Professional Documents
Culture Documents
Executive Summary
The innovators Enat Day care and nursery school is a private business established by seven
innovative entrepreneurs who are graduates of Hawassa University, with Bachelor of Art in
Accounting, some of the owners have experience in running their own business and still other
operated family business.
Since the business is a private owned and has one financial backing except contribution by
partners and borrowing from lenders, the primary purpose in establishing the business is
obtaining reasonable return from operation that could be re-invested in other sectors of the
economy.
The business also aims to reduce work load of government workers, traders and others; as a
result help them to become effective workers in their workers in their working areas
furthermore, it also aims to create productive citizens who are well care on their emotional,
mental and physical need.
Last but not least the business aims to create job opportunity for citizens and generate tax
revenues to the government.
2. Business Description
Enat Day care and Nursery School business is a service rendering partnership business owned
and managed by seven Ethiopia entrepreneurs, the business plans to meet the need of
customers who work in government offices and yet note in a position to give adequate
psychological, emotional and physical support to their little children.
3. Product or service
Enat Day care and Nursery School is a service oriented business as the name itself implies and
therefore, care shall be offered to young children to make them productive citizens as they are
leaders of tomorrows generation.
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As a consequence many new organizations are coming to existence the most critical in forming
of and as factor of production is availability of skilled manpower among other thing if we open
organization that can help our children as it satisfy their needs as well as the objectives of the
organization is fulfilled if followed as its objective are:-
1. Carrying maintaining little children feeding them by proper time as well giving them
rest.
2. By opening up children centers where they could learn how to over come stress thats
(point below)
3. Giving little children education which goes with their capacity age and year
4. Showing films which are education to them e.g showing cartoons films which could
help them grow and come stress also introduction education programs like children
program
5. Teaching them how to grow with respective behaviour and importance of respecting
their parents and people at large
6. One of our main objective plants is to make these little children to grow with good
intension good mind
7. Rendering them more likely to be good member of the society, if we fulfill the all
above mentioned plans of our organization this plans will shape them for the
betterment of tomorrow future.
Our service differs from other organization as we offer medical services other do not,
we mean to clinic level and refer problems.
4. Market characteristics
The center is currently to be established at Hawassa town with specific target to womens
who are government workers, busy traders and NGO workers, the estimated size of
children to enrolled shall be 300 in the first year.
5. Entrepreneurial team
The business has seven innovators of entrepreneurs to supervise and promote the business
and also 24 qualified staff to operate.
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To mention from such customer where they are found i.e. we get our customers from
government organization workers traders & NGO worker who needs for their children
good care etc most of these customers are not identified by gender. All the population that
are married and who have children are the users of innovators children day care and
nursery school for consideration of the income must be ignored i.e. we will give the service
for everyone in equal level we dont classify the service level according to the parents
income, our customer care will be at center of Hawassa town.
As mentioned in the title our project it is called Enat Day care and nursery school and it
will accept the children age between age between 1 and 3 the client or customer not be
bothered about their child because we have baby sitters having a long period experience
and motherly kind, we have not only these but also other for instance these children need a
proper care in different way,
They need sleep and we will have amazing resting rooms having a protection from
malaria and other flies,
They need toys and we will have different kinds of toys to fresh their mind and
which helps to increase their special field compound which was prepared depend on
childrens care and so on.
Our service is independent of gender sex because we will have separate rooms for male and
females, also we will give service depending on their age we are ready to give all clients or
customers who have a potential to pay our fee our door is open to accept any suggestions
comments which come from the clients because we are new beginners of this task so it will
help us to improve our weakness and strength.
Markets
The number of customers become increase then we will also expand our business and we
open another branch that the place were the number of customers of dominated area we
dont limited only existed business for the expansion of our business in the future we will
evaluate thee tire critical thing like demand of the customer profitability of the business and
etc. It is clear for every one that the innovators children day cage center is unusual must be
improved by adding some personal talents like contacting directly with the customers.
Competitors
Currently in Hawassa there is no such type of business, so, we will be successful and enjoy
an advantage of being a pioneer and when competitors are attracted with the business in the
future then we evaluate their strength and weakness when we get and detect weakness on
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the competitors, we improve that problem and we provide for our clients in qualified
manner.
7. Assumption
Our assumption about this new venture is considered the next major section of the feasible plan
we have a short term plan accepting specific number of children and test our business
feasibility. How much our business will achieve the planned objective in this short term plan?
In this short term plan our business accepts any children that their families are capable for the
payment of monthly fees according to our short term qualification we will also propose about
long term plan like expanding out limited service to whole Ethiopia.
Market Niche
Our business will consider only the children whose parent income allows involving their
children we dont accept any foreigners children for specific period of time because they need
high expense and other unique service like long resemblance them with their country tradition
they also may not fit with the environment weather condition.
Pricing System
One of the pertinent thing in marketing analysis is the method of the pricing innovators
children day care center puts its pricing system clearly and conventional manner our business
is to calculate the cost and revenue when we decide the monthly fees according to cost incurred
during the time of offering service our pricing system is depend on the level of age limitation.
As we described earlier the age of the children classified into different part and they will pay
their fees accordingly for example first year child and the second year child not pay equally,
the one year children fee is higher than the second year because the behavior of one year child
is difficult to control and need good care our pricing system is not only paid in cash but also
include giving on credit & on discount basis we give the cash discount for six month in
advance the credit must be paid at a specific day gap.
Method of distribution
This refers to the movement of goods and services between the point of production and the
point of consumption through organization that perform a variety of marketing function.
Unfortunately the children day care center is not manufacturer and therefore, does not require
any marketing intermediaries, like wholesalers, retailers, brokers or agent rather it will be
direct relationship.
Flow of Distribution System
Sales forecast
Sales in our case is child care service provision to clients who armament workers busy business
men and those interested in the service to be provided, forecast of sales is contingent up on the
demand situation the competitive environment, the paying ability of client and the like factors,
considering the newly existence of the business and the economic power of our clients we will
be charging a very reasonable price for our services based on the detailed marketing research
carried out to establish the business the annual forecast of our clients and revenue will be given
below where number of users will be increasing by 20% every year.
Revenue forecast
Age Ground
1-2 2-3 3-4
Year Total
No Fee Revenue No Fee Revenue No Fee Revenue
Revenue
150 50 90,000 100 45 54,000 50 40 24,000 168,000
Financial Summary
The total up project cost estimate needed to start and operate the business shall be Birr 154,760
out of which 65,160 shall be for fixed asset and he remaining portion as working capital.
Seventy 70% (Br. 160,932) of the total capital shall be the contribution from the owners and
30% (Br 45,820) will be borrowed. The total revenue of the business in the first year is Birr
168,060. The projected cash flow for the whole year shows mostly surplus and the trend is
believed to continue in a similar way for the remaining years. The surplus shows that the
business operation will never be affected due to cash shortage and fail to meet obligations.
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Balance Sheet
Balance Sheet
Enat Day care and Nursery school Center
Beginning Balance Sheet
June 1, 2010
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Income Statement
It shows low well the business is performing its activities the net profit of the children day
care center in the first year is 19,024 the amount is positive enough showing that expenses
are well managed revenue is adequate through effective marketing strategy.
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Add: Net Income 15,219.36
Withdrawal (7609.68)
Net Increase in Capital 7609.68
Capital June. 30, 2011 114,541.68
Balance Sheet
Liability
Notes Payable 3,437.00
Owners Equity
Innovators Capital 116,444.10
Total Liability and Owners Equity 150,815.10
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Cash Flow Statement
The statement shows the flow of finances into and out of the business. It has to be managed well because even the most profitable business
can fail due to shortage of cash at hand to meet immediate needs and obligation. In this regard therefore, Enat Day care and Nursery
School is not going to face cash flow crises since the figures are positive.
Enat Day care and Nursery School
Statement of Cash flow
For year ended, 2011
Title 1 2 3 4 5 6 7 8 9 10 11 12
Service revenue 14,000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000
Out cost
Salary & Wage Expense 7240 7240 7240 7240 7240 7240 7240 7240 7240 7240 7240
Utilities expense 150 159 160 160 145 143 143 143 151 161 1650
Repairs and maintenance
exp.
Rent expense 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800
Insurance expense 500 500 500 500 500 500 500 500 500 500 500
Supplies expense
Advertising expense 1000 1000
Interest expense 260 260 260 260 260 260 260 260 260 260 260 260
Entertainment expense 500 500 500 500
Medical expense 1000 100 150 100 100 50
Miscellaneous expense 10 13 10 11 7 9 11 13 15 10 8 7
Tax (40%)
Withdrawal 50% N.T
Total Out lay 11960 9972 11060 9972 10102 12959 9956 11165 10061 9970 34216.90
Cash on hand 60000 62040 66068 69008 730036 76934 82024 86086 88903 92842 96872
Surplus (Deficit) 2040 4028 2940 4028 3898 1041 4044 2835 3939 4030 20216.90
Balance forward to 62040 66068 69068 73036 76975 77975 86068 88903 92842 96872 76655.10
Withdrawal policy
50% on net income distributed to the partners
Withdrawal = 50% x 15219.36 = 7609.68
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8. Market Plan
Enat Day care and Nursery School is bellied to be successful through attractive
services shall be offering to its customers. The services will include
Emotional treatment
Medical care
Child focused films
Health care
Feeding
Through the service we provide and rust relationship we will build with the
customers, the business shall flourish in a very short period of time.
Besides, there are no competitors identified of far who provide the same similar
service in Awassa town and hence completive rivalry will not pose a problem in the
short run.
8.1 Pricing
Service rendering shall be upon payment basis and collection of the next of the month
we will be charging Birr 50 per month for children. Pricing is based on the quality of
service the paying capacity and external environmental condition.
8.2 Promotion
Relationships are key to success nth children day care business and therefore, we will
be using different strategies to develop trust between ourselves and the respected
customers. We will use adverting in different publications and also direct mail to
customers including the existing and prospective ones. Additionally, we will
advertise through mass media and personal promotion that include communication
expense and travel.
Since the output here is a service rather than physical product, there is no need of
attempt to be made to distribute it using whole sealing and retailing. However, in the
future the owners with avail their services to clients in the place that best suit them.
In so doing the business will create place utility to the satisfaction of the clients.
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8.4 Service and Warranty considerations
Our output is service and therefore, warranty considerations will in a similar fashion
be a service. In this regard we will be hiring capable guards to protect children form
any from of theft an also trained women guardians shall be taking care of children.
We will also be prompt in dealing with complaints and other legal demands to be
forwarded by our honored clients.
Though, the whole organizations will be led by a professional manager, all the
members of the business to be involved in wining markets for the child care center
each person will be responsible to treat existing customer with appropriate respect and
will show humility before any potential client.
Business cards will be printed for each staff that they will be giving to neighbors
relatives, friends, and any acquaintance. Nevertheless, the founders will play key role
in taking care of the actual making duty.
9. Operational Plan
9.1 Facilities
It will be very difficult if not impossible to place the children Day Care Center at
common place for all clients. However, offices and day care center will be located in
easily accessible place for majority of users and also conducive for transportation
facility. The owners will rent a comfortable place for the time being and in the long
run construct their own building.
For the effective implementations and success of the proposed personnel graduate
from various institution with different skills the number, skill and salary shall be as
follows.
Monthly Annual
No Job Title Qty Qualification Salary Salary
1 Manager 1 BA 1200 14400
2 Nurse 1 Diploma 900 10800
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3 Psychologist 1 BSc 1200 14400
4 Women guardians 10 Certificate 2000 24000
and teachers
5 Assistance guardians 10 12th complete 1000 12000
6 Secretary cashier 1 Diploma 600 7200
7 Janitors 2 8th complete 140 1680
8 Guards 2 8th complete 200 2400
Total 24 86,880
Manger
Responsible for market promotion and supervisory role
Hiring of workers and furnishing of the center with appropriate facilities
Psychologist
Responsible to take care of metal and emotional need of the children and the staff.
Nurse: - Shall be responsible to treat children in the case of sickness and counsel
parents in health care.
Guardians
They shall take care of the physical need of children.
Secretary
Office and cash management
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The children day care center is determined to smoothly start and operate the business
and to this end has conducted a detailed marketing research activity to identifay these
major event that can help or hinder the busies operation. Major activities that deserve
close attention include
1. Promotion work
2. Legal situation (Licensing)
3. Rental facility
4. Office furnishing
5. Personal hiring
6. Opening and registration works
Failure in according due attention to any one of these events will lead to a risk of per
start up or post start up failure. Nevertheless, the founders prepared themselves to
take care of these issues.
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No Cost Item Qty Unit Cost Total Cost
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1 Tables 6 400 2400
2 Chairs 10 80 800
3 Beds & mattress 20 600 12000
4 Black boards 10 200 2000
5 Books Bulk 6000 6000
6 Game equipment Bulk 6000 6000
7 Medical equipment Bulk 5000 5000
8 Office furniture Bulk 8000 8000
9 Computers 1 4000 4000
10 Calculators 2 50 100
11 Punchers 2 40 80
12 Staplers 2 40 80
13 Printers 1 3500 35200
14 Refrigerator 4 3800 15200
Total 65160
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