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EXECUTIVE SUMMARY
The business plan explains in detail about Waliya sport betting which is a partnership business
engaged in the global gambling sector that will be established by two partners namely
Endalkachew Deneke and kidus WoldeEmmanuel. The company starts its business in Addis
Ababa.

In the market analysis it has been observed that the sector is competitive. Waliya sports betting
plans to enter the market through focused marketing strategy by offering betting options with
reasonable prices. The major competitors of the company are the betting companies that are
experienced and have lots of customers and their strength and weakness are analyzed in this
business plan.

The company will offer varieties betting options that are expected to have high demand among the
betting community. Waliya sport betting have been able to conduct thorough market research and
feasibility studies and we came to conclusion that bole medhanialem street is the right place to start
our betting business and also we have short term plans to open branches after we became
financially stable. Waliya sports betting believe our client’s best interest would always be our
outmost priority, and all our activities will be guided by our values and professional ethics. We
also hope to hire professional who are well experienced in the betting industry.

We have made sure that we are well equipped to serve the whole betting community. We believe
that our betting company is going to become the number one betting destination for all sport lovers
in Addis Ababa. We have been able to get all necessary documents to make our business legal and
formal.

The pricing for the betting is designed to address the target customers purchasing capacity so as to
make it affordable for the customers, still keeping the profit margin of the company.

Promotion objectives of Waliya sports betting will consist of creating consumer awareness,
generating interest and desire. Word of mouth and customer perception are immensely important to
promote the business.

Regarding the organizational plan, waliya sport betting is partnership form of business. And it is
going to offer employment opportunities for about 8 employees with different skills, experiences
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and responsibilities which include three cashiers, an Accountant, Managers, application and
content developer and a janitor.

Waliya sport betting plan to be open for 15 hours from 9:00 am and to 12 midnight in a day during
weekends (Friday to Sundays) and from 9:00 pm to 9:00 am from Mondays to Thursdays in order
for us to provide the best service in the industry. This is the reason we have to recruit enough staff
to run shift amongst workforce.

The potential risks identified for the business are the time it might take us to development an
identity and consumer brand acceptance at the initial stage, electric power and internet connection
interruption. We believe these are issues we can handle properly and very fast.
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1. THE BUSINESS
1.1 Introduction

Waliya sport betting is a partnership business engaged in the online sport betting sector which will
be established by two partners namely Endalkachew Deneke and kidus WoldeEmmanuel. The
company starts its business in Addis Ababa city, situated in different sub cities around selected
areas.

This business will introduce betting in a wider level for our country. This sports betting will target
sport lovers around Addis Ababa.

The Waliya sport betting first branch will be situated in bole medhanialem street which is the right
place to start our bet company.

Our business structure is built flexible version of a normal business structure. We understand that a
cross functional workforce is key to our success. We also plan to make sure that the leadership or
any staff team community of our business must be able to perform related tasks when the need or
the technical problem arise.

1.2 Financing

Financial analysis is done to realize the financial need to start the business, and the initial financing
requested for the business is ETB 552,000.00 in which all the money will be covered by the
partners.

1.3 Vision
Our vision at Waliya Bet is to create a betting company that will serve and support the well-
established, easily identified sports lovers in Addis Ababa

1.4 Mission Statement

Our mission at WaliyaBet is to provide the highly trademark aware and relationship of loyal
individuals and organization whose members live breath the world of sports, a platform to earn
their hobbies.
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2. MARKET ENVIRONMENT (INDUSTRY ANALYSIS)

2.1 Competitors Analysis

The sports betting industry in Addis Ababa is showing growth every year with regard to the
number of new entrants to the industry, the improvement of betting odds offered by the existing
companies and addressing customers’ needs. As accessing readily available industry database /
sector report is not an easy task in Addis Ababa, a precise data about the current market
environment of the sports betting industry could not be found.

In the market analysis it has been observed that the sector is competitive. Waliya sport betting
plans to enter the market through focused marketing strategy by serving at the busiest streets and
offering betting options with reasonable prices. The major competitors of the company are the
betting companies that are experienced and have lots of customers and their strength and weakness
are analyzed in this business plan.

2.2 Customer Analysis

Our target market cuts across people of different walks of life. Different people have different
instincts for different sports. Waliya sport betting will work towards providing services, facilities
and environment that will help us reach out to our target market.

These are the category of people that we intended marketing:

• Working class adults

• sports men and women

• College students

• Tourists
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3. DESCRIPTION OF VENTURE
3.1 Betting offered

The sports bets that will be offered vary. To be specific:

* Football bet

* Basketball bet

* Tennis bet

* Rugby bet

* Cricket bet

The sport bets offered by Waliya sports betting are mainly focuses on types of sports that various
people watch. The betting ranges are limited for the start and in the future betting types will be
added based on customer need assessment.

3.1.1 Payment options

For now all the payments are made through direct cash and for online betting first the player have to
open waliya account in the company which the deposit start from 200ETB.

3.2 Personnel

1. President (General Manger)

He is in charge of directing the organizations financial goals, objectives and budgets. In

addition he is in charge of hiring, training and terminating employees.

In charge of not only selling but also maintain and improving relationship with the client. In
addition he is also responsible for keeping the necessary data and record for future reference.

2. Marketing Manager

The marketing manager is in charge of meeting the sales targets of the organization through
effective planning and budgeting. He also works on brand promotion.

He will be in charge of overseeing all other executive and staff within the organization and
promoting the business investment.
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3. Application and content developer

He Is in charge of project management along with front end development advertising using
advertising words and other tools, implementation and optimizing. Also repose for managing
web traffic and analyses alternative accordingly to improve the investment.

And he is also responsible for designing the betting website and improving the site time to
time. In addition he is responsible for developing an online business strategy in collaboration
with marketing manager and be able to work with designers, web developers and content
providers to improve the site.

4. Cashier

The cashier is responsible for receiving cash from the customers and issuing cash register
receipt, keep the petty cash fund in safe custody and replenish when it is exhausted and pay
monthly utility bills.

Waliya sports betting will have 3 cashiers with the qualification of diploma / certificate in
accounting from recognized technical and vocational college and familiar in using cash register
machine.

5. Accountant

The accountant is responsible for preparing settlement of all types of taxes due to the
government, prepare payroll and other staff benefit payments, collect financial documents and
prepare financial reports, and handle all financial related issues in consultation with the
management.

Waliya sports betting will have 1 accountant with at least diploma in accounting and from a
recognized college and 2 year of related experience.

6. Janitor

Janitor is responsible for cleaning of the office and betting area. The area should be kept clean
to attract customers more. To achieve this goal we need to keep the area clean, fresh and eye-
catching.
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As mentioned in detail above the company will have 8 employees with diversified skills,
experiences and responsibilities. The company gives a great emphasis in handling the human
resource starting from recruiting and hiring. Salaries, overtime payments and other benefits
packages are designed in order to motivate and attract employees. The company encourages
women applicants and employees.

3.3 Background of entrepreneurs

The Partners of the business are two namely: Endalkachew Deneke and kidus WoldeEmmanuel.
The entrepreneurs are university students of Civil Engineering. The General Manager
responsibilities are undertaken by the partners themselves.

4. PRODUCTION PLAN
Equipment

The equipment needed for the businesses are:

 Computers

 Furniture

 Cash register machine

 POS printers

 Bar code scanners

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5. MARKETING PLAN
5.1 Pricing

The pricing for the betting is:

• Minimum bet: 50.00 birr/bet

• Maximum bet: 10,000.00 birr/bet

• Maximum wins 350,000.00 birr

5.2 Location

The Waliya sport betting will be situated in bole medhanialem street which is the right place to
start our bet company. This will be our starting point for this business.

5.3 Promotion

Promotion objectives of Waliya sports betting will consist of creating consumer awareness,
generating interest and desire. The methods that will be used for the promotion are:

• Flyers

• Social media

• TV or Radio

• Word of mouth
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6. ORGANIZATION PLAN

6.1 Form of ownership

Waliya sports betting is a partnership established by two partners namely: Endalkachew Deneke
and kidus WoldeEmmanuel.

Terms of partnership

- The percentage of ownership is as indicated below:

1) Endalkachew Deneke– 50.0 %

2) Kidus WoldeEmmanuel- 50.0 %

- The owners share profit and losses according to the partnership agreement which is:

i. The net income is divided in a percentage of 40 % to retained earnings and 60 % to be paid

to the partners

ii. 60 % of the portion of net income is paid to the partners according to the partnership
percentage

- The two partners has to make decision on the overall issues of the company

- The General Manager position will be among the partners

- The ownership of partnership can be transferred or inherited

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6.2 Organizational Structure

General
Manager

Operational Marketing
Manager Manager

Accountant Cashier Janitor

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7. ASSESSMENT OF RISK

In any business, owners face different kinds of risks like financial risk, operational risk, political risk,
economic risk, etc. In similar manner, Waliya sports betting will have some risks at initial stage as well
as in the future and carefully assessment will help to be prepared for minimizing loses that could be
resulted by these risks.

The major risks identified include:

 The time it might take us to development an identity and consumer brand acceptance at the initial
stage.

 Internet connection and electric power interruptions

8. FINANCIAL PLAN

8.1 Sources and applications of funds

8.1.1 Sources of fund

The initial financing requested for the business is ETB 552,000.00 in which all will be covered by the
partners.

8.1.2 Listed below are the ways we expect to spending our startup capital;

- Business incorporating fees

- Our price for liability insurance, permits and license

- Our budget for acquiring an office space and renovating it.

- Equipping the office (computers, printers, internet facility, furniture, filling cabinets, and
electronics

- Amount required to purchase the needed software applications

- Our price needs to pay bills and staff members for at least 6months.

- Additional expenditures such as business cards, Signage, adverts and promotions

- Miscellaneous Total startup cost=202,000Br and capital that should be deposited for maximum
possible wins=350,000Br
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8.1.3 Operational cost

It includes salaries, rent and other monthly bills

 Rent (monthly): - 15,000 Br

 Monthly bills: - 3000 Br

 Monthly salary

Employee Salary No

President 10,000 1 10,000

Marketing Manager 8000 1 8000

Accountant 4000 1 4000

Cashier 1500 3 4500

Janitor 800 1 800

Total 27,300Br

Total monthly operation cost= 27300+3000+15000

= 45300Br ………It’s only for the first 5years

At the end of 6th year employee salary will be raised by 100% and other payment bills and rents are
considered doubled.

Annual operation cost= 12*45300=543,600Br…..For the first 6 years

Annual operation cost= 12*91000=1,087,200Br….. For the 7th year

Annual operation cost= 12*91000=1,087,200Br…..After the 8th year

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8.1.4 Income (without tax)

1st year: - No of customers will come to the betting place is 200 per week

200/week*2papers*50Br/paper*4weeks/month =80,000Br/month

With our chance of winning 70%: - 80,000*0.7=56,000Br/month

Annual income =56,000*12=672,000Br

2nd year: - No of customers will increase by 35% (assumed)

Annual income =907,200Br

3rd year to 6th year: - No of customers will increase by 15% at 3rd year and continued to the 6th year
(assumed)

Annual income =1,008,000Br

7th year: - No of customers are 400 per week

Annual income =1,512,000Br

At the end of the 7th year we planned to open a branch office

8th year to 10th year: -

Annual income =3,024,000Br

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8.2 Cash Flow

Fig. Cash flow diagram for the 10 years

8.3 Economic analysis

8.3.1 Net present worth method

Assumed MARR =15%

NPV= (-202+83.73+242.9+229.01+199+173.16+150.6-10.3+317+275.7+239.7)1000
= 1,698,340Br …this shows that the business is profitable
8.3.2 Payback period

 For the startup cost at year 0

Yr. CF(*1000) Cumulative

CF(*1000)

0 -202 -202

1 83.73 -118.27

2 242.9 124.63

3 229.01 353.64
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4 199 552.64

5 173.2 725.84

6 150.6 876.44

Then by interpolation the payback period is 1.48years

 For investment made at year 7 (for the new branch)

Yr. CF(*1000) Cumulative

CF(*1000)

7 -345.9 -345.9

8 317 -28.9

9 275.7 246.8

10 239.7 486.5

Then by interpolation the payback period is 1.17years

8.4 Financial and economic viability

• The initial estimation and analysis of the plan shows the project is viable business-wise

•The cost is less than the benefit (money and mental satisfaction) of the business that makes it
economically feasible