in Ethiopia since many years ago. Particularly due to theirreadymade nature of such
product the community in Ethiopian is experience to consume in their

resources – preventing groundwater depletionand the destruction of fertile landsthrough over-use offertilizer.The agricultural sector
also needs significant long-term private investment and public spending.Many large institutional investors, including pension
[Type text]
fundsand sovereign wealth funds, havealready made major commitments to support global agricultural production and tradingin
recentyears not least because agricultural (land) investments have historically delivered strong returns,increased diversification, and
outpaced inflation.Still, investment in agriculture in most developing countries has declined over the last 30yearsand much less is
spent on R&Dcompared to developed countries resulting in low productivity and stagnant production. And because banking sectors in
developing countries givefewer loans to farmers(compared to the share of agriculture in GDP), investments by both farmersand large
corporations are still limited. To attract more financing and investment in agriculture, therisks need to be reduced by governments.
Regulators need to overhaul policies that limit inclusionof small, rural farmers into the financial system for example, soft loans (i.e.,
lending that is moregenerous than market lending) and interest rate caps discourage bank lending. More supportive policies, laws, and
public spending on infrastructure would help create a favourable investmentclimate for agriculture.Global policy makers,
corporations, and consumers must put the global food balance higher up theagenda. International business leaders who are
participating in this supply chain have to bettercommunicate the need for policy changes and for developed countries to incentivize
investment inregions where there is the most potential for growth. Our food security will depend on it.

 Ethiopian Demand for Food

The Ethiopian population is increasing from year to year with 4% annual growth and has reached110M. This large number of
population created big demand for food which is opportunity both for producers and food item traders. It is unquestionable that there
is huge demand for food items likePasta, Macaroni, Rice Sugar and others which are commonly utilized the county. All the
abovelisted wheat product food are common in Ethiopia since many years ago. Particularly due to theirreadymade nature of such
product the community in Ethiopian is experience to consume inesources – preventing groundwater depletionand the destruction of
fertile landsthrough over-use offertilizer.The agricultural sector also needs significant long-term private investment and public
spending.Many large institutional investors, including pension fundsand sovereign wealth funds, havealready made major
commitments to support global agricultural production and tradingin recentyears not least because agricultural (land) investments have

[Type text]
historically delivered strong returns,increased diversification, and outpaced inflation.Still, investment in agriculture in most
developing countries has declined over the last 30yearsand much less is spent on R&Dcompared to developed countries resulting in
low productivity and stagnant production. And because banking sectors in developing countries givefewer loans to farmers(compared
to the share of agriculture in GDP), investments by both farmersand large corporations are still limited. To attract more financing and
investment in agriculture, therisks need to be reduced by governments. Regulators need to overhaul policies that limit inclusionof
small, rural farmers into the financial system for example, soft loans (i.e., lending that is moregenerous than market lending) and
interest rate caps discourage bank lending. More supportive policies, laws, and public spending on infrastructure would help create a
favourable investmentclimate for agriculture.Global policy makers, corporations, and consumers must put the global food balance
higher up theagenda. International business leaders who are participating in this supply chain have to bettercommunicate the need for
policy changes and for developed countries to incentivize investment inregions where there is the most potential for growth. Our food
security will depend on it.

 Ethiopian Demand for Food

The Ethiopian population is increasing from year to year with 4% annual growth and has reached110M. This large number of
population created big demand for food which is opportunity both for producers and food item traders. It is unquestionable that there
is huge demand for food items likePasta, Macaroni, Rice Sugar and others which are commonly utilized the county. All the
abovelisted wheat product food are common in Ethiopia since many years ago. Particularly due to theirreadymade nature of such
product the community in Ethiopian is experience to consume in their

day to day life. As such food is simple to be cooked by everyone especially young people they havegot increasing demand and
engaging in such business (trade) is like exploiting the businessopportunity prevailed there.The profitability of individual trading
company depends on their ability to supply quality and besteyewear models that effectively target consumer tastes and preferences.
[Type text]
Wheat product (food item)traders have economies of scale in distribution and marketing compete successfully by craftingcustomized
eyewear based in their client’s preference. With recent developments, there will beinflux of new consumers and this will put pressure
on product developers to meet their unfamiliar preferences and needs. Developed economies placing their products in emerging
markets will alsohave to adjust their pricing strategies to compete with local low-price products. As partof marketing strategies, Food
Item trading business ensures that they have showrooms at differentlocations where they display the products. As a matter of fact, it is
even cheaper to purchasedirectly from these showrooms as against purchasing from Food item retail stores. It is a strategythat helps
those increases sales and income for their business.

 Target Market

The target market is the group of people who are willing to buy the product. Learn about the peoplein the area where the product is
sold. Look for age, gender, education, occupation, income level,and household type. This information can help predict buying patterns
of people in the area. In viewof that, the entrepreneur has positionedhimtrading business company to service the client in Addeele
city. The business is in the food item trading industry to trade a wide range of food item for thefollowing people of all age;

1. Childs
2. youngs
3. elders
 Competitive advantage

A close study of the industry reveals that the market has become much more competitive over thelast decade. As a matter of fact, the
business has to trade highly quality products with smart designsand market approach, customer centric and proactiveproviding of
quality product and excellent customer service culture, various payment options andhighly secured facility will serve as a competitive
advantage for this business. The employees will be well taken care of, and their welfare package will be among the best within

[Type text]
category in the same business meaning that they will be more than willing to build the business and help deliver set goalsand achieve
all aims and objectives.

4.5. PRODUCT DISTRIBUTION MECHANISM

It is planned that the entrepreneur will distribute the product directly to customer through shopsopened by the entrepreneur or retailers.
The product will be sold on by cash bases and there maysame special credit sales

4.6. MARKETING STRATEGY

A marketing strategy refers to a business's overall game plan for reaching prospective consumersand turning them into customers of
their products or services. A marketing strategy contains the businessvalue proposition, key brand messaging, data on target
customerdemographics, and otherhigh-level elements. A thorough marketing strategy covers "the four Ps" of marketing product, price,
place, and promotion.i.

Product:-the business didn’t produceits own product but it is trader of food items productsii. Price:-Determining the selling price is
the most important element in businessestablishment. Since there are some businesses in the towns, the entrepreneur will same price
for the same product. But Hewill do promotion and brand building to attractcustomers.iii.

Promotion:-The business will promote the product it traded using different promotionalmethods which includes

Advertising using printed leaflets combined with an introductory discount for new customers Proving online booking and related
serviced

Direct marketing:- it can often be an effective way to contact customer directly and tell aboutthe product in order to increase numbers
of customer and sales

[Type text]
A brand trading name be used as promotion, such businesses often want to establish a positive branded trade name.iv.

Place:- product can reside in many places, which is the fourth "P" of marketing. You canusually determine the ideal place based on
the specific product and the organization's available budget. Some products may only be available for sale and use online, like
software availablefor download or a digital consulting service.

4.7. Pricing Strategy

Jamal Ibrahim Xahiri food item business knows the trend in the price of food items which is why Hehavedecided to trade various
categories of Food items. In view of that, the prices will conform to what isobtainable in the trading business but will ensure that
within the first 3 to 6 months the products aresold a little bit below the average price in the Addeele Sub City . Hehas put in place
business strategiesthat will help him run on low profits for a period of 6 months; it is a way of encouraging people to buy from her.

4.8. Payment Options

The payment way adopted Jamal Ibrahim Xahiri retailer trading business is all inclusive because it is quiteaware that different
customers prefer different payment options as it suits them. Here are the payment options that business will make available to its
clients; In cash Payment via online bank transfer Payment via check

5. TECHNICAL ANALYSIS OF THE TRADING BUSINESS

1.2. BUSINESS LOCATION

[Type text]
The location of the business is strategic as it is to be situated in an area where the basic utilities suchas electricity, water, and telephone
lines are available at reasonable cost availably of infrastructurefor transporting tradable items to the business site and finished product
to the market are anotheradvantage that the location selection will consider. It is also best place to trade the describe materialin the
selected business area/Addeele Sub City .

1.3. PURCHASE AND SALES PROGRAM

The all the items are purchased from local market and imported from abroad. According to this theannual purchase plan summarized
in table .1 below.

Table 5.1. Annual Purchase plan in quantity and Birr

No Purchase Quant Unit in Total at 2026 2027 2028 2029

items in quin price purchase
year 2025
1 Pasta 13000 9,500 14,225,000 14,345,000 14,440,000 14,535,000 14,630,000
2 Macaroni 12000 9,300 13,950,000 14,043,000 14,136,000 14,229,000 14,322,000
3 Rice 11,000 9,150 29737500 29829000 29920500 30012000 30103500
4 Sugars 14,000 9,480 9,480,000 9,574,800 9,669,600 9,764,400 9,859,200
Total 67,791,300 67,791,800 68,166,100 68,540,400 68,914,700
As clearly indicated in the above table, the business is trading the above listed Food items namelyPasta, macaroni, Rice and Sugar.
The annual traded food item will be six thousand seven hundredQuintals of the listed items.

Table 5.2 Annual Sales plan in quantity and Birr

No Sales Quant Unit in Total at 2025 2026 2027 2028

[Type text]
 items in saleprice Sales year
quin 2024
1 Pasta 12000 10,600 15,900,000 16,006,000 16,112,000 16218,000 16,324,000
2 Macaroni 10200 10,360 15,540,000 15,643,000 15,747,000 15,850,00 15,954,000
0
3 Rice 9,250 10,250 33312500 33415000 33517500 33620000 33722500
4 Sugars 12000 11,480 11,480,000 11,594,800 11,709,60 11,824,400 11,939,200
Total 76,232,500 76,659,900 77,086,100 77,512,40 77,939,200
0
The financial study and analysis

Bank commission 7% of profits

COST of purchase materials 1 month

Adminis and selling/utility expence six months

Salling expenses six months

Pre-insurance 1 years

6.2.WORKING CAPITAL

The total working capital required is birr 6.88 million determined by the above assumption underlined the section 5.1 above and the
detail calculation is presented in table 6.1 below.Table:

6.1. Working capital required for the year, 2024 6.88

[Type text]
1 Raw materials 1 4,680500 10%
2 Salary and 102,000 50%
benefits
3 Administrative 66,000 50%
expense
4 Insurance 90,000 100
67,791,300
The total working capital demanded by the business is Birr 6.88 M of which Birr 9,520,000 million will be financed by Bank and the
rest is covered by the owner.

Salary and benefits

Man power

No Dsscription QTY Monthely Annual salary

2 Managers 1 1 7000 84000
3 Accountant 1 1 8000 96000
4 Cashiers 2 2 8000 96000
5 Typiest 1 1 6000 72000
6 Loaders 6 6 18000 210000
7 Clearance 2 2 5000 60000
8 store keepers 1 1 3000 36000
9 Shufers 1 1 5000 60000

[Type text]
10 Guard 2 2 6000 72000

Total
17 66000 786000

6.2. DEPRECIATION SCHEDULE

The business use straight line methods of depreciation and the annual depreciation estimated to birr200,000

Revenue is the money generated from normal business calculated as the average sales price timesthe number of it sold. It is the top
line (gross income) figure from which costs are subtracted todetermine net income. Revenue is also known as sales on the income
statement. The business willgenerate revenue from food item trade. It has the capacity to sell around Birr 48M at initial yearfrom the
sale of food items and Birr 58M at the end of the fifth operational year as illustrated in theabove table.

6.3. SOURCE OF FUND LOAN REPAYMENT SCHEDULE AND COLLATERAL

6.3.1. SOURCE OF FUND

The working capital demanded by the business will be financed by bank.

6.3.2. LOAN REPAYMENT SCHEDULE

The loan will be repaid with five years on quarterly base and it will be completed within twentyinstalment periods within five years.
The loan is interest free loan provided by commercial bank of Ethiopia on the bases of commission fee. The following table clearly
indicates the repayment of the loan

Loan Repayment Schedule for 5 years and within 20 instalments on quarterly bases

[Type text]
Loan
9,520,000.00

loan repayment years 5

instalments 20
payment per instalment 200,000

6.4. COLLATERAL

Total collateral values are 10.76 mill his house 4.76 and garden chat and

6.5. expected financial results

6.5.1. profit and loss statements

SALES Total at Sales year 2025 2026 2027 2028

2024
Sales 76,232,500 76,659,900 77,086,10 77,512,400 77,939,200
0
Cost of good sold 40,
Purchase 67,791,300 67,791,800 68,166,10 68,540,400 68,914,700

[Type text]
 0
Cost of good sold 67,791,300 67,791,800 68,166,10 68,540,400 68,914,700
0
Gross profits 8,441,200 8441200 8920000 89658360 9019220
Promotion 241,200 253,260 264,500 271,000 282,000
Adminis trative expe 792,000 792,000 792,000 792,000 792,000
Depreciation 200,000 200,000 200,000 200,000 200,000
Others 498000
Total oper expen 1,200,000 1.888,400 2,188,400 2588,400 2,988,400
Profit before tax 7,241,200 7552800 6731700 6383600 6030820
interest 437,962 555762 576000 587000 590000
Profit before tax 6803,238 6997038 6155700 15178952 15,422,689
Tax 35% 2381133 2448963.3 2356060 2234260 2110787
Netincome 4422105 4548074.7 3799540 3562340 3330033

PROJECTED FLAW STATEMENT

SALES Total at 2025 2026 2027 2028

Sales year
2024
Net income 4422105 4548074.7 73799540 77,512,400 3330033
40,

[Type text]
Purchase 67,791,300 67,791,800 68,166,100 68,540,400 68,914,700
Cost of good sold
Gross profits 8,441,200
Adminis trative 792,000 792,000 792,000 792,000 792,000
expe
Total oper expen 1,200,000 1.888,400 1.888,400 1.888,400 2,988,400
Profit before tax 4,536,600 8569638 12,448276 15616914 17,555,552
interest 437,962 437962 437962 2,132863
Profit before tax 4,986,638 8131676 12,010,314 15178952 15,422,689

5.3. PROJECTED BALANCE SHEET

The balance sheet of the business shows what the asset liabilities and owner’s capital for specificdate especially end of the year,
because the business fiscal year runs from 2022/24- 206/28 each year shows balance sheet projections of Jamal Ibrahim Xahiri Food
Item trade. Accordingly, the asset theowner is expected to grow from

SALES Total at 2025 2026 2027 2028

Sales year
2024
Cash 2,120,000 67,791,800 68,166,100 68,540,400 68,914,700
Fixed asset 9,520,000 9,520,000 9,520,000 9,520,000 9,520,000
Acc Depreciation 200,000 400,000 600,0000 800,000
Total asset c+f 6,880,000

[Type text]
Long term Liablity 9,520,000 3808,000 2856,000 1904,000 952,000
Tofiq capital 964,000 964,000 964,000 964,000 964,000
Retained earning 1.888,400 1.888,400 1.888,400 2,988,400
Total equity and 8569638 12,448276 15616914 17,555,552
liablity
Interest 437,962 437962 437962 2,132863
Profit before tax 4,986,638 8131676 12,010,314 15178952 15,422,689

Jamal Ibrahim Xahiri Food Item TradeProjected Balance SheetAs at June 30, each year from 2024-2028

6.6.BREAK-EVEN ANALYSIS

The break-even analysis establishes a relationship between operation costs and revenues. Itindicates the level at which costs and
revenue are in equilibrium. To this end, the break-even pointof the project including commission of finance when it starts to operate at
full capacity is estimated by using income statement projection.

6.7. PAYBACK PERIOD

The payback period, also called off period is defined as the period required recovering the originalinvestment outlay through the
accumulated net cash flows earned by the project. Accordingly, based on the projected cash flow it is estimated
[Type text]
6.8. NET PRESENT VALUE

Net present value (NPV) is defined as the total present (discounted) value of a time series of cashflows. NPV aggregates cash flows
that occur during different periods of time during the life of a project in to a common measuring unit i.e. present value. It is a standard
method for using the timevalue of money to appraise long-term projects. NPV is an indicator of how much value aninvestment or
project adds to the capital invested. In principal a project is accepted if the NPV isnon-negative. Accordingly, the net present value of
the project at 16% discount rate is Birr 4.8million which is acceptable.

6.9. SOCIOECONOMIC BENEFIT OF THE BUSINESS

A. EMPLOYMENT OPPORTUNITY: One of the problems that our country faced is unemployment. 17 EMPLOYED IN THIS
PROJJECT Therefore, current objective of thegovernment is working on tackling the problem of unemployment and fostering the
development process either through creating self-employment or employment in other organization. In thisregard, business will hire
permanent employees and create many employment opportunity for daylabourers who will participate on works like loading and
unloading of tradable items.

B. BENEFIT FOR LOCAL COMMUNITY:Apart from employment opportunity for local community, as a corporate responsibility
the businesshas been engaged in different development activities. This will better worth the community in particular and contribute for
the development of the nation as a whole.

C. STIMULATE THE LOCAL ECO

[Type text]
[Type text]
7. CONCLUSION AND RECOMMENDATION

7.1. Conclusions

The entrepreneur Jamal Ibrahim Xahiri wants to engage in business of trading food items particularly wheat product
items. The business will be established in Addeele Sub City . MS Jamal Ibrahim Xahiri has been attracted by the
expanding business opportunity and conducive working environment in the trade sector anddetermined to
starthimtrade business in Addeele Sub City . Hehas rich experience in different businessand now wants to engage in
trade of wheat products business.The business has an importance of satisfying the population of Addeele Sub City
demand for food item,generating additional income for owner and creating permanent and temporary
employmentopportunity for skilled, semi-skilled as well as unskilled workers directly as well as indirectly. The
project can also contribute for government income through tax and opportunity of transferring better trade idea for
the city

7.2. RECOMMENDATIONS

In all the business proposal analysing tools implemented in this business proposal shows that the business is worth
profitable and acceptable. It is therefore recommendable that the business shouldget active support from all
stakeholders like financers and government offices to get all legalrecognition and capital budgeting

[Type text]