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Contents
Executive Summery................................................................................................ 9
1. Chapter One: Company Background............................................................10
1.1. Main products, Markets and Clients.........................................................11
A. Product attributes.......................................................................................... 12
B. Research and development..........................................................................12
C. Product Life Cycle........................................................................................... 12
I. Product Development stage...................................................................12
II. Product Marketing Stage........................................................................12
III. Product Termination stage..................................................................13
D. Costing and pricing.................................................................................. 13
1. Costing....................................................................................................... 13
I. Cost of product development.................................................................13
II. Cost of Goods............................................................................................ 13
Operating expenses....................................................................................... 14
Depreciation and interest on capital...........................................................14
I. Pricing.............................................................................................................. 14
a. Buyer's standpoint......................................................................................... 14
Value................................................................................................................. 14
Affordability..................................................................................................... 15
Competitive choices in the market place...................................................15
b. OLIANA point of view................................................................................... 15
E. Production process......................................................................................... 15
F. Quality assurance and control......................................................................15
Sourcing........................................................................................................... 16
2. CHAPTER TWO: MARKETS, CLIENTS AND COMPETITORS...................17
2.1. Introductory remarks........................................................................... 17
Past Supply and Present Demand................................................................17
2.2. Current Polyester Fabricse market structure in Ethiopia...............18
2.3. Market characteristics..........................................................................20
2.4. Clients..................................................................................................... 20
2.5. Competition............................................................................................ 21
I. Description of competitors.....................................................................21

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II. Relative strengths and weaknesses......................................................21
2.6. Positioning............................................................................................. 21
3. CHAPTER THREE: BUSINESS OPERATIONS AND ORGANIZATION.......22
3.1. Location and premises.........................................................................22
I. Location..................................................................................................... 22
a. Local Market................................................................................................. 22
b. Availability of Worker................................................................................... 22
c. Supporting Services..................................................................................... 22
d. Material Supply............................................................................................ 22
e. Availability of Utilities................................................................................... 22
f. Cost of premises.......................................................................................... 22
g. Image of the business.................................................................................. 22
h. Premises.................................................................................................... 23
3.2. Marketing............................................................................................... 24
General Remarks............................................................................................ 24
I. Promotion and advertising.....................................................................24
II. Selling methodology................................................................................ 24
a. Selling responsibility............................................................................... 25
b. Selling channels....................................................................................... 25
c. Selling methods........................................................................................ 25
d. Targets....................................................................................................... 25
e. Training...................................................................................................... 25
f. Arguments................................................................................................. 25
g. Selling process time................................................................................ 25
h. Payment terms......................................................................................... 26
i. Incentives.................................................................................................. 26
j. Order processing...................................................................................... 26
k. Handling complaints................................................................................26
I. Make or buy............................................................................................... 27
II. Manufacturing process............................................................................27
3.4. Distribution............................................................................................ 27
3.5. Order processing and inventory control...........................................27
4. CHAPTER FOUR: HUMAN RESOURCES...................................................28
4.1. Management.......................................................................................... 28

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1. Shareholders................................................................................................ 28
2. Board of directors........................................................................................ 28
3. Executive management...............................................................................28
4. Middle management.................................................................................... 28
5. External support services............................................................................28
4.2. Labor....................................................................................................... 28
4.3. Technical skills and competencies of managers........................................28
4.4. Attitudes and human characteristics of managers...................................28
4.5. Team spirit................................................................................................ 28
4.6. Values and norms of the firm....................................................................28
5. CHAPTER FIVE : LEGAL FRAMEWORK, AND ENVIRONMENTAL AND
SOCIAL FACTORS............................................................................................. 29
5.1. Approvals and licensing requirements......................................................29
5.2. Social compliance issues..........................................................................29
5.3. Development and social benefits..............................................................29
5.4. Environmental risks.................................................................................. 29
6. CHAPTER SIX : FINANCIAL PLANNING...................................................30
6.1. Introductory remarks................................................................................ 30
6.2. Financial history........................................................................................ 30
I. Income statement projections.....................................................................30
II. Cash flow projections................................................................................... 30
III. Balance sheet projections.........................................................................30
6.3. Important financial ratios..........................................................................30
I. Liquidity ratios............................................................................................. 30
II. Current ratio................................................................................................ 30
III. Quick test ratio......................................................................................... 30
6.4. Efficiency ratios........................................................................................ 30
I. Inventory turnover....................................................................................... 30
II. Accounts receivable turnover......................................................................30
III. Accounts payable turnover.......................................................................30
IV. Fixed assets turnover................................................................................30
V. Total assets turnover....................................................................................30
6.5. Profitability ratios...................................................................................... 30
I. Gross profit margin...................................................................................... 30
II. Net profit margin.......................................................................................... 30

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III. Operating profit margin............................................................................30
IV. Return on assets....................................................................................... 30
V. Return on equity.......................................................................................... 30
VI. Dividend pat............................................................................................. 30
6.6. Solvency ratios......................................................................................... 30
I. Debt to equity ratio...................................................................................... 30
II. Total assets to equity ratio...........................................................................30
III. Total assets to total liabilities ratio...........................................................30
IV. Capitalization ratio.................................................................................... 30
V. Interest coverage ratio.................................................................................30
VI. Methods for ranking investment projects.................................................30
a. Payback period............................................................................................ 30
b. Net present value........................................................................................ 30
c. Internal rate of return.................................................................................. 31
6.7. Request for funds and other supporting information................................31
I. Request for funds......................................................................................... 31
II. Risk assessment.......................................................................................... 31
III. Start-up business financial information....................................................31
7. CHAPTER SEVEN: RISK AND SENSITIVITY ANALYSIS.....................................32
7.1. Introductory remarks................................................................................ 32
7.2. Types of risks............................................................................................ 32
7.3. General economic environment................................................................32
7.4. Quality/production problems.....................................................................32
7.5. SWOT analysis.......................................................................................... 32

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Executive Summery

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1. Chapter One: Company Background

OLIANA Textile Printing PLC has allocated over ETB 10,000,000 of investment capital
for the purpose of establishing a state-of-the-art polyester garment printing factory
in Ethiopia. This document provides an exhaustive analysis regarding the companys
investment strategies for the next Five-year. This investment proposal is prepared
based on market study and research as funded by the founders of OLIANA TEXTILE
PRINTING PLC. Founders of the company will finance the entire costs of investments.
The company will not request for loans from banks or any other financial institute in
the course of its business activities.

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1.1. Main products, Markets and Clients

OLIANA Textiles Designs are for homes and offices that are in constant motion,
always ready for new situations and needs. One could say that its design that
moves you to live or work more simply and function more in the space you have.
Homes and offices: young-in-mind urban people living in the moment in a small
space. The company brings flexibility and an unconventional way of creating vast
dwelling space to everyone, by combining form, function, quality, sustainability and
most importantly at a low price.

The companies most important products and services;

Product features, looks and functionality;

Product distinguishing features and innovative characteristics;

Target market and growth potential;

Future market share;

The main strengths and weaknesses of products and services compared

with competitors.

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A. Product attributes

The following table will clearly provide the distinguishing features that make our
products and services unique and preferable for our customers.

B. Research and development

Product development undergoes a rigorous process, overseen by a product

strategy council, which consists of the entire design team who establish priorities
for OLIANA product line-up.

C. Product Life Cycle

Under this topic we will select the companys current flagship product for the first
business year to analyze their life cycle from birth to death (Development
Marketing - Termination). Many similar companies start working on the development
of a new product as soon as the previous product enters in the market, or even
before. ARTISIANS product cycles is shown in figure; our product life cycle model is
based on the principle that the income from the sales of existing products is partly
used to finance the development of new products. Accordingly, our financial
projections will then show how this timing affects the overall cash flow and
profitability of our business.

I. Product Development stage

During this phase the OLIANA will invest highly on its Research and Development
department. The firms primary concern at this stage is to:

- Develop a product concept,

- Design the product and production process
- Build and test the prototype
- Setup the manufacturing line,
II. Product Marketing Stage

At this stage OLIANA marketing department will take over the responsibility to sell
the manufactured product to its target customers. 1

1 See: Marketing chapter

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III. Product Termination stage

After a product goes through the development and marketing stage, it is inevitable
that sooner or later the product will reach maturity and become obsolete and will
have to be abandoned.

D. Costing and pricing

1. Costing

By estimating the cost of production and the directly connected overheads we will
calculate our pricing and prepare yearly financial plan of our business. The cost of
our business is composed of four basic components that are briefly discussed in our
business plan.

I. Cost of product development.2

Company policy

Design and development costs expected in the future are not underestimated at
OLIANA. Also, the real costs of past development work are not neglected and will be
included in the price of a product. When planning costs, we also provide a
contingency plan for what will happen to costs if problems such as delays, a failure
to meet industry standards and mistakes occur.

Yearly budget for cost of production will include the costs of any fundamental
research, product development and design work as well as the costs of producing
and testing a prototype. The common costs to be incurred by OLIANA are labor,
materials, consulting fees, certification costs and the costs of professionals.

II. Cost of Goods

OLIANA , as a manufacturing company, the cost of goods are the costs incurred in
the production of the products. In such a case, the costs included are those for
materials, labor and overheads related specifically to product manufacturing. The
financial statement of our company calculates the average "cost of goods" for each
product by adding all related costs mentioned above and dividing them by the

2 See: Five-year company Financial Projection

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number of products produced. This unit cost will be a useful indicator in developing
our pricing policy and assessing our competitiveness. 3

Operating expenses.
The operating expenses section of our companys financial statement adds up all
the expenses incurred in the course of running our business. Expense categories
include marketing, sales and overheads. Overheads include fixed administrative
expenses such as management and secretariat, which remain constant regardless
of how much business our company does with the exception of bonuses to be added
at the end of each business year. Overheads also include variable expenses, such as
travel expenses, equipment leases, supply of electricity and office material supplies.
4

Depreciation and interest on capital

This includes the depreciation of the equipment and infrastructure that are required
in order to operate our business. As mentioned earlier, part or the whole of the
development costs (depending on the stance of the tax authorities) can be entered
on the asset side of the balance sheet and then depreciated over a period of time.
The interest expense for any loans needed to finance equipment or working capital
is also included in this category.

I. Pricing

When establishing our price policy, OLIANA has exhaustively examined two
principal sets of questions:

How sensitive are our target clients to price? How does the price variation influence
their buying behavior? Which spread of price levels is acceptable to them? How
would they react to lower prices of comparable products from our competitors
(buyer's standpoint)?

Which price covers our costs and leaves us with a satisfactory profit (seller's point
of view)?
3 See: Financial statement

4 See: Financial statement

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ARTISIANS pricing policy is derived after balancing of these two considerations.

a. Buyer's standpoint

Value.

The value that our product brings to our clients is the primary factor determining
the price they are ready to pay. The examples below illustrate some types of
product values. Some products can also be of great value to clients even if they do
not meet a primary or practical need in their daily life.

Affordability.
Other important issues to examine when fixing our prices are the following:

Can our target clients afford the price offer? Is it within their budget? Is the level of
income of the consumer group are targeting high enough to enable them to buy
our product? If our clients are businesses, can they include the price of our product
or service in the overall price they are charging their clients without being too
expensive themselves? The above consideration is also important in differentiating
between need and demand in the market. our target clients are those who will
ask for our products, i.e. those who need them but can also pay for them.

Competitive choices in the market place.

Although our product may be of good value, and although our clients can afford to
pay the price, can we be sure that they will buy it from elsewhere if it is cheaper
there.

b. OLIANA point of view

The value of a consumer product can often be measured by how much it

contributes to cover basic or important needs of daily life. From the seller's point
of view, there could be various policy options in setting the price. Important
options are maximizing total profit, maximizing the volume of sales or maximizing
the margin per unit sold.

E. Production process

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Under this subchapter, different stages of the production of our product are
explained. Starting with the preparation of the raw materials and finishing with the
last stage of making our product ready to be sold.

F. Quality assurance and control

Professionals will be employed to assure quality content of the product.

Manufacturing will also be controlled.

Use of high-quality raw materials and components;

State-of-the-art design;

Appropriate manufacturing process

Sourcing
Where does the raw material supply for our product comes from?

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2. CHAPTER TWO: MARKETS, CLIENTS AND COMPETITORS
2.1. Introductory remarks

Current Polyester Fabricse market structure in Ethiopia

Past Supply and Present Demand

Woven fabrics of synthetic yarn to the Ethiopian market are largely supplied from
import. Till recent time the major local producer of woven fabrics from synthetic
yarn is the Ethio-Japan S.C, which is located at Modjo, 65km SE of Addis Ababa.
Domestic production of fabrics from nylon is presented under Table

5
Table: Domestic production of nylon fabrics

Year of production Domestic Production

(000 m2)
2002 1,310
2003 1,022
2004 1,424
2005 1,328
2006 1,067
2007 1,067
2008 1,067
2009 2,280
2010 2,984
2011 1,078

Domestic production of nylon fabrics in the past ten years has not shown a
significant change except in the years of 2009/10. During the years 2002 to 2008
the production level was almost similar ranging from the lowest 1,022 thousand m2
to the highest 1,424 thousand m2 with a mean figure of 1,184 thousand m 2. In the
following years of 2009 and 2010 it increased to 2,280 thousand m2 and 2,984
thousand m2, respectively. The increase does not stay long and fell to a level of
1,078 thousand m2 in the year 2011. From the above data it can be concluded that,
without considering projects under implementation, there is an existing domestic
capacity of producing about 3,000 thousand m 2 of synthetic fabrics.

5 Source: - Report on Large & Medium Scale Manufacturing and Electricity Industries
Survey, CSA, Various Issues

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Ethiopia imports a variety of woven synthetic fabrics from the world market. The
major types of synthetic fabrics that are imported from the world market include
unbleached or bleached woven fabrics; woven fabrics of high tenancy yarn, nylon or
polyester, dyed or printed, woven fabrics of synthetic filament, plain woven fabrics
of polyester fiber and colored woven fabrics of synthetic filament. The imported
quantity of woven fabrics of synthetic yarn (excluding less than 85% synthetic yarn)
in the past ten years is shown in Table:

Table: The imported quantity of woven fabrics of synthetic yarn 6

Year Quantity in Quantity Value (000 ETB) Volume Growth

(Tones) (Million m2) Rate (%)

2002 10,547 62.04 246,320

2003 18,987 111.69 391,466 80.0
2004 17,340 102.00 408,248 (8.67)
2005 18,981 111.65 530,333 9.5
2006 19,314 113.61 539,856 1.8
2007 17,734 104.32 520,595 (8.2)
2008 17,077 100.45 588,289 (3.7)
2009 14,950 87.94 791,825 (12.5)
2010 17,586 104.45 1,222,905 17.6
2011 16,541 97.30 1,400,011 (6.00)

As could be seen from the above Table, import of synthetic fabrics has been
generally erratic from year to year. The import level which was 62.04 million m 2 in
the year 2002 has increased to a level of 111.69 million m 2 in the year 2003, which
is an increase of 80%. After a slight decrease of import in 2004 to 102.00 million m 2,
it increased to about 111.76 million m2 in the next consecutive years of 2005 and
2006. By the years 2007/08 and 2009 the imported quantity again declined to a
level of 102.4 million m2 and 88.2 million m2, respectively. The imported quantity
revived in the last two years of 2010/11 had reached to a yearly average of about
100 million m2.

6 Source: - Ethiopian Revenues & Customs Authority. Note: - *A conversion factor of 170
grams of woven fabrics of synthetic yarn is assumed
to be on the average equal to one square meter

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Ethiopia also export few quantity of fabrics made of synthetic fibers. Export of
synthetic fabrics is shown in Table

7
Table: Export of Synthetic Fabrics

Year Quantity in Quantity (Million Value (000 ETB)

(Tones) m2)*
2002 3.4 20,000 61
2003 11.9 70,000 196
2004 0.7 4,118 44
2005 - - -
2006 128.4 755,300 3,072
2007 239.4 1,405,894 3,286
2008 324.2 1,907,074 11,717
2009 - - -
2010 567.2 3,336,497 60,350
2011 469.1 2,759,434 63,642n

As can be seen from the above Table export of synthetic fabric during the period
2002 to 2005 was negligible. During those four years the total amount of export
were only 16 tones (94,118 m2) or with a yearly average of 4 tones (23,530 m 2).
There was no export in the year 2005 but a moderate increase of import has been
registered during the following three consecutive years. By the year 2006, year
2007 and year 2008 the exported quantity was about 128 tones, 239 tones and 324
tones. After complete absence of export in the year 2009 a significant amount of
synthetic fabrics, which amounts to 567 tones and 469 has been exported during
2010 and 2011, respectively. The increase of export of synthetic fabrics is believed
as a result of the establishment of new textile/fabrics factories by foreign investors
for export market which are not yet included in the CSA data in the domestic
production.

From the above figures, it can be concluded that synthetic fabrics have both
domestic and foreign market. Assuming the contribution of the existing local
synthetic fabrics producers to be about 3 million m 2 for the domestic market 97% of
7 Source: - Ethiopian Revenues & Customs Authority.Note: - *170 grams is assumed to be
equal to one sq.mts for converting from kg to sq.mt.

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the demand for synthetic woven fabrics is met through import. To arrive at the total
current demand (domestic and export) for woven synthetic fabrics the average
import figure, domestic production and export of the last two years have been
added. Accordingly, current total demand is 105.7 million m 2. From this total
demand 102.7 million m2 is for domestic consumption and 3 million m2 for export.

2.2. Projected Demand

It is clearly indicated that almost the entire demand for synthetic fabrics in Ethiopia
is met through import. As an import substitution project there is a wide market. The
demand for the product will grow with population and income rise. Past average
growth rate of import was about 6% per annum. The demand for textile fabrics in
the world market is very huge if supplied consistently at the desired quality. Hence,
there is no constraint on the demand side. For the purpose this project domestic
demand is assumed to grow by 5 % which is lower than the past trend. For the
export market an annual average growth rate of 10 % is applied due to the huge
world market. The projected total demand, existing supply and the supply gap is
shown in Table

2.3. Polyester Fabrics: Current market structure in Ethiopia:

The demand for polyester fabrics is currently met from domestic production as well
as import from abroad. Available information shows that Arbaminch Textile Factory
is the only factory in the country that produces polyester fabrics. The Factory had a
capacity to produce 25 million square meters of grey polyester/cotton fabrics per
year. However, data regarding the actual domestic production could not be availed.
At the same time huge amount of polyester is imported every year. Available data
show that the average import level has been 20 million meter square as shown in
table below.8

Table: Ethiopias annual Import of Polyester Fabrics9

8 (Investment Office ANRS, Project Profile on the establishment of polyester

fabrics producing plant, October 2015, Addis Ababa)

9 Source: Customs authority

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YEAR OF IMPORT IMPORT LEVEL (M2)
2004/5 12,015,341
2005/06 20,076,490
2006/07 32,361,492
2007/08 37,037,193
2008/09 28,698,435
2009/10 23,748,519
2010/11 17,082,610
2011/12 9,341,949
2012/13 9,835,185
2014/15 10,438,227
Average 20,063,544

The above table shows that import of polyester fabrics had shown an increase up to
the first four years and then continuously declined until 2012/13 which increased
then after. However, even the lowest annual import record of 9.34 million m 2 is very
large by any standard and shows the presence of attractive demand for the product.
As the actual level of domestic production is not available, demand projection will
be based on the import figure.

2.4. Project Demand for Polyester Fabrics

Demand for polyester fabrics is highly dependent on the population growth since
the majority of the Ethiopian rural population uses the product for the reasons
stated earlier. Therefore, it can be assumed that the future demand for the product
will increase by 3% in accordance with the population growth rate. Accordingly, the
forecasted demand is given under table: below

YEAR OF IMPORT Projected Demand (M2)

2015/16 10,751,374
2016/17 11,073,915
2017/18 11,406,132
2018/19 11,748,316
2019/20 12,100,766
2020/21 12,463,789
2021/22 12,837,703
2022/23 13,222,834
2023/24 13,619,519
2024/25 14,028,104

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According to the forecasted demand presented above, the demand for polyester
fabrics constructed from import data shows a continuous increment. The actual
demand in the country is higher than the above projections when the domestic
production is considered.

2.5. Market characteristics

Two main issues

Market characteristics.

This is a description of our target market, using lifestyle, sex, age, occupation,
geography, company size, business organization and other characteristics to
describe the consumers or company clients that are likely to buy our product or
service. Accordingly, OLIANAs product is produced for export and local markets
with a 60% and 40% share respectively. The company aims at exporting its products
to the UAE, KSA and Sudan. The main local customers of our died and printed
polyester products are expected to be the rural population that comprise of 80% of
the country.10

Market size.

Here we will summarize particulars regarding the current size of our target market
and its growth potential in the short, medium and long term. Support any
growth estimates with factors such as industry trends, new technological
developments, socio-economic trends, government policy, population shifts and
changing customer needs. Clearly state the sources and assumptions used and try
to be realistic in the estimates. Do not overstate either the size of the market or the
potential share expect to get, otherwise the credibility of the entire business plan
will be in question.

2.6. Clients

Identified target client groups or major single clients (key accounts). Particular
issues to be covered under this subchapter are:

10 See: Clients Chapter

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Who they are?

Where they are located?

Why do they buy?

When and under what circumstances do they buy? What types of concerns do they
have?

What are their expectations concerning price, quality and service (are they
primarily cost- or quality sensitive)?

2.7. Competition

It is important to recognize the competition in order to asses if ARTISIANS products

or services fit in the competitive environment of the Ethiopian Textile market.
Presenting our business in the landscape of its competitors shows that we
understand our industry and the fact that we are prepared to cope with some of the
challenges to our company's success. Accordingly, in this section of the business
plan we will analyze the following aspects of regarding our competitions:

I. Description of competitors.

A description of the main competitors, naming the companies and their trademarks,
their size and locations, their annual sales and their market share, and how their
products/services compare with ours in price, quality and other respects.

II. Relative strengths and weaknesses.

Where it is possible, we will assess the strengths and weaknesses of the

competition in areas such as management, image, marketing, distribution networks,
technology, production capability, financial resources and cost/price advantages.

2.8. Positioning

This chapter will explain how OLIANA would position itself in the market.
Furthermore, the image of the company regarding how our clients, our business
partners and our competitors would perceive our product and service shall be
discussed.

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3. CHAPTER THREE: BUSINESS OPERATIONS AND ORGANIZATION

In the previous sections of this business plan we have pointed out OLIANAs superior
products and that there are sufficient clients that would be willing to buy it at a fair
price. However, the principles of successful business dictates much more than
having just a superior product to guarantee profitability. Consequently, If OLIANA
does not have a well-functioning infrastructure in a suitable location and if it doesnt
have an efficient manufacturing and distribution system, it is highly unlikely that our
business will remain profitable for long, despite the superiority of our product and
clients interest in buying it. The same applies if the company doesnt have an
appropriate management information system or if the duties and responsibilities of
the personnel in the organization are not well defined. As such this chapter will
clearly illustrate these issues.

3.1. Location and premises

I. Location

In this part of the business plan, we will explain the main considerations that were
taken by OLIANA management team to select the present location of our business.
The Management team has selected the current location of the business after
considering and analyzing the following fundamental factors:

a. Local Market
b. Availability of Worker
c. Supporting Services
d. Material Supply
e. Availability of Utilities
f. Cost of premises
g. Image of the business

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h. Premises

our business operations can only be performed in an efficient and effective way only
if we have the appropriate production facilities, storage space and office
infrastructure. Particular issues that the management team at OLIANA has
considered to select the companys current premises are discussed below:

a. Lat.
b. Representation
c. Expandability.
d. Safety regulations. Will the premises comply with fire, health and safety
regulations?
e. Buy or rent.

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3.2. Marketing

General Remarks
I. Promotion and advertising

The purpose of our promotion and advertising campaign is to communicate

information about our product or service to the market. Specific two main objectives
that were considered by OLIANA Marketing team are:

Available media outlets to make our product and services known.

How the company can build up its image. In the short and long term

This section will provide in-depth analysis of all media that OLIANA plan to use for
advertising ITS products and services (Internet, billboards, newspapers, magazines,
direct mailings, radio and TV, etc.). It should also describe our public relations
program, sales/promotional materials (such as brochures and product sheets),
package design, exhibitions, trade fairs, etc.

II. Selling methodology

At OLIANA marketing department we are mainly concerned with:

continuously assessing the demand for our product;

Establishing ways of communicating its attractiveness to our clients.

Finally convincing our clients to buy it.

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a. Selling responsibility.
b. Selling channels.
c. Selling methods.
d. Targets.
e. Training.
f. Arguments.
g. Selling process time.

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 OLIANA TEXTILE PLC
h. Payment terms.
i. Incentives.
j. Order processing.
k. Handling complaints.

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3.3. Manufacturing

I. Make or buy.
II. Manufacturing process.

This section of the business plan will briefly discuss the different stages of the
manufacturing and the flow of materials and goods process by taking one sample
product. The manufacturing process will be explained starting from the preparation
of raw materials and continue to finishing and packaging the end product.

III. Major equipment.

IV. Lat.
V. Quality factors
VI. Interruption risks.
3.4. Distribution
3.5. Order processing and inventory control

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4. CHAPTER FOUR: HUMAN RESOURCES
4.1. Management

1. Shareholders

2. Board of directors

3. Executive management

4. Middle management

5. External support services

4.2. Labor
4.3. Technical skills and competencies of managers
4.4. Attitudes and human characteristics of managers
4.5. Team spirit
4.6. Values and norms of the firm

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5. CHAPTER FIVE : LEGAL FRAMEWORK, AND ENVIRONMENTAL AND

SOCIAL FACTORS
5.1. Approvals and licensing requirements
5.2. Social compliance issues
5.3. Development and social benefits
5.4. Environmental risks

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6. CHAPTER SIX : FINANCIAL PLANNING
6.1. Introductory remarks
6.2. Financial history
I. Income statement projections
II. Cash flow projections
III. Balance sheet projections
6.3. Important financial ratios
I. Liquidity ratios
II. Current ratio
III. Quick test ratio
6.4. Efficiency ratios
I. Inventory turnover
II. Accounts receivable turnover
III. Accounts payable turnover
IV. Fixed assets turnover
V. Total assets turnover
6.5. Profitability ratios
I. Gross profit margin
II. Net profit margin
III. Operating profit margin
IV. Return on assets
V. Return on equity
VI. Dividend pat
VI.6. Solvency ratios
I. Debt to equity ratio
II. Total assets to equity ratio
III. Total assets to total liabilities ratio
IV. Capitalization ratio
V. Interest coverage ratio
VI. Methods for ranking investment projects
a. Payback period
b. Net present value
c. Internal rate of return
VI.7. Request for funds and other supporting information
I. Request for funds
II. Risk assessment
III. Start-up business financial information

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7. CHAPTER SEVEN: RISK AND SENSITIVITY ANALYSIS
7.1. Introductory remarks
7.2. Types of risks
7.3. General economic environment
7.4. Quality/production problems
7.5. SWOT analysis

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