WOLLEGA UNIVERSITY

COLLEGE BUSINNES AND ECONOMICS

DEPARTMENT OF ECONOMICS

BUSINESS PLAN:

VENTURE NAME: Dynamic computer training center

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 Content

Contents
1. Introduction.....................................................................................................................................3
1.1 Project Description...............................................................................................................3
1.3. NATURE OF THE COMPANY.............................................................................................3
1.4. STATEMENT OF FINANCIAL NEED.................................................................................3
1.5. STATEMENT OF CONFIDETIALITY OF REPORT...........................................................3
2. Executive summary........................................................................................................................3
2.1. Industrial Analysis...................................................................................................................4
2.2. Analysis of Competitors..........................................................................................................4
2.3. Strength................................................................................................................................4
2.4. Weakness.............................................................................................................................4
2.5. Opportunities......................................................................Error! Bookmark not defined.
2.6. Hazard:...............................................................................Error! Bookmark not defined.
2.7. Description of project Service.................................................................................................5
2.8. PRODUCTION PLAN............................................................................................................7
2.9. Marketing Plan.........................................................................................................................8
2.10. Pricing....................................................................................................................................8
4.3 Place..........................................................................................................................................8
4.4 Distribution Strategy.................................................................................................................9
4.5 Target Market Strategy...........................................................Error! Bookmark not defined.
6. Financial Plan.................................................................................................................................9
6.1 Sources of finance.....................................................................................................................9
7. Organizational plan.......................................................................................................................12
7.1 Form of ownership..................................................................Error! Bookmark not defined.
7.2 Authority of ownership...........................................................................................................12
7.3 Risk assessment......................................................................................................................12
7.4 internal rate of return /IRR/....................................................................................................12
Appendix...........................................................................................................................................13

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1. Introduction

1.1 Project Description

Dynamic computer training center is a partnership project which is owned by
………..,------------,--------------

1.3. NATURE OF THE COMPANY

As the name of the business center indicates the initial focuses on providing different types of high
quality of different service to the people who come to this Dynamic computer training center.

Dynamic computer training center established to overcome the absence of such type of service
center in this area. This business center provides different juice for JIMMA town society and
Wollega University society. It serves as entertainment area for community especially for
University student and it also contribute for the development of Nekemte town. Basically this
business is believed to reduce unemployment by creating job opportunity for many people.

1.4. STATEMENT OF FINANCIAL NEED

Dynamic computer training center provides enterprise planned to construct and establish a
company with capital of 250,000 birr. The business requires means of acquiring this initial capital
by borrowing from financial institution like: banks, personal capital, and micro finance institution.

1.5. STATEMENT OF CONFIDETIALITY OF REPORT

The owners of Dynamic computer training center spend time, resources, and experience to prepare
business plan. For this reason, the owner has to have the patent right in order to protect the
business plan which is the result of all share holder effort for this reason should not be transferred
or copied to another individual or company. If anyone refuse to accept this, the owners have right
to accuse individual or the company to bring them in front of the law. “All Rights are reserved”
It is known that many types of business implements in each and every aspect of our area and this
comes with interaction of different countries in all aspects of socio-economic and cultural
dogmatism with the beginning of Dynamic computer training center. This is because of comfort
ability of various kinds of environment which assist or help people to lead their life in a good
manner and encourage a main accent in standard of excellence in their life as well. The primary
purpose of this business plan is to provide qualitative and quantitative amount of various types of
fruit juice at affordable price.

2. Executive summary
Dynamic computer training center is a partnership form of project which owned by Yohannes,
Hika, Megersa, Tadelech&.Chaltu
Unlike other typical computer training center will provide unique services with highly professional
that have a BA. degree personnel in addition to search internet service, basic computer training,
and the like.
To start this project we will loan 30% of the requirement from commercial bank of Ethiopia and
the rest 70% is covered by the partners.
We have planned to employee more than 50 permanent and contract workers.

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The services that we will provide include internet services, computer training and photocopy
services, maintenance services and others.

Dynamic computer training center is answer to get the real knowledge about computers training in
order to be the member of globalization.
It gives much access to the user
Access to fairly cost, they can afford and in such a way that are not socially and economically as
well as culturally isolated.
To quality service and get pleasure, enjoy high satisfactory and teaching
The location of our business is comfortable for our customer to easily penetrate in the market
To teach the basic skill of computer and internet knowledge in order to produce a moderate know
Dynamic computer training center goal is to provide services for social, economical, cultural, for
the society and the university community as a whole.

3. Industrial Analysis

3.1. Futures outlook and trends

It is important to put new venture in the proper context. In a particular venture will be assessed by
the potentials investor on a number of criteria one which is the industry in which the entrepreneur
will be computing. The future trade of this company is to provide unique service for the society in
the technological way and to make a well known business center with an international standard.

3.2. Analysis of Competitors

There is no competitors that matches with us there are some centers that have the same name
internet and computer center but they only giveservices like printing, writing that but our business
center is not such like that it gives a vast and a big knowledge for customer with a fair and easy
cost.
Strength
We will have personalized and good approach and services to our consumers. Also we are local
business to understand the targeted customer need.
Our emphasis is on the quality of services, and good markets allows potentially high markup. We
have excellent premises and new equipment, flexible with the technologies change and low
running cost. This new technologies advancement allows us to adjust our services as to the
customers need.
Weakness
This are thing that our bossiness is not good so we found out that the weakness of our new venture
lack of finance in order to advertise our services to our customer, lack of supplies, and lack of
experienced worker.

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3.3 Market Segment
Dynamic computer training center will focus on the following segments. These segments are more
interesting than other groups because they have the specific computer training needs Dynamic
computer training center intends to meet.
Microsoft Training for more 500 company employees.
Training society in different aspects.
Training physicians in specific specialties to use their patient management software.
Training people on how to get the most from the Internet.
Training business people on how to keep up with their websites, from e-mail management to web
page creation and getting information from face book.
Training office personnel on how to use Microsoft Office or other office packages.
Training the first-time computer owner on how to use their home PC.
4Training sales managers on how to use database software to track their sales and marketing
functions.
Training individuals who are looking for better employment on how to use the latest software
packages.

The training computer center has four phasesuch as phase one, phase two, phase three and phase
four

4. Description of the venture

4.1. products
Us we mention in the introductory part our project is going to provide service. We plan to provide
different services in a preferable the right quality at the right time to the right customers. This will
help our customer to get enough services. The main services that we are going to provide our
customer:
 Internet service
 Secretarial services
 Laminating service
 Photo copy service
 Computer training service
 Maintenance service
 Advice services on computer usage
 Printing service
 Bending service
 Business card.
 Computer game
 Play station
 Computer cent
 Publication.
 Others (like CD burning…).

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4.2. Size of the project
Keeping in mind the fact that our project center provides many services, it is easy to that the
project requires a large number of employees and a variety of recourse. We have planed to
employee about 50% of temporary and permanent employee different material and equipment
computer infrastructure that are a need for proper running of the project. In summary our project a
medium size project and we will have plan to expand to large in size expand our branch to other
place and increase the services to in different towards/perspectives like

4.3. Office Equipment and Personnel

 Our recourse will be composed of

Since every project is started within material and equipment that in required. So the material and
equipment for our project includes material equipment and machine for different services that we
will provide for our consumers.
The material, equipment and machines are:
- Computer
- Photocopy machine
- Laminating machine
- LAN cable
- Switches
- Printers
- Maintenance toolkits
- Binding machine
- Stationary material (pepper, marker)
- Projector (LCD projector)
- Others
Man power requirement

№ Description Qty Monthly pay Annual pay

1 General manager 1 2083 25000

2 Manage computer maintainance 1 1833 22000

3 Manage resource center 1 1667 18000

4 manage delivery 1 1125 13500

5 Manage photo copy 1 1125 13500

Total 90000

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4.4 Background of the entrepreneur
Dynamics computer traning center like other types of computer center will provide a unqui service
with highly profetionaltha have BA degree personnel in additon to serch internet service.
4.5 Location of the business
Dynamic traning computer center where tranning other service shal take place shall be located in
Wollega University, Nekemte town 331KM away from A.A

5. Production plann
5.1 Production process
Dynamics computer tranning center will offer the following tranningassement micro soft office
based computer tranning word processing soft ware, power point presentation soft
wareaccessdatabase/customer records software,excel spread sheet,publisher desktop, outlook
email, front page webpage development and internet online technology.
5.2 Physical plant
Dynamic computer training center consist of the following facility,
1. Office skill testing, telephone, customer service, call center testing
2. Office management testing, computer literacy testing
5.3 Equipment and machinery
Microsoft office use specialist microshare family authorized, word processing software,access
data base, excel spreadsheet

Our project creates a job opportunity more than 50 permanent and contract employee. According
to our plan we will employee in the following area:
 Manager
 Secretaries
 Computer operator and maintenance
 Photo copy worker
 Trainer
 Guard
 Guest receivers
 Laminator & Binder
 Network operator
 Play station workers
 User assistant/help desk
 Information desk
 Cash Receiver

In addition, we have planned to pay for mentioned employees depending on our size business on
scale of our company and in negotiation. Also, we have planned to award motivation for diligent,
honesty, hard workers and punctual employee at the end of the year.

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6. Marketing Plan

The full marketing plan of our project will publish later on and placed on our project center and
promotion areas and Medias. Our project is designed to provide quality service and keeping our
customers entertained and satisfied by our service. Also our customer entertained in our
entertainment sections (playing station and computer game) until they got other services.in order to
stay competitor with our new project we following key points.

6.1. Pricing

Pricing is one of the marketing plans that should be changed for services taken by a customer.
According to our project we impose reasonable pricing that all of our customers. That means the
price is not as such high or low when we compare to our competitors.
We have also planned to provide the service in the following average prices

Services Price
1. Internet service----------------------------10cents/minute
2. Photocopy----------------------------------0.50 cent/page
3. Printing-------------------------------------2 cent/page
4. Typing/secretarial service----------------2.5 birr/page
5. Computer game---------------------------5.00 birr/hour
6. Play station--------------------------------2.00 birr/game
7. Computer training------------------------300 birr/month
8. Computer lent-----------------------------50 birr
9. Maintenance-------------------------------variable depending on problem
10. laminating----------------------------------4.00 birr/page/A4 size paper
11. binding--------------------------------------7.00 birr/size
12. publication--------------------------------- vary depending on the format

Generally, the price may decrease or increase depending on the total marketing of our suppliers.
But we try to satisfy our customers by not increasing the price.
6.2 Promotion
We have planned to use three types of promotion Medias. Those types of advertisement Medias
are in the local country of TV, radio and website advertisement. Then will be advertise in the
beginning telling the people what we are and where they can get /find us. After the business runs
for longer time it will advertise that, what new services are included and other issues in related
pricing. We will also run some special pricing with advertisements. All of these to make
consumers aware of us and to hope fully increase our sale. For this promotion purpose, we have
budgeted 30000 birr.

6.3 Place
Since Dynamic computer training center is found in front of municipality and this creates good for
us in order to be profitable.

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6.4 Distribution Strategy
The training distribution will begin with first completing a needs assessment on the customer.
Once the customer has been assessed they will be placed in a class that meets their assessment
needs. Once the customer completes the class, they will again be assessed and go through an
outcome procedure. The customer then has the choice of going up to the next level. If a customer
chooses to dropout, they can return and be tested and placed again. The following distribution tools
will be used to aid in our classroom delivery:
Printed material
Instructor-led classroom presentation
CD-ROM
Internet
Professional Speakers
Tours/Field Trips

7.Financial plan
7.1 Sources of finance

In order to find the initial requirements of the business we would require the following financing.

Long term loan ( five years)

This loan will be allotted for buying the following materials and equipments that are necessary for
our business start up.
short term loan(six months)
We require a total amount of birr 20,000 for getting the trade mark license and for advertisement
purpose.
Generally we will loan 35% of our finance from Commercial Bank of Ethiopia and the other
requirement is covered by the investors
7.2 Dynamic computer center income statement

Forecasted Income statement for dec30, 2019 /1st year /

End of one year
Sales ______________________________________508,200 birr
Less cost of goods sold _______________________________17000
Gross profit _______________________________________491000birr
Rent expense ______________________________6000
Licensing expense___________________________1200
Advertising expense__________________________2000
Salary expense______________________________80000
Transportation expense_______________________3500
Depreciation expense ________________________750
Utility expense______________________________24500
Supplies expense____________________________6125
Miscellaneous expense-_______________________2000
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 Total______________________________________________126075
Profit before tax _______________________________________364925
Less income tax (35%) ___________________________________127723
Net income _________________________________________237202birr
Dividend _______________________________________________205000
Retained earnings________________________________________ 32202
7.3. balance sheet for 1st year dec30,2019
Assets
cash _________________________________________________ 0
Inventory _____________________________________________17,000
Total _________________________________________________17000
Long term asset
Equipment _____________________________________________22,500
Land ___________________________________________________8000
Less depreciation /acc/_______________________ 1500
Total __________________________________________________46000
Liability
Account payable__________________________________________10000
Total __________________________________________________10000birr
Owner capital
Retained earnings_________________________________________ 32202
Capital stock _____________________________________________3798
Total liability & capital _____________________________________________46000birr
Projected income statement for 2019and 2020
For 2019 for 2020
Sales increase by 12% ______________________________ increase by 11%
Costs of goods sold increase by 4%_____________________ increase by 5.60%
Expense increase by 4.6% ___________________________ increase by 3.7 %
Projected income statement for the year 2019 & 2020
2019 2020

Sale ____________________________569184______________________ 631794

Less cost of goods sold______________ 17680 _______________________18670.80
Gross profit_______________________ 551504 birr___________________ 613124
Rent expense _____________________6000 __________________________7500
Advertising expense________________2500___________________________ 2500
Salary expense-___________________90000__________________________ 90000
Transportation expense-_____________4200___________________________ 5500
Depreciation expense _______________900____________________________ 990
Utility expense-____________________26000 __________________________26900
Miscellaneous expense-______________2600___________________________ 3000
Total expense ___________________132200_________________________ 136390
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Profit before tax____________________ 419304_________________________ 476610
Less income tax /35%/ ________________146756 ________________________166813
Net income _________________________272548________________________ 309797
Dividend___________________________ 235000________________________ 280000
Retained earnings ___________________37548___________________________ 29797 birr

Projected balance sheet for 2019 &2020

Cash __________________________7500_______________________________ 6000
Inventory______________________ 11800______________________________ 13600
Total _________________________19300______________________________ 18600
Long term asset
Machinery ________________________29000 ____________________________29000
Land _____________________________12000____________________________ 12000
Less Acc. depreciation ________________1900_____________________________ 2000
Total _____________________________39100 ____________________________39000
Total asset _________________________58400____________________________ 57600
Liability
Account payable_____________________ 5000_____________________________ 8000
Loan payable _______________________13000 ____________________________17000
Total ______________________________18000______________________________ 25000
Capital
Retained earnings ___________________37548____________________________ 29797
Capital stock _______________________2852 _____________________________2803
Total ____________________________58400birr________________________ 57600 birr
7.4 C. cash flow for the coming 3rd year assumption
Cash flow for 1st year
Machinery and other row material purchase =6.9% of sale
Wages a birr 1.16 per hour
Operating expense =3.34% of sale
Income tax =34.99% of profit
Loan payment= 10.6% of the whole dept
Cash flow for 2nd year projection
Assumes sales cost increased by 12%
Assumes cost increased by 4%
Expense increased by 4.6 %
Salary increased by 11%
Loan repayment increased by 8.6 % than the previous
Cash flow for the 3rd year projection
Sales will be increased by 9.9% than the previous
Assume cost increased by 5.3% of 2nd year
Salary The expenses similar with the previous trends
loan trend is repayment increased by 7.53% than the previous year
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 8. Organizational plan
8.1 Organizational Structures incase of our business

Management team

1. yohannisLello……………………………………. General manager

2. HikaChala …………………………………………………………………… manage computer maintanance
3. MegarsaFufa………………………………………………………………. Prepare training manuals give the
training
4. TadelechAsafa……………………………………………………………... manages resource center
5. ChaltuTamesgen………………………………………………………….. manage photo copy and
laminating

Theirs responsibility

1. Yohannis ……………………………manager of the project and formulate rule and

regulation
2. Hika ………………………………………………… computer maintainance and network operation
3. Megersa……………………………….. purchase material input
4. Tadelech………………………………. Delivery service
5. Chaltu……………………………………Laminating

8.1.2 Form of ownership

Dynamic computer center is a partnership for organization and the owners of the organization are
the manager of the business and they have the responsibility for the overall operation of the
business.

8.2 Authority of ownership

The owners of the furniture have authority on their business and the power to control the business.
The owners have an authority over the business overall affairs like
The owner have the right to increase or decrease the pricing by considering so many factors like
competitor, demanded etc
The owner have the right to control any risk

8.3 Risk assessment

Risk is uncertainty that faces every business. Normally no good business without risk, but the
degree of risk is different from one business with other one. As there is many competitors
throughout the country, our furniture may face the risk of gaining good market, scarcity of row
material, quality problem and loss of customer loyalty.

8.4 Weakness of the business

Dynamic computer training center is a new business for Wollega University. Their will be shortage
of materials , Lack of finance inorder to advertise our service, Lack of supplies and lack of
experience workers.

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Effects of change

Compitition

IRR measures the worthiness of an investment, i.e. it is the rate of return from investment. Internal
rate of return is used to find the worthiness of an investment proposal by comparing it to the
company’s cost of capital. IRR should be greater than that of cost of capital.
IRR for 1st year = net income /expense = 273202 /126070
= 2.17%
If the IRR is increase, the acceptance of the given project will be increased so, the 1 st year
operation is feasible
IRR for 2nd year = 309,797/136,390
2.27
The 2nd year IRR is greater than that of the 1 st year .this shows that, our project will be successful
in the coming year.
8.5 Contingency plan

Should the demand for training computer center decrease wich does not require much additional
training that will bebad for our businness so that the threat that will find in ournew venture

How wit in the community.

Making the community well prepared to any interference about the computer and internet that by
others.

Appendix
The total area of dynamic computer provides 10m*15m=150m2
The area of training and computer storage area.
Letter

Market research

Lease and contract

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