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COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

Business plan for Maraki Photo


House Service

Submitted to Instructor Date of submission


Mohammed K. Dec, 2018
MARAKI PHOTO HOUSE

Group Member ID
1 Tsegab Teferie 0902762
2 Tewachew Asmare 0902746
3 Wondmnew Yimen 0902778
4 Tsegazeab Wedimagegn 0902763
5 Yalemzewd Tehone 0902791
6 Habtamu Debas 0902544
7 Haftu Mehari 0902548
8 Tilahun Yalew 0902755
9 Yeshiamel Tilahun 0902797
10 Wanaw Tilahun 0902769
11 Mastewal Mognhodie 1010083

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Table of contents

Contents Page

Table of contents……………………………………………………………………………………. 3

1. Introduction ..................................................................................................5

1.1.Company name .........................................................................................5

1.2.Name and address of a partners .................................................................5

1.3.Nature of the bussiness ..............................................................................7

1.4.Statement of financial needed ..................................................................7

1.5.Mission of the photo house service ............................................................8

1.6.Objective of the business ...........................................................................8

1.7 key to success ...........................................................................................8

2. Executive summary ........................................................................................9

3. Industry analysis ........................................................................................... 10

3.1. Future outlook and trends ...................................................................... 10

3.2. Analysis of competitors .......................................................................... 10

4. Description of venture .................................................................................. 11

4.1. Types of services .................................................................................... 11

4.2. Size of the business ................................................................................ 12

5. Operation plan .............................................................................................. 12

6. Marketing plan.............................................................................................. 13

6.1.Market segmentation .............................................................................. 13

6.1.1. Market segmentation based on age………………………………………….13

6.1.2. Market segmentation based on sex………………………………………….13

6.1.3. Market segmentation based on income…………………………….........14

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6.2. Pricing………………………………………………………………………………………..14

6.3. Target market……………………………………………………………………………..14

6.4. Promotion…………………………………………………………………………………..15

6.5. Service forecasting………………………………………………………………………15

7. Organizational plan…………………………………………………………………………… 15

7.1. Structure of the plan administration system………………………………… 15

7.2. Roles and responsibility of the members of the Maraki photo house
privilege activities ………………………………………………………………………. 16

7.3. Form of ownership……………………………………………………………………. 17

7.4. Authority of participant……………………………………………………………… 17

7.5. Research and development…………………………………………………………. 18

8. Assessments of risk ………………………………………………………………………… 18

8.1. Weakness of the photo house service…………………………………………… 18

8.2. Strength of photo house……………………………………………………………. 19

9. Financial plan…………………………………………………………………………………. 19

9.1. Income statement of photo house………………………………………………. 19

9.2. Balance sheet of the photo house………………………………………………... 21

9.3. Statement of cash flows……………………………………………………………… 22

10. Appendix………………………………………………………………………………………… 24

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1. Introduction
1.1 Company name (name of business)

The name of the company shall be Maraki photo house service partnership.

 Legal form:- General partnership


 Contact address:- Bahir dar city ( 07 kebele around the middle of peda
and selam campus)
 Telephone NO:-
 Types of the business:- Service provider
1.2 Name and address of the partners

The name and address of the partners put as follows.

1. Tsegab Teferie
Address -----------------------------------------------Bale Robe
Qualification -----------------------------------------BA Degree
Function on the business -------------------------General Manager
Tell No----------------------------------------------------0938519050
2. Haftu Mehari
Address ----------------------------------------------- Raya Alamata
Qualification -----------------------------------------BA Degree
Function on the business --------------------------Assistance Manager
Tell No----------------------------------------------------0938171660
3. Yalemzewud Tehone
Address ----------------------------------------------- Dejen
Qualification -----------------------------------------BA Degree
Function on the business --------------------------photo editor
Tell No----------------------------------------------------0924527573
4. Mastewal Mognhodie
Address -----------------------------------------------D/markos

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Qualification -----------------------------------------BA Degree


Function on the business --------------------------secretary
Tell No---------------------------------------------------0945457580
5. Tilahun Yalew
Address -----------------------------------------------Bahirdar
Qualification -----------------------------------------BA Degree
Function on the business --------------------------Financing
Tell No---------------------------------------------------0978501483
6. Wondmnew yimen
Address ----------------------------------------------- Simada
Qualification -----------------------------------------BA Degree
Function on the business --------------------------Color editing
Tell No---------------------------------------------------0925995726
7. Tsegazeab wondimagegn
Address ----------------------------------------------- Mizan Teferie
Qualification ----------------------------------------- BA Degree
Function on the business --------------------------Cameraman
Tell No--------------------------------------------------0931998965
8. Habtamu Debas
Address ----------------------------------------------- Dangla
Qualification -----------------------------------------BA Degree
Function on the business ------------------------- Video editor
Tell No--------------------------------------------------0967589549

9. Yeshiambel Tilahun
Address ----------------------------------------------- Sekela
Qualification ----------------------------------------- BA Degree
Function on the business --------------------------Camera man
Tell No------------------------------------------------- 0949976681

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10. Tewachew Asmare


Address ----------------------------------------------- Debub Gonder
Qualification ----------------------------------------- BA Degree
Function on the business -------------------------- Video man
Tell No---------------------------------------------------0943069451
11. Wanaw Tilahun
Address ----------------------------------------------- Jan Amora
Qualification -----------------------------------------BA Degree
Function on the business -------------------------- Photo printer
Tell No---------------------------------------------------0985074324
1.3 Nature of the business

As the name implies that our business center will have to be designed to
provide different photo graphic services for the society especially for students.
This photo shopping business will provide high quality and decorative photo
and video service for the entire customers at the right time with moderate
price.

1.4 Statement of financial needed

Our business plan initial capital will be 750,000 that will be covered by
partners and borrowings, 550,000 capitals will be covered by partners by
contributing 50,000 each.

The remaining 200,000 birr will be covered by borrowing from commercial


bank of Ethiopia. This capital is required to fulfill the basic components of our
business center like, business site (shop), desktop computers, laptops, camera,
camera light, furniture’s, software’s etc.

1.5 Mission of the photo house service

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Maraki photo house have its own mission to satisfy our customers and clients.
The beneficiary of photo service prepare different photo for the society in
appropriate way.

The other mission of this business center will be to meet the needs of the
customer according to their own interest. And also give outstanding
contribution for digital world.

1.6 Objectives of the business

The general objective of the business center is to provide various types of


photographic service for the society. The photograph that the customers’ needs
will be for birthday, marriage, graduation, weeding, celebrations (holidays),
meeting and other ceremonial activities are the essential points for the
customers. So in this time they will acquire fast and qualified photo service.
Moreover, the business also aimed at to get income or profit as well as it will
create job opportunity.

In addition to this the business will have appropriate role to create qualified
person in electronics technology and digital studios.

1.7 Key to success


 The key situations for our success will be:-
 The larger marketing for the photo service for university photograph
(for example, graduation ceremonies, GC birthday), school photos
and ceremonial Albums.
 The creating of smooth relation with our customers in order to get
permanent clients of the photo graph service.
 Our customers will be students, local peoples and civil servants etc.
 The other way of obtaining permanent clients will be that give
awareness for them about our business and promote them to use in
our business center.

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2. Executive summary

The photo house shall be established as a partnership business company. As it


has been described before the initial capitals will be obtained from commercial
bank of Ethiopia which can be paid in the future 200,000birr and 550,000 birr
covered by partners. The business shall provide quality photo service for the
customers; since a photo graph is essential everywhere and every times people
are forced to use photo graph. It may be for school, university, and other
related issues photo is very essential instrument.

Photo is also used to retain events that human beings have done during their
life time. In other word people used photo as a memomerization purpose. So
this business center will designed to provide all the above mentioned service
according to their request.

For instance, if an individual’s needs photograph service we will try to give


photograph service with in a short time and high quality with different styles,
design, and decorations in order to satisfy the needs of the client according to
their choice, because giving quality and timely services for the people enable us
to have large number to customers.

Our photograph service will give not only for students but also it will give for
different other ordinary people. Their academic formalities are also prepared
with help of photo, because without photo any academic certificate will not be
prepared. When the people want photo during festivals, weddings, birth days
most people enjoyed by photo graphs. Because it reflects the entire activities
during their ceremonial occasions.

Our main target is to acquire large number of clients. It helps us to improve


our photographic materials by changing the earlier one with the latest photo
and video devices. It also develops our motivation to further more than ever
before.

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3. Industry analysis
3.1 Future outlook & trends

Since the photo house business is very interesting and attractive by whichever
the service will provides to the customers it become preferable and able to get
recognition and priorities by the local community. It may increase its
standardized services dramatically. It also enables us to establish another
business centers and we will be competitive. This means that if our initial
business (photo house) develop, it will leads to us set up additional business
center in these kind for other works but different with photo business in the
site parallel with photograph for instance if we get high profit we will establish,
private photo copy machine, maintenance Audio center, internet cafe and
computer center. So we follow such types of trends no doubt we will be
profitable more than ever before and we will create job opportunities for
individuals who are interested in such kinds of business. Because man power
will be needed to facilitate (run) this business activities. And it helps us to
improve our living standard all the above mentioned business are needed
skilled man power especially those who have knowledge in a computer
technology they will be able to beneficiary.

3.2 Analysis of competitors

Currently there are so many competitors in Bahir Dar city.

 The competitors will have the capacity to provide different photograph


services and they will use different ways to advertise their business in
order to increase the service giving capacity, level of the photo house
and the number of clients. Therefore, the competitors in the market are
not welcome us when we inter in to the market.
 There are Three more experienced competitors in the market and the
others are small in the capital amount less than birr 100,000 so the

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information about the 3 more experienced competitors of in their photo


house (shops) in Bahirdar city are as follows:

Table 1 : Name of competitors

No Name of the competitors Address

1 Ephrem digital studio Bahir Dar

2 Photo Muluken Bahir Dar

3 Teshe digital studio Bahir Dar

 The above all mentioned competitors are found around our business
center that we will try to establish for the future.

4. Description of venture.
4.1 Types of services

The primary services this photo house will gives to its customers are described
as follows:

Photo
 The following are major services provide by photo house
 Large size photo
 Medium size photo
 Small size photos
 Color photos
 Wallet photos
 Passport size photos
 This business center will provide not only hard copy photos but also soft
/electronic copy ( for facebook or instagram or for twiter and extra)
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Video

 Maraki photo house will provide video service for client, for instance in the
time of graduation, weeding, birthday, small conferences, holidays,
celebrations as well as different annual and special occasions.
4.2 Size of the business
 The photo house will establish as a medium in its size.
 However, the photo house will be expanded in its size as much as
possible.
 Because of the existence of many competitors in Bahirdar 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 provide in the photo
house and also it will increase the number of employees in order to
retrieve the feasibility easily.

5. Operation plan

Maraki partnership is the operation of photo house service. The photo making
activity will pass through several stage of treatment in various types of
processing and editing before reaching to the customer in the form of well
structured and designed activity.

The main focus of our partnership service is getting customers and making
them pleased and generate profit parallely. We are responsible for all of our
activities of service giving operation. Because all of the service providing
operation is performed by the partners, the partnership is established by the
interested and motivated members. But, since all the members do not have
experience, we are going to take short trainings before we start the operation of
the service.

The outcome of our service entity is providing qualified photos and well
organized videos. The equipment needs to immediate service purpose are digital

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camera, camera light, laptop, desktop computers, furniture etc. The cost which
is incurred in quality photo and video association are listed and explained more
deeply in the financial statement. Because financial statement is given priority
for costs and expenses in detail.

Generally our photo house partnership enterprise activities are so many in


number from the main and major activities are keeping the customer satisfied
by providing qualified photos, building up the business capacity, generating
adequate profit in the long term, being competitor , expanding area of
operation and to continue service providing operation in the normal
condition.

6. Marketing plan
6.1 Market segmentation
6.1.1 Market segmentation based on age
 The employees mostly from the age of 19-25 years old.
 This age groups helps them to do effectively without tiredness and even
enable to attract customers.
 And this age region is very active for every activity.

6.1.2 Market segmentation based on sex


 The employees are both male and female: it consists 10 males and only
1 female. The number of males are greater than that of female because
our business center is very challenging work.
 But it does not mean that female are not opposed (resist) the challenges
even though limited the number of female.

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6.1.3 Market segmentation based on income

All workers are self employees on their own business center, therefore they
earned according to the share and the income is also distributed in the same
manner. It shows the amount of income that will be earned.

6.2 Pricing

The price of each service should be tentative and may vary from time to time.
Because of the price, is mainly determined by the number of customers, and
amount of income. For most small and new businesses, having the lowest 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 photo graphs.

The price of photos is described as follows:-

Table 2 : Types of photo and its price

No Types of photo Price


1 For large size photo 180Birr
2 For medium size photo 90 Birr
3 For small size photo( including 15 Birr
passport size)
4 For color type photo 15 Birr
5 Wallet photos 25Birr
6 Soft copy photos( for facebook, 25Birr
instagram)
6.3 Target market

We are a part of photo house business services. So our target is the medium
and the lower economic level society including students. Therefore our market
target is maintenance of service with in the low cost.

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6.4 Promotion
 It is a necessary activity that the photo should advertise the overall
quality of its service and types of services. It will provide to customers by
using different means of promotion about the business company.
 Such promotions are organized or transmit through broachers,
leaflets, by stamping banner around customer’s home etc.
 We will also use other method of advertising like word of mouth
and network of friends or professionals.
6.5 Service forecasting (prediction)

The service will be designed depend up on the nature of customers and they
needs photo professionals so that the photo house in the future expected to
improve the following things:-

1. Quality of photo
2. Instruments (photo graphic materials)
3. Provide multiple options in photo style.
4. Consumption of time to produce quality photos in the business
5. Different photo options

Therefore, the product in the future is expected to produce quality and efficient
products.

7. Organizational plan
7.1 Structure of the plan administration system
 The organizations of the company will have a coherence structure to
facilitate the company’s duty.
 Then the photo house organizational structure will seems to like the
following.

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General Manager

Vice (Assistance) of manager

Employee(partners)

Customer

7.2 Roles and responsibility of the members of the


Maraki photo house privilege activity

General Manager: - He has a power or responsibility to control the overall


activities of the Maraki photo house station. He will also formulate the market
plan of the photo house by discussing

Some other duties of the manager are

• Control all activities that can be done.


• Arrive on time.
• Respect other member’s right.
• Coordinate activities of the employee.
• Keep business organizations secrets.
• Check the organization goals that can be meeting or not with the
partners.
Employees: - Be accomplish their activities by ethical manner

 They are responsible for the general manager


 Respect the customers and will give effective service to the community
as a whole.

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 Arrive on time
 Perform efficiently and effectively
7.3 Form of ownership

The Maraki house of photo shop will be established as a private business


which will be operated by the 11 partners that are listed in the previous pages.
We have a dream to achieve our target by working hard. We will have an
agreement on the ongoing give of service and life plan of the business.

These agreement are try to carry out different difficulties facing in reduction of
the service that will be provided by Maraki photo house in a peace full way.
That means discussing clearly, about the business plans, about how to work
effectively how to satisfy our customer and also how to reduce the price of
photos in order to increase the demand of the customers, to become more
successfully.

7.4 Authority of participant


 We will have the right to open and close the Maraki photo house at any
time.
 We will respecting each other due to we believe by reason then we will
have in separable and complicated authority about Maraki photo house.
 Then by discussing us together without the intervention of the other we
will have a right (authority) to:
a. Increase the number of employees.
b. Increase the size of the Maraki photo house
c. Change the working place of the Maraki photo house station.
d. Open different branch

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7.5 Research and development


- To increase the demand for our photo service we will need to identity the
need for potential customer.
- For identification of this we will conduct research periodically. For
conducting research we have enough man power that have enough
educational and work experience in research.
- This help us to take the competitive advantage over the competitors.
- Based on the research in the future we will have high involvement in this
business by creating branch in other place of Bahirdar city.

8. Assessment of risk
8.1 Weakness of the photo house service
 To do so everything has their own strength and their own weakness
limitation sides.
 Then some of the photo house weakness or limitations will be as follows:-
- The employees are not experienced
- Shortage of materials /facilities
- Wants to great expenditure
- Shortage of power electricity
- Loss of confidence among the employee
- Idea communication problem within the team
- There may be another company which will provide the same
service in this case fear of our business may become down
/declines.
- When another business (companies) will reduce the price of photos
in this case the customer shifts to that company. The demand our
photo house becomes low so this results losses.

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8.2 Strength (importance) of photo house


- Showing the real physical posture of the person
- Memorize the former life by understand and the previous body
sizes, style etc.
- Wants a short period of training to operate.
- Will be used as a bridge to operate large business

9. Financial plan
9.1 Income statement of the photo house
 Income statement means a summary of the revenue earned and the
expenses incurred of doing the business.
 And it will show the difference between income from service provided or
goods sold and the amount of spent to operate the business.
 From this point of view will be presented the income statement shall for
the following.

Table 3 : Forecast income statement

Maraki Photo House Service


Forecast Income Statement
For First year
Revenue
Service revenue 1,000,000
Expense
Rent expense 60,000
Utilities expense 12,000
Advertising expense 5,000
Interest expense 14,000
Other expense 50,000
Total expense 141,000

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Net income before tax 859,000


Less tax 282,650
Net income after tax 576,350
Government loan payment 200,000
Net income 376,350

Explanation: Maraki photo house services giving company forecast income


statement in above table and speculate to get 1,000,000 birr from service
revenue and incur expenses with the above listed amount of money.

 Expenses: Rent expense (for using the place which is an operating


activities are takes place or simply for renting purpose from the owner of
the operating house),
 Utility expense (for using different service provided by the government
like electric city, water and so on),
 Advertising or promotion expense,
 Interest expense (interest that is imposed on money borrowed from
commercial bank of Ethiopia which is 200,000 * 7% = 14,000 birr).
 Other expense In this case other expense means for instance like
transport expense, miscellaneous expense, training cost and also include
other expense that will incurred in this company by owners for different
purpose.
 Net income before tax is revenue minus total expense which is 1,000,000
– 141,000 = 859,000 birr.
 Tax: according to new Ethiopian business income tax Proclamation No.
979/2016 mention Business Company get revenue above 130,800
Ethiopian birr pay tax by 35 % with deduction of 18,000. Therefore
1,000,000 * 35% - 18,000 = 282,650

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 The government loan payment is the amount of borrowing from


commercial bank of Ethiopia and at last Maraki service providing
company will get 376,350 birr of net income.
9.2 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
1. The amount and types of property the business owns
2. The amount owed to creditors.
3. The owners propensity (interests)

Table 4 : Forecast balance sheet

Maraki Photo House Service


Forecast Balance sheet
For First year
Asset
Cash 391,350
Supplies 50,000
Equipment 535,000
Total asset 976,350
Liabilities and owners equity
Liability
Account payable 50,000
Owners equity
Owners capital 926,350
Total capital and owners equity 976,350

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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. Maraki 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 for year. 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.

Equipment: which indicate purchase of equipment for cash. Maraki photo


house will purchases photo house equipment for 535,000 cash. Which is Photo
printer machine 405,000 birr, camera (7D) 60,000, camera light 10,000,
computers 40,000 and office equipments 20,000 .This transaction results in an
equal increase and decrease in total assets, though the composition of assets
changes. Cash decreases 535,000 birr, and the asset Equipment increases
535,000 birr.

Owners capital is the sum of net income (which is listed on the above income
statement), beginning owners equity, additional investment and deducting
drawing. OC = BOC + NI + AI – D = 550,000 + 376,000 -0 = 926,350. At last
total capital and owners equity is equated with total asset.

9.3 Statement of cash flows


 The statement of cash flows provides information on the cash receipts
and payments for a specific period of time. The statement of cash flows
reports
1. The cash effects of a company’s operations during a period,
2. Its investing transactions,
3. Its financing transactions,

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4. The net increase or decrease in cash during the period, and


5. The cash amount at the end of the period.

Table 5 : Forecast statement of cash flows

Maraki Photo House Service


Forecast Statement Of Cash Flows
For First year
Cash flows from operating activities
Cash receipts from revenue 517,350
Cash payments for expenses (141,000)
Net cash provided by operating activities 376,350
Cash flows from investing activities
Purchase of equipment (535,000)
Cash flows from financing activities
Investment by owners 550,000
Drawing by owners 0 550,000
Net increase in cash 391,350
Cash at the beginning of the period 0
Cash at the end of the period 391,350

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10. Appendix
 As mentioned earlier maraki photo 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

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 Personal computers

 Photo printer machine

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 Adobe photo shop format (software)

Thank you

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