ADIGRAT UNIVERSITY

COLLEGE OF ENGINEERING AND TECHNOLOGY

DEPARTMENT OF CIVIL ENGINEERING
BUSINESS PLAN FOR THE COURSE OF ENTREPRENEUR SHIP
Course CODE (Ceng5204) SECTION FOUR
5TH YEAR NET WORK -3
GROUP MEMBERS ID NO
1. SOLOMON GEBREYESUS RET4181/07
2. WERKEY BRHANE RET4409/07
3. YORDANOS GETACHW RET4476/07
4. AWET BRHANE RET 2813/07
5. TSGABU AFERA RET1561/06
6. KIDAN HILUF RET 0915/06

SUBMITTED TO INS: WELDEGEBRIEAL.(MSC) SUBMITTED DATE : 28/09/2011 E.C

ADIGRAT, TIGRAY, ETHIOPIA
ACKNOWLEDGMENT
First we would like to thank our Almighty God who is always with us. And our instructor
WELDEGBRIEL for giving us this project which has been a great learning experience for us and
initiates us to creat a work by our selves. secondly we would like to thank all of the people who
helped us in preparing this project and provided us with information.
 EXECUTIVE SUMMERY
The Business produces of Concrete Walkway products that are used in construction industry as
finishing walk way material. The main product of SYTWAK plc c- 25 concrete walk way . Our
product is solving many questions that are raised in construction sector and especially solved in the
in the way for commercial and residential buildings . Due to high demand and lower supply of
concrete walk ways on the market it is necessary to produce those product . The shareholders are
the key both in managerial and technical experience that is important to the all production process
of the product. To realize this dream the new project Machine that costs million from suppliers.
Since the machine will be bought from abroad the cost of the machine is high and cannot Financed
by the capital owned because it forces to discontinue normal operation of the business.
Therefore, SYTWAK PLC is forced to purchase the machine by loan from the bank and we are
ready to invite the bank in this project, a project that has high Return.
Table of Contents
ACKNOWLEDGMENT ................................................................................................................... 2
EXECUTIVE SUMMERY ............................................................................................................... 3
CHAPTER ONE ............................................................................................................................... 3
1,Introduction to the Business Plan .................................................................................................. 3
1.1BUSINESS IDEA AND MARKET............................................................................................. 3
1.2Confidentiality of this business plan ............................................................................................ 4
CHAPTER TWO .............................................................................................................................. 4
2,MARKETING STRATEGY .......................................................................................................... 4
CHAPTER THREE .......................................................................................................................... 6
3,MARKETING PLAN PROMOTION ........................................................................................... 6
3.1 ORGANIZATIONAL STRUCTURE AND STAFF .................................................................. 8
CHAPTER FOUR ............................................................................................................................. 9
4,BUSINESS OPERATION AND COSTS ...................................................................................... 9
Reference ........................................................................................................................................ 13
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

BUSINESS PLAN ON PRODUCTION OF CONCRETE WALKWAY

A Project to be implemented in Tigray Regional State ,Adigrat Town

2011E.C Page 1
 ````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

Business Name: -SYTWAK plc Production of Concrete Walkway

Address:-Region Tigray Zone Eastern of Tigray Adigrat town
Tel.no:
The Name and Addresses of share holders
NO Name Region Zone Town/city

1 Solomon G/yesus Tigray Eastern Tigray Adigrat

2 Yordanos Getachw Tigray Eastern Tigray Adigrat

3 Tsgab Afera Tigray Eastern Tigray Adigrat

4 Werkey Brhane Tigray Eastern Tigray Adigrat

5 Awet brhane Tigray Eastern Tigray Adigrat

6 Kidan hiluf Tigray Eastern Tigray Adigrat

Name of key Person (Managers)

Name:- YORDANOS
Tel. No: +251900739623

2011E.C Page 2
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

CHAPTER ONE
1,Introduction to the Business Plan
SYTWAK plc , is a small business company introduced by group,whose principal business is the
production of Concrete Walkway

1.1BUSINESS IDEA AND MARKET

BUSINESS DESCRIPTION

TYPE OF BUSINESS AND PRODUCTS

The purpose of the business is production and supply of a concrete walkway of different
compressive strength that will provide services to residential, commercial, and industrial sectors
of the community at any location of the city.

MISSION STATEMENT

The company’s mission is to provide quality and good looking walkway with minimum price to
the ever place, SYTWAK plc concrete walkway production and supply company focus on
providing full service with minimum price as well as quality development.

GOALS AND OBJECTIVES

1. SYTWAK plc walkway production has set achieving the highest standard in walkway
production as its primary goal.
2. To have a healthy and successful company that is a leader in customer service and that
has a loyal customer following.
3. To emerge as a front runner in this sector, i.e. yet to be explored. In doing so it’s the
company’s objective to set milestones in achieving the best product quality.

2011E.C Page 3
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

1.2Confidentiality of this business plan

When an entrepreneur has a plan to start a new business they need to have a confidence about the effort
to achieve the objective of the business unless and otherwise it is difficult to think to achieve the
business mission and goal. SYTWAK plc will start its business with in a full confidence of the group
hope to achieve the goal. The groups are fully confident to accept the consequence at the end.

CHAPTER TWO
2,MARKETING STRATEGY
Production capacity

The production capacity of the concrete mix walkway plant be 600 square meter per day. Based
on working 10 hours a day, the ready-mix concrete plant will be of the order of 6m2/hr. For the
first year of production the plant will operate at 60% of the total capacity then 75% and 90% in
the two feasible years consequently.

CONSTITUENT RAW MATERIALS

The constituent raw materials which will go into the manufacture of concrete walkway will be:
Fine aggregate, Sand, Cement, and Water.

ORIGIN OF RAW MATERIAL

Except water and sand which is available on site, the rest of the raw materials will be brought
from local suppliers.

MECHANICAL EQUIPMENT

The main items of mechanical equipment involved in the concrete walkway manufacture are
listed below:

 Mould making machine

 Concrete mixer
 Vibrator

MARKETING PLAN PRICE

PRODUCT

2011E.C Page 4
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

The concrete production company engaged in concrete (C-25), cement screed and mortar
production. The mix design of these products is described in the table below. As to source of mix
design, it is generated from common practices and other production plants.

DESCRIPTION CEMENT SAND AGGREGATE AGGREGATE WATER

(KG) (KG) SIZE 1 (KG) SIZE 2 (KG) (LIT)

CONCRETE (C-25) 450 230 1210 450 220

2011E.C Page 5
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

The product cost and the selling price are calculated with the current raw material price taken
under consideration.

Product and service Soling walkway with delivery Make the product on site by sq. m
price

How much customers Highest Average Lowest Highest Average Lowest 100
willing to pay? 30 25 15 200 150

Competitors’ price 23-25 none

This Price 23 150

2.2 MARKETING PLAN LOCATION

The proposed business location will be around adigrat The business hours will be from 8:00am-
6:00pm, Monday - Saturday. The plant will be closed on major public holidays. Depending on
specific conditions this may change accordingly. We choose this location because of the
advantage that we can get raw material from near location and also not far for the construction
areas. We could reach the customers by selling on the shops or directly delivery service or
manufacture the product on the site.

CHAPTER THREE
3,MARKETING PLAN PROMOTION
The promotion will be by distributing broachers in the road and on the construction sites. After
getting in the business posters will be posted at main public areas and by giving samples for free
as an advertisement for famous real-estate owners.

2011E.C Page 6
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

START UP CAPITAL

Estimation of startup capital Amount Amount

Investment

Land 1000 sq. m 15,000

Building One 50,000

Equipment Two (Mixer and Mould 350,000

Maker)

Total investment 415,000

Working capital

Monthly staff costs 10 Personnel 45,000

Monthly operational costs 16,000

Total working capital 61,000

Total Start-up Capital 477,000 birr

SOURCE OF START-UP CAPITAL

FINANCING

FROM THE OWNERS 143,100 Birr

(30%)
FROM BANK (70%) 333,900

Total 477,000

2011E.C Page 7
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

3.1 ORGANIZATIONAL STRUCTURE AND STAFF

FORM OF BUSINESS ORGANIZATION

Due to its easeness, complementary skills, and Flexibility, we have decided to take up on the
partnership form of business organization.

ORGANIZATIONAL STRUCTURE

A one level hierarchy of organizational structure is adopted. This structure makes the manager
decision minimum while still overseeing all the departments.
Organizational charts for SYTWAK plc product.

2011E.C Page 8
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

CHAPTER FOUR
4,BUSINESS OPERATION AND COSTS
All products, products range or service.

Month (in one month)

Price (Birr) 23

Product 1 Quantity per piece 5328

Turnover 47%

Price (Birr) 50

Product 2 Quantity per sq. m 250

Turnover 24%

Monthly Operational Cost Plan

Planning is based on the monthly sales plan.

Month (in each month)

Quantity per piece 5328

Product 1
All Material Cost 59358

Quantity per sq. m 250

Product 2
All Material Cost 3000

2011E.C Page 9
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

CASH FLOW PLAN

Month (in one month)

Total Sale 123,786

Product 1
Direct Cost of sales 59,358

Total Sale 3,000

Product 2
Direct Cost of sales 12,500

PROFIT AND LOSS STATEMENT

SYTWAK plc Concrete walkway

Company
production and supply

Profit and loss statement

In one month

Gross Sales 1,485,432 Birr

Less: Return and Allowances -118,834.56 Birr (8%)

Net Sales 1,366,597.44 Birr

Less: Costs of goods sold

Direct Material
-59,538 Birr
Direct Labor

Factory Overhead

Gross Profit 1,307,239.44 Birr

2011E.C Page 10
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

Less: Administrative and Selling Expenses -14,500 Birr

Salaries -70,000 Birr

Telephone -600 Birr

Water -1,400 Birr

Electricity -10,000 Birr

Rentals -15,000 Birr

Others -15,640 Birr

Annual Profit and Loss Statement

OPENING BALANCE

Opening Balance of this business

Assets Value Liabilities Value

Fixed Assets Equity

Land 15,000 Long Term Liabilities

Building 50,000 Mortgage

Equipment 350,000 Loans 136,500

Others Others 333,900

Total Fixed Assets 415,000 Total Long-Term Liabilities 455,000

Current Assets Current Liabilities

2011E.C Page 11
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

Cash 136,500 Accounts Payable

Accounts Receivable 1,055,639 Taxes Payable 12,000

Inventory Others Payable 178,820.916

Total Current Assets 1,192,139.44 Total Current Liabilities 190,820.916

Total Assets 1,607,139.44 Total Liabilities and Net 645,820.916

Worth

2011E.C Page 12
````
Adigrat University
Business plan on production of
College Of Engineering And Technology concrete walk way
Department Of Civil Engineering

Reference

1. Entrepreneurship; Peggy Lambing, charles R. Kuehl; 2nd edition

2. Entrepreneurship; Robert D. Hisrich, Michael P.Peters, Dean A. Shepherd; New Delhi
3. samples of business of plan

2011E.C Page 13