Project Based Training

Project Proposal: Install, Configure and Maintain Server Based Computer Network

Occupational Title: Hardware and Network Servicing

1. Units of Competencies Covered in this Project Based Training

This Project Based training focuses on the following unit of Competences
1.1. Gather Data on Business Requirements
1.2. Determine Best-Fit Topology
1.3. Configure and Administer Server

1.4. Monitor and Administer Stem and Network Security

1.5. Identify and Resolve Network Problems

1.6. Create Technical Documentation

1.7. Apply Quality Control

2. Rationale
This project creates job opportunity to those Micro and Small Enterprises who deliver computer

network installation, network configuration, network maintenance and network related

consultancy services for different offices, Internet cafeé , and Business organizations.

Nowadays, there is a wide application of information technology in businesses and organizations to

increase productivity, to control the quality of products and services of producers and service giving

businesses; to control and manage databases centrally, to increase efficiency and effectiveness

organizational resource management (hardware and software).

This indicate that there is a wide range of need of the computer network in several economic

sectors of the country and this will open door for those trainees who graduate in Hardware and

Network servicing and organized in Micro and Small Enterprises to create their own job

opportunity.

3. Project Description
This project is implemented with various computer network components like equipments,
network toolkits and machineries. The list of equipments, toolkits and machineries needed
for the implementations of the project are:

1. Personal Computer
2. Laptop computer
3. Network toolkit
4. Maintenance toolkit
5. Operating system software
6. Application Software
7. Drivers
8. Printer
9. UPS/Stabilizer
10. Tables and chairs
11. Divider

The project enables sharing of files, centralized resource management, high security, sharing of
hardware and software, Internet connection sharing, and office communication which is highly
important to use limited resources efficiently and effectively.

At the same time, the implementation of this project in different offices and business
organizations allow the users to minimize costs of materials and resources.

The total cost of this project 57,800.00 ETB which is more economical, saves time, saves energy
and increases profitability of the business.

4. Project Objectives

The main objectives of this project are as follows:

1. To introduce project based training by integrating four packages (Entrepreneur skill,

Technology, Technical competence and kaizen)

2. To fill the gap of the TVET trainers through project based training

3. To enhance MSE through IES

4. To equip TVET trainers with the knowledge, skill and right attitude in teaching

Entrepreneurship
4. Layout of the Organization
5. TECHNICAL COMPETENCE

One of the objectives of this project is to enhance the technical skill of TVET trainers. The
project directly relates with the unit of competencies from level III and it covers the
following unit of competencies:

4.1. Gather Data on Business Requirements

4.2. Determine Best-Fit Topology
4.3. Configure and Administer Server
4.4. Monitor and Administer Stem and Network Security
4.5. Identify and Resolve Network Problems
4.6. Create Technical Documentation
4.7. Apply Quality Control
 Business Plan

Abugida Net Solution Abugida Micro and Small

1. Executive Summary

Abugida Net Solution Micro and Small Enterprise will provide computer network and hardware
service and technical consulting (Install, configure and Maintenance service) to local small
businesses, Governmental and Non Governmental Organizations. The enterprise will focus on
marketing responsiveness, quality and retaining customer relations.

Abugida Micro and Small Enterprise will be formed as an SME enterprise having 4 members who
graduate in the occupation of Hardware and Network Services in level III from various TVETs.
Abugida Micro and Small Enterprise will serve customers in the local Holeta town and nearest
woredas. In the 12 month of our plan, we will move into a leased office space. As our service sales
increase, we will have additional members.

Start-up Funding and Financials

To get Abugida Micro and Small Enterprise started the owners are providing cash saved from the
members of the business during their stay on their training and assets. We are also seeking a short-
term loan from Oromia Saving and Credit Association and other Local loan short term loan
providers if necessary, to be secured with the owner's home equity, and repaid within three years.
Our conservative sale forecasts, based on industry research within the local area, Project large sales
in month one, steadily increasing through month twelve. To reach these goals, we will use a quality
service and average price advertisement customer attraction system to exploit our competitors'
weaknesses. With good cost control, we will see a modest, yet comfortable, net profit the first year,
even after moving into a leased space and adding additional members.

Company Summary

Abugida Micro and Small Enterprise is a Share enterprise located in Holeta town, owned by four
SME members. Abugida Micro and Small Enterprise will grow in one year from a four-members,
rent-office based shop to a profitable, 10-person business in a leased location. We will build the necessary
infrastructure to quickly and efficiently respond to customers' computer needs, guaranteeing speedy, friendly,
competent, and cost-effective technical support.

Company Ownership or Legal Form of the Enterprise

Abugida Net solution Micro and Small Enterprise was initially envisioned as a SME share in the
renting shop. However, the forecasting of our marketing demand will suggest a much higher sales potential

than originally imagined, and Abugida Net solution Micro and Small Enterprise will be reformed

as an Abugida Net solution Micro and Small Partnership. This change will provide additional
legal protection for the owners, and will also streamline the financial operations of the company as we expand
the personnel to 10 within the next three years, lease a separate space for offices, and purchase company
motor cycles.

The owners, has a qualification of level III completion certificate from different TVETs in the Occupation of
Hardware and Network Servicing having experiences in the fields of technical support, networking, and
computer training and repair. The members has also spent at least three years industry experience from their
cooperative training and they know very well the computer network and PC repair need of small businesses
and offices.

Business Contribution to the Economy

This business plays a great role in the economy to the national revenue by contributing personal and business
taxes, alleviating unemployment problem by creating job opportunity for the business owners as well as part
time workers.

Start-up Summary

Total start-up expenses include initial expenses for establishing purchase of network toolkit, computers,
printer and doing our pre-opening advertising. Exact allocations are shown in the table _________.

The bulk of our start-up requirements are asset needs: we need diagnostic and repair equipment, half of
which will be purchased by the owners from their own pocket savings. We are treating this equipment as
assets because we expect it to last at least five years, and to have some resale value when we are through with
it; we will buy additional expensed equipment in years two and three. Although we will keep expenses to a
minimum for the first three months, before we move, we will also need cash at start-up, to see us through the
next several months with a positive cash balance.
A total of 57,800.00 initial capitals required to start our business. We plan to fund our total start-up
requirements direct owner investment (including the contributed assets).

Contact Addresses

Tel.

Mobile:- 0911-03-97-62

Office:- 011-210897000

E-mail:- abugidanet@gmail.com
 Owner(s) profile

No Name Address Qualification Function in Relevant experience

the business
1 Tolosa Daba Holeta HNS III Technician 3 yrs in cooperative training
2 Tenaye Tola Holeta HNS III Secretary 3 yrs in cooperative training
3 Hiwot Temesgen Holeta HNS III Technician 3 yrs in cooperative training
4 Chali Bulto Holeta HNS III Technician 3 yrs in cooperative training

1. MARKETING PLAN
Abugida Net Solution Micro and Small Enterprise is a Computer Network service giving
enterprise setup in West Shoa Zone Holeta town around Bus station. This area is selected by the
business because it is easy to access and visited by many customers. Our target market will focus
on Holeta town and the surrounding Woredas. Market research indicates there is an abundance of
business for a small company such as our businesses.

As there is no direct competitor with our business we do have 100% market share. Abugida Net
Solution Micro and Small Enterprise has decided to focus on the small business market and large
companies, as these customers typically don't have a computer network, but have stand alone
computers. Abugida Net Solution Micro and Small Enterprise will offer an affordable, on-
demand service for these customers. We can also offer maintenance agreements that generate
additional monthly income.

Marketing Plan Product/Service

Abugida Net Solution gives services on Installing, configuring and maintaining server based
computer networks as a general. Our business is characterized by its qualified personnel giving
quality services, on time response, dependable service delivery and reasonable price as well as best
customer handling strategies.

Our business gives free after sales service maintenance for those customers who have got our
business services. Our business uses this approach because of the following main points:

1. Maintenance prices are already added on the installation and configuration

2. Good customer handling and advertisement

Marketing Plan Price

Our business sets its service price to be 7,800.00 Birr for the installation, configuration and
maintenance of a computer network that spans from 5 to 10 computers. The reason for
setting this price is:

1. Our profit strategy is to make 50% of a total cost incurred for a service

2. we add maintenance, after sales services on this price

Marketing Plan Place

Abugida Net Solution Micro and Small Enterprise is a Computer Network service giving
enterprise setup in West Shoa Zone Holeta town around Bus station. This area is selected by the
business because it is easy to access and visited by many customers. Our target market will focus
on Holeta town and the surrounding Woredas. Market research indicates there is an abundance of
business for a small company such as our businesses.

We are providing our services directly to the intended customers by the team members of the
business. This is due to the nature of the business.

Marketing Plan Promotion

Our business may use different types of advertisement strategies. This advertisement methods may include
printed materials like business cards, posters, brochures, personal selling, and also word of mouth.

2. PRODUCTION PLAN/Service Plan

List of service delivery steps:

1. Communication with customer

2. Development of project proposal based on the interest of the customer
3. Confirmation of the project proposal with the customer
4. Singing Service Level agreement (SLA) between the service provider and the customer
5. Down payment 15% of the total cost of the project
6. Implementing the project
7. Testing the project functionality
8. Handing over the project to the customer
9. Follow up and consulting on the project at a certain schedule
 List Fixed Assets needed and their cost
No. Item Unit Quantity Unit Price Total Price
Birr Cen Birr Cen
1 Computer PCs 2 5000 00 10000 00
2 Printer “ 1 2750 00 2750 00
3 Switch “ 1 600 00 600 00
4 Office Table “ 1 1200 00 1200 00
5 Computer stand “ 2 900 00 1800 00
6 Office Chair “ 6 300 00 1800 00
7 Stabilizer “ 1 1400 00 1400 00
8 Divider “ 2 150 00 300 00
9 Shelf “ 1 1200 00 1200 00
10 Dust bin “ 1 110 00 110 00
11 Network toolkits “ 2 1500 00 3000 00
13 Crimper “ 10 500 00 5000 00
14 Tester “ 5 250 00 1250 00
15 Drill “ 1 5000 00 5000 00
16 Flash Light “ 4 20 00 80 00
17 Ladder “ 2 1000 00 2000 00
Total 21880 00 37490 00
Factory/plant location and layout
 List of Raw Materials Needed
No Raw materials needed per DIMENSION Unit QUANTITY UNIT TOTAL
Month /Specification/ COST COST
1 Network cable UTP cat 6e full copper Roll 1 2100.00 2100
2 RJ-45 Connector Cat 6 PCs 500 3.00 1500.00
3 Network Operating System Different versions PCs 5 30.00 150.00
4 Windows Operating system XP, Win 7 PCs 2 30.00 60.00
5 Windows Live Maintenance Tools PCs 1 15.00 15.00
6 Blank DVD Sony 4.7Gb PCs 20 10.00 200.00
7 Blank CD Princo 780MB Pack 1 200.00 200.00
8 Printing Paper Double A Pack 1 110.00 110.00
Total 2498.00 4335.00

Staff cost

No Qualification Position Salary/mont Remark

h
1 HNS III Technician Manager 1200
2 HNS III Secretary 1200
3 HNS III Technician 1200
4 HNS III Technician 1200
Total 4800.00
Factory overhead Expenses
No Overhead expenses Amount/
Month
1 Labor Cost 75.00
2 Communication costs 100.00
3 Transportation 100.00
4 Legal formalities 600.00
5 House Rent 700.00
Total 1575.00

Production costs of each item to be produced

- Raw materials per month = 4335.00

- Direct labor per month = 4800.00

- Factory overhead expenses per month =1575.00

 3. ORGANIZATION AND MANAGEMENT PLAN

Technical Manager

Technician Secretary Technician

4. FINANCIAL PLAN
Capital Requirement
Capital Requirement/Project cost? Amount
Fixed Assets
 Land 0.00
 Building 0.00
 Equipments 37,490.00
 Others if any 0.00
Total Fixed Asset 37,490.00
Pre-Operating Expenses
 License and Legal formalities 600.00
Total Pre-Operating expenses 600.00
Working Capital
 Raw Materials cost 4335.00
 Administrative expenses (Transportation, Communication) 200.00
 Staff costs at least 3 Months 14,400.00
 Overhead expenses (House rent, Labor Cost) 775.00
Total Working Capital 19,710.00
Total Capital Requirement 57,800.00
Operational cost
Month 1 2 3 4 5 6 7 8 9 10 11 12
Quantity 1 1 1 2 2 2 3 3 3 5 5 5
Installing Network

Unit cost 7,800 7,800 7800.00 7,800 7800 7800 7,800 7,800 7,800 9,000 9,000 9,000

Total cost 7,800 7,800 7800.00 15,600 15,600 15,600 15,600 15,600 15,600 45,000 45,000 45,000

Quantity
Service 2

Unit cost
Total cost

Quantity n
Service n

Unit cost n
Total cost n
All Total 7,800 7,800 7800.00 15,600 15,600 15,600 15,600 15,600 15,600 45,000 45,000 45,000
products operation
cost
Monthly sales plan

Month 1 2 3 4 5 6 7 8 9 10 11 12
Price 11,700 11,700 11,700 11,700 11,700 11,700 11,700 11,700 11,700 11,700 11,700 11,700
Product 1

Quantity 1 1 1 2 2 2 3 3 3 5 5 5
Revenue 11,700 11,700 11,700 23,400 23,400 23,4000 35,100 35,100 35,100 58,500 58,500 58,500

Price
Product 2

Quantity
Revenue

All Revenue 11,700 11,700 11,700 23,400 23,400 23,4000 35,100 35,100 35,100 58,500 58,500 58,500
products
 Cash flow - Projected Monthly cash flow statement
Pre-
Months
Particulars operating
period
1 2 3 4 5 6 7 8 9 10 11 12
Cash at the beginning of 19,710 23,610 27,510 31,410 39,210 47010 54810 74310 93810 113310 126810 140310

the month
Cash Inflow
- Equity 57,800.00
- Borrowings 0.00
- Cash sales 0.00 11,700 11,700 11,700 23,400 23,400 23,400.00 35,100 35,100 35,100 58,500 58,500 58,500

- Collection of A/R 0.00

- Other income 0.00
Total Cash Inflow 57,800.00 31,410 35,310 39,210 54,810 62,610 70410 89910 109410 128910 171810 185310 198810
Cash outflow
- Pre- operating expense 600.00
- Operating expense 0.00 7,800 7,800 7,800 15,600 15,600 15600 15600 15600 15600 45,000 45,000 45,000
- Purchase of fixed assets 37,490.00
- Taxes payable 0.00
Total Cash outflow 38,090.00 7,800 7,800 7,800 15,600 15,600 15600 15600 15600 15600 45000 45000 45000
Cash at the end of the month 19,710.00 23,610 27,510 31,410 39,210 47010 54810 74310 93810 113310 126810 140310 153810
Profit & loss statement (for service business)
Annual projected profit& loss statement

Amount
Sales 153810
Less:- pre operating expense
 Raw Materials cost 4335.00
 Rent expense 8400
 Administrative expenses (Transportation, Communication) 2400
 Labor cost 900
Total operating expense 16035
Net profit before tax 137775
Less :- Estimated income Tax 40271
Net profit 97504

Balance sheet

ASSETS Amount LIABILITIES Amount

Assets Liabilities
Current Assets  Current liabilities
 Cash at hand and Bank 15375  Accounts payable
 Accounts Receivable  Tax payable

 RM inventory 4335.00  Others payable

 WIP inventory Total current liabilities
 FG inventory Long term liabilities
Total current Assets 19710  Loans
Fixed Assets  Others
 Land Owners equity
 Building  Capital 57800
 Equipments 37,490
 Others 600
Total Fixed Assets 38090
Total Assets 57800 Total liabilities and capital 57800