Scenario: Yohannes wants to secure a loan to expand his solar cooker assembly workshop and buy more raw materials. Before approaching a bank, he reviews his investment readiness.

Yohannes’s Self-Assessment:

• Problem & Solution: “Yes, I clearly address the need for affordable, sustainable cooking solutions in urban areas with my solar cookers.”
• Business Model: “I sell directly to households and also through small distributors. My costs are raw materials, assembly labor, and delivery. I’m profitable now.”
• Market: “Addis Ababa has a huge demand. I’ve mapped out target neighborhoods and have a plan for local marketing. Competitors are traditional fuels and imported solutions, but mine is unique in its affordability and local assembly.”
• Team: “I’m a mechanical engineer by training, and I have a small team of two assistants I’ve trained in assembly. We’re passionate and skilled.”
• Financials: “I’ve been using the templates from the last module and have clear Income Statements for the past year and Balance Sheets. My Net Profit Margin is improving, and my current ratio is strong. My challenge is I need more working capital for inventory.”
• Scalability & Impact: “Yes, I can easily train more assemblers and increase production. My cookers reduce charcoal use, improving health and environment.”

Analysis: Yohannes is in a good position. He has a clear grasp of his business, its market, and its financials. His main need is working capital, which is a common and justifiable reason for a loan. He needs to prepare the financials and a compelling story for the bank.