1.

Executive summary
NN General Trading is a business providing Internet, photocopying, scanning, binding, and writing services and quality stationary materials at acceptable price/value. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work. Our Mission: To supply internet services with door to door special offer and stationary Materials that enhance our clients need of information and quality stationary materials. Our Motto: Information is everything! The timing is right for this new venture. Searching for more than a month for the perfect location, one was finally found. The demand for information, as well as the ambition of the owners to start their own such general trading, and the availability of highly specialized professionals of management, finance and procurement to support the business, has made this business one of great potential. The talent of the owners and their experience in management, accounting and purchasing and their ability of exploring new ideas from the experience they have, has what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to many new clients to support our anticipated growth. To achieve our objectives, our business is seeking Birr 140,000 in additional loan financing. This loan will be paid from the cash flow of the business, and will be collateralized by the asset of the business, and backed by the character, experience, and personal guarantees of the owners.

Highlights

1,500,000 1,000,000 500,000 0 2012 2013 2014 Sales Gross margin Net profit

Key to success
The key to success in our business are: Location: providing an easily accessible location for customers, Environment: providing an environment conducive to giving relaxing services and providing the materials, Convenience: offering clients a wide range of goods and services in one setting, and extended business hours. Reputation: reputation of the owners as providing superior services and having excellent management and professional experience.

2. Company Summery
NN general trading will, upon commencement of operation, sell a wide range of internet services and stationary materials. We will provide quality internet services on shop and door to door using broad band and 1x connections, photocopying, scanning, binding, printing and writing services and offering quality stationary materials, along with the top internet and stationary material providers. What will set NN general trading apart from the competition is our commitment to providing all of those goods and services in one convenient location with that of special door to door offer of internet service.

2.1 start up Summary

The owners decide to start the business from the ground up. The start-up capital will be used for the design, leasehold improvements, and equipment of the whole business. Leasehold improvements will amount approximately $ 40,000, and different equipments for the whole business will costs about $ 100,000.

Table-1: Start-up
Start-up Requirements Start-up Expense Rent deposit Others Total start up expense Start-up Assets needed Cash balance on starting Date Other current Assets Total current Assets Long term Assets Total Assets Total Requirements Funding Investment Investor-1 Investor-2 Investor-3 Investor-4 Investor-5 Total Investment Current liabilities Accounts payable Current borrowing Other current liabilities Total Current liabilities Long term liabilities Total liabilities Loss at start up Total Capital Total Capital and liabilities 0 0 0 0 151,000 151,000 30,000 70,000 221,000 20,000 20,000 20,000 20,000 20,000 100,000 6,000 75,000 81,000 140,000 221,000 251,000 30,000 0 30,000

Start-up
250,000 200,000 150,000 100,000 50,000 0 Expenses Assets Investment Loans

2.2 Company Location and Facilities

This general trading will be located in Addis Ababa at Balderass condominium houses. The business will utilize 99 meter square. The location is strategically situated on one of the more populated condominium houses in Addis Ababa. It is a high profile area, with easy access from all parts of the city. There are more than 2,500 households and about 65% are considered as a middle class who seeks our service.

3. Goods and services

NN general trading is an upscale goods and services provider business. We will offer high speed internet service with special offer of door to door internet services on hourly, daily, weekly and monthly bases and quality stationary materials that includes: High speed broad band internet service with reasonable price and that of special offer, Writing services, Photocopying, Scanning, Binding, Printing, and Different quality stationary materials

3.1 Competitive Comparison

NN General trading wants to set itself apart from other similar businesses that may offer the goods or service parts only. Having good managerial and professional skills, the owners realized, from surveying different clients, that they desire all of the services that we are proposing, but they remain frustrated because they must get information accessing internet at one place, and for printing, copying, binding or scanning at another. Although the focus of NN General trading is providing quality broad band internet service and stationary materials, we do wish to offer our clients the convenience of these other services.

3.2 Benefits and Features:

Offering of genuine stationary materials Reasonable & fair price with the possibilities of discounts based on different assumptions Different internet connection systems ( EVDO-4GB, 1X and wireless connections) All in one service (internet, printing, binding, scanning, photocopy and offering of stationary materials) etc Special offering of internet service (door to door service, service offering based on hours, days, weeks and months using laptops)

4. Marketing Strategy
Our marketing strategy is a simple one: satisfied clients are our best marketing tool. When a client leaves our business with a new look, he or she broadcasting our name and quality to the public. Most of our clients will be referrals from existing clients. No major advertizing campaigns are anticipated. Our research has shown that word of mouth is the best advertizing for this type of business. We will, however, run specials throughout the week. We will also ask clients for referrals, and reward them with discounted or free services depending on the number of clients they bring. We will also offer discounts to the new clients who have been referred.

5. Management summary
NN General trading will be organized and managed in a creative and innovative fashion to generate very high level of customer satisfaction, and create a working climate conducive to high degree of personal development and economic satisfaction for employees. Training classes to help improve employee knowledge and skills will be conducted on a regular basis. As the business grows, the company will consider offering an employee benefit package to include health and vacation benefits for everyone.

5.1 Management Team

Ato. Belaineh Tamire, owner, he has bachelors degree in business administration and he has worked as a supply chain manager for the last 4 years and as a sales expert for 5 years. He has extensive experience managing people. He loves dealing with people, and has the drive, ambition, and discipline to manage the business and its employees. Ato. Haftu W/tekile, owner, he has bachelors degree in accounting from Addis Ababa University. He has worked as an accountant for 4 years and as finance D/manager for 3 years. He is the owner of Dire Stationary materials in Dire Dawa. W/r. Azeb Wolde, owner, she has bachelors degree in information technology from Addis Ababa University. She has worked as an IT expert for 3 years and as IT manager for 2years.

5.2 personnel plan

The personnel plan calls for a receptionist who will greet customers and receive payments for services and goods. There will be two sales persons and two guards. All but the receptionist will be contract workers and the sales persons will be paid a sliding commission scale based on the revenue created.

Table-2: Personnel plan

2012 Reception (1x) Sales person(2x) clerk (2x) Other people Total 12000 28800 12000 20,000 72,800 2013 14400 31200 12000 24,000 81,600 2014 18000 33600 16800 26,500 94,900

6. Financial plan
Having more experienced management group and talented financial, sales and receptionist (with good customer handling experience) professionals, our goal is to be a profitable business in the first few months (maximum of six months). Enclosed, here under are the financials with different assumptions.

6.1 Break-even Analysis

The break-even analysis shows that NN General trading has a good balance of fixed costs and sufficient sales strength to remain healthy. Our break-even point shows only Birr 351,800 sales level on a year.

Cost Description
Variable cost (cost of goods sold) Salary Expense Sales & marketing & other Expense Rent Expense Depreciation Expense Supplies Expense Others Principal portion of debt payment
Total Expenses

Fixed Costs ($)

Variable cost

360,000 72,800 50,000 60,000 14,000 13,000 40,000

28,000 277800 360,000

Breakeven Sales level =

637,800

6.1 Revenue (Sales) forecast (3 years)

Year-1 (2012)

Table-4:
Year-2 (2013)
376,000

Year-3 (2014)
648,000

- from service -From stationary materials Total

300,000 600,000 900,000

624,000
1,000,000

702,000 1,350,000

Three year Revenue Forecast

1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 year-1 year-2 year-3

6.2 Profit and loss projection

We expect income to hit Birr 900,000 at the end of the first year of business. It should increase to more than Birr 1,350,000 by the third year. Second year revenue is anticipated with the addition of five laptop computers.

Table-5: Profit and loss projection Year-1 (2012)

Revenue (Sales) sales - internet service Sales - stationary materials Total revenue Cost of Goods sold (stationary materials) Gross profit on sales Operating Expense: Salary Expense Sales & marketing & other Expense Rent Expense Depreciation Expense Supplies Expense Others Total Operating Expense Profit Before Tax Taxes (30%) Net profit 72,800 50,000 60,000 14,000 13,000 40,000 249,800 290,200 87,060 203,140 81,600 50,000 60,000 20,500 15,000 45,000 272,100 353,500 106,050 247,450 94,900 50,000 60,000 22,500 17,500 50,000 294,900 633,900 190,170 443,730 300,000 600,000 900,000 360,000 540,000 376,000 624,000 1,000,000 374,400 625,600 648,000 702,000 1,350,000 421,200 928,800

Year -2 (2013)

Year -3 (2014)

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Total Operating Expense

300,000 290,000 280,000 270,000 260,000 250,000 240,000 230,000 220,000 year-1 year-2 year-3

Net Profit

450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 year-1 year-2 year-3

6.3 Pro forma Cash Flows (3-years)

We expect to manage cash flow over the next three years simply by the growth of the cash flow of the business. The business will generate more than enough cash flow to cover all of its expenses.
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Table-5: Pro forma Cash Flows (3-years)

Pro forma Cash Flows Year-1 Cash Received Cash from Operation Cash sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received New Borrowing New Other Liabilities New Long-term Sales of Other Current asset Sales of long term Assets New Investment Received Subtotal cash received Expenditure: Expenditure from operation: Personnel Cash Purchase Rent Purchase of supplies For sales & marketing & other Others Consulting services Promotion Subtotal total spent on operation Additional Cash spent: Taxes Long-term liabilities and principal payment Purchase of Long-term Asset Dividends Subtotal Cash Spent NET CASH FLOW CASH BALANCE 87,060 28,000 65,000 0 775,860 624,140 630,140 108,000 34,500 20,000 0 788,500 211,500 841,640 192,720 36,500 0 0 922,820 427,180 1,268,820 72,800 360,000 60,000 13,000 50,000 40,000 0 0 595,800 81,600 374,400 60,000 15,000 50,000 45,000 0 0 626,000 94,900 421,200 60,000 17,500 50,000 50,000 0 0 693,600 500,000 0 0 0 0 0 1,400,000 0 0 0 0 0 0 1,000,000 0 0 0 0 0 0 1,350,000 800,000 100,000 900,000 510,000 490,000 1,000,000 730,000 620,000 1,350,000 Year-2 Year-3

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6.4 Projected Balance sheet:

As shown in the balance sheet, we expect a healthy growth in net worth, from approximately Birr 273,140 in year one to Birr 964,320 by the end of year three. Table-6: Projected Balance sheet
Balance Sheet (Projected) NN General trading Assets: Current Assets: Cash in Bank Inventory Accounts receivable Supplies Total Current Assets Fixed Assets Computers Accumulated Depreciation/computers Photocopy, printers & scanners machines Accumulated Depreciation/printers & Furniture Accumulated Depreciation/furniture Total Fixed Assets TOTAL ASSETS Liabilities and Equity Current Liabilities Accounts Payable Long term- liability Bank loans payable Total Liabilities Owners Equity Retained Earnings Earnings Total Owners Equity Total Liabilities and Equity Net worth 70,000 203,140 273,140 896,140 273,140 273,140 247,450 520,590 1,109,090 520,590 520,590 443,730 964,320 1,516,320 964,320 100,000 -10,00 65,000 0 40,000 -4,000 191,000 896,140 120,000 -22,000 65,000 -6,500 40,000 -8000 188,500 1,109,090 120,000 -34,000 65,000 -13,000 40,000 -12,000 166,000 1,516,320 Year-1 (2012) Year-2 (2013) Year-3 (2014)

630,140 62,000 0 13,000 705,140

841,640 63,950

1,268,820 64,000

15,000 920,590

17,500 1,350,320

0 623,000 623,000 588,500 588,500 552,000 552,000

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Total Assets

1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 year - 1 year -2 year -3

Net Worth

1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 year - 1 year - 2 year - 3

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