WOLAYITA SODO UNIVERSITY

SCHOOL OF INFORMATICS
DEPARTMENT OF INFORMATION TECHNOLOGY

Course title: Entrepreneurship and small business management

Course code: mgmt ----

Business plan title

Nu Bar and restaurant

BY

DEMEKE DENBO

IT/SU/023/10

Wolaita Sodo, Ethiopia

July 27, 2024
Table of Contents
Introduction...................................................................................................................................................2
Executive Summary........................................................................................................................................2
Name of the Business................................................................................................................................3
Owner of the Business...............................................................................................................................3
Legal form..................................................................................................................................................3
Type of Business and Product or Service...................................................................................................3
Source of capital........................................................................................................................................4
Company summary....................................................................................................................................4
Mission Statement.....................................................................................................................................4
Start-Up Summary.....................................................................................................................................4
Management summary..............................................................................................................................5
Location and Hours of Operation..............................................................................................................5
Description of Market....................................................................................................................................6
Marketing Plan Product.................................................................................................................................6
Marketing plan price..................................................................................................................................7
Marketing plan Promotion.............................................................................................................................7
Start-up Capital..........................................................................................................................................9
Source of start-up capital.........................................................................................................................10
Market Analysis............................................................................................................................................10
Financial analysis..........................................................................................................................................12
Financial plan...............................................................................................................................................12
Appendix:.....................................................................................................................................................13

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Introduction
This small business provides different service of the customer
It includes the name of the company i.e. our company restaurant and bar to give different service
for the customer in better way or fair price. The service to give food, drink and online bed room
assign and also additional need.
Restaurant, expects to meet or exceed the financial performance illustrated in the pro forma
financial statements accompanying this plan.
The firm’s immediate goals are as follows:
 In three months – to have renovated the facility to have a more relaxed environment; to
have the kitchen in order and running .
 In one year – to be side by side with competitors
 In three years – to continue marketing efforts to get more customers through the door and
increase profitability

Executive Summary
This business plan i.e Nu restaurant we are joining is intended for ,because of There is more
people around Debre birhan like students ,merchants , employees, and soon .

While they need consume anything from restaurant they faced more challenges such as: less
restaurant ,location of other restaurant are far from they were and so on. To overcome these just
focus on this creative business plan .

The financing needed for our business plan is basically on our equity and the rest we get from
banks, as loans and deal with them to return after three years of our launched business plan.

The market potential of the given business plan is clearly obvious as discussed above

i.e there is less restaurant in a city relative to the people live here so he market potential is high
,not a controversial idea.

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The body gives support to our continue in success with this plan by their idea like customer,
suppliers, top management, and waiter and so on .other support by financing such as:banks,NGO
,volunteer persons and other support us by giving location and licensing to launch our creative
business plan, government body.

Finally, the successfulness of our business is service type which we give to

customer,cost_reduction relative to competitors, by giving them WIFI access , having good
respect to customer ,suppliers ,and the behavior of waiter ,workers, managers and so on.

Name of the Business

 The business will be known as “restaurant business plan(Bar and Restaurant)[“NU]

Owner of the Business

The business will be formed as a profit making enterprise with five partners having equal
individual paid in capital. The formal charter and the agreement accordance with the law of
Sodoand will be drawn up by the authorized body.

Legal form
Contact address Phone_No:

+251920344564

EmailAddress:Nu1234@gmail.com

Type of Business and Product or Service

The purpose of our business is to give the special services to the visitors from country, the city
dweller and every person like food, different types of drink and bed room services to the any
customer and the university students, teachers and other peoples around in the restaurant and also
the victors those who visits the city of debre berhan. Rather than the services listed above it also
gives the services like Internet, refreshment games; like water pools, tennis ball, pool games and
it also gives the online bed assigning system to the visitors before they come to city of debre
berhan.

As a big business restaurant and bar, it will be contains around 100 different kinds of food
services and drinks. It may include internet service, entertainment and support sport shown by

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the DSTV services. Products and inventories of the restaurant will purchased from different
customers, like visitors, from different country or directly from inside the country and dwellers
of the around the city of debre birhan those all can use the product.

Source of capital
In order to accomplish this business the owners have borrowed the loan from commercial bank
of Ethiopia in debreberhan.

Company summary
The restaurant and bar also opened in collection of different five partners to see the customer
need doesn’t get full service around that area and build this company proper service for the
customer .

Mission Statement
 Our Mission is to provide a unique and relaxing dining experience – similar to dining at
home.
 To provide many kinds of services for all customers with satisfactory costs, particularly
to visitors and the resident of Sodo city. Because there is no any restaurant that gives the
services like online bed room assign system, that have a capacity to provide all needed
materials to solve the problems of visitors. Furthermore our business have the following
mission statement:
 Creating accessibility of all necessary services at the area with affordable price to solve
our customer’s costs, time, and money and buying efforts.
 Increasing sales revenue (profit) of the owner of the business by the higher rate.
 Be the first and most competent supplier of the restaurant in Debre Birhan city.

Start-Up Summary
The cost to open the restaurant is 463,000. The majority of the expenses are in furniture fixtures and
equipment totally 200,000. The location requires some build-out and renovation totally 50,000 and
will require approximately 30 days to complete.
175,000 of the start-up costs will be funded by the owners. The owner’s source of funds is a
combination of liquid assets and marketable securities, primarily from their existing catering
business.

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 Management summary
The business will be in compliance regarding the rule and regulations of sodocity and also with
countries’ business laws. The owner will obtain the required operating license issued by the
north shewa Zone Trade and Industry Bureau and the work permission granted. Contractual
agreements and other legal services will be provided by the law of debreberhan city ordinary
court with representatives.

Location and Hours of Operation

The proposed business will be located in the city of Debre Birhan. This area will be a good
location that may invite a large amount of customers towards our products and services. The
reason why we select the area is that there is the accessible road that is favorable and center
to all customers to go to the restaurant, and good as well as stable environment for the
building of the transport and food and another services. The restaurant will not be closed in a
day of New Year, fiche celebration, Christmas’s, Easter, Ramadan, Arefah and Meskel.
Organizational and Staff

NU expects to hire 26 employees. We’ve adopted an effective interview process designed to staff
the restaurant with highly qualified people for each position. Each applicant will be rated and
evaluated according to a pre-defined set of standards designed for each position. Background
checks will be utilized for designated positions. Recruiting efforts will always center on referrals.
Position task, responsibility and qualification
Manager a person has first degree in hotel mgmt, who can manage the restaurant properly,

Waiter a person who is hospitable and capable of serving the customers.

Guard these are persons hired to secure the gate.
Receptionist the one who contacts the customers first to guide them in the way they want to.
Janitors a person who keeps the restaurant clean.
Cooks a chief who cooks all the ordered foods in a good manner
Bartender the one who works around the bar serving all the drinks and cocktails as they
are ordered.

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 Business idea and market
Since there are only few restaurants around the city which can satisfy the needs of the customers our
restaurant aimed at providing services like foods, online bed assigning, drinks, WIFI internet access,
different games for refreshment etc. the customers may be visitors from the country and outside the
country as well, students of DBU, teachers, residents of the city and Diaspora etc.

Description of Market
This restaurant is going to be built in Debre birhan city around Tebase besides the college of Victory.
This area or location is chosen because it is centralized market area.
Reaching the customer by providing services to:-

Marketing Plan Product

Our restaurant offers the services stated above.
 Unlike the other restaurants it provides online bed assigning.
 Since it gives the better service ever with fair price customers choose to come to our
restaurant.
 It offers the most advanced services on time.

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Marketing plan price
Service Food Drinks Bed rent
How much are Highest:50birr Highest:500 Highest:300
customers willing to pay Average:25birr Average:250 Average:200
Lowest:15 birr Lowest:190 Lowest:150
Competitors price Highest:70 birr Highest:600 Highest:500
Average:30birr Average:350 Average:250
Lowest:20birr Lowest:250 Lowest:200
My price 15-50 190-500 150-300
Reason for setting my Mainly to serve the customers with fair price
price

Marketing plan Promotion

We found it better to promote our restaurant by using different brochures, posters, opening
ceremony, distributing fliers and through printing the overall actions on a well known magazines
and news paper articles and also advertising through TV and radio etc.
Market Segmentation
NU will appeal to a broad base of consumers in both the residential and business community. The
location selected for NU was chosen primarily to appeal to the growing number of households in the
area.

The residential population in the immediate area is comprised of a mixture of single family and
multi-family housing.

Positioning

Consumers believe that meals at home are healthier and higher quality than eating at restaurants. At
NU, we will position ourselves as the premier home-style restaurant by preparing quality home
cooked meals with simple wholesome ingredients. NU will also provide home cooked fare that
appeals to the current trends of healthier food and offer menu selections which will appeal to this
group. NU will be positioned as the premier traditional home-style restaurant.

Legal form

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Our business company is formed by five individuals who have different ideas and starting
capital. Therefore, its legal form is partnership.

We choose this legal form because of the following reasons.

Since it is difficult for single person possessing adequate capital, technical skill. Knowledge and
managerial experience. So to solve these problems two or more individuals having their own.

Capital, technical skill, knowledge and managerial experience for contribution of the developing
company are united together.

• Financial resources and talent are pooled from all the members of the partnership.
• Simple and inexpensive to form. Registration fee and taxes become easy because each
owner contribute actively.
• It is often easier for a partnership to obtain capital than other forms of business
ownership because the financial resources of all the partners can be used as security.
• In this ownership system, taxes are paid through each partner’s personal income tax so
the same savings are possible.
Market strategy and implementation

The environmental analysis of the business consists of both external and internal aspect of the
environment. From external, opportunities and threat will be analyzed while internal
environment contains analysis of strength and weakness of restaurant in its working time periods.
These all analysis is called as SWOT analysis.

a/ Strength: Purchasing restaurant goods directly from whole seller and importer companies will
reduce the unit cost of purchased materials, good quality products of the store will exactly meet
customers need, and it will be the only provider of all kind of only “NU”restaurant in the area
around the city of debreberhan.

• Prime location with easy access from Interstate

• Exceptional staff with the can do attitude. Combined 25 years in the restaurant industry
• Because owner has catering industry experience, he already has established a customer market and
approved vendors

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• Due to our small size, we believe we can provide exceptional quality by hand selecting our market
specials when compared to our larger corporate competitors
• The same concept holds true in our staffing requirements, by hand selecting our employees we will
strive to offer unsurpassed service when compared to our larger competitors
B / Weakness: Difficult to expand the restaurant because of the place that is not much enough in
the present location, shortage of capital, and high transportation cost of products from different
area to the raw materials that changed to the products.

• Recruiting and retaining quality employees

• Tight margins will allow little wiggle room for error

C / Opportunities: customers, it can easily meet demand of different level of customers, it can
provide Internet service when customers are in the trouble/ argent situation, and it will be a good
place for dweller to communicate with each other.

• Little barriers to entry allows for immediate business opportunities

• Offer additional catering services
D / Threats: There will be decreased and few number of customer during summer season. And
new entrants will come to and provide the same product with low price. Then, customers will go
to consume our competitor products & our market share will be decreased.

• Government mandates (restaurant operation, food safety, and worker protection at the federal level
and health, sanitation, safety, fire at the local level)
• Rising operating costs
• Building/maintaining sales volume

Start-up Capital
This business plan is prepared to obtain supporting in the amount of 10,000,000 birr The
supplemental financing is required to begin work on site preparation and modifications,
equipment purchases, and to cover costs in the first year of operations.

Estimation of start-up capital amount 10,000,000

Investment
Land 30,000

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Building 70,000
Equipment 100,000
Total investment 200,000
Working capital 300,000
Month of staff costs 100,000
Month of operational costs 100,000
Total working capital 500,000
Total start-up capital 700,000

Source of start-up capital

Type Source Condition Amount
Equity capital Partner Duration
Loan Bank loan Interest 30%
Total funding 400,000
Information about funding source

Loan :
Commercial bank of Ethiopia which founds in Debrebirhan
Credit agreement

Finalized
Market Analysis
The restaurant is rapidly expanding its services and number of services from time to time.
Restaurant particularly targets the dwellers and visitors with all customers in the city of
debrebirhan. Currently there is no as such restaurant in the city that of debrebirhan. which gives
the online bed room reservation system..

The restaurant has many visible comparative advantages than its competitor. In terms of products
or kind of services in the restaurant has an overwhelming advantage than the restaurant that is
found in the debrebirhan. city building which is called “NU”. The restaurant and bar product
quality as well as supplying capacity was far better than that of the restaurant in the city of
debrebirhan.. In addition to this, it may have the ability to provide products with low costs and
have capacity to serve the customers appropriately in a better manner than its competitor.

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Furthermore, “amme da’ate” restaurant will be more beneficial in making its operation program
and in terms of customer attraction capacity.

Sales Strategy

In order to facilitate the service delivery in addition to customer’s satisfaction, the “NU” will
have three rooms: one to food products and drink, and the second to entertainment places, the
third one for bed room classes laminating, printing and writing room. The customer of the city
dweller by the needed material directly from the restaurant with cash or they can use through
borrowing or debt by registering their address which will and will be paid maximum within a
month.

6. Management Plan

will be responsible for the overall operation of the “NU” restaurant, while manager will be
responsible for the accounting (record keeping), buying of the needed material from different
agents, keeping the restaurant relation with the tax collectors and other as well as the selection of
the employees. The payment for employees, the number and kind of employee required, the
expenditure of funds, as well as other accidental risks and agreements will be conducted to them.

Employees

The “NU” has more 26 employees . Those employees with their functions will be recognized as
follow:

 The manager who operate and administer the business,

 One Bajaj driver who will be transports both manager and purchased products from
different agents to the restaurant.
 Other two employees who have computer skill will be required in the second room for
manage the data and check the request those who send to reserve for bed room.
 And one two cashier one for the drink and the another for the food cashier whose
qualification and personal behavior is evaluated by both stakeholders and the owner of
the business, and who have the capacity and experience will be required for keeping
restaurant products.

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Financial analysis
The financial projection is based on monthly revenues of 100,000 Birr during the first month of
operation of the business and is expected to increase to 60,000 Birr by the end of the first year of
operation. This profit is net profit which is out of rent payment, tax, employee’s payment and
other costs. And the projected revenue will gave rise the business/restaurant a gross benefit of
88,000 Birr before tax net income of 6,500 Birr, and positive cash flow of 1,400,000 Birr during
first year.

A/ The initial capital for the business is 10,000,000 Birr, and increasing after a year as the
revenue of the business and its scope of service is increasing.

B/all partners have equal right of sharing the revenue or profit of the business per each month.

C/ The capital getting or received from Bank as loan is expected to rapid and fast in each month
after the business start and make the profit. 30% from net profit of each month will be paid to the
borrower.

Financial plan
 Required Cost of Start-Up
• Profit and Loss
• Cash Flow
• Balance Sheet
• Financial Ratios
Projected Profit and Loss
The profit and loss demonstrates modest increases in revenues over the three expected years with
adjustments for inflation.

Pro Forma Profit Year 1 Year 2 Year 3

and Loss
Income
Sales 1,028,422 1,161,443 1,235,835
Cost of Goods Sold (402,113) (414,176) (426,602)
Gross Profit 626,309 747,267 809,234
Expenses

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Accounting / Legal 12,000 12,360 12,731
Bad Debts 2$0205,0,70101 1$5206,0,40802 1$0207,0,20706
$90,000 2$39320,700 2$49252,481
Net profit 1422 $20,568 $21,185 $21,821

Appendix:
Finical Loan from

o Commercial Bank of Ethiopia

Key Word

NU:- name of the restaurant

Finger Food:- Food type

SWOT:- Strength Weakness Opportunity and Testing

WIFI:- Wireless Fidelity

NGO:- Non-Government Organization

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