COLLEGE OF ENGINEERING AND TECHNOLOGY

DEPARTMENT OF INFORMATION TECHNOLOGY

NO. Name of student ID.

1 Endris mamo 2397/05
2 Senayt W/rufiel 2070/03
3 Netsanet Ejigu 2417/05
4 Misgane Bayisa 1883/04
5 Kidan Aregawi 2426/05
6 Amanuel Belay 1819/05

IN STRUCTOR NAME: MUSTEFA

SUBMISSION DATE 01/09/2008E.C
JIGJIGA, ETHIOPIA

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 TABLE OF CONTENTS

1.0Executive summary........................................................................................................................... 4
2.0 Business Description and Vision ..................................................................................................... 5
2.1 a mission statement: ......................................................................................................... 5
2.2 Our Vision .................................................................................................................................... 6
2.3 objective ....................................................................................................................................... 6
2.4 Goals ............................................................................................................................................ 6
2.5 Missions ....................................................................................................................................... 6
2.6 Key people ................................................................................................................................... 6
3.0 Definition of the Market ................................................................................................................ 7
3.1 Identity of the Business ................................................................................................................ 7
3.2 Name of business center .............................................................................................................. 8
3.3 Name of owners ......................................................................................................................... 8
3.4 Legal consideration ...................................................................................................................... 8
3.5 Location ....................................................................................................................................... 9
3.6 Professional advisors ................................................................................................................... 9
3.7 Future requirements ..................................................................................................................... 9
3.8 Nature of the Business ................................................................................................................. 9
3.9 Strength ........................................................................................................................................ 9
3.10 Weakness ................................................................................................................................. 10
4.0 Description of Products and Services ......................................................................................... 10
4.1 Products and services ................................................................................................................. 10
5.0 Organization and Management .................................................................................................. 13
5.1 Organizational Structure ............................................................................................................ 13
5.2 Future direction .......................................................................................................................... 13
5.2.1 Strategic influences ............................................................................................................. 13
5.3Management Team...................................................................................................................... 14
5.3.1Employees ............................................................................................................................ 14
5.4 Management of resource ............................................................................................................ 15
5.4.1 premises .............................................................................................................................. 15
5.4.2 Equipments ........................................................................................................................ 15
6.0 Marketing and Sales Strategy ..................................................................................................... 16
6.1 Marketing plan ........................................................................................................................... 16
6.1.1 Market ................................................................................................................................. 16
6.1.2 Customers ........................................................................................................................... 16

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 6.1.3 Competition......................................................................................................................... 16
6.1.4 Pricing ................................................................................................................................. 16
6.1.5 Promotion............................................................................................................................ 18
6.1.6 Place .................................................................................................................................... 18
6.1.7 Marketing objective ............................................................................................................ 18
6.1.8 Sales service ........................................................................................................................ 18
7.0 Financial Plan ............................................................................................................................... 19
7.1 Sources of finance ...................................................................................................................... 19
7.2 Financial Requirement ............................................................................................................... 19
7.3 Risk Assessment ........................................................................................................................ 20
8.0 Summary/conclusion ................................................................................................................... 20
Reference ............................................................................................................................................ 22

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1.0 Executive summary
Hotel is very important thing for human beings. Its importance is by giving different services
such as, food, bed, drinks, games, entertainment and so on. However, the hotels give these
services every day. The services are going on manually, which leads to wastage of time,
lack of accuracy and speed, use many workers. So it should be computerized to overcome
these problems and give successful services for the customers and also for the owner of the
hotel.

Hotel industry is an essential part of tourism. The expansion of tourism is well

inevitable bringing out development of the hotel industry. Hotel industry is so closely linked
with the tourism industry that it is responsible for about 50% of the foreign exchange earning
from tourism trade and enterprises. The hotel industry in recent years government has taken
several steps to boost travel & tourism which have benefited hotel industry .They have a
better product profile than the rest. they have great management, hospitality and facilities
provided by them to their customers. .

This business plan is based on secondary data. I have collected the all information from
secondary data like internet, journals, book etc. The objective of taking up this business plan
is to create a Global Market Positioning System for the Iostream hotels that can balance their
maps and strategies for a financial well-being.

It is obvious that the most above services are available in almost all Ethiopian hotels open
without good business plan .Our initial statement to Investors and Financial Lenders, this
Iostream hotel ethnic food business plan, is a candid disclosure of the Hamda hotel business
proposal - our intent is to set realistic business expectations, and eliminate any
questions about the profitability of this business venture.

Entrepreneurs have a tendency to paint the Hotel business plan with a very optimistic brush,
highlighting strengths and camouflaging the risks. We, as business owners, have a vested stake and
financial commitment in the success of this hotel. Our intent is to have a definitive business,
financial, and marketing plan that not only serves our need for capital financing, but is utilized as our

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daily business roadmap. We have taken all precautions to validate our business and
financial models, focusing on realistic projections. We have accomplished this as follows:
Our financial model is rooted in industry facts, not optimism. We have based costs on our
vast industry and practical experience with similar ventures, validation against National hotel
industry cost averages, and analysis against local Jigjiga market averages. We have taken a
collective look at all figures to make solid business estimates.

Our business concept was derived from detailed Market Analyses. Instead of building a
business around a preconceived concept, we analyzed the market findings and built a concept
around our consumers. In other words, our business is built to service an unmet consumer 'want'.

A buffered financial plan that ensures adequate capitalization. A contingency buffer is

included in the start-up cost to ensure the business in not under financed, as well as giving the
business adequate funding to sustain it in the first six months of start-up. Our industry experience
confirms a longer ramp-up stage for hotel over other retail/service businesses. A common
mistake for new entrepreneurs, but fully addressed in this business plan.

A solid Risk Mitigation Plan. We have evaluated traditional and non-traditional risks associated
with Restaurant failure and accounted for them directly in the business plan. Instead of
dismissing the risks, we have identified valid mitigation strategies for each.

2.0 Business Description and Vision

2.1 a mission statement:

The mission of our hotel is to provide outstanding lodging facilities and services to our guests. Our
hotel focuses on individual business and leisure travel, as well as travel associated with groups
meetings .we emphasize high quality standards in our rooms and food and entertainment divisions.
We provide a fair return on investment for our owners and recognize that this cannot be done without
well trained , motivated and enthusiastic employees.

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2.2 Our Vision

To be the first choice for guests, colleagues, shareholders and business partner.

2.3 objective
Iostram business center objective is to provide good and quality services for society ,government ,
for new comer from other place to jigjiga and jigjiga university students

2.4 Goals
Goals are those activities and standards and organization must successfully perform or achieve to
effectively carry out its missions. A Goal is more specific than a mission; it requires a certain level of
achievement that can be observed and measured. Measurable goals encourage hotel employees to
perform effectively while enabling management to monitor employee progress. Management can
determine whether goals are being achieved or whether corrective action is necessary.

measurable goals:

Increase the hotel's average occupancy level by two precent above the previous year's level.
Increase the volume of repeat guest business by 10 percent.
Collect GSTS card from 95 percent of all guest while checkout.
Reduce Check-in and check-out times by two minutes.

2.5 Missions
We are committed to providing our customers with highest quality of services such as Iostream Hotel
production and others. In general we provide services with those services that we list our customers.

2.6 Key people

Endris Mamo
Age 20
Experience o years
Qualification BSc Information Technology
Amanuel Belay
Age 20

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 Experience 0 years
Qualification BSc Information Technology
Misgane Bayisa
Age 18
Experience 0 years
Qualification BSc Information Technology
Kidan Aregaw
Age 20
Experience 0 years
Qualification BSc Information Technology
Nistanet Ejigu.
Age 22
Experience 0 years
Qualification BSc Information

Senait W/rufail
Age 22
Experience 0 years
Qualification BSc Information Technology

3.0 Definition of the Market

3.1 Identity of the Business
Iostream hotel business center is a partnership business which is owned by
1) Endris Mamo
2) Amanuel Belay
3) Misgane Bayisa
4) Kidan Aregawi
5) Senait W/rufail
6) Nistanet Ejigu.
.

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We have planned to provide good service to Jigjiga University students and its community and
society of Jigjiga University as whole. We will provide a matchless qualified service with highly
experienced mavens for improving health of the community and reducing sickness of the society and
generate energetic generation in the university also, in the town Jigjiga.

3.2 Name of business center

The name of the business center is named as Iostream Hotel. The name comes from the programing
word input output stream since the owners are computer graduate students and want to work more
on the hotel in connection with technology in the future, owners negotiated with this name.

3.3 Name of owners

There will be six owners who will own the business, and will work in the daily operations.
The first owner is Endris Mamo with zero years experience in business other than certificate in
different business oriented experiences and he has graduated from Jigjiga University.
The second owner is Amanuel Belay who has 0 years of experience in business; he has graduated
from Jigjiga University in computer science.
The third owner is Kidan Aregawi, who has zero years of business experience; has graduated
from Jigjiga University in computer science.
The fourth owner is Nistanet Ejigu, who has zero years of business experience; has graduated
from Jigjiga University in computer science.
The fifth owner is Misgane Bayisa, who has zero years of business experience; has graduated
from Jigjiga University in computer science.
The sixth owner is Senait W/rufail, who has zero years of business experience; has graduated
from Jigjiga University in computer science.

3.4 Legal consideration

The business that we are going to form is use to form is the limited liability company structure the
way of limited liability company chosen for several resources:
The first was on the profit of firm to be taxed transfer to ones own personal tax return.
The second reasons consider was that the owner of the company has limited liability they can
liable for what they have invested in the business the last consideration was that in some stages
the limited liability businesses are not required to have a board meeting.

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3.5 Location
The business center Iostream Hotel is placed in jigjiga town. Specifically around University of
Jigjiga . The business center is constructed good position near to students dorms so that that can
easily access our supply.

3.6 Professional advisors

The business center as it gives cafeteria service only and has got three managers inside it the advisors
for the center is the owners (managers) themselves but for the future when it comes to lounge and
consists all things need the center will have professional advisors so that center will be able to grow
sooner.

3.7 Future requirements

In the future as the owner of a business center we have planned to study different field studies among
them Iostream hotel management and business tends courses takes the first place. So that it enables
as to compete with others and makes the center more preferable comparing to others.

3.8 Nature of the Business

The business will provides the real pleasure for customers and we work closely with customers to
develop quality of our services that are suitable to their need. In addition, our business provides a
variety of services such as food services, free internet service, drinks, take away services. In
general, the business provides the right qualified services at the right place, at the right time with fair
price for the right customer. To let customers get satisfaction of their desires.

3.9 Strength
We will have personalized and good approach and services to our consumers. Also we are limited
business to understand the targeted customer need. Our emphasis is on the quality of services, and
good markets allows potentially high markup. We have excellent locations and new equipment,
flexible with the need of customers and low running cost. This new technologies advancement
allows us to adjust our services as to the customers need.

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3.10 Weakness
Our business center is only give food services but do not consider other services like photo copy
service, beauty salon, having this leads our customers to other expense and we found this as
weakness of our business center.

4.0 Description of Products and Services

Iostream hotel business center is a partnership form of business which owned by Endris Mamo,
Amanuel Belay, Misgane Bayisa, Kidan Aregawi, Senait W/rufail and Nistanet Ejigu.Unlike
other hotel Iostream hotel business center will provide matchless services with highly effort with
BSc in addition to other academics. To start this business we loan 80% of the requirement from
commercial bank of Ethiopia and the rest by owners. A service that the center will provide in
addition to food service is that, entertainments and free internet services in which the service cash to
the organization.

4.1 Products and services

Us we mention in the introductory part our business is going to provide a service. We plan to provide
different services in a preferable the right quality at the right time to the right customers. This will
help our customer to get enough services. The main services that we are going to provide to our
customers:
Food service
Free internet service
Take away service
Different game service
Other Entertainment
Bedroom
Hall
Supermarket service etc.
Iostream Holding different services which will be a solution for:-
Better/quality food service requirement
Hygiene environment

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 Awaken waiters
Better customer places
Fair cost
Keep customers healthy

To accomplished the above service Its planned for the center to consist 50 employees. there are
different departments.
Those departments are:-
1. Supermarket
2. Restaurant
3. Cafeteria
4. Small Hall
5. Bedroom

Each department gives different services for the customers in different manner as follows:
1 Supermarket

Supermarket is one of department of the Iostream and it is foundation of different items. In

supermarket the customers have multi choice of item to buy. Some items found in supermarket are: -
Fruits
Luxury goods (great conferts).
2 Restaurant

Restaurant is one department of the Iostream. A restaurant is an establishment which prepares and
serves food and drink to customers in return for money, either paid before the meal, after the meal or
with a running ticket. Restaurants vary greatly in appearance and offerings, including a wide variety
of service models. According to the existing system the restaurant provides local & foreign foods to
the customers as their orders. Customer of the Iostream who wants food and other soft drinks can be
served in restaurant. In this department there are different types of food and drinks. Some services
given in restaurant are:
Soft drink
Foreign food
Local food
3 Cafeteria

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Cafeteria is another department of the Iostream. Generally, cafeteria provides different services for
the customers that available at any time. It is a type of food service location in which there is little or
no waiting staff table service In addition, there are often stations where customers order foods and
wait while it is prepared, particularly for items such as hamburgers or tacos which must be served hot
and can be quickly prepared .The customers can visit to get service like: -
Tea and coffee
Soft drink
Juice
Fresh food
4 Small Hall

A Small hall is fundamentally a relatively small space enclosed by a roof and walls. This hall is also
a building consisting principal room that is rented out for various ceremonial, meetings and social
affairs. The hall department is divided into two categories known as north hall with thirty (30) chairs
and south hall with eighty (40) chairs. Both halls give the same services like: -
Conference
Different kinds of ceremonies
Refreshment
Meal
5 Bedroom

Abed room is a private room, where people usually sleep for the night or relax during the day time.
To be considered a bedroom the room needs to have a bed; furniture and other items in bedrooms
vary greatly, depending on test and local tradition. Some of materials bedroom can hold are:-
Shower
TV service with dishes and receiver
Refrigerator
Cap board
Single bed
Double bed

The Iostream has totally 50 employees in number. Those are, office workers, waiter\s, chief,
cleaners, electrician, bellboy and others. The Iostream has some resources that provide the services
for the customers. Such as, free service of minibus. That is when the customers come by airplane

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from somewhere the Iostream brings the customers from airport to the Iostream by minibus. After
few years later the Iostream is expected to be in a higher performance of providing services with the
support of computerized system and with enough resources

5.0 Organization and Management

5.1 Organizational Structure
This organizational structure is the level of managerial functions as we have mentioned before in the
organizational plan all partners are active participant in the day to day progress of the business in
addition to creating the business all partner contributed to the financial resource and will share the
earned profit equally .
Ato Endris Mamo is the general manager of the business center.
Ato Amanuel Belay formulate rules and regulation how the business run operated.
W/t Kidan Aregawi forecast decision of supplies with help of other partners.
W/t Misgane Bayisa manages the lounge particularly the caf activity of employees and
observes gust customer satisfaction (need).
W/t Nistanet Ejigu manages the entertainment section observes customers need.
W/t Senait W/rufael supply additional needs so that customers can easily entertain and get
satisfaction needed.

5.2 Future direction

5.2.1 Strategic influences

5.2.1.1 Opportunities
Are things around our business on communities that will be good for business that we provide
quality of services and there is of course other business centers like us but what makes us different
from them is the center consists variety of service following technologies. Our location around
Jigjiga university creates a big opportunity because of greater demand by the University community.

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5.2.1.2 Treats
Are things around us in the community that will be bad for our business. So that the threat that will
find in our new venture are other business center making similar service like us. Also credit sales
mean that there is a possibility of bad debts specially, in times recession and also natural hazard are
on other threat.

5.2.1.3 General objective

Profit and customer satisfaction is main objective of the business center.

5.2.1.4 Specific objectives

Keeping affordable food cost.

Keeping fair employee labor cost.

Remain unique with good food and service.

Promoting and expanding the Iosteam hotel as matchless.

Expanding our marketing and advertising in other universities and student center cities

5.3Management Team

5.3.1Employees

Our business creates a job opportunity for not more than 50 employees. According to our plan we
will employee in the following area:
- waiters
- machine taker
- chef
- order taker
- cashier
- entertainment controller
We have planned to employees mentioned above to pay depending on our business size on scale of
our company and in negotiation. Also, we have planned to award an incentive for hard-working,
honesty, hard workers and punctual employee at the end of the year.

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5.4 Management of resource

5.4.1 premises
Keeping in mind the fact that our business center provides many services, it is easy that the business
requires enough number of employees and a variety of choice. These varieties of choice are of
different customer demands and equipments to run successful business. We have 99% permanent
employees to work with and the other % of employees is temporary and they are the one evolve in
occasions.

5.4.2 Equipments
Every business is started within material and equipment that is required. So the material and
equipment for our business includes material equipment and machine for different services that we
will provide for our consumers.
The material, equipment and machines are:
- Cafeteria service
- Coffee machine
- Chairs
- Table
- dish
- water glasses
- hot drinks glasses
- TV
- Refrigerator
- minbus
Entertainment
- kerenbula table
- Tennis table
- Chess
- Book shelf

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6.0 Marketing and Sales Strategy
6.1 Marketing plan
The full marketing plan of our business will publish later on and placed on our business center and
promotion areas. Our business is designed to provide quality service keeping our customers
entertained and satisfied by our service. Also our customer entertained in our entertainment sections
(table tennis, kerenbula, chess) until they got other services. In order to stay competitor with our
new venture we follow three key points (8ps).

6.1.1 Market
The market as we try to mention in the above sections its targeted jigjiga university students and it
provides food services, students all the time able to use the service because of our Market is
opened for 18 hours so that the customers basically the students will be benefited. Giving services
for additional 4hours is need considering students stay in study for last eight hours after12.00pm.

6.1.2 Customers

There is vast number of customer needs. Customer influences the center to provide copy machine
service, cosmetics service, beauty salon, and additional entertainment service. Also they raise some
questions considering the price of the service the center will consider the question if possible or
unless will give additional services to satisfy their needs.

6.1.3 Competition
There are of course same business center in the university but no center compete with us they only
give the center food services what makes our different is our center well are filled with
entertainments, discount in the price and are many variety of choices we got in addition to that its
preferable because as it is near to the university. everything that other largest hotel has also our hotel
has .but the student want to drink alcohol.

6.1.4 Pricing

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Pricing is one of the marketing plans that should be changed for services taken by a customer.
According to our business we impose reasonable pricing to all of our customers. That means the
price is not as such high or low when we compare to our competitors.We have also planned to
provide the service in the following average prices
Cafeteria Services Price
1. Food service
Breakfast
Enkulalfirfir------------------------------10.00birr
Defodabo----------------------------------2.00birr
Bonbolino----------------------------------3.00birr
Sanbusa-------------------------------------3.50birr
Ferfer---------------------------------------8.00birr
Lunch/dinner
Pasta (fasting/normal) --------------------8.00birr
Pasta (with meat) --------------------------14.00birr
Pasta (with vegetable) ---------------------12.00birr
Beyaynet (fasting) ------------------------12.00birr
Beyaynet-----------------------------------22.00birr
Keywot-------------------------------------20.00birr
Shrerofeses--------------------------------13.00birr

2. Drinks

Hot drinks
Tea--------------------------------------------------1.00birr
Coffee----------------------------------------------2.00birr
Milk------------------------------------------------3.00birr
Tea-coffee sprice---------------------------------2.00birr
Makiato--------------------------------------------3.00birr
Keshier---------------------------------------------2.00birr
Cold drinks
Soft drinks----------------------------------------7.00birr
Juice-----------------------------------------------11.00birr

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 Water----------------------------------------------5.00birr

3. Entertainments
Kerenbula--------------------------------------------------4.00/table
Chess-------------------------------------------------------1.00/round
Table tennis-----------------------------------------------3.00birr/table
Generally, the price may decrease or increase depending on the total marketing of our suppliers. But
we try to satisfy our customers by estimating the price.

6.1.5 Promotion
We have planned to use customer tend promotion that is while the customers interested in our
service they promote our center each other themselves. The longer the business runs the center will
advertise new services included and other price related issues. We will also run some special
pricing with advertisements. All of these to make consumers aware of us and to hope fully increase
our sale.

6.1.6 Place
Since Iostream hotel business center found in Jigjiga town around University it will create good
income for us in order to be profitable.

6.1.7 Marketing objective

The product is targeted basically to the students and in addition to students other university
communities therefore our services is supplied targeting their needs. For those students that are not
able use the services provided by the university cafeteria and for those who are gastric patient and
may be some other health problem or else additional needs, our center is open. Generally, the center
aim of the service is that to fill customers need and the business center profit. We have planned to get
loan from Commercial Bank of Ethiopia. This collected fund is to cover expenses related to
purchase computers, machines, equipments, and salary of employees for the year.

6.1.8 Sales service

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Based on our marketing strategy, we plan to make increased sales for the next four years.

Service sales 2009 2010 2011 2012

Food service 720,210 1.132,000 1.162,000 2.185,000
Drinks 28935 89402 210203 310255
Entertainment 33,023 66,000 103,201 135,000
Kerenbula
Table tennis
Chess
books

Supermarket 245,000 300,000 400,000 600,000

Renting Hall etc.

7.0 Financial Plan

7.1 Sources of finance
In order to find the initial requirements of the business we would require the following financing.
1. Long term loan ( two years)
This loan will be agreed for buying the following materials and equipments that are necessary
for our business startup.
2. short term loan(five months)
We require a total amount of birr 20,000 for getting the trade mark license and for advertisement
purpose.

7.2 Financial Requirement

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We will require over draft facility and owners capital of 740,000birr for working capital of which
643,000birr allocated to startup capital, 97,000 as business operations. This Plan is being submitted
in order to secure a Business loan for $430,000. The loan will be used towards Equipment purchase,
Design, Construction, and Operational Start-Up expenses. Generally we will loan 80% of our finance
from Commercial Bank of Ethiopia and the other requirement is covered by the owners.

7.3 Risk Assessment

Risk is a concept of potential negative impact to assess or more characteristics of value that may
arise from some present process or future event thus any business face a risk the risk that our
business might face or in other words undesirable result that might occur:-
Lack of potential customer
Lack of finance
Lack of potential supplier
Ignorance of duty and responsibility
Lack of cooperation due to experience
Lack of finance
Others
Because of the mentioned risks our business center does not grow as we want thus in order to
minimizing the listed risk the manager of the business follows techniques and mechanism like
Examine employees
Train employees
Rules and regulations for the customers
Use adverting to solve problem of potential customer
Take meeting weekly so that it will be easy for handling working activity etc
The management will get ready for future failure in the business there for the center considers
enough finance bank account.

8.0 Summary/conclusion
A business plan is not just a lengthy document that helps you obtain financing. It's truly a thorough
examination of whether your business idea is viable. Preparing your business plan in the early stages
of developing your business can save you a great deal of time, money and heartache by showing you

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where the weaknesses in your idea lie and giving you a chance to correct them before you make any
serious mistakes.

For example, in the process of putting together your business plan, you might discover that you
haven't really thought enough about your marketing budget or you haven't done enough research on
government regulations that will affect your business. In putting together your plan, you will be
forced to examine your business from the viewpoint of the skeptical potential investor and the
skeptical potential consumer, not just from the perspective of the enthusiastic entrepreneur

In the future the business center Iostream will provide different section of supply so that the
customer will get satisfied basically the center will construct building for the future and will provide
complete hotel to the university students as well communities in the area.

Once you've completed your initial plan and, hopefully, obtained the investment or loan you were
seeking, keep in mind that your business plan should be a living document. Don't just store your
business plan on a shelf and never look at it again, thinking that it has served its purpose. You will
want to revisit your plan from time to time, dropping some components and adding others as you
learn what works for your business and what doesn't. As your business evolves, you'll find that older
versions of your plan provide a helpful reminder of how far you've come. As a bonus, continually
updating your plan will put you ahead of the game if you later need to secure additional financing.

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Reference
1. Entrepreneurship and small business management by D.hirman
2 Entrepreneurship, Robert D.hirsch, Michael, peters, Dean A New Delhi
3. Entrepreneurship, Peggy lambing Charles R.kilehl 2nd edition

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