BBull on Nostr: ### **Expanded Funding Request** This section details the allocation, justification, ...

### **Expanded Funding Request**
This section details the allocation, justification, and safeguards for the **33.9M ETB ($600,000)** funding requirement, ensuring investor confidence in Boaz Trading PLC’s financial discipline and growth potential.

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#### **1. Use of Funds Breakdown**
| **Category** | **Amount (ETB)** | **Details** |
|-----------------------------|-------------------|-----------------------------------------------------------------------------|
| **Salon Setup (75%)** | 25,400,000 | - **Construction & Renovation**: 12M ETB (prime Bole location, 150 sqm). |
| | | - **Equipment**: 8M ETB (German keratin tools, Japanese laser machines). |
| | | - **Interior Design**: 3M ETB (Afro-modern aesthetics by local artisans). |
| | | - **Licenses/Compliance**: 2.4M ETB (health permits, fire safety checks). |
| **Marketing (25%)** | 8,475,000 | - **Heli-Ski Campaign**: 5M ETB (video production, diaspora ads). |
| | | - **Influencers**: 2M ETB (10 macro/micro-influencers). |
| | | - **Community Events**: 1M ETB (bridal expos, free workshops). |
| | | - **CRM/App Development**: 475,000 ETB. |
| **Contingency Fund** | 0 | *Not included; risks mitigated via phased spending.* |

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#### **2. Investor ROI Structure**
**A. Profit-Sharing Model (Preferred)**
- **20% Annual Returns**: Investors receive 20% of net profits until 240% of principal is repaid (e.g., 33.9M ETB investment yields 81.36M ETB over 3 years).
- **Priority Payments**: Monthly profit distributions after operational costs.

**B. Equity Stake Alternative**
- **Valuation**: Post-money valuation of 169.5M ETB (5x revenue multiple based on Year 3 projections).
- **Equity Offer**: 20% stake for 33.9M ETB, with exit options via acquisition (e.g., L’Oréal East Africa) or franchising.

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#### **3. Risk Mitigation for Investors**
- **Phased Spending**:
- **Phase 1 (Months 1–6)**: 15M ETB for 1 flagship salon + 3M ETB digital marketing.
- **Phase 2 (Months 7–12)**: Remaining 10.4M ETB only if Phase 1 hits 50% revenue targets.
- **Asset-Backed Security**: Use salon equipment (8M ETB) as collateral for investor protection.
- **Forex Hedge**: Lock USD costs (imported tools) at 56.50 ETB/$ via Commercial Bank of Ethiopia.

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#### **4. Financial Safeguards**
- **Lean Staffing**: Hire 8 employees initially (2 stylists, 2 aestheticians, 1 manager, 3 support staff) to cap payroll at 800k ETB/month.
- **Revenue Triggers**: Allocate 50% of profits above projections to accelerate debt repayment.

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#### **5. Investor Perks**
- **VIP Access**: Free premium services for investors + 5 guests/month.
- **Board Representation**: For investments >5M ETB, advisory roles in strategic decisions.

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### **6. Funding Alternatives**
If equity/debt isn’t fully subscribed:
- **Crowdfunding**: Raise 5M ETB via Ethiopian platforms like ArifPay, offering 15% returns to micro-investors.
- **Supplier Credit**: Negotiate 6-month payment terms with equipment vendors to reduce upfront costs by 30%.

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### **7. Exit Strategy for Equity Investors**
- **Acquisition**: Target buyers like Superdrug (entering Africa) or Ethiopian conglomerates (Tena Trading).
- **Franchising**: Sell franchise rights for 5M ETB/location after Year 3.
- **Buyback Clause**: Boaz Trading PLC repurchases equity at 25% premium after 5 years.

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### **Why This Works for Investors**
- **Collateralized Investment**: Equipment and phased spending reduce capital risk.
- **Dual ROI Models**: Profit-sharing ensures short-term returns; equity offers long-term upside.
- **Cultural Scalability**: Ethiopia’s untapped beauty market (120M population, 70% under 30) guarantees demand.

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This expanded request transforms Boaz Trading PLC from a high-risk venture into a structured, investor-friendly opportunity with clear safeguards, diversified exit options, and Ethiopia’s demographic boom as a tailwind.