BUSINESS PLAN REPORT 2023
BUSINESS PLAN
FOR
ABC IMPORT, WHOLESALE AND RETAIL TRADE
COMPANY ADDRESS: ADDIS ABABA CITY ADMINISTRATION
K/KERANIO SUB-CITY; WOREDA 03, H.No. 662
MAY, 2023
ADDIS ABABA, ETHIOPIA
WOYINISHET TEKA IMPORT BUSINESS Page 0
BUSINESS PLAN REPORT 2023
Table of Content
I. Executive Summery ………………………………………….…..2
II. Background Information ………………………….....…………4
III. Market Analysis..………………………………………..……..…..8
IV. Production Plan &Technical Analysis……….………….…18
V. Organization and Management …………………………......23
VI. Financial Analysis…………………………………………….…25
VII. Annexes…………………………………..………………………….30
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BUSINESS PLAN REPORT 2023
I. EXECUTIVE SUMMARY
The envisaged wholesale and retail trade business is an Ethiopian based company established under
commercial code of Ethiopia and registered by Ministry of Trade. It is legally licensed as a sole-
proprietorship company owned by individual business entrepreneur. The founder, Mrs ABCis an
Ethiopian citizen at the middle age of life, with having a good character and well appreciated
personality among the society. Besides, she is educated and acquired pertinent work experiences in
different business like Import and distribution business of different kind textile and shoes items in local
market for many years. She has been running the existing multiple business lines with its head quarter
is addressed in Addis Ababa, Addis Ababa, Kolfe Keranio Sub-City, Wereda- 03, House.No. 662.
Furthermore, regarding the establishment of envisaged shoes import line, it is intended to take part on
the development activity of the country by involving in the supply of consumable goods through use of
partially imported and partially domestic materials as raw inputs for intended products market with
international grade standard and quality. The company has planned to supply such products in the
domestic as-well-as export markets. In both cases, there are exists huge potential market in the country
and thereby contribute to the overall national development.
The company is inspired to supply various types of products using modern supply techniques through
creation of employment and saving. In addition, the business objective is to undertake multiple socio-
economic responsibilities on one part and generate income for the company in order to expand the existing
and other development activities in the country. The business possesses an advantage that lies with the high
quality of its products due to specialization and artisan marketing technics. The main market focus strategies
will be of all community inclusive and having an eye catching sign and periodic promotion through strong
network. After successful implementation and starting of full operation, the company will explore the possibility
of making takeout and delivering quality products through wholesale and retail market outlets. Hence, the
market for the products under consideration is projected to grow rapidly in the coming years.
Regarding business financing, the total investment cost required including an existing investment at full
production level is estimated to be about ETB 63.97 million, which intended to be accounted for
investment costs of working premises, Equipment, vehicles, working capital requirements, office
furniture & equipment and raw material. Out of the total estimated initial investment costs, the sum of
estimated ETB 23.97 million is assumed from owners’ equity contribution and about ETB 40 Million
will be sought from local banks.
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BUSINESS PLAN REPORT 2023
According to the annual net profit from sales of its products, the envisaged project will generate a net
profit after tax of ETB 19.05 Ml; ETB 23.48 Ml; ETB 28.75 Ml; ETB 32.29 Ml; a n d ETB 36.21 Ml;
during years 1st, 2nd, 3rd, 4th and reaches Birr 14.96 at the end of life period respectively. The net profit
to equity and net profit to total investment or return on investment (ROI) are all attractive as clearly
indicated in projected income statement. Furthermore, Project cash flow of the business also shows
positive net cash inflow flow throughout the operation years with the net cash flow of ETB 2,121,831;
ETB 28.77 ML; ETB 53.29 ML; ETB 80.66 ML; ETB 108.68 ML; and ETB 137.19 ML; during its year-
0 to 5th years respectively. The NPV and IRR Calculated on the projection are both attractive and
acceptable as shown below:
IRR After Tax 34%
IRR Before Tax 40%
NPV @ 17.5% interest rate 22,048,990
Finally, the import trade operation seems it has reliable positive impacts on the overall development of
the country in many aspects. In this regard, the company with its initial production capacity intended to
move forward, so that;
It creates employment opportunity for about 20 permanent employees;
It generates income to the promoters and enhances self-employment;
The business contributes its best role in the socio-economic development;
It generates revenue to the government in the form of income tax
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