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INTRODUCTION
2. EXECUTIVE SUMMARY
Our business plan SENAY will introduce repairing service that is one of a
kind. The name is taken from a Geez word which means good, great named
after the service we intend to provide. We will be offering repairing service to
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the community by employing technicians for repairing malfunctioning
electronics, plumbing, installing of wires, pipes and so on.
What makes our business unique from other repairing services from is that we
intend to exploit the internet to our advantage to save time and effort to contact
specialists. We will not be place limited since we have sufficient experts in
almost all parts of the city, so that our customers will get all the help they desire
as soon as possible. All they have to do is to contact us and a technician nearby
will be there in no time.
Most of the work we do ends up online or on a phone call. So the office we
need is relatively small only for our operators and receptionists. The workplace
will be located in Ethiopia, Addis Ababa city at Bole Sheger building.
Senay have a huge goal of achieving success by equalizing the satisfactory
difference between customers, technicians and our company in return for fair
charging and quality products and services brought to them. The base idea of
this business plan is to save time, energy and money of our customers primarily
at every solution possible.
Senay will be owned by 3 partners who are listed as follows;
1. Bezawit Cheru
2. Bezawit Tefera
3. Bezawit Sahlegiyorgise
Statement of Financial Requirement
The project will start the operation with Birr 400,000. Out of this 50% of the total
amount of investment is financed by the owners (200,000) and the rest 50%
(200,000) is from banks as a loan which will be paid within five years with the 7%
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interest rate. Most of this investment will expanded on planting the business for
future rather than increasing short term gain of owners. This means some fixed
asset of the business may use high portion of the investment.
Confidentiality of the Report
This document is confidential and proprietary. It may not be circulated or disclosed
in whole or part without written permission of the partners. No guaranties are made
or implied. plans and projects are subject to change. All stated amounts are
approximate and estimated.
3.0 Industrial Analysis
3.1 Future Outlook and Trends
As market analysis is the key activity for determining the scope of all investment
projects, we have assessed the market demand and founded that there is a high
need in the area of service. Our analysis is not limited to only the study of future
demand but extended to market share of the competitors, nature of competitors,
nature of competitors and availability of substitute services and price of such
services.
3.2 Project's contribution to the economy
This project will try to solve the one of the major economic problem by providing
employment opportunities for technicians with enough skill and knowledge but
lacking customers. And for people who are looking for technicians, they will get it
right away.
3.3 Analysis of Competitors
There may be other companies that offer similar service but they are very few in
numbers and rare compared to the quantity demand in the economy.
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Although there are some self-employed or business owning workers that have
profession in the above fields, most of them are not well known so their
opportunity of getting customers is lower. For this reason, we will work with them
and find customers easily for them they are considered as competitors but our
business plan is more comfortable for users because it saves time and physical or
mental effort. So both customers and technicians will be willing to work with us.
4. Marketing Description
4.1Market area
The market area will be starting is in Addis Ababa city since the demand is higher
than other parts of the country but through time, we plan to expand to more places.
4.2Main customers
The repair service has identified two distinct main customers, home owners and
property managers. These are the most attractive customer segments as they are
the customers who often have small repairs that are too small for a contractor but
too complicated for the owner to perform themselves.
Handymen are typically used for small items; contractors are typically called in for
more extensive projects.
Customers will often call whatever service provider they are familiar with,
regardless of the skill that individual have but when our project is available these
targeted customers will have a reliable technicians to get the job done.
4.3Total demand
80% of all home owners need a repair service at least twice a year so it will be
profitable if we work with them.
4.4 Market share
The market has been shared into two distinct customer groups:
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Home owners
• 47% of home owners attempt to make small repairs themselves, often starting the
repair and realizing that they do not have the skills to complete it. The remaining
53% do not attempt to repair it; they call a professional from the start.
• 62% have owned their home for more than two years.
• 73% wait until several small problems accumulate before they call a handyman.
This behaviour can be explained by not wanting to incur a large upfront charge just
to have someone fix one thing.
Property managers
• Manage between three – 20 units.
• Typically do not have their own in-house repair man in an effort to reduce
overhead expenses.
4.5Selling price
A repair service charges on average 100 - 400 birr per hour; though the price can
change …. The rate can climb up to 500 birr per hour for professional handyman
services, though the average is 300 birr per hour.
[Link]
5.1 Production process
Our employees will do tasks like:
- Registering technicians who are willing and able to work with us
- Answering phones from customers
- Getting full information from customers about the problem and providing
the nearest and available technician
- Checking if the work is done properly
- Working on the payment method
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5.2Fixed capital
Tools Price per unit Quantity Total price
Office desk 4,000 3 12,000
Office chair 1,500 5 7,500
Shelf 3000 2 6,000
Desktop 20,000 3 60,000
Office phone 7,000 3 21,000
Counter 4,000 1 4,000
Divider 550 2 1,100
Printer 17,000 1 17,000
Total - - 128,600
5.3 Life of Fixed capital
Tools Life span
Office desk 5-7
Office chair 8-10
Shelf 9-10
Desktop 4-5
Office phone 5-7
Counter 15-17
Divider 5-7
Printer 7-10
5.4Maintenance and Repair
Since we will be working on repairing items we won’t incur any maintenance cost.
5.5 Source of Equipment
We will be getting our repair items such as pipes, circuits, screw and etc. From
local producers to get since they will be cheap and widely available
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5.6Planned Capacity
Making 40% of processional technicians in Addis Ababa under our business by
signing contract and licensing them.
5.7Future plan
Starting our own school to train professional technicians giving them a job
opportunity right after they have graduate.
5.8 Labour
We are planning to engage a lot of repair service providers in different areas
5.9 Cost of labour
The cost of the repairers will not be fixed because it will be dependent on the work.
So in the way of our business plan, 30% is for the company and the rest 70% will
be for the technician.
5.10 Labour availability
Labour is abundantly available since there are a lot of repairers that lack sufficient
work or good salary. So our opportunity will help them get more work.
5.11 Labour productivity
We intend to measure labour productivity through short message service (SMS)
once the job is done costumers can let us know their experience.
5.12 Factory over-head expenses
The over-head expenses will be rent, insurance and utilities
6. Form of Business
Our specific form of business is “Service Provider”. Our work will be centred on
our customers’ needs and efficiently and effectively satisfying them.
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6.1 Organizational structure
At the top of the company we have our share-holders and board members,
immediately after is our CEO, we then have the managers and the professionals
hired after a deep and thorough screening of the applied candidates, and finally the
call centre agents. The board members and CEO handle all the major decisions of
our organization, the managers’ check up and follow through with the work and
quality of work our technicians performed. The call centre agents are the backbone
of our company, they take all the orders and designate our repair agents and follow
up on how the order went and if customers were satisfied
6.2 Business experience and qualification of entrepreneur
Each and every one has an experience with various forms of business types. From
small stake holders business to big fortune 500 companies. Some of us have
working as a financial consultant and others as marketers, we also have call centre
oriented members
6.3 Pre operating activities
Before starting our business we have scouted and taken surveys in different areas
and come up with a marketing strategy that will be beneficial to both us and the
consumers. We’ve also had different meetings and came up with an advertising
methods to draw the attention of our target group.
6.4 Pre operating expenses
During the survey we have expended 25,000 birr on man power and refreshments
for our workers, for advertising we have spent 150,000 birr and another 128,000
birr on office equipment coming up with a total of 303,000.
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6.5 Office equipment
Office desk, chairs, shelves, desktop, phone, divider, counter, printer are the
inventories the office has registered in its name.
6.6 Administration expenses
9000 birr for General Manager
6500 birr for Operators
5500 birr for Accountants and
4500 birr for guards coming up with a total of 24,000 birr
7. Financial plan
The project will start the operation with Birr 400,000. Out of this 50% of the total
amount of investment is financed by the owners (200,000) and the rest 50%
(200,000) is from banks as a loan which will be paid within five years with the 7%
interest rate. Most of this investment will expanded on planting the business for
future rather than increasing short term gain of owners. This means some fixed
asset of the business may use high portion of the investment.
Staff / Employee cost
No Position Salary per
month
1 General manager 9,000
2 Accountant 5,500
3 Operator 6,500
4 Guard 4,500
Total staff cost 25,500
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[Link] Analysis
1. Strength
It allows low income skilled men get more exposure to earn more income
Increase market share by using low price strategy and easy availability
The organization use input materials like pipes, electrical circuits and
more Properly meaning low wastage
Employment opportunities for skilled workers.
2. Weakness
Our system is not widely known of.
3. Opportunity
It is good for new technicians to get more experience and exposure.
It is good for the society to create job opportunities
4. Threat
Because of the current inflation we might encounter unexpected rise in
prices of Equipment.
[Link] Plan
Though having an exist plan makes us feel like we are doubting our business, to
have it all planned out makes it easier for the better so we will be taking the easy
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way out without affecting our customers and that will be selling it to a potential
owners, which we have already prepared as shareholders in our company.
Conclusion
As we know Individual repair services are highly abundant in Ethiopia but still
with a very low income return since they don’t have a regular customer our
business mainly focuses on creating opportunities and exposure for highly skilled
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individuals (technicians) allowing them to generate higher revenue both for us and
themselves.
We will be available in the whole country both rural and urban areas. We clearly
see that we have an opening in the market where our project can and will make a
both parties SATISFIED.
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