JINKA POLY TECHNIC COLLEGE

BUSINESS PLAN FOR MANUAL BRICK MANUFACTUR MACHINE

PREPARED BY, GETIE MEKONNEN AND

YILKAL ABATE

JUNE, 2022

JINKA ETHIOPIA
 Acronyms

MBMM------------------manual brick manufacturing machine

MME------------------metal manufacturing enterprise
SMBME----------------------- small and medium brick manufacturing enterprise
SME--------------------------small and medium enterprise
SNNPRS----------south nation nationalities and people regional state

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 TABLE OF CONTENT
1. Industry Overview

2. Executive Summary

3. Our Products and Services

4. Our Mission and Vision Statement

5. Job Roles and Responsibilities

6. SWOT Analysis

7. MARKET ANALYSIS

8. Our Target Market

9. SALES AND MARKETING STRATEGY

10. Sales Forecast

11. Publicity and Advertising Strategy

12. Our Pricing Strategy

13. Startup Expenditure (Budget)

14. Sustainability and Expansion Strategy

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 1, Executive summery
Jinka poly technic college industry extension and technology transfer office has long plane to
support enterprises in developing by adding value and invented new technology for their
effectiveness.
Our manual brick manufacturing technology is newly innovated in Ethiopia and there is no
brick machine around Jinka so, have grate role for the enterprise to solve the problem of
brick manufacturing machine shortage and simplicity.
Since our MBMM is modern technology and simple to use. It can also solve the traditional
way of manufacturing brick and increase quality and productivity of the user.
The new innovated and planed MBMM has the advantage not only to solve the problem of
modern and enough brick rather those enterprises manufacture both machine and brick.
2. Industry over view
1. Legal form: - Partnership
2. Contact Address: - Tel :------------------------------ E-mail ---------------------- Fax
--------
3. Type of business: - Manufacturing
4. Description of Business
5. This manual brick manufacturing machine majorly to increase production and
productivity of the construction industry. The newly developed MBMM accepted in
construction industry since the production capacity, its speed, quality and aveleblity
which can produce without electric power So that we can attract by customer and may
get good market access. The machine is rational, wise, easily fabricated; increase
production rate, fair price and any one can operate it easily.

6. Customers/target group
Our customers/target group is enterprises working in brick machine manufacturing,
merchants of brick manufacturing machine and those who are working on brick
manufacturing and all brick users.
7. Business Owners:- Afia brick manufacturing enterprise
8. No 9. Nam 10. Addres 11. Qualificati 12. Position 13. Relate
s in d

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 e s on busines Experi
s ence

1 Jinka 10Th grade complete Manager 3years

2 “ diploma “ “

3 “ “ “ “

1.1 Business Idea and Market

Description of the business idea

The business focuses on those enterprises particularly participate on brick manufacturing and
metal work in Jinka town and our business idea is manufacturing manual brick manufacturing
machine (MMBMM).It is the basis for our industrial economy in expansion of urbanization and
modern construction area.
Most of Ethiopians and target area enterprises are fabricate by old technology. However
enterprises are not competitive both nationally and internationally because of poor working plan,
methodology and business idea The business idea try to solve such problem and its marketability
so JPTC plane to solve the business idea limitation and manufacturing skill gap of enterprise in
south omo zone at all.
Description of the market
According to our market survey no one can manufacture the machine and we have identified a
high demand for our product in all over country and around Jinka. As far as our survey Block
and Brick manufacturing enterprises are expanded in all over Ethiopia and around Jinka but there
is no simple, modern, time consume, and productive machine. The MBMM market has no
competitor since the machine is new in Ethiopia and also it assembled easily without foreign
currency with small manufacturing price but we have to plane to distribute with fair price by
considering the customer need and economy.
1.2 Marketing Plan Product
Detailed description of the products

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Our product type is manufacturing manual brick manufacturing machine that produce four brick
at a time with different shape. It cannot use electric power and simple to use serves for different
purposes so that we can have as many customers SMEs and MMFEs as possible. The machine is
very fair price comparing with imported mechanical machines, rational wise, easily fabricated,
increase production rate, and anyone can operate it easily. The specialty of our product is used
to realize industrialization of our country addition to any project can also be useful for brick
production.

1.3 Specification of the Product

No Specification of the Product

1 Maximum working capacity unlimited

2 Length and width possible 5mm*600mm

3 Machine weight 10 kg

4 Over all machine dimensions (100*150*100)cm

5 Production per hour 300

1.4 After Sales Service

We will give the following services:

1. Warranty for one year

2. Maintenance service.
3. Coaching, consulting on operating system and safety.

1.5 Marketing Plan Price

 Our customers/SMBMEs/ willing to pay who are on micro and small level of income
group
 our price 2500 birr for manual brick making machine
The reason to setting our price:-
 We use selective raw materials and machine for production.
 Durability and efficiency of the machine
 Our manufacturing processes is simple and scientific not traditional.
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  The production parts of machine are locally available not imported.
 On the bases of above reasons we set our price on the purchasing power of
customer.

1.6 business location

Location of the business (description of the planned location of the business)

The planned location for our machine industry will be at the main city of south Omo Jinka
Reason for choosing the location the business
Demand for our product is highly needed through the country basically Jinka and its area has not
similar manufacturing enterprise.
Methods of distribution the product to customers:-
Through individuals and merchants.
Reason for choosing this way of distribution:-
We decided to deliver the product directly to the customers to avoid unnecessary price increment
and by reasonable merchants which will not affect the purchasing power of our customers.
Marketing Plan Promotion:-
We promote our product through printed materials like brochures, posters and also we use
personal selling.
The legal form
Our business legal form is a partnership. The reason for choosing this form:-
 Easy to form
 Low costs to start
 Added capital sources
 Shared management
 Possible tax advantage
1. Production Plan

2.1 Production Process

List of production step:-

1. Prepare working drawing
2. Select raw materials ,machine, hand tools and instrument
3. Transferring the dimension to the work piece

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 4. Machine, forge and cut into dimension the parts accordingly
5. Assemble the parts according to the drawing and
6. Finishing work

2.2 List Fixed Assets Needed and Their Cost

No. Item Quantity Cost
Amount

1. Portable Grinder 1 1200

2. Wielding machine 1
3. Scriber 1 30
4. Steel rule 1 50
5. Vice 1 300
6. Ball peen hammer, 1 60
7. Try square 1 50
8. Hack saw 1 60
9. Arc Welding machine 1 4000
10. TOTAL 5750

2.3 Useful Life Time of Each Fixed Asset:-

Investment item Life Span Depreciation Investment Total depreciation

in years (in %) cost

Shade 5 5 3000 3000 x 5/100 x 1= 150

Machines 8-10 12.5-10 5200 5200x 10/100 x 1 = 520

Hand tools 3 33.3 1585 1585 x 33.3/100 x 1 = 527.805

Total 1197.80
5

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2.4 Brief Description of Production Capacity of the Project per Month:

Month 1 2 3 4 5 6 7 8 9 10 11 12

No. of product 50 75 75 100 100 100 100 100 100 100 100 100

2.5 Factory Layout

[Link] Material Specificati Unit Total size Unit Quanti Cost Remark
on ty /req
cost require materi
d al

1 Galvanized pipe ¾’’ piec standard 249.00 1 249.00

e

2 Galvanized pipe ½’’ piec standard 170.00 1 170.00

e

3 Black sheet 200x100x2 Piec standard 300.00 1 300.00

metal e

4 Angle iron 3000x6x2. piec 3000 mm 120.00 1 120.00

5 e

5 flat iron 3000x9x3 piec 3000 mm 145.00 1 145.00

e

6 Round iron 1000x30x1 Piec 1000 mm 50.00 1 50.00

2 e

Total 1034.0
0

2.5 Factory Layout

2.7 Staff Cost

No Position Qualification Salary Per Remark

Month

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 1 General manager GMFA L5 1400
2 Operation manager GMFA L4 1200
3 Finance manager Accounting L4 1200
4 Machine operator Machining L3 1300
5 Sales man Marketing L3 1000
6 Store man Purchasing L2 600
Total 6700
2.8 Factory Overhead Expenses

No Overhead expenses Amount per month

1 Indirect labor 3900

2 Electricity 1500
3 Maintenance 200
4 Depreciation of fixed 91349.4
Total 0

Production costs of each item to be produced

Raw materials per month= 2721
Direct labor per month = 5100
Factory overhead expenses per month = 96949

2.9 Organization and Management Plan

Forms of business
Our form of business is: - partnership
Organizational Structure

General Manager

Financial Manager Operational Manager

Sales person Store man Machine Operator Designer

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 2.10 Business Experience & Qualification of Entrepreneur

Our partnership has 4 year experience on machine importing.

2.11 Administrative Expenses

No Administrative expenses per month Amount

1 Allowance 250
2 Supplies 50
3 Communication 200
Total 300

2.12 Financial Plan

Capital Requirement

Capital requirement/project cost/ Amount

Fixed Assets
- Land(20x20 = 400m2) ---------
- Building 100,000
- Equipment’s( with machine) 824105

- Others 200
Total Fixed assets 924305
Pre-operating expense 300

Working capital

- Operational costs of one months

Raw materials costs 2721 x 50 = 136050

Administrative expenses 900

Staff cost of one month 9000

Total working capital 145950

Total capital requirement 1070555

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 2.13 Profit & Loss Statement

Annual Projected Profit& Loss Statement

Gross sales 0
Less: Returns -----------

Net Sales

Less: Cost of goods sold 0

Gross profit 849215

Less: Administrative & Selling Expenses ------------

Operating profit 849215

Less: Interest Expense -------------

Net profit Before Tax 849215

Less: Estimated Income Tax 289275.25

Net profit After Tax 559,939.75

2.14 Cash Flow

Projected Monthly Cash Flow Statement

Particulars Pre- Month
Opera
1 2 3 4 5 6 7 8 9 10 11 12
ting

Period

Cash at the 750 112 112 150 150 1500 1500 150 150 150 1500 1500
beginning of 00 500 500 000 000 00 00 000 000 000 00 00
the month

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Cash inflow

Equity 1137.5
0

Borrowin
gs

Cash sales 600 600 600 975 975 9750 9750 975 975 975 9750 9750
00 00 00 00 00 0 0 00 00 00 0 0

Collection
of A/R

Other
income

Total cash 13500 611 172 247 247 247 2475 2475 247 247 247 2475 2475
inflow 0 37.5 500 520 520 520 20 20 520 520 520 20 20

Cash
outflow

Pre- 200 200 200 200 200 200 200 200 200 200 200 200 200
operating
expense

operating 101 101 101 151 141 1415 1415 171 171 171 1718 1718
expense 50 50 50 00 50 0 0 80 80 80 0 90

Purchase of 1137.5
fixed assets 0

Taxes 1817.
payable 25

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 Total Cash 33121 331 331 331 331 331 3312 3312 331 331 331 3312 3312
outflow 0 210 210 210 210 210 10 10 210 210 210 10 10

Cash at the 11100 111 111 111 111 111 1110 1214 121 151 131 1213 1112.
end of the 00 00 00 00 00 0 00 400 400 200 00 75
month

2.16 Balance Sheet

Projected Balance Sheet

Assets Amount Liabilities Amount

ASSETS LIABILITIES

Current Assets Current Liabilities

Cash at hand and bank 413309.75 Current Liabilities

Accounts receivable Accounts payable

RM inventory Taxes payable

WIP inventory Others payable

FG inventory Total Current Liabilities

Total Current Assets 413309.75 Long-Term Liabilities

Fixed Assets Loans

Land Others

Building 3000 Owners’ Equity

Equipment’s 1337.50 Capital 7085

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 Others 200

Total Fixed Assets 4557.50

Others 413309.75

Total Assets 417867.25 Total liabilities & capital 7085

2.17 Break-Even Point

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Break even Quantity = Total fixed cost

(price per unit - variable cost per unit)

1197.805∗¿
BreakevenQuantity= ¿=0.33359066835
(7085−113705)

Breakeven point = Total fixed cost x price per unit

(price per unit - variable cost per unit)

(breakeven sales level in dollar terms)

¿ ∑ (ABOVE)924305∗3502.3
Breakeven point=
(3502.3−2721)

¿ 4,143,400

2.18 Return on Investment

Amount received− Amount invested

Rate of return= ∗100
Amount invested

413309.75−1070555
Rate of return= ∗100
107055

Rate of return=−61.39

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