DEPARTEMENT OF ACCOUNTING

COURSE TITLE: ENTREPRENEURSHIP

BUSINESS PLAN FOR QUALITY EGG PRODUCERS ASSOCIATION

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GROUP Assignment persention1.
Name
1.
2.
3.
4.
5.

1. INTRODUCTION……………………………………………………......1

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 1.1. Name And Address Of The Company
1.2. Name And Address Of Co-partner
1.3. Statement of confidentiality report
2. Executive summary………………………………………..…...................2
2.1. Mission
2.2. Vision
2.3. Objectives
3. Industry analysis…………………………………………….....................3
4. Description of the venture……………………………….........................4
4.1. Analysis of competitors
4.2. Strength of competitors
4.3. Weakness of competitors
5. Production plan………………………………………………...................5
6. Marketing plan………………………………………………....................6

7. Management or organizational plan……………………………..................7

7.1. Assessment of risk
7.2. Swot analysis
8. Financial plan…………………………………………….….…..............…8
8.1. Income statement
8.2. Balance sheet
8.3. Cash flow
9. Supplement………………………………………………………..............….9

1. Introduction
1.1 Name and address of the company
The Name of the company; QUALITY EGG PRODUCERS ASSOCIATION
Legal form; partnership
Contract address; JIMMA
Phone; 0916101010/0914140000
E-mail address gayonura@[Link]
Type of the business; Service provide
1. Owner of the business
The business will be formed as a profit making enterprise with Two Partener
having equal individual paid in capital. We are voluntaries to work together
for our success.
1.2 Name and address of the co-partner

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 NO N a m e o f P a r t n e r A d d r e s s Qualification
e s

1 Teshoma merga 0 9 1 0 1 0 3 3 0 0 B A
2 Husen Abajabal 0 9 1 4 1 4 0 0 0 0 B A

1.3. Statement of confidentiality report

Any unauthorized duplication or distribution of this business plan without the consult of
the owners of the company will results in civil liability and criminal prosecution according
2. EXECUTIVE SUMMARY
Our business in egg manufacturing partners, which established by two partners in July 1,
2019 in JIMMA . Those who were in related business around JIMMA. Since July 1, 2019 we
plan to emerge and operate as one by going br.150, 000 worse assets together. The business
offer egg by least cost [2br and 75 cents] and are near to the market. We plan to work
eleven hours and six days in a week [12 hour and 6 day per week].The place is in JIMMA
TOWN KEBELE 02 by renting garden with 100 square meter. The main focus of our
partnership manufacturing enterprise is getting raw material and making products that are
essential for users and generate profit from the production. The name and address of our
subcontractor is JIMMA ARAMIC HOTEL. The marketing plan is a vital role in egg producer
and distributor partner successful. Our business group followed low cost strategy. Our
weakness in the business is door-to-door selling. The manager of the business organization
is Ato Jamal Ahmed. The risk of our partnership affects the normal production and
distribution of eggs. We borrowed 150,000 from Dashen bank as of 5 year long term loan
with 13% interest. Our partners have a deposit of br.150, 000 from the Dashen bank. Our
partners almost known by all part of JIMMA.
2.1 Mission:-
The primary mission of Quality Egg Producers Associations viewing greatest living
standard of these Quality egg producers’ association workers including
1. Increased income, being the owner of high money deposit,
2. To qualify our sector by producing high quality product
3. Making our sector special among the present around JIMMA TOWN
2.2 Vision
To become 100% successful by improving our service.
2.3 Objectives-The objectives for our sector and Detail Service are:1. To become
availableourproductforcustomersand detail service. 2. Maintain a very high gross profit
margin. 3. Maintain a modest, steadily growing net profit margin. 4. Expand to two
locations after third year of operation.
5. To generates a comfortable net profit.
6. To create jobs for those who have not jobs before
3. INDUSTRY ANALYSIS
Our business is egg manufacturing partners, which established by twopartners in July
1, 2019, in JIMMA . Those who were in related business around JIMMA. Here the reason

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why we merge our business in to one that before we have lower capacity to meet all
demand and have poor financial ability to invest and to expand our business, and we were
self competitor any rather than fulfilling customer satisfaction so since July 1, 2019 we plan
to merge and operate as one by going 300,000 birr worth asset together.
Our business were sets in JIMMA and we plan to satisfy customer around JIMMA for five
consecutive years .Since Jimma is a big city there are many hotel and restaurants , so we
plan to supply and satisfy customer around Jimma which includes begging and already
established hotels, restaurants and cafés around Jimma.
In Jimma there is no enough producer ,so there is no more competitor ,for more to be
sure there is some governmental organization and no more private company ,that are
produce .but there is many retailer ,that sold and distribute by purchasing egg from
produce out of Jimma ,so this competitors are ;
 First limited in number in comparison with the number of the user
 Secondly they incur additional expense special retailer, like transportation
 Thirdly they does not have adequate capacity to meet all the market demand, even
those they have high linkage of market, so they does not affect our business.
Since the business is established with the aim of aiding the limited supplies and
minimizing price, which increased by competition we got good acceptance from the
concerned body .And here there may be equation like 'why our business will be successful?
‘or 'why customer will purchase our egg?',then we answer this question by comparing our
competitor with our offering.
Our company is sure of winning our competitor. Because as we know our competitor
purchases the egg from out of Jimmathey are not accessible and customer does not get as
they went, as a realest they have to tall there order before a day. Were as individual
householders are fired by higher price of retailers. But our businesses are accessible and
have lesser price, because it has economy of Scale.
4. DESCRIPTION OF THE VENTURE
About our Business:
Quality egg produces business established by two partners in line with required rules and
regulation sated by government as a partnership business. It is an egg producers company,
which is in the venture of manufacturing business, established by joining the already by
established business by the partners. Since this business offer egg by lest cost (2birr and
75cents )and are near to the market we are sure profitable than our competitor and were
as we know it need a great commitment we plan to work eleven hours in a day and sixes
day in a week (11hour &6day per week ).
Product we offer?
As we said we produce egg by purchasing chicken from individual farmers and any one who
had it and then we keep them in their separate place and cultivate them to lay egg and
then after we will sale it to retailers, hotels and restaurants. Here our main target customer
is restaurant $ Hotels.
Location where we are?
Our business place were JIMMA ,where previously we work individually before
merging together .As we said we are in the business ,as a result we know the market .In
JIMMA there is scarcity of supply in the market ,to be sure there is only some governmental
and not much more individual producing company, so because of this we are in this
profitable place means in Jimma kebele 02 by renting garden with 100 square meter .The

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reason why we select this place is that ,because it is nearer to our customers and so that
we minimizecost.
4.1. Analysis of competitors
Recently the available competitors in Town and around that area are high, but the bad
thing is that, there is no much more competitor available in the area local marketing who
reproduce the product in that means way of reproduction system. This leads or intercede
these partners to the group and at the same time to aware the society about the method of
production by using skill man power and system of market strategy to become successful.
The available competitors are not present only Jimma. That means there may be a
competitor who have a high capacity and provide qualified products in different itself so, to
become the winner, the company should eliminate these traditional reproduction
priesthood and these problems associated with health of hens to increase productivity and
to produce qualified producers. Otherwise, they may be high competitors in the market and
leads for risk.
4.2. Strength of competitors
The Strength of our competitor are the way of financing mistakes /problems in our
products and the way of trading a solution or mechanism to serve the problems, there is
also strong business net work and high quality of products the competitors know the effect
of little mistake on the market structure. That is a onetime mistake takes long period do of
time to change the market situation, our competitors effective or storing in the protection
or avoidance of mistakes in the quality products.
4.3. Weaknesses of competitors
The weaknesses of competitors are high production and transportation costs, which results
larger prices and also their approaches to the customers are dominant weakness.
5. PRODUCTION PLAN
Production business plan if& only if necessary for manufacturing products. The main
focus of our partnership manufacturing enterprise is getting raw material &making
products that are essential for users and generate profit from the production. We are
responsible for all activities of the manufacturing operations. Because all the manufacturing
Operations performed by the members of partnership ,the partnership is established by
the interested groups .As a quality egg producers we need contractors /subcontractors .the
name &address of our subcontractors’ are ARAMIC hotel, SOLO Fast Food are the main
subcontractors& receiver of our products/eggs. The addresses of our subcontractors are in
the town of Jimma. The reasons behind the selection of these subcontractors are the ability
to buy large amount of products, based on transportation cost that is subcontractor’s

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location somewhat near to our manufacturing area, they bought on cash& they bought our
eggs permanently. The outcome of our manufacturing entity is eggs. The equipment’s needs
to immediate production purposes are egg’s lay equipment, egg’s store equipment, egg’s
safety equipment that is keeps eggs in normal condition for a specific period of time, office
equipment’s etc. Cost which is incurred in quality egg producers’association are listed &
explained more deeply in the financial statements because financial statements are given
priority for costs expenses in deeply. Generally our egg manufacturing partnership
enterprise activities are so many in numbers. From the main and major activities are keep
societies health by providing healthy egg, build up the enterprise capacities, generate
adequate profit in the long term ,to be competitor, expands area of production and to be
continued its operation in the normal condition.
6. THE MARKETING PLAN
The marketing plan is a vital role in egg producer and distributor partner successful.
The critical concern of the partner is the marketing plan and finding of potential
customer /who by large amount of egg many times/.the potential customer of our partner
are new and they live in Jimma they also buy large amount of eggs from our partner for
their hotels, supermarket, shops and some of them distribute to other retailer. The work
place of the customer is in Jimma and most of the customer buy large amount of eggs from
our partner because of distribute at lower price than other competitor. It distribute the egg
at 2 birr and 75 cents but our competitor distribute the egg at 3 birr and the other reason is
the location of our partner near to Town then it decreases the transportation cost, time and
energy of the customer to buy the egg and our partner produce high quality of eggs in a
short time and distribute to them.
The partner follows the three ways to meet the company needs and want then other
near competitor like retaileregg distributor and governmental prouder. Firstly its
competitor increase through time to time, then by increasing of the quality and producing
high amount of egg by decreasing cost many competitor leave the market and many
customer come to our company. Secondly the pricing strategy of the companies, because
our company follows list cost rule many customer come to our business to buy large
amount of eggs

7. Management/organizational plan
As we have seen earlier our quality egg producers association produce homogeneous
eggs to the society or people. Our background of business experience is helpful for our
business. This means that produce and sell eggs to the people is the most profitable
business .Because most people need eggs for food consumption and resell purpose. Our
business experience that produces quality eggs for the people is the most acceptable
business. Selling eggs using low cost strategy. Our weakness in the business is door-to-door
selling. In order to runniing these business members plans in the future to provide services
to the customers when there are funds using different appropriate cars. In our business
organization the manager is Mr. Jamal Ahmed. He is one of the member and founder of the
business organization. His strength is hard work habit, honesty, good business skill,
punctuality and fair decision. As the same time his weakness he don’t like meeting with the
rest of the business members and he can’t keep business organization secrets. The duties of
the manager are clearly defined when the business organization established.
Some of the duties of manager are

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-Control all activities that can be done.
-Arrive on time.
-Respect other member’s right.
-coordinate activities of the employee.
-Keep business organizations secrets.
-Meet with the customers when they need eggs and
-Check the organization goals that can be meeting or not.
Our current personal needs are wants to get money. This is the same for the rest of
members. Currently we need salary to buy personal goods that are appropriate for our life.
Our plans for hiring and training personnel’s are given continuous education to them. That
education 100% relegated to business. This teaching process helps for our business
organization in order to be successful. After we are hiring and training, our personnel
deeply know how to work for the production of eggs, which kinds of methods can be used
when they work and so on. So generally this continuous teaching process for hiring and
training personnel is helpful for our business to be successful
7.1. ASSESMENT OF RISK
The risk of our partnership affects the normal production and distribution of eggs. There
are many risk which affect the normal operation of the partner among them; frequently
broken down of egg, some hen not lay egg, hazards like hen disease which kills large
amount of hens and other risk related to our partner sometimes customer don’t buy large
amount of egg because of decrease the consumption level of individual at the normal
condition and the absence of food which feed to the hen it result to decrease the production
of egg and the death of hens, the other main future anticipate risk of our partner is increase
the number competitor around our partner which may lead to the shift of our customer to
their. Our company have strategically plan for reducing of these risk. Among them;
1. Place the egg in safety place.
1. Protection of diseases.
2. Buying large amount of foods for hens.
3. Increase advertisement.
4. To decrease the selling price for attracting new customer and to stay the existing
customer.
7.2. Swot analysis
Strength
The accessibility of infrastructures high production quality and quantity better promotion
of the products is the strength of the business plan. Better management skill is the
opportunity of strength.
Threats
The threats of business plan may be fluctuation of price of product due to religious factor.
In fasting season egg may be cheap.
Opportunity

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The opportunity of our business is increase of the product, demand of the customer,
Generally the major opportunity of the business is facility of hotel.
Weakness
The weakness of the business is shortage of person $ Door to Door selling
8. FINANCIAL PLAN
Key assumptions of financial plan
The venture will start up with total capital of Birr 300,000.
That is equity contribution from two partners, Birr 15,000 each=150,000
Five year long term loan with 13% interest from Dashen Bank =150,000
Interest will be paid annually, and the principal will be paid at July 1, 2025
For the first five years we will have two employees with monthly salary of Birr 1000
each.-For each partners and employees, 80 eggs will be given as a bonus annually,
(20 eggs x 4 holidays per year for two partners and two employees).
-500 egg laying hens will be bought at Birr 80 each. After two, or three years, we replace the
hens with new ones (without additional cost, we will get new young hens).
Ten homes for hens at Birr 3,600 each will be bought. One home is for fifty hens
-We assume to get 450 eggs per day from 500 hens after two months of purchase.
-Egg will be sold at Birr 12.80 per egg for 2020, and for the next years, we assume price will
increase by Birr 0.05 per egg annually.
-food for hens will be bought at Birr 4687.5 annually
-We pay Birr 3,000 monthly for rent of land and office.
-We will buy one office table by 400 birr and four chairs by 100 each (400)
We assume 10 years of useful life for all equipment’s.
-We budget Birr 30,000 for legal issues to start the business.
-We use budget 500 birr for advertising.

QUALITY EGG PRODUCERS ASSOCIATION (QEPA)

INCOME STATEMENT
FOR THE YEAR 2020
REVENUE:-
Sale………………………………………………..453,600

QUALITY EGG PRODUCING ASSOCIATION (QEPA)

BALANCE SHEET
FOR THE YEAR 2020
ASSET:-
Cash………………………………………………………….187, 200
Home…………………………………………………………40,000
Hen……………………………………………………………36,000
Land…………………………………………………………...36,000
Office equipment………………………………………………800
TOTAL ASSET…………………………………………………300,000
LIABILITY:-
Account payable……………………150,000

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CAPITAL:-
Owners’ equity………………………150,000
TOTAL LIABILITY AND EQUITY……………………………300,000

QUALIYTY EGG PRODUCERS ASSOCIATION (QEPA)

CASH FLOW STATEMENT
FOR THE YEAR 2021
REVENUE:-
Sale……………………………………..453,600
EXPENSE:-
Purchase of home…………………………40,000
Purchase of hen…………………………...36,000
Rent and office expense…………………..36,000
Expense for office equipment…………….800
Food expense for hen …………………….4687.5
Expense for legal issue(tax)……………..30,000
Advertising expense………………………500
Salary expense…………………………….204, 000
TOTAL EXPENSE...........................351,987.5

NET INCOME.....................101612.5

REFERENCE
Adam Smith(2006) Economic development 8th edition. Aklilu (2007) Agricultural
economics-I 2nd edition
Ethiopian economic policy institution.(2002).On land tenure and agricultural
Development in Ethiopia Getachew A. April (1998) Economic focus volume one.
Effor of group $ Guiding materials given for our Teacher.
9. SUPPLEMENT...
 Our partners have a debit of 150,000 Birr from the dashen bank.
 Our partner almost known by all part of Jimma
 The partner get source of information from the existing company and from
potential customer.
 Government encourages small business then our partner get license from
city administrator.

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 The partners have legal document about level of capital and the installment
place of our partner.
 Initially start the business by renting of house but plan to build at the future.
 The partner made contract to buy the hen and to sell the egg.
 Our partner have five consultancies because the employ and owner of the
partner are profession of management

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