Becoming a Graphics Computer Operator, an Introduction to CorelDraw & MS-Word2013

BUSINESS PLAN

 

POULTRY BUSINESS PLAN FOR A 2,400 LAYERS POULTRY FARM

1.0 EXECUTIVE SUMMARY

Table Egg production via the process of raising poultry layer birds from Point of Lay (POL) for the purpose of producing table eggs and birds using battery cage. 2,400 POL birds, feeding and medication of the birds and sales of eggs and spent layers produced from them in the first one and half year after construction, increasing the number thereafter 5,000 Birds in the second year utilising Day Old Chicks, 10,000 capacity in the third, and 20,000 in the fifth.

In the first year, at peak production, the farm should produce about 60 crates (30 eggs/crates) per day and generate N1.1million in revenue and about grossly N0.4million as gross profit after deduction of cost of feed on monthly basis. Spent layers would be sold at the end of one year of lay and utilised in the purchase of replacement birds. Annual revenue could be up to 16 million naira and profit grossly could be up to 4.5 million in the first year. At full capacity, the project, housing 20,000 laying birds would generate up to 70 million naira in revenue and about N17.0 million on net profit every year.

1.1 Business Overview

Egg production is the most popular form of poultry farming because egg consumption cut across wide divide. Poultry production come in different forms ranging from parent stock breeder meat (broiler/production), egg production, Quail production, turkey production, ostrich farming, duck farming, Geese farming and ornamental bird rearing among other.  The business could also come in specialisation such as brooding, Point of Lay production, liquid egg package, egg trading, cold room marketing, day old chicks, feed milling, birds transportation or egg deport business.  Because of the vastness of this industry, entrepreneurs focus will be on an aspect and with time add other aspect either for vertical or horizontal integration in Nigeria, this industry is still grossly untapped and any part of the industrial possess great potential.  Specialization and continuous improvement on skills is always paramount.

Poultry industry is a multi billion naira industry:  The major hindrances to the growth of the industry in Nigeria ranges from absence of credit, high interest rate, and high cost of maize, unavailable electricity which is important for cold rooms, incubators and operation of automated cages.  Because of the fallow nature of the industry in Nigeria, the prospect is high.  Right now the demand for egg, broiler meat, day old chicks, day old poult etc remains overwhelmingly high.

1.2 Description of Business

A. Bello Farms plan to participate in chicken egg production; the business entails keeping of chicken from (Day old to) fourteen weeks when the growers will be transfer to cages.  The caged birds at the age of 19 – 22 weeks start to lay eggs.  The eggs are packed in crates of 30 packs, transported to the city where they are distributed to customers.  The laying birds by the age of 60 to 75 weeks of laying are sold out as spent layers for meat.

1.3 Vision and Mission

ü To produce nutritious eggs, generate employment, and create wealth for investor.

Mission:

ü Build a mechanized poultry that is efficient and rewarding.

1.4 Value Proposition

Poultry Production for wealth creation

1.5 Critical Success factors of the business

A.    Finance:  Fund must be available as when needed according to  plan to avoid creating stress factors which would cost so much in revenue loss

B.    Expertise:  The poultry industry is knowledge based home employment of expertise is imperative.  Consultancy is paramount.  Training and retraining of staff is sacrosanct no matter how small the level and acquisition of knowledge of modern trend is a factor to growth.

C.     Housing: Proper ventilation and spacing is a critical success factor.  Position your house to give the bird’s maximum ventilation and reduce heat.

D.    Biosecurity:  Disease entrance and spread are as a result of any form of breach in biosecurity.  Foot bath, car bath, prohibition of unauthorized persons etc.

E.     Water:  Watering and water source is of great importance.  Foul water source or water getting contaminated in poultry house signifies that the farm will fail.  Water should be managed to ensure that clear and clean water is available for bird ad libitum.

F.     Nutrient: Most farm fail because they wanted to reduce cost of feed by compounding farms should only venture into self compounding on ground with available experiment.  All nutrients must be readily available in the market to prevent malnutrition.

G.    Sales:  Egg produced must be sold.  Proper marketing with vigorous advertisement will ensure the product is made available to the target market.

H.    Management:  Pilfering shrinkages, indulgence, misappropriation are few of the several epidemic that constantly plaque poultry in Nigeria.  Workers steal eggs, birds, feed, money and even drugs if they are not properly monitored.  Sales agents and drivers could sell at different prices and report differently. Effective management of this ends are critical factor.

I.       Administration: At full capacity, Management is separated from administration, when the owner is not directly involved in day to day management.  Absentee farming is hazardous.  Someone with stake in the venture should give quality time to it to survive.

1.6 Current status of the industry

The poultry industry in Nigeria is largely untapped

1.7 Contribution to National and local economy

The poultry will provide employment in the first year for at least two persons.  By five years at full capacity it would employ about 14 persons.  Contractors and suppliers should also benefit.  Nationally, it will reduce cash flight or lost in Forex and generate about N17 million per annum.  The banks, insurance companies and Agricultural consulting firms shall all be beneficiaries with the attendant tax going to the government. The investors shall also have found a means of expressing their entrepreneurial skill.  The manure will service proximal farms and far farms.  Egg marketers, maize or feed suppliers, transporters, spent bird’s marketers etc shall all be affected positively.  The impact on the economy will be positive.

2.1 Operational Detail

Attendants and manager get to the pen latest 6.30am.  Mix disinfectant and pour at the entrances.  Change into work cloth and foot wears.  Soak their legs with the disinfectant as well as wash hand with same.  Each nest is observed for discomfort birds sick or dead.  Such animals are then culled and recorded.  Water is checked each Tip is tested to ensure normal flow.  Blocked Tips are cleaned or replaced.  Feed (already measured) is given to the birds by evenly pouring them into the trough.  Eggs are packed from the cage using basket or directly into the crates.  Record is taken; this shall include number of morbidity, number of mortality, number of eggs, abnormal observation on feaces or in the pen etc.  The eggs now packed in crates, are taken to the store room for onward transport out to the city facility.

2.2 Staff Housing

Attendants shall and should be housed in the farm or in close proximity for the sake of emergency such as insect attack, late feeding, brooding and security.

2.3 Infrastructural cost for Start up with 2,400 birds.

ü land – N660,000

ü Poultry house -(12m x 25m) N1.7million

ü Borehole – N150,000

ü Delivery van – N

ü Staff house – N380,000

ü 20 units of Battery cages- N1.8 million

ü Feed to lay – N341,000

ü Point of lay birds -N2.28million

ü Utility – N30,000

TOTAL = N7, 341, 000

2.4 City facility requirement

A shop within the town shall serve the ware house feed and as depot for the produced eggs.  Feeds from the company will be truck load.  Sales to other farmers will generate additional income and provide the farm with reduce cost.  When buyers buy from the farm egg outlet, it reduces visitation to farm which has attendant risk of break of security and biosecurity.
Following the completion of physical structures, Semi-automatic battery cages of premium quality will be purchased and installed in for 2,400 capacity pen. 20 units of 120 birds per unit capacity cages will be utilised to hold at least 2400 birds.

3.0      PRODUCTION PROGRAMME

The Stocking plan involves the purchase of 2400 Birds as POL which will be placed in the first year. The birds will be purchased at 14 weeks age and hence will take 6 weeks to come to lay. They should peak by age week 30 when they are 17 weeks in the farm and spent by 70 weeks and thereafter sold as Old Layers. Within one month, the Spent Layers should have been sold out.  5 to 10% mortality room is allowed

4.0      QUALITY CONTROL

Biosecurity measure will be put in place to prevent disease outbreak. Foot bath for visitors and workers will be put in place at the entrances. Every vehicle coming into the facility will also pass through a bath and get sprayed. All quality control standards will be adhered to strictly so as to produce a world class standard. Animals and materials will be kept away from the poultry pens. Biosecurity training will be mandatory given to attendants and other staff

5.0    COMMERCIALS

5.1    Input Requirement

The major material inputs required for the success of this proposed project are Point Of Lay, Feed (Grower mash, and Layer mash), various types of medications when needed and vaccinations according to schedules. The current prices and sources of these inputs as stated below are safe, dependable and readily available.  Plan to utilize vital feed from UAC plc. With the consumption of 7 tons per month of Feed which is the expected requirement for 2400-capacity poultry, Poultry will be qualified for 12% discount on prices of Feeds from UAC.

6.0      MARKETING PLAN

I shall employ a Marketer at full capacity. He would be employed to sell the eggs from one egg deport to another/ through the marketing activities, many clientele base shall be created. These customers will be allocated dates. They either pick up the eggs from the farm on their dates or have it delivered with the farm van at a price. All customers shall only be given allocation with a confirmation of a bank payment. To expand the clientele base, advert will be placed on different fora online.

7.0      PROJECTED REVENUE

The projected revenue from the project is mentioned in the summary. The revenue projection for the first year in lay is in the figure of N9 to N17.5million from the sales of eggs and spent layers.

7.1      CASH FLOW PROJECTION

The projected cash flow for the Farm could be presented on request.. Positive net cash balances are realized at the end of second laying year. From the projection, the farm shows profitability.

7.2    PROJECTED PROFIT AND LOSS

There is no reasonable profit visible in the first year of the project due to huge investment cost but subsequent recorded reasonable profits.


CONCLUSION

A. Bello farm shall be a success. Poultry Farming is a highly developed industry. Its efficacy and productivity is a product of bringing together of all the available industrial facilities, this can never be provided enough by just one individual or company, hence A. Bello plan to collaborate with investors and experts. The industry works effectively as a network with different specialisation, bringing in diverse inputs. Also, to avoid overcrowding of ideas and thinning of the limited resources, focus will be on egg production for a long time under the supervision of an experienced consulting firm.  Success is granted, God being by our side. Kaduna is a large market and strategically located to expand and serve the rest of the nation and beyond.

PREPARATION OF BUSINESS PLANNING

PREPARATION OF BUSINESS PLANNING

8.1 Business Plan

These sections discuss how a business plan functions, and the preparation of key sections of a business plan.

8.1.1 Writing a Business Plan

The adequacy, relevance, and soundness of an entrepreneur’s business plan can make the difference between a successful company and an unsuccessful one. It should be noted that it is nearly impossible for a business entrepreneur to foresee everything that will happen to his company via his business plan. Additionally, no business plan provides an absolute roadmap to success in any business concern. Therefore, the entrepreneur should be prepared to revise his business plan as the relevant conditions facing his company change and as more accurate data and information become available. Therefore, a small business plan should be flexible enough to accommodate some pertinent business variations. Generally, poor business planning is a major reason for small business failure.

A business plan serves three major functions, which include:

Ø A planning tool and technique for the growth of the business concern.

Ø A document to convey relevant information to prospective investors in the business concern.

Ø An index base to measure and monitor the company’s performance over time.

According to Gumpet (1997), the reasons small business entrepreneurs write business plans include:

1. For selling the interests of the entrepreneur and other stakeholders to the relevant audience.

2. To obtain bank funding.

3. To obtain investment finance

4. To arrange joint venture agreements (strategic alliances)

5. To obtain substantial business contracts from vendors

6. To attract major human resource/personnel

7. To tidy-up mergers and acquisition deals.

Some of the salient issues a small business entrepreneur should consider when writing a business plan include:

Ø The business plan should be as concise as possible. The relevant audience may not want to read a long-winded document. As a rule of thumb, a business plan should comprise thirty-five single spaced pages at most, excluding the appendices.

Ø A business plan should be easy to read and comprehend, without typographical or grammatical errors.

Ø A business plan should inform the relevant audience concerning the large and profitable market opportunities for the business enterprise.

Ø A business plan should convey the strength and depth of the company’s management team, among others.

8.1.2 Format of a Business Plan

According to Burns (1990), any format for a proposed business plan should be seen as providing only general guidance, since every business is unique. As a result, any perceived standardized business plan is substantially inappropriate in most business situations. However, the forms and structures of all good business plans tend to possess some general basic features. The format ofa business plan may be relatively standardized, and typically contains the following major sections:

Cover page: This contains contact information and a confidentiality statement concerning the business plan/document for the business in question.

Table of contents: This enables readers of the business plan document to quickly find the exact information they are looking for, in terms of pages and sub-titles.

Executive summary: This explains, briefly, the company’s business’s prospects, needs, and situation in a capsule form.

Company description: This contains a background and historical account of the company as well as its future prospects, and other cognate issues.

The product or service: This explains what is distinct about the products, ideas or services, which the business will deliver.

The market: This creates a picture of the relevant market segment(s) in which the business concern wants to compete.

Marketing: This section of the business plan informs reader of the business plan of how the business entrepreneur plans to capture his company’s potential market segment(s) via packaging, pricing, mega marketing, distribution and advertising policies and strategies, among other strategic marketing practices.

Management/ownership structure: This section introduces the people holding (or likely to hold) leadership/responsibility positions in the business concern.

Competition: This focuses on strengths and weakness of company’s competitors.

Financial statements and projection: This section of the business plan includes such issues as the company’s balance sheet, income statement, cash flow statement, and financial forecasts, among others.

Appendices: This section of the business plan contains resumes of key personnel of the business concern, an organizational chart with positions and responsibilities, extended market information, and other data to back up claims made in the business plan.

Each of the above-stated major sections of a business plan is now explained below:

Cover page

The small business entrepreneur’s business plan’s cover page should look professional and informative. Additionally, the cover page should contain an appropriate confidentiality statement. Although the confidentiality statement may not be legally binding, the business entrepreneur, in the cover page, wants to let the readers know that he expects them to keep the data and information in the business plan confidential.

The executive summary

The executive summary is the introduction to a company’s business plan and may be seen as the most important section in a business plan, especially for busy corporate executives. Although it comes first in a business plan document, it is advisable to write it last, because it summarizes the entire business plan, including other relevant sections.

Executive summaries of business plans are expected to cover the following major issues:

Ø The company’s origin/background/history.

Ø The products, ideas, or services offered (or to be offered) by the company, including their uniqueness or competitive advantages.

Ø The company’s goals and objectives.

Ø The market potential for the products or services of the company

Ø A three to five year summary of key financial forecasts, especially sales and profit/loss. If the business operator is in a new business, he may have to do some research on his market of interest in addition to the relevant environments, and then make some realistic assumptions about how his business can compete, be efficient and effective, and forecast of likely performance measures.

Ø The management team for the business concern and its track record\.The financing policies and strategies required for the business to survive and grow

Ø Other relevant issues, policies and strategies.

The company description

The company description section of the business plan should convey a sense of the history and origins of the company, as well as its goals. Relevant pieces of information that can be included in this section are:

Ø When was the company founded and by whom?

Ø What is the company’s form of business organization?

Ø How did the concept for the company’s product or service originate?

Ø Is the company’s product or service protected by patent, copyright, or trademark?

Ø Why is the product or service worthwhile and viable?

Ø What sales have been recorded to date, and what markets has the product/service penetrated?

Ø  How much money has been invested in the company to date?, among other cognate issues of interest.

Also, a summary of the company’s principal objectives (both its long term statement of purpose as well as its specific, obtainable, interim goals) should be included in this section of a business plan.

8.1.3 Management Team

The management team section of the business plan identifies the key members of the company’s management team, describes their responsibilities, and documents the relevant experience and accomplishments of each member of the team. This section of a business plan should emphasize each person’s unique abilities and the synergy created by the combination of talents in the team.

Also, a complete resumes of the management team members that stress accomplishments and relevant track records should be included in the appendix.

The product

If the company is producing a product or service, the product section of the business plan describes not only what the product/services is or will be relative to competing products/services, but also why the product/service has potential penetrate into the existing or developing market segments. For example, if a company is marketing a new type of black belt,, it should be able to discuss, in this section, how this belt may be useful to delivery men, dock workers, among others.

The product description should discuss the product’s use and function, in addition to the needs and wants, which the product/service serves. The distinctive features of the product/service, including the advantages and disadvantages of those features should be highlighted. In addition to the product’s attributes, cost quality, reliability, and price are significant issues that should be included in this section of the question.

The market

This section of the business plan describes the relevant market segments for the company’s products or services. If the market is small or stagnating, investors are less likely to invest in the company. The market section of business plan can also discuss the following:

Ø Trends in the market,

Ø Market receptivity to new products or services.

Ø Characteristics of typical customers or clients forming the market

Ø Market shares held by different competitors,

Ø The significance of price, quantity, performance, service, and warranty to the relevant\ market segments.

Ø  Feedback about the product or service from potential customers or clients.

Ø  Independent market studies, data, information or statistics,

Ø How the market is attended to or serviced.

Ø The appendices can include more detailed supporting information/documents on the major sections of a business plan.

EXAMPLE 1: A BUSINESS PLAN FOR NASCOMVILLE RESTAURANT

Section 1: Introduction

- Name of the business

- Address of the business

- Ownership

- Product to be offered/supplied

- Nature of the business/mission

Section 2: Management Team

- People required for the business

- Duties and responsibilities

- Monthly annual cost of labour.

Section 3: Marketing Strategy

- Marketing strategy to be used.

- The customer for the product

- Pricing strategy

- Packaging system

- Promotion strategy

- Competitors – weakness and strengths.

Section 4: Production Plan

- Product development

- Production process

- Machinery

- Raw materials.

Section 5: Financial Management Strategy and Issues for the Business

- Source of capital

- Capital outlay and analysis

- Financial and economic plan.

Section 6: Assumption on Environmental Factors

- Internal environment factors

- External environment factors.