DEFENCE UNIVERSITY COLLeGE OF HEALTH

SCIENCE

SAYAT CAFE

PREPARED BY GROUP 4

NAME ID

SINTIE ABIRIE………………………………………………….0630/17

ALEMEAYEHU HUNDE……………………………………0604/13

FIKADU BULCHA……………………………………………0615/13

WORKITU HUNDE…………………………………………..0634/17

GETU DEREJE………………………………………………….0617/13

MULUSEW ANJET…………………………………………..0627/13

GASHAW EBRAHIM……………………………………….0616/13

ABENEZER TEKOLA………………………………………..0603/17

WONDIMU HABTAMU…………………………………..0633/13

COURSE TITLE:ENTREPRENEURSHIP

DEPARTEMENT MEDICAL LABORAORY

Submitted TO LAMROT (MS)
SUBMISSION DATE:
ADDRESS BISHOFTU ETHIOPIA,PHONE NO 0935947656 E-Mail

Content page

1Executive summery………………………………………………………………………………………… 4

1.1 Mission statement……………………………………………………………. 4

1.2 Objectives………………………………………………………………………… 4

1.3 Service …………………………………………………………………………. 4

1.4 Office equipment ………………………………………………………….. 5

1.5 Background of entrepreneurs ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 6
2Market analysis ………………………………………………………………………………………………….. 6

2.1 Overall market analysis …………………………...….. 6

2.2 Specific market ……………………………………………….. 6

3.1 Competitors’ analysis ……………………………………… 7

2.4 Macro environment influence ………………………. 7

3. Development and production ………………………………………………………………………….7

3.1 Production process (Food production) ……………………………………7

4 .Marketing plan …………………………………………………………………………………………………………… 9

4.1 Overall concept and ori……………………………………….. 9

4.2 Marketing strategy ………………………………………………. 9

4.3 SWOT Analysis ……………………………………………………. 9

4.3.1 Strengths ………………………………………………………… 9

4.3.2 Weaknesses …………………………………………………….. 10

4.3.3 Opportunities ………………………………………………….. 10

 4.3.4Threats -Bad economic conditions …………………………. 10
4.4 Sales forecast …………………………………………….10

5 Organization plan ……………………………………………………… 13

5.1 Organizational structure ………………………………………………………………. 14

5.2 Forms of ownership ………………………………………………….. 15

5.3 Identification of partners or principal shareholders partners………………15

4 Management team background …………………………………………….. 15

6. Financial plan ………………………………………………………………….. 16

6.1 Financial statement ……………………………………………………… 16

6.1.1 Projected income statement ……………………………………….. 16

6.1.2projected cash flow …………………………………………………..… 17

6.2 financial resources ……………………………………………………. 18

7 Assessment of risk and contingencies ………………………………………………………………… 19

7.1 Failure to produce product/services promised ………………………………………… 19

7.2 Unforeseen events …………………………………………………………………19

7.3 New technologies ……………………………………………………………… 20

7.4 Contingency plan …………………………………………………………….. 20

8 Milestones ……………………………………………………………………. 20
1Executive summary

SAYAT cafe will be located in BISHOFTU college located at the back of the main library near the
main road. SAYAT cafe will be run as partnership form of business in 2013 E.C and it will
provide customers an internet(Wi-Fi) access, foods and beverages services and also it will
provide a unique forum for communication and entertainment.

The financing, in addition to the capital contributions from the owners and the bank will
allow SAYAT cafe to successfully open and maintain operations through year one.
Operations in year one will generate the cafe a regular customer base that will allow it to
be self-maintained in year two.

In the beginning year, the business forecast some profit. In the second year and third year
we expect that there will be increment of profit due to increases in the number of
customers and get acceptance. The goal of the business is mainly to achieve and exceed
sales forecasts to enable the business to be operating at capacity, so that the business
will extend the types of service that enables the business to meet the customers need.

1.1 Mission statement

Our mission is to provide quality services for our customers and to foster a family-like
atmosphere where everyone feels comfortable and welcome by treating its staffs like
family and creating a fun and profitable place for them to work.

1.2 Objectives

 The creation of a unique, upscale, innovative environment that will differentiate

SAYAT from local cafes.

 To provide quality fast foods, beverages and the internet(Wi-Fi) services at

reasonable prices with exemplary service.

 To create better job opportunities to the society.

 To generate the maximum profit by assuming any risk and challenges.

1.3 Service

 SAYAT cafe will provide the following services:

  Food

 Beverages

 Wi-Fi services

The menu

The menu is going to be extremely simple, initially focusing on beverages, and food
items such as;

 Coffee

 Tea

 Soft drinks

 Juice

 Milk

 food items, such as

Burger

Pizza

Sandwiches

Pastries (cookies, scones)/ cakes

Flavored desserts
- Chocolate

- Strawberry

1.4 Office equipment

The materials needed will be:

 Kitchen equipment

 Stoves, Spoon, Fork, Juice processing equipment, Glasses with

different size and design, Chopping board, Chair, pans, Refrigerator,
 Table, Jar(bottle), mixers, furniture’s, shelves, dishware and coffee
makers.

 Front-of- house equipment

Tables

Chairs

Televisions, speaker, decoder and other equipment..

1.5 Background of entrepreneurs

The entrepreneurs are undergraduate students in Bishoftu college

of health science department of Laboratory and the entrepreneurs
have no experience before in business activities.

2Market analysis

2.1 Overall market analysis

The industry Cafe business is a growing business activity in recent

years in . Eating out is a growing trend, since people are
increasingly pressed for time and enjoy this convenience. Also the
fast food cafes are becoming popular among students, workers,
tourists, and the local residents.

2.2 Specific market

SAYAT cafe is facing the opportunity of being the pioneer cafe

around bishoftu college main campus, that provide a café services
with Wi-Fi accesses. Also, we have planned to provide quality
services to Bishoftu college students and the society of Bishoftu
college student and other communities as a whole.

Target Customers: the SAYAT café will serve several customer groups.
There are detailed as follows;

COLLEGE STUDENTS: Students there are likely to visit SAYAT cafe in

their daily stay, on their special days, during their holyday
periods and on the weekends. Flyers will be prepared and
distributed to these students about the services of the café and
also the cafe will offer the university students a percentage
 discount on its services during certain times (such as, on their
birthday and graduation parties). Because this group will form the
base clientele, as many will be repeat customers.

Business owners and other workers; this group includes , retailer,

professionals, teachers, laborers, and other service workers. Fast,
accurate service will be provided, as these customers often have
li [Link] time to eat group

2.3 Competitors’ analysis

SAYATA cafe will be the first of few cafe around BISHOFTU main
campus. It will differentiate itself from other ordinary cafes in the
area by providing its customers with internet services.

2.4 Macro environment influence

The macro environment is that affect aggregate demand and

supply of the café business activities. These are interest rate of
borrowing in the banks, inflation and deflation rate that affect the
suppliers and on its price, technological changes, political
situations and many other factors.

3. Development and production

3.1 Production process (Food production)

As much as possible all production will be done from scratch in

the kitchen in houses, however some items will be purchased
from reputable sources. If available, local small business will be
the source of these items. For instance, bread, it will be
purchased from an outside source rather than using up valuable
resources within the kitchen to make bread daily. For example,
daily bakery will be our supplier. Dairy and meat will additionally be
sourced locally from farmer’s market and local slaughter houses
respectively. 3.2 Resources requirements

SAYAT cafe star-up cost will cover modification, furniture, kitchen

and other equipment, and running capital to cover expenses in
the first year.

Start-up costs
 Table [Link]-up expense

Start up

requirement’s

Start-up expense

furniture’s 3,000

Rent 8,000

Internet line 10,000

Total start up expense 21,000

Startup assets

Cash required 40,000

Startup inventory 10,000

Equipment 20,000

Supplies 10,000

Total asset 80,000

Liabilities and capital

Liabilities

Current borrowing 70,000

Total liabilities 70,000

Capital

Owners investment 10,000

total requirement 80,000

4 .Marketing plan
4.1 Overall concept and orientation

SAYAT cafe will be located in BISHOFTU COLLEGE, located at the back f the main library on the
left side of the main road. It provides customers an internet (Wi-Fi) access, foods and beverages
services(soft drinks) and also it will provide a unique form for communication and entertainment.

4.2 Marketing strategy

SAYAT cafe will position itself as a stylish cafe house and internet (Wi-Fi) service provider. It will
serve high-quality fast foods, beverages and Wi-Fi services at reasonable price.

Due to the number of cafes in BISHOFTU COLLEGE, it is important that SAYAT cafe sets
fair prices for its services.

The café will use price penetration and distribute small poster for advertise as main source of
promotion.

Pricing Strategy

The basis for our fruit juice prices is the market price and cost-benefit analysis. Even if
our competitors have no so much strength, we can reduce our price in order to attract
and get our customers attention; as a result, we can increase our profit from large
number of customers. Actually the price of our product is not below the market price; as
a result, fruit juice providing business enterprise set the price of juice as the markets that
are it fluctuates over the time with market price.

Promotion Strategy

Our promotion strategies are applied using the following methods:

 -Sponsorship for short radio programs

 Advertising using Brochures &fliers.

4.3 SWOT Analysis

The SWOT analysis provides us with an opportunity to examine the internal strengths and
weaknesses that SAYAT cafe must address. It also allows us to examine the opportunities
presented to the cafe as well as potential threats.

4.3.1 Strengths
Location of the cafe Location is a primary determinant of business success. Therefore ,the
strategic location of SAYAT where there is a high volume of customers ,makes this space most
ideal working place for the cafe.

 Knowledgeable and friendly staff

 Modern and new café with quality services in the area.

4.3.2 Weaknesses

Size of the cafe might turn into weakness.

4.3.3 Opportunities

• High volume of potential customers.

• The increasing demand for caféé services .

• Growing population of daily Internet users.

4.3.4Threats -Bad economic conditions

 Natural risks (catastrophes)

 General political risk

 Emerging of local competitors

Firstly, SAYAT cafe may enjoy the first-mover advantage in the local cafe market with Wi-Fi
services around BISHOFTU COLLEGE main campus .However, additional competitors are on the
horizon, and we need to be prepared for their entry into the market. Many of our programs will
be designed to build customer loyalty, and it is our hope that our quality service and up-
scale ambience won't be easily duplicated.

 -Inflation

 Volatile currencies will make the café’s investment difficult, because costs and
revenues change so rapidly.

4.4 Sales forecast

The following table and chart summarizes forecasted sales. We expect sales to remain at
a constant level after three months of operation. We predict the first two months of
operations will be slow. Revenues will be limited while a generic quality
 management plan is formulated and basic office administration tasks are
completed.

Sales forecast data for the first year is presented in the table below

Table 4.1 sales forecast

Unit sale sep oct nov Dec Jan feb Mar april may june july Augu
st

Fast foods

Burger 150 200 250 300 350 400 450 460 480 485 500 510

Pizza 40 45 40 50 54 55 60 70 75 78 80 85

Sandwiche 60 70 75 80 80 85 95 100 120 125 130 130

s

Cakes 200 250 270 300 320 350 375 400 415 420 425 430

Flavored 20 25 35 38 42 48 50 55 58 60 63 70
desert

Total 470 590 670 768 846 938 102 108 112 116 1193
5 0 8 3

beverages

Soft drinks 75 80 85 90 95 120 140 150 155 170 175 180

Coffee 200 230 250 280 300 325 340 360 380 400 410 480

Tea 150 160 175 200 210 250 255 26 280 300 350 380

Juice 50 70 75 78 60 65 70 75 80 85 90 95

Milk 50 60 65 68 70 75 80 85 90 95 100 120

Total 525 600 650 716 735 835 885 930 985 105 1125 1195
0

Total unit 995 119 132 1484 1581 1773 191 201 211 221 2318 2420
sales 0 0 0 0 3 3
Unit
price/birr

Fast foods

Burger 38 38 38 38 38 38 38 38 38 38 38 38

Pizza 50 50 50 50 50 50 50 50 50 50 50 50

Sandwiche 25 25 25 25 25 25 25 25 25 25 25 25
s

Cakes 12 12 12 12 12 12 12 121 12 12 12 12
2

Flavored 10 10 10 10 10 10 10 10 10 10 10 10
deserts

Total 135 135 135 135 135 135 135 135 135 135 135 135

Beverages

Coffee 3 3 3 3 3 3 3 3 3 3 3 3

Tea 2 2 2 2 2 2 2 2 2 2 2 2

Soft drinks 7 7 7 7 7 7 7 7 7 7 7 7

Juice 12 12 12 12 12 12 12 12 12 12 12 12

Milk 10 10 10 10 10 10 10 10 10 10 10 10

Total 34 34 34 34 34 34 34 34 340 34 34 34

Total unit 169 169 169 169 169 169 169 169 169 169 169 169
price

Sales

Fast food

Burger 5700 7600 9500 1400 13300 15200 15200 17100 17480 18240 18430 19000

Pizza 2000 2250 2000 2500 2700 2750 3000 3500 3750 3900 4000 4250

sandwiches 1500 1750 1875 2000 2000 2125 2250 2375 2500 3000 3125 3250
Cake 2400 3000 3240 3600 3840 4200 4500 48000 4980 5040 5100 5160

Flavored 200 250 350 380 420 480 500 550 580 600 630 700
desert

Total 11800 14850 16965 19880 22260 24755 27350 28705 30050 30970 31855

beverage

Coffee 400 460 500 560 600 650 680 720 760 800 820 840

Tea 450 480 520 600 630 750 765 780 840 900 1050 1140

Soft drinks 525 560 595 630 665 840 980 1050 1085 1190 1225 1260

Juice 600 840 900 936 720 780 849 900 960 1020 1080 1140

Milk 500 600 650 680 700 750 800 850 900 950 1000 1200

Total 2475 2940 3165 3406 3315 3770 4065 430 4545 4860 5175 5580

Total sale 16815 17790 20135 23286 25575 25575 28525 31415 3305 33005 34595 35830

Direct cost
of sale

Foods(bas 2950 3712. 4241. 4970 5565 6188.7 6837. 7176. 7742. 7963. 8185 6753

ed on 5 25 5 5 25 5 75

average)

Beverage( 618.7 735 790.2 851.5 828.75 942.5 1016. 1075 1136. 1215 1293.7 1395

based on 5 5 25 25 5

average)

Sub-total 3568. 4447. 5032. 5821.5 6393.7 7853.7 8251. 8648. 8957. 9257. 9580 3452.2

direct cost 75 5 5 5 5 25 75 5 5 5

of sale

5 Organization plan
5.1 Organizational structure

SAYAT cafe will be operated by its new general manager for the first one year. The cafe,
being small in nature, requires a simple organizational structure. Implementation of this
organizational form calls for the manager, to make all of the major management
decisions in addition to monitoring all other business activities.

5.2 Forms of ownership

SAYAT cafe will be established as a partnership form of business in 2013 E.C.

5.3 Identification of partners or principal shareholders partners

1) SINTIE ABIRIE

2) ALEMAYEHU HUNDE

3) FIKADU BULCHA

4) WORKITU HUNDE

5,) GETU DEREJE

6) MULUSAW ANJET

7) GASHAW EBRAHIM

8) ABENEZER TEKOLA

9) WONDEIMU HABTAMU

5 .4 Management team background

SAYAT cafe will employ general manager who will take charge of other employees
and the overall operation of the business. The business manager should be
experienced at least in business and should have knowledge of entrepreneurship.

5.5 Human resource management strategy

To create a good reputation and perform excellent services, the café management
team will pay extra attention to employee training and compensation and
incentives to avoid negative impacts on the café’s reputation.

Compensation and incentives

SAYATA will offer competitive wages and benefits to all employees. All SAYAT cafe
employees who work more than twenty hours a week will be offered benefits.
This is the goal of the café’s management team that employees become family
and thus they must be treated in good way. While it is recognized that offering
benefits to all employees will be costly, it is our social responsibility to help our
community and employees. And this may reduce employee turnover and costs.

Employee training

The key to effectively running any business is proper training for the employees.
Therefore, ongoing training will be held focusing on how the team can grow to
provide the best service for our customers. Also training by the chef on different
types of foods and on the specials will be held to make sure the employees know
about the cuisine that they are providing for the customers.

6. Financial plan

The launch of the business will be financed by the founder’s investment and
credit from financial institutions that necessary to accomplish the financial resource
needed to start the business. The following sections lay out the details of our
financial plan the first year.

6.1 Financial statement

6.1.1 Projected income statement

SAYAT cafe

Income Statement

For the year ended 2013 EC

Sales………………………………………………………………………………...100,000

Less; cost of goods sold……………………………………………………………..17,000

Gross profit…………………………………………………………………………83,000

0prating expense

Rent expense………………………………………………………………………...6000
Advertising expense………………………………………………………………….2000

Salary expense……………………………………………………………………..30000

Utility expense…………………………………………………………………….24000

Supplies expense……………………………………………………………………10000

Miscellaneous expense………………………………………………………………2000

Total…………………………………………………………………………………..74500

Net income……………………………………………………………………85000 birr

6.1.2projected cash flow

SAYAT cafe

Statement of cash flow

For the year ended 2013 E.C

Cash received

Cash from operation

Sales cash……………………………………………………………100,000

Sub-total cash from operation……………………………………….100,000

Additional cash received

Capital investment………………………………………………….200,000

Short term bank loan………………………………………………100,000

Sub-total cash received……………………………………………..400,000

Expenditure

Expenditure on operation………………………………………………...130,000

Additional cash spent

Repayment of short term bank loan………………………………………100,000

Sub-total cash spent on operation…………………………………………230,000

Net cash flow………………………………………………………………..170,000

Cash balance………………………………………………………………….170,000

6.1.3projected balance sheet

SAYAT cafe

Balance sheet

For the year ended 2013 E.C

Asset

Cash 170,000

Account receivable 0

Inventory 50,000

Supplies 20,000

Equipment 60,000

Total asset 300,000

Liability and owners’ equity

Liability 100,000

Owners’ equity 200,000

Total liability and owners’ equity 300,000

6.2 financial resources

When a business is initially launched it may need a high amount of money. This is
because of most of the field equipment is purchased during this time. In order to run out
our business with enough finance we try to get from different alternatives

initial capital fund

SAYAT will set up its business with capital of birr [Link] source of finance will be
birr 200000 from partners fund and the remaining 10000 from financial institution or
banks.
 SINTIE ABIRIE……………………………..…………22,222.2

ALEMAYEHU HUNDE……………………..….……22,222.2

FIKADU BULCHA……………………………….…..22,222.2

WORKITU HUNDE…………………...................22,222,2

GETU DEREJE…………………………………………22,222.2

MULUSAW ANJET……………………………………22,222.2

GASHAW EBRAHIM…………………………………22,222.2

ABENEZER TEKOLA…………………………………….22,222.2

WONDEIMU HABTAMU………………..…………..22,222.2

Total owners capital……………………………………..……………200000

Loan from bank………………………………………………………..100000

Total fund………………………………………….…………………..300000

7 Assessment of risk and contingencies

This assessment shows the future uncertainty of the venture to provide service as stated
above and to start the business as stated.

7.1 Failure to produce product/services promised

The entrepreneurs will have get failure to render service as promised because of
many factors. Some factors are stated below.

 Factors related to human resource Factors

 related to the network system

 Problem of awareness related to the service in society and other related

factors

7.2 Unforeseen events

The entrepreneurs will get unforeseen event. Like natural disaster, policy may change
and the like. The unforeseen events may fall in two groups. If it is controllable the
business will try to control these unforeseen events and if it is uncontrollable the
business will accept the risk.
 7.3 New technologies

If there is new technological development, this business will try to adopt and
cope up with the technological or environmental changes.

7.4 Contingency plan

The cafe has decided to set a zone of acceptability for meeting sales and
financial objectives. However, if sales objectives and returns on investment fall
below acceptable levels, certain actions will be taken. These actions include:

For unacceptable sales levels during the first year in the area: SAYAT cafe will
combat this problem by increasing promotional activities. If sales do not increase
within one month of the operation, SAYAT cafe will advertise its services in the
local mass medias. Also after 6 months of marketing products in these areas, sales
will be evaluated

8 Milestones

The cafe management team has established some basic milestones to keep the
business plan priorities in place. This Milestones table below will be updated as
the year progresses using the actual tables.

Millstones Decemb January Februar Marc April Ma Jun July Augus Septembe
er y h y e t r

Business x
plan

Securing X
start- up
funding

Sign lease
with the x
university

Complete x
interior
director

Complete x
kitchen

Heir back X
staffs

Hire front X
staffs

Opening of X
the café

Reference

 Cole and Akrigg, E.C-735. The elements of a business plan; first step for
entrepreneurs. University of Purdue.

 Entrepreneurship and small business management; Dawit ,Ayele and Dawit

Arega; Addis Ababa

Entrepreneurship; Robert D. Hirsch, Michael Peters, Dean A. Shepherd; New Delhi.