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Business Plan for Boaz Trading PLC: T-Shirt Stores Project

Project Name: T-Shirt Stores | Total Cost: 27,500,000 ETB | ROI Target: 18%

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### Executive Summary

Boaz Trading PLC, an Ethiopian enterprise, aims to establish a premium T-shirt brand in Addis Ababa, blending local cultural heritage with global appeal through strategic participation in the Cannes Film Festival. With a total investment of 27,500,000 ETB (including 6,875,000 ETB for Cannes activation), the project targets Ethiopia’s growing middle class and leverages international exposure for brand prestige. Financial projections show a monthly cash flow of 412,500 ETB, delivering an 18% ROI. Key strategies include locally sourced materials, tiered pricing for Ethiopian purchasing power, and omnichannel sales.

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### Mission Statement

To empower Ethiopian self-expression through affordable, culturally inspired apparel that bridges local artistry and global trends.

### Vision Statement

To become Ethiopia’s leading lifestyle brand, recognized internationally for quality, innovation, and social impact.

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### Company Description

Based in Addis Ababa, Boaz Trading PLC combines Ethiopia’s rich textile heritage with modern design. The T-shirt line will feature two collections: a premium Cannes-inspired line for international markets and a locally priced line for Ethiopian consumers.

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### Market Analysis

- Local Industry: Ethiopia’s apparel market is growing at 7% annually, driven by urbanization and a youth-dominated population (70% under 30).

- Purchasing Power: Average monthly income in Addis Ababa is 10,000–15,000 ETB; pricing tailored to affordability.

- Opportunities: Rising demand for fashionable, locally made products and Ethiopia’s position as a global textile hub.

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### Competitive Analysis

Competitors: Local tailors (low-cost), international fast fashion (limited presence).

Differentiation:

- Cannes Collaboration: Exclusivity and global branding.

- Ethiopian Sourcing: Cost efficiency and sustainability.

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### SWOT Analysis

- Strengths: Local production, cultural relevance, Cannes partnership.

- Weaknesses: Import dependency for premium materials, infrastructure challenges.

- Opportunities: Export potential via diaspora, expansion into East African markets.

- Threats: Currency volatility, political instability.

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### Target Market & Segmentation

- Primary: Addis Ababa youth (18–35), middle-class professionals (avg. income 10,000–25,000 ETB/month).

- Secondary: Ethiopian diaspora, tourists, and international buyers via Cannes.

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### Product Line

1. Cannes Collection (Premium):

- Price: 4,400–8,250 ETB (export/diaspora focus).

- Designs: Ethiopian motifs fused with cinematic themes.

2. Everyday Line (Local):

- Price: 300–800 ETB (organic cotton, unisex fits).

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### Pricing Strategy

- Local Line: Competitive pricing aligned with purchasing power.

- Cannes Line: Premium pricing for international markets.

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### Marketing & Sales Strategy

- Local: Social media campaigns, pop-up stores at Addis events (e.g., Meskel Festival), partnerships with Ethiopian influencers.

- International: Cannes pop-up store, collaborations with filmmakers, e-commerce (Shopify/Amazon).

- Budget: 6,875,000 ETB for Cannes (25% of total), 3,000,000 ETB for local marketing.

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### Financial Projections (Year 1)

- Revenue: 16,500,000 ETB (Cannes line: 6,600,000 ETB; Local line: 9,900,000 ETB).

- COGS: 8,250,000 ETB (50% margin).

- Operating Expenses: 7,237,500 ETB (rent, salaries, marketing).

- Net Profit: 990,000 ETB (18% ROI on 27,500,000 ETB).

- Monthly Cash Flow: 412,500 ETB.

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### Funding Request

- Total: 27,500,000 ETB (equity/debt mix).

- Use of Funds:

- Cannes Activation: 6,875,000 ETB

- Local Production: 11,000,000 ETB

- Store Setup (Addis): 5,500,000 ETB

- Marketing: 3,000,000 ETB

- Contingency: 1,125,000 ETB

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### Risk Mitigation

- Currency Risk: Hedge forex exposure for Cannes expenses.

- Supply Chain: Dual sourcing (local + international).

- Political Risk: Diversify revenue streams (online/export).

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### Sustainability & Compliance

- Eco-Friendly: Partner with Ethiopian organic cotton farms.

- Compliance: Adhere to AGOA standards for export, Ethiopian textile regulations.

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### Implementation Timeline

1. Q1 2024: Secure suppliers, finalize designs.

2. Q2 2024: Launch Addis store, begin local marketing.

3. Q3 2024: Cannes activation, international sales rollout.

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### Human Resources

- Team: 15 employees (local designers, sales staff, logistics).

- Training: Partnerships with Ethiopian fashion institutes.

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### Milestones & Metrics

- 6 Months: Break-even sales (1,000 units/month locally).

- 12 Months: Achieve 18% ROI.

- 24 Months: Expand to Dire Dawa and Hawassa.

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### Exit Strategy

- Acquisition: Target regional retailers (e.g., Sheba Leather).

- Franchising: License brand to East African entrepreneurs.

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### Technology & Partnerships

- E-Commerce: Localized platform with mobile payment integration (TeleBirr).

- Collaborations: Ethiopian Textile Development Institute, Cannes organizers.

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### Appendix

- Supplier contracts (Hawassa Industrial Park).

- Cannes partnership agreement.

- Cash flow projections in ETB.

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This plan positions Boaz Trading PLC to capitalize on Ethiopia’s economic growth while leveraging global opportunities, ensuring scalability and investor returns grounded in local purchasing power.

Human Resources

- Team: 15 employees (local designers, sales staff, logistics).

- Training: Partnerships with Ethiopian fashion institutes.

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Discussion

**Expanded Human Resources Strategy for Boaz Trading PLC**

### **1. Team Structure and Roles**

The 15-employee team is strategically organized to align with the company’s dual focus on local authenticity and global appeal:

| **Department** | **Roles & Responsibilities** | **Headcount** |

|-----------------------|---------------------------------------------------------------------------------------------|---------------|

| **Design & Production** | - **Lead Designer**: Oversees fusion of Ethiopian motifs with global trends.
- **Textile Artisans**: Handcraft premium Cannes Collection details (e.g., embroidery).
- **Pattern Makers**: Optimize fabric usage for cost efficiency. | 5 (1 lead, 4 designers/artisans) |

| **Sales & Marketing** | - **Store Managers**: Oversee Addis flagship and pop-ups.
- **E-Commerce Specialists**: Manage Shopify/Amazon platforms.
- **Influencer Liaisons**: Coordinate partnerships with Ethiopian celebrities. | 6 (2 store managers, 3 digital sales, 1 marketing) |

| **Logistics & Supply Chain** | - **Procurement Officer**: Source organic cotton and manage supplier relationships.
- **Export Compliance Manager**: Ensure AGOA/EU standards.
- **Inventory Coordinator**: Optimize stock levels across channels. | 4 (1 procurement, 1 compliance, 2 inventory) |

**Leadership**:

- **CEO/Founder**: Strategic vision and global partnerships.

- **Operations Manager**: Day-to-day oversight of production and logistics.

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### **2. Recruitment Strategy**

- **Local Talent Focus**: Prioritize hires from Ethiopian fashion hubs (Addis Ababa, Bahir Dar) with expertise in traditional crafts.

- **Partnership-Driven Recruitment**: Collaborate with **Ethiopian Fashion & Textile Institute (EFTI)** and **Hawassa University** for internships and job placements.

- **Diaspora Engagement**: Target Ethiopian returnees with international experience in luxury fashion or e-commerce.

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### **3. Training & Development**

**Partnerships**:

- **Ethiopian Fashion & Textile Institute (EFTI)**:

- **Certification Programs**: GOTS compliance, sustainable dyeing techniques.

- **Workshops**: Digital design tools (Adobe Suite, CLO3D) for modernizing traditional patterns.

- **Addis Ababa University**:

- **Export Compliance Training**: AGOA documentation, EU REACH regulations.

- **Language Skills**: English/French courses for international client interactions.

**Internal Programs**:

- **Cultural Storytelling Bootcamps**: Train sales teams to articulate the heritage behind designs (e.g., Lalibela Cross motifs).

- **Tech Upskilling**: Logistics staff learn IoT inventory tracking via Safaricom’s platform.

- **Sustainability Masterclasses**: Partner with **Farm Africa** to teach circular economy practices.

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### **4. Employee Retention & Benefits**

- **Competitive Compensation**:

- Salaries 15% above market average (e.g., designers: 12,000 ETB/month vs. industry 10,000 ETB).

- Performance bonuses tied to sales targets and sustainability metrics.

- **Career Pathways**:

- Artisans can advance to “Master Craftsperson” roles with equity incentives.

- Sales staff promoted to regional managers for East African expansion.

- **Work-Life Balance**:

- Flexible hours during cultural festivals (e.g., Meskel).

- On-site childcare at Hawassa production facility.

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### **5. Compliance & Ethics**

- **Labor Standards**: Adhere to Ethiopia’s 2022 Labor Proclamation, including 40-hour workweeks and overtime pay.

- **Health & Safety**: Monthly audits at production sites; PPE provided for dyeing/stitching teams.

- **Ethical Sourcing**: Publish annual transparency reports via blockchain (VeChain) to verify fair wages for farmers.

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### **6. Community Impact**

- **Artisan Empowerment**: Train 50 rural weavers annually through EFTI partnerships, integrating their techniques into collections.

- **Youth Employment**: Reserve 30% of entry-level roles for graduates of **Addis Ababa Technical School**.

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### **KPIs for Success**

- **Training Effectiveness**: 90% completion rate for compliance programs; 50% boost in designer productivity post-upskilling.

- **Retention**: 85% employee retention Year 1.

- **Community Impact**: 100 artisans trained by 2025.

By prioritizing skill development, ethical practices, and cultural pride, Boaz Trading PLC’s HR strategy ensures a motivated team capable of driving both local relevance and global growth.

### **Expanded Human Resources Strategy**

**Objective**: Build a skilled, motivated team to drive Boaz Trading PLC’s mission of blending Ethiopian heritage with global appeal, while fostering employee growth and retention.

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#### **1. Team Structure & Roles**

| **Role** | **Number** | **Responsibilities** |

|-------------------------|------------|--------------------------------------------------------------------------------------|

| **Local Designers** | 4 | Create culturally inspired designs for both Local and Cannes lines. |

| **Sales Staff** | 5 | Manage flagship store, kiosks, and e-commerce platforms; focus on customer experience.|

| **Logistics Team** | 3 | Oversee supply chain, inventory, and export/import compliance. |

| **Marketing Coordinators** | 2 | Execute social media campaigns, influencer partnerships, and event activations. |

| **Operations Manager** | 1 | Coordinate cross-department workflows and ensure alignment with business goals. |

**Total Team**: 15 employees

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#### **2. Recruitment Strategy**

- **Local Talent Focus**: Prioritize hiring Ethiopian nationals, with an emphasis on gender diversity (target: 50% female workforce).

- **University Partnerships**: Recruit graduates from **EiTEX (Ethiopian Institute of Textile and Fashion Technology)** and **Addis Ababa University** for design and logistics roles.

- **Artisan Collaboration**: Engage traditional *shemane* (weavers) from Bahir Dar and Aksum as freelance consultants for premium collections.

**Recruitment Channels**:

- Job fairs at EiTEX.

- LinkedIn and Telegram job postings.

- Referral bonuses for employees.

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#### **3. Training & Development**

- **Design Innovation**:

- **EiTEX Partnership**: 6-month certification program in sustainable textile design for local designers.

- **Cannes Line Workshops**: Training with international stylists on luxury market trends.

- **Sales & Customer Service**:

- **E-Commerce Training**: Shopify and TeleBirr payment system workshops.

- **Cultural Storytelling**: Educate staff on the heritage behind designs to enhance customer engagement.

- **Logistics Excellence**:

- **AGOA Compliance Training**: Ensure adherence to U.S. export standards.

- **Blockchain Tracking**: Safaricom-led workshops on IoT-enabled supply chain tools.

**Metrics**:

- 100% of employees complete onboarding.

- 80% attend ≥2 skill-building workshops annually.

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#### **4. Employee Well-being & Retention**

- **Benefits**:

- Health insurance via **Nyala Insurance**.

- 30% employee discount on Boaz products.

- Transportation allowances (500 ETB/month).

- **Retention Strategies**:

- **Career Pathways**: Promote from within (e.g., sales associate → store manager).

- **Performance Bonuses**: Award top performers with 10% of monthly salary quarterly.

- **Flexible Hours**: Accommodate students and working parents.

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#### **5. Organizational Culture**

- **Core Values**:

- **Cultural Pride**: Celebrate Ethiopian holidays (e.g., Meskel, Timket) with team events.

- **Sustainability**: Monthly “Green Innovator” awards for eco-friendly ideas.

- **Community Impact**: Volunteer days at organic cotton farms or schools.

- **Inclusivity**: Amharic and English as workplace languages to bridge generational gaps.

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#### **6. Strategic Partnerships**

- **EiTEX**: Co-develop a curriculum blending traditional weaving with digital design.

- **Fashion Revolution Ethiopia**: Ethics and sustainability training for managers.

- **Hawassa Industrial Park**: Apprenticeships for logistics staff in solar-powered manufacturing.

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#### **Risk Mitigation**

- **Skill Gaps**: Partner with **GIZ (German Development Agency)** for technical training grants.

- **High Turnover**: Conduct quarterly engagement surveys; adjust benefits based on feedback.

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### **Alignment with Business Goals**

- **Local Designers**: Ensure authenticity in collections, resonating with Ethiopian and diaspora markets.

- **Trained Sales Staff**: Drive customer loyalty through storytelling, boosting repeat purchases.

- **Efficient Logistics**: Reduce lead times by 25%, supporting the 18% ROI target.

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By investing in talent development and fostering a culture of innovation and inclusivity, Boaz Trading PLC positions itself as both a market leader and employer of choice in Ethiopia’s growing textile sector.

**Expanded Human Resources Strategy for Boaz Trading PLC**

Boaz Trading PLC’s human capital plan prioritizes talent development, cultural alignment, and operational efficiency. Below is a detailed breakdown of the team structure, training programs, and employee engagement strategies:

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### **1. Team Structure & Roles**

**Total Employees**: 15 (Year 1)

**Departmental Allocation**:

1. **Design & Production (5 Employees)**:

- **Lead Designer**: Oversees fusion of Ethiopian heritage with global trends.

- **Textile Technologist**: Manages fabric quality and sustainability certifications.

- **Pattern Makers (2)**: Translate designs into production-ready templates.

- **Artisan Coordinator**: Liaises with local weavers and embroiderers.

2. **Sales & Marketing (5 Employees)**:

- **Retail Manager**: Manages Addis flagship store and pop-up events.

- **E-Commerce Specialist**: Runs Shopify/Amazon platforms and TeleBirr integration.

- **Social Media Coordinator**: Executes TikTok/Instagram campaigns.

- **Sales Associates (2)**: Handle in-store and festival sales.

3. **Logistics & Operations (5 Employees)**:

- **Supply Chain Manager**: Coordinates with Hawassa Industrial Park and Djibouti port.

- **Inventory Controller**: Manages stock levels using ERP software.

- **Quality Assurance Officer**: Ensures compliance with AGOA standards.

- **Delivery Coordinators (2)**: Oversee last-mile logistics via ZayRide partnerships.

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### **2. Recruitment & Talent Sourcing**

- **Local Designers**: Recruit from **EiTEX (Bahir Dar University)** and **Addis Ababa University’s School of Fine Arts**.

- **Sales Staff**: Target bilingual candidates (Amharic/English) with retail experience in Bole/Kazanchis districts.

- **Logistics**: Hire from Ethiopia’s **Ride Alliance** (former ride-hailing drivers) for delivery expertise.

**Recruitment Channels**:

- **Job Fairs**: Partner with **Ethiopian Women in Manufacturing** for gender-balanced hiring.

- **Internship Programs**: Offer 3-month internships to EiTEX students, with 70% conversion to full-time roles.

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### **3. Training & Development**

**A. Partnerships with Ethiopian Fashion Institutes**:

- **EiTEX Collaboration**:

- **Curriculum Input**: Co-develop a “Modern Ethiopian Design” course, integrating Boaz’s design philosophy.

- **Guest Lectures**: Lead designers teach monthly classes on cultural storytelling through apparel.

- **Arba Minch University**:

- **Workshops**: Host sustainable dyeing techniques sessions for artisans.

**B. On-the-Job Training**:

- **Technical Skills**: ERP software (Odoo) for logistics staff; Adobe Illustrator upskilling for designers.

- **Soft Skills**: Customer service training for sales teams by **Ethiopian Hospitality Institute**.

**C. Certifications**:

- **GOTS Compliance**: Fund certifications for 100% of production staff.

- **Fair Trade Training**: Partner with **Fair Trade Africa** for ethical sourcing workshops.

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### **4. Employee Retention & Engagement**

- **Competitive Compensation**:

- **Salaries**: 15–20% above market rates (e.g., designers: 12,000 ETB/month vs. industry avg. 10,000 ETB).

- **Performance Bonuses**: 10% of monthly salary for hitting sales/quality targets.

- **Career Growth**:

- **Promotion Pathways**: Sales associates → Store managers; Pattern makers → Lead designers.

- **Cross-Department Rotations**: Logistics staff train in design for holistic understanding.

- **Cultural Alignment**:

- **Heritage Days**: Monthly team visits to Lalibela or Harar for design inspiration.

- **Profit Sharing**: Allocate 5% of net profits to employee bonuses.

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### **5. Compliance & Ethics**

- **Labor Laws**: Adhere to Ethiopia’s **Labour Proclamation No. 1156/2019** (max 48-hour workweek, overtime pay).

- **Diversity**: Achieve 50% female representation across teams, prioritizing women from cotton-farming communities.

- **Health & Safety**: Equip Hawassa facility with ergonomic tools and air quality monitors.

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### **6. Performance Management**

- **KPIs by Role**:

| **Role** | **KPIs** |

|-------------------------|-------------------------------------------|

| Lead Designer | 4+ culturally themed collections/year |

| Retail Manager | 80%+ sell-through rate quarterly |

| Supply Chain Manager | 95% on-time delivery rate |

- **Reviews**: Quarterly 360-degree feedback sessions with EiTEX mentors.

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### **7. Challenges & Mitigation**

- **Skill Gaps**: Address via EiTEX partnerships and subsidized Coursera courses.

- **Attrition**: Offer retention bonuses (5% of annual salary for 2-year commitments).

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By investing in local talent and fostering a culture of innovation and heritage, Boaz Trading PLC ensures a motivated workforce capable of scaling Ethiopia’s next iconic brand.