Jimma University college of Business and

Economics Department of Management

Entrepreneurship Business plan

No. Name Id/no

1. Motuma Beyene............. RU 4636/ 12
2. Firaol Alemu...................RU 4646/ 12
3. Muluken Beyene.............RU 4661/12
4. Muluken Ayele................RU 4431/12
5.Tilaun Chisha..................RU 47

Submitted to Ms: Nechitu

Table of contents

Page

Executive summary................................................. 1

Description of the project........................................1

Project contribution to the economy......................1

1. Introduction ......................................................1

2. Sales and Marketing.........................................1

 2.1 Product description....................................1

2.2 Industry analysis.........................................2

2.3 Anylsis of competitors...............................3

2.4 Location.. .............................................. .....4

2.5 Target marketing........................................4

2.6 Total Demand and Market sales...............5

2.7 Marketing Mixes.........................................6

2.8 Business size .............................................7

3. Production/operation .......................................8

3.1 Production Process....................................9

3.2 Fixed Capital...............................................10

3.3 Sources of Equipment............... ................11

3.4 Planned and Future capacity...........................12

3.5 production cost.................................................12

3.6 Equipment and Machinery...............................13

4. Organization and Management..............................13

4.1 inside management.........................................13

4.2 outside management......................................13

5. Financial plan...........................................................14

5.1 Total capital required for your business

and Source of finance.......................................15

 5.2 Projected Cash Flow Statement...................16

5.3 Projected Balance Sheet...............................16

EXECUTIVE SUMMARY
DESCRIPTION
studio pictures are existing centre emerging today with new technologies across large cities
like Addis Ababa. It is the centre aimed at allocating services for weddings, birthdays,
ceremonies, etc... Now a days many people are perpetually getting finding with this type of
services. Odda pictures and studios will be established for are all society. It will be established
in Jimma, Oromia region. it will start it's service by january 2025 G.C.

PROJECT CONTRIBUTION
The establishment of Odaa studio picture is to contribute towards promoting its services and
safe hospitality for the people around us and maximize profitability and ultimately adding value
to the live of the owner of the centre.

Introduction
Odaa Digital Photo studio processing enterprise will be run as partnership. The enterprise
offers high quality of Photos and videos for customers. The price will be affordable and will not
annoy or exploit customers So that our customers are willing to get our services. Our Photo
providing enterprises will provide its services at local places by identifying and listing each type
of its services with our fair prices.

2. SALES AND MARKETING

2.1 DESCRIPTION
Odaa pictures and studio will specialize in shooting photos and recording and editing videos in
different ceremonies like weddings, birthdays, graduations, and for People who are in several
levels, and occasionally for people's who have special programs it will gives services in door and
to places where they want. Currently we are observing many people getting dissatisfied in
ordinary studio services. So we need to fill this gap because we are also one of them who are
dissatisfied at the service.

2.2 INDUSTRY ANALYSIS:

The centre will be able to host at least 5–10 customers at a time and 100–200 a day because
the number of our cameraman’s working under the company will be many. The main purpose
of this centre is to satisfy our customer’s want with best services, meaning making them excited
to the best extent or completely and at the same time our ultimate goal is to maximize profit.
The market characteristic of the studio is not very much competitive in the area, since other
studios in the area are not satisfying, ours will be extraordinary. Thus the demand of people
getting our services is very high. This implies indirectly Odaa pictures and studio center will be
the best satisfying center for those who will have met it hence It is centred in customer’s
satisfaction.

2.3 ANALYSIS OF COMPETITORS

Currently there are so many competitors in Jimma city. The competitors have the capacity to
provide different photograph services and they use different ways to advertise their business in
order to increase the service giving capacity, level of the photo house and number of clients.
Therefore, the competitors in the market obviously will not welcome us when we inter in to the
market.

Around the place where we are going to start the business There are three experienced
competitors in the market, also there are small in capital amount less than birr 200,000. So the
information below is about the 3 more experienced competitors in their photo studios in Jimma
city.

As follow: Table 1 : Name of competitors

No Name of Address
competitors

1 Gosaye digital Honeyland,

studio Jimma

2 Day to day Kochi, jimma

digital studio

3 Brothers Ajip, Jimma

digital studio

• All The above mentioned competitors are found around our business centre.
 2.4 LOCATION
Odaa pictures and studio will be founded in the centre of the city, this enables many people to
get access easily. In other sense it will be nearby hotels and recreation areas so that it is a good
chance to get customers easily. What makes it different from other studios services is that it
gives its services in-door and out-door yet others are not multi directionally aimed to serve like
this.

2.5 TARGET MARKET

The target market of Odaa pictures and studio will be virtually around 1000 clients located
around the region. The area will be made up of people with population of 6000 people but not
exact.

2.6 TOTAL DEMAND AND MARKET SALES

Our people need to get quality services so it is one of the cases for us to bring the idea to open
the center. So we will prepare an interesting services with fairly cheap price. The center will be
aimed at customer’s satisfaction and at the same time it will create motivation for our
employees to overcome the problems.

2.7 MARKETING MIXES

A) PRODUCTION
The quality of pictures and videos offered to the customers will be more thorough than what is
currently being offered at most others studios in the area. Customers will get comprehensive
services depending on their condition or programs. This service includes: photo and video
shooting on weddings, birthdays, on special program videos such as church programs, on
publishing books video recording and editing music and whatever our customers want is our
services. By offering this complete service packages we will retain our customer’s base and gain
number of visitors. Scheduling of appointment occurs in thirty minute increment for initial visit
and fifteen increment for capturing. There will be no double booking on any times lots. This will
respect the customer's time minimization and waiting, and improve satisfaction. The centre will
be open on evening and weekends. These are additional hours when competition is closed. This
will attract customers who needs an emergency service and who need an immediate evening or
weekend service.

B) PLACE
As we mentioned the Odaa studios will be founded on main Street of hotels, around
Honeyland. This are is a good centre for business. There are many shops which are remarkable
directly or indirectly for the studio. Although Many vehicles along this street, which may be the
problem for the centre, in that it may get injured by vehicles. So far there is no traffic light; but
we hope by that time we intend there will be a traffic light.

C) PRICE
The centre's pricing strategy will be competitive for the area and take the recommended
provincial fee schedule in to consideration. It is important not to undercut the recommended
fees because we want to establish a reputation for a professional, and a high-quality centre.

The price of each service should be tentative and may vary from time to time. The price is
mainly determined by the number of customers, and amount of income. For most small and
new businesses, having the low price is not a good policy therefore we want to compete equal
price with other competitor. But in case, if there is high income the business will discount the
price of its services.

D) PROMOTION
Promotion and advertisement will take place within the guidelines set forth by the provincial
association. Internal promotion is the best method for generating new customers to the centre
because internal customers account above 60% of all visitors’ sources. It will be implemented
through Advertising and promotion and will occur in depth report of findings and by having
professional visitors that is available to the customers.

2.8 SIZE OF THE BUSINESS

The photo house will establish as a medium in its size. However, the photo studio will be
expanded in its size as much as possible. Because of the existence of many competitors in
jimma city, in the near future the photo House will be changed in size and ability. These should
be increase in the types of services that will be providing in the photo house and also it will
increase the number of employees in order to retrieve the feasibility easily.

3. PRODUCTION / OPERATION

3.1 PRODUCT PROCESS

When we shoot photo the editing process will take 10 to 15 minutes for one person, then
printing will not take more than 2 to 3 minutes with quality service.

The primary services which this photo studio will give to its customers are described as follows:

Photo service
The following are major services provide by our photo house.

 Large size photo

 Medium size photo

 Small size photos

 Colour photos

 Wallet photos

 Passport size photos

 This business centre will provide not only hard copy photos but also soft /electronic
copy
  Photos for Facebook or Instagram or for twitter and etc.

 Video shopping

➢ Odaa pictures and studios will also provide video service for clients, for instance in the time
of graduation, weeding, birthday, small conferences, holidays, celebrations as well as different
annual and special occasions.

3.2 FIXED CAPITAL

The company will be vast, thus a large amount of fund must be required. Since it is a start up
business, we will have a shortage of money. Thus all the requirements cannot be fulfilled by us.
To start the business obviously, funding is required. The following assumption of finance is
based on the current increasing trend of finance and this is what we guessed will it be. These all
are financial assumption to start a business up. We will start the business by borrowing most of
the financial required from banks, society, hospital, from our family, from our pocket, from our
respective as well as the society.

3.3 SOURCES OF EQUIPMENT

Our company need different materials like photo printer and its paper, standard digital cameras
and others. We will purchase it from shops and distributors.

3.4 PLANNED & FUTURE CAPACITY

By the time our project will have its own standard studios as a branch in different places which
is aimed at attracting customers. By the future we will have an industry which imports
machines and quality equipment’s to the country because some machines are not distributed
well in the country that fill the societies thrust. This is one way of advertising our company's
services and there will be fast internet access near Odaa studio to attract customers.

We will have 2 to 4 workers which will reduce unemployment by somehow because as we

know there is unemployment problems especially in this type of work people are not easily
employed, so who graduated in this specific field will be hired in our company.

3.5 PRODUCTION COST

our price will be depends on customers instructions one 3× 4 photo printed on one face paper
will be from 20 to 30 birr which is fair related to other studio prices because we will have our
own photo printer.

3.6 EQUIPMENT AND MACHINERY

Equipment’s and machineries that we use for our business are

High-Quality Camera

Wide-angle lens

A Tripod

Photo editing software

External flash units

Lens Filters

A Light meter

4. MANAGEMENT

The company will be managed by comprehensive management.

4.1 INSIDE MANAGEMENT

Since the company will be owned by us we will manage it gently. We will apply our experience
through science. There will be employees in the company who get paid from the et profit the
company gets. they work seriously to get fertile for them selves .they are all who will be
graduated and thus with experience and have background. they manage their own operation at
their level and they are co-workers when needed.

4.2 OUTSIDE MANAGEMENT

 The outside management provides a significant amount of experience and knowledge which
can advise many business managers as required. this resource will be especially important
during the initial business start up phase. periodic support will only be required once the photo
studio begin operating.

Receiptionists serve in accordance with the centre. some of its operation will be greeting
customers or pre investigation, trying to know the case then presenting to us.The salary for
them will increases at each six year by 10%. We employ one during by its establishment.

5 FINANCIAL PLAN
When we see the financial plan of Odaa pictures and studio

5.1 TOTAL CAPITAL REQUIRED FOR BUSINESS

Pro forms income statement of year 1

Income Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year 1

settlement

Revenue 222123 235327 271789 301000 1030239

COGS 42879 47899 49783 55667 196228

Gross 179244 187428 222006 325333 834011

profits

Expenses

Salary 8000 8000 8640 8640 33080

Advertising 123000 113000

Rent 24000 24000 24000 24000 96000

Other 13000 13000

offices

TOTAL 159400 33400 34320 34320 255280

Expenses

EBIT 122540 - - - 122540

EBT 25442 27507 29634 30000 112584

Texes 5088 5501 5927 6400 22957

Net incomes 20354 22006 23707 23600 89667

Income Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year 2

settlement

Revenue 267896 268333 301870 322100 1160199

COGS 57899 62900 59800 49600 230199

Gross profits 209997 2054333 242070 272500 93030

Expenses

Salary 4640 4640 4980 4980 33480

Rent 25000 25000 25000 25000 100000

Other offices 14000 - 6000 - -

expenses

TOTAL 51040 36040 42960 36960 138480

EXPERIENCE

EBIT 30000 - - - 30000

EBT 40000 40000 4000 4000 120000

Texes 7000 7000 7000 7000 28000

Net 33000 33000 33000 33000 92000

Odaa pictures and studios plans to sell a piece of 30,000 packs of photo in the first two years of
establishment. each packets costs different amount. Generally odaa pictures and studios aims
at selling 1500 pack by ETB 450,000.

–Odaa studios centre gets a total revenue of ETB 2,190,438 and expandes a total COGS costs of
ETB 426,427 from this statement it profits a total gross profit of ETB 1,764,011.

–finally in the first two years the Odaa pictures and studios centre will get a net income of

ETB 1,81,667 birr. the following table depicts the flow of money during year1,year2

5.2 PROJECT BALANCE SHEET

Balance sheet of the photo house

✓ Balance sheet show the firm’s financial position reports on a given data and ✓ It shows (tells)
about the three critical term

The amount and types of property the business owns

The amount owed to creditors.

The owners propensity (interests)

Table forecast balance sheet

Odaa pictures and studio forecast balance sheet

For frist year

Cash 391,350

Supplies 50,000

Equipment 535,000

Total asset

Liability

Account payable 50,000

Owners equity

Owners capital 926,350

Total capital and owners equity 976,350

5.3 PROJECT STATEMENT CASH FLOW

Explanation: The cash amount of this balance sheet is obtained from statement of cash flows
which means cash of balance sheet statement is equal to cash at the end of the period in
statement of cash flows.

Supplies: which indicate purchase of supplies on credit. Odaa Digital photo house service will
purchases for 50,000 birr from different supply company computer paper or photo paper, color
and other supplies expected to last four years. This transaction is a purchase on account (a
credit purchase). Assets increase because of the expected future benefits of using the paper
and supplies, and liabilities increase by the amount 50,000.
Appendix
• As mentioned earlier Odaa pictures and studio house service uses different equipment in
operating activities. Some of them are as follow:

Camera (canon EOS 7D camera)

Light (LED video and camera light

Personal computers

Photo printer machine

Adobe photo shop format (software)