Start – up Schedule

No Activity Quarter 1 Quarter 2 Quarter 3 Quarter 4

Jan Fe Apr May Jun Jul Au Sep Oct No De
b Ma g t v c
r
1 Conduct market √
research and
feasibility study
2 Develop business √
plan and secure
financing

3 Register business and √

obtain necessary
licenses and permits
4 Identify and establish √ √
relationships with
vending machine
manufacturers and
suppliers

5 Develop marketing √ √
and advertising
strategies
6 Purchase and import √ √
vending machines
7 Hire and train √ √
installation and
maintenance staff

8 Develop and √ √
implement inventory
management system
9 Install vending √ √
machines at client
locations
10 Conduct regular √ √ √ √
maintenance and
restocking of vending
machines

11 Monitor and analyze √ √ √ √

sales data to optimize
product offerings and
pricing
additional vending
machines
12 Expand business by √ √ √
acquiring new clients
and installing
 Financial Analysis and Economic Evaluation
Business Model:
The project involves importing and installing vending machines in various locations throughout Ethiopia.
The vending machines will offer a variety of products, including snacks, beverages, and personal care items.
Revenue will be generated through sales from the vending machines.

Investment Cost:
The investment cost for the project includes the cost of purchasing and importing the vending machines, as
well as the cost of hiring and training staff for installation and maintenance. The total investment cost is
estimated to be $500,000.

Product Cost:
The product cost includes the cost of purchasing the products that will be sold in the vending machines. The
cost of the products will vary depending on the type and quantity of products sold.

Other Related Costs:

Other related costs include the cost of obtaining necessary licenses and permits, marketing and advertising
expenses, and ongoing maintenance and restocking of the vending machines.

Sources of Revenue:
Revenue will be generated through sales from the vending machines. The price of the products sold in the
vending machines will be set to cover the cost of the products and generate a profit.

Financial Projections:
Based on market research and sales projections, it is estimated that the project will generate $1,000,000 in
revenue in the first year, with a net profit of $200,000. Revenue is projected to increase by 10% each year,
with a corresponding increase in net profit.

Economic Benefits:
The project will provide convenient access to a variety of products for consumers in Ethiopia. It will also
create job opportunities for staff involved in installation, maintenance, and restocking of the vending
machines. Additionally, the project will contribute to the growth of the economy by generating revenue and
creating a new market for vending machine products.
Investment Cost
Initial investment cost

Fixed costs Quantity Total price

Car rent 1 800,000
Cost of machine 5 vending machines 2,250,000
Installation and transporting 10 300,000
Total cost ---- 3,350,000

Initial stock to fill a single vending machine

 Items Quantity Unit cost Total cost (birr)
Snack 100 12.50 1250
Chocolate 200 10 2000
Soft drinks 200 20 4000
Water half liter 100 10 1000
Hot tea 100ml 500 cup 5 2500
Hot coffee 100ml 500 cup 7 3500
Total 1600 pcs 64.50 14250

Where the above cost of each items are price of earning from the supplier and they are
multiplied by 5 vending machines

14,250*5 = 71,250

 Furniture & Office equipment

Furniture & other office equipment required for the enterprise are:
 shelf
 table
 computer
 writing materials & etc

Item Cost(birr)
Shelves 2500
Tables & seats 5000
Computers 15,000
Writing materials 2000
Other necessary equipment 5000

29500
Total
Ongoing cost
This cost include different costs that spend in monthly or daily costs those are;-
 Monthly rental for the area or putting a vending machine and
 office and storing room

Ongoing expenses Price per month

Area of putting vending machine 10% of sales made
Office and storing room 6000 ETB
The monthly rental or commissions paid to the business owners where we place our machine based
on the agreement. And this payment is only for a single machine therefore we must multiply it by 5
vending machine.
Taxes
Just like any other business, vending machine businesses are responsible for paying taxes. In most
cases we will have to obtain a tax license for our machines depending on country taxes on
the revenue generated by the machine.
Labor or worker price per month

Profession Quantity Unit price Total

Driver 1 5,000 5,000
Technician 2 7,000 14,000
Manager 1 8,000 8,000
Total 8 - 27000 ETB

Other costs

Other operations Cost annually

Service and maintenance cost 10,000
Electric power cost 60,000
Transportation 50,000
Personal expenditure 18,000
Total 138,000 ETB

 Total capital requirement for this business is the sum of all the above costs.

Accounts head Total cost ETB

Fixed cost 3,350,000
Initial stock to fill 71,250
Furniture and office equipment 29,500
Ongoing costs 72,000 plus 10% commission
Labor cost 27000
Other costs 138,000
Total cost 3,687,750
Financial Projections
The total project cost that we discussed before is the cost of initially acquiring the business and
operational costs to be paid monthly or in terms. This can be called production or operation costs of
the project. These costs are calculated in the tables above.

5.3.1 Total revenue costs

The number of vending machine annually based on our net profit and market adaptability. Therefore
based on those factors we decide to increase the numbers of machine and area of installing cities as
the following:-
1st stock of Year 1 Year 2 Year 3 Year 4 Year 5

Snack 100 100 100 100 100

Supply capacity Chocolate 200 200 200 200 200
Soft drink 200 200 200 200 200
Water Tea 100 100 100 100 100
Coffee 500 500 500 500 500

Starting capacity 75% 75% 75% 75% 75%

Utilization
Capacity utilization
growth rate 10% 5% 5% 5%
Capacity utilization of 75% 85% 90% 95% 100%
the Year
supply per year(unit) Snack 75 85 90 95 100
Chocolat 150 170 180 190 200

e Soft 150 170 180 190 200

75 85 90 95 100
drink
75 85 90 95 100
Soda
375 425 450 475 500
Water
375 425 450 475 500
Tea
Coffee
Sales price per unit in Snack 375 425 450 475 500
year(birr) Chocolat 1500 1700 1800 1900 2000

e Soft 2250 2550 2700 2850 3000

1125 1275 1350 1425 1500
drink
450 510 540 570 600
Soda
1125 1275 1350 1425 1500
Water
1875 2125 2250 2375 2500
 Tea
Coffee
Revenue 8,700 9,860 10,440 11,020 11,600

This revenue is only for a single vending machine per one stock fill therefore the total amount of revenue for
all vending machine per one stock fill became:-
1 stock of 1 stock of 1 stock of 1 stock of 1 stock of
No of machine Year 1 Year 2 Year 3 Year 4 Year 5

5 43500 49300 52200 55100 58000