Business Plan

FOR

GODWITH’S FARM NIG

Prepared by:

SEGUN, AKINLALU AKINTADE

AB/17B/0131
N0 13 ASUQUO NYONG STREET, CALABAR
08039112479
godwithfarmnig@gmail.com
www.whitemeats.com.ng

1
 Profile
Name of business GODWITH'S FARM NIG
Type of Business (Production,
Service, Trade) POULTRY PRODUCTION(LAYERS)
Product/Services EGGS PRODUCTION
Business Location 13 ASUQUO NYONG STREET, CALABAR, CROSS RIVERS STATE
8039112
Name of promoter AKINLALU AKINTADE SEGUN Phone 479
EDC Batch
godwithfarmnig@gmail
Gender M Age 28 Email .com
Contact Home address 11 ASUQUO NYONG STREET, CALABAR CROSS RIVER STATE
State of Origin ONDO STATE
Business Status (Startup, Existing,
Expansion) EXISTING
Likely take off date for the
business Jul-15
Investment
Number of
Startup Capital 2,200,000.00 employee 5
Equity 200,000
Total value of
Loan 2,000,000.00 Equipment
Total pre- 5,363,783.
Loan tenor ( Months) 60 operating exp 15
Monthly
Moratorium 12 Operating exp
Interest rated considered 0%
Financial indicators
Number of Months Type of
projected: 36 Projection Quarterly
Length or period
Total turnover 19,041,112.23 (Months)
Total Gross profit 13,677,329.08
NP
Total Net Profit bf tax 12,297,449.23 V 78%
Cash balance @ end of the
period ROI

Super
visor’s
Trainees Batch Number: 2018 Name NIL
NYSC ORIENTATION CAMP
Training Location: UMAHIA, ABIA STATE.
Date of Submission: 16TH APRIL 2018 2

2
 GODWITH FARM NIG
Presented by: AKINLALU AKINTADE SEGUN – AB/17B/0131

Key Activities Customer Relationship

Key Partnerships
 Suppliers of
feeds/medication
 Suppliers of drugs
 Supplier of chicks
 Transporters
 Insurance company
 Financial Institutions
 Vet Doctors
 Ministry of Agric.
Value Offering Customer Segments
 Feeding of birds  Discount on bulk purchase
 Cleaning of trough  Healthy live poultry  Phone calls and text
birds messages to customers  Individuals
 Record keeping
 Timely delivery
 Egg collection  High quality table size  Restaurant owners
 Constant availability
 Vaccination egg  Quality assurance  Hotel operators
 Marketing  Conducive business
 Dressed and frozen
 Purchases environment.  Church members
chicken
 Delivery
 Poultry  Eggs merchants
Key Resources manure/dropping Channels  Wholesalers
 Human resources  Training  Word of mouth  Event managers
(Personnel)
 Consultation fee  Church announcement
 Finance
 Boarding schools owners
 Delivery service  Proposals
 Poultry farm  Referrals  Bakery operators
 Equipment  Complimentary cards  Fast food operators
 Birds  Signage
 Direct sales  Vegetable farmers

Cost Structure
Revenue Model
Pre-operation Expenses: - Acquiring/renting of land, initial  Sales of live poultry birds
stock, construction of poultry pen, equipment procurement, initial  Sales of eggs of various sizes
premium
 Sales of poultry droppings
Operating Expenses: - Salaries, tax, transportation, utility bills,  Training fee
3
maintenance, premium  Delivery charge
 EXECUTIVE SUMMARY

The name of our business is Godwith’s Farm Nig is located in Calabar

South LGA, Cross River State. We specialize in breeding and sales of
healthy chicken, high quality eggs, frozen chicken, dressed chicken and
training and consultation services. We will sell our products either as live
broilers or as dressed chicken and the droppings will be sold as organic
manure.

Our target market will include wholesalers and retailers of Chicken and
eggs: Households, fast-food and restaurants operators, hotels, bars and
pepper soup joints operators, roasted chicken vendors, event
managers, etc. and the organic manure from droppings will bw sold to
vegetable farmers.

Our vision is to become the biggest farm in Cross River State and we
will achieve this by constantly providing healthy birds and eggs and well
packaged dropings to our customers at affordable price.

The promoter of Godwith’s Farm Nig is Akinlalu Akintade Segun. He is

very passionate about agricultural activities which was one of the
family’s main stay and is 3years experienced in poultry farming. He has
currently under gone entrepreneurship training with the Bank of Industry
Entrepreneurship Development training on the Graduate
Entrepreneurship fund for business skills to enhance smooth startup.

A total of N2,200,000.00 will be required as start-up capital for the

business; N882,427.50 will be used for the pre-operating activity,
N579,050.00 will be used to purchase stock while the balance will serve
as the initial operating expenses which will cover for 3month. This will be
financed by owners’ equity of N200,000.0.00 and a loan of N2,000,000.00

4
 Our financial projection for the period of three years operational activities
records the total turnover sales at N19,041,112.23 while the gross profit
will be N13,677,329.08 and the net profit before tax stays at
N12,944,683.71The net profit will then be N12,297,449.23

We have made provision for the following as the likely risk we might be
exposed to and we have put adequate mitigation strategies in place to check
their occurrence;

S/N RISK Mitigating Measures

1. Cannibalism / Feather Adequate spacing of birds, feeding them

Pecking appropriately in quantity and quality, isolation
of sick and weak birds
2. Parasite/insect attack Use of insecticide, regular weeding and
cleaning of farm surrounding and Practice
good waste management program.

3. Disease Outbreak Good vaccination and medication programs

will be adopted.

4. Extreme weather and Putting adequate temperature regulating

climatic conditions procedures such as; heater, bulb and lantern
in place.

5. Pilfering and Theft: We will put security measures such as having

6 Predators
We will also secure a comprehensive insurance policy on the business to
cover us against all forms of loss.
a good record and data system where feed
consumption and conversion ratio, growth,
mortality, health record , sale will be
monitored.
We will also hire security personnel, ensure
our workers are well paid and rewarded for
performance
We intend preventing this by using scare
crow, setting traps for them and having
security in place to check physically.

5
 Chapter one
BUSINESS OVERVIEW

1.1 DESCRIPTION OF BUSINESS

The name of our business is Godwith’s Farm Nig is located in Calabar

South LGA, Cross River State. We specialize in breeding and sales of
healthy chicken, high quality eggs, frozen chicken, dressed chicken and
training and consultation services. We will sell our products either as live
broilers or as dressed chicken and the droppings will be sold as organic
manure.

Our target market will include wholesalers and retailers services. We

will sell our products either as live broilers or as dressed chicken and
the droppings will be sold as organic manure. of Chicken and eggs:
Households, fast-food and restaurants operators, hotels, bars and
pepper soup joints operators, roasted chicken vendors, event
managers, etc. and the organic manure from droppings will bw sold to
vegetable farmers

1.2 VISION AND MISSION STATEMENT

Vision statement :-
Our vision is to become the biggest farm in Cross River State.
Mission Statement:-
Our mission is constantly provide healthy birds and eggs and well
packaged dropings to our customers at affordable price.

6
1.3 BUSINESS OBJECTIVE(S)
To achieve a total turnover sales at N19,041,112.23 while the gross profit
will be N13,677,329.08 and the net profit before tax stays at
N12,944,683.71The net profit will then be N12,297,449.23 by our three
years of business operation commencement.

 To increase our staff salary by 5% by our one year of operation.

 To open one additional branch in Uyo Local Government Area by
our third year in business operation.
 To have a customer base of over 150 in our first year of operation
and increase to 1,200 before the end of our third year in business.

1.5 CRITICAL SUCCESS FACTORS OF THE BUSINESS ARE:

 Adequate and timely vaccination
 Availability of market
 Healthy stock
 Good knowledge of the business
 Hygienic environment
 Availability of equipment
 Availability of funds
 Availability of light
 Availability of feed and water

1.4 VALUE PROPOSITION

 Prompt delivery services
 Cleaned and dressed chicken in customized packs
 High quality clean and table size eggs in customized crabs.

1.5 Current Status of Business

Godwith’s Farm Nig is a existing business. We are currently in the
process of production of broilers birds and meats. The promoter has
currently under gone entrepreneurship training with the Bank of Industry
7
 Entrepreneurship Development training on the Graduate
Entrepreneurship fund to acquire necessary skills for successful
business operations.

1.7 LEGAL REQUIREMENTS

Legal requirement Budget Details on frequency
Insurance 87,000 Once – 2.5%
L.G permit & Licensing 5,000 Yearly
Total 92, 000

1.8 CONTRIBUTION TO LOCAL AND NATIONAL ECONOMY

You and your family:- Good personal income and wealth of improve
standard of living of the family.

Your Employee(s):- Creation of job which reduce unemployment

rate and social crime tendencies

Immediate community:- Source of revenue to the community and

reduces rate of unemployment.

State and nation:-

 Source of revenue to government
 Reduce rate of unemployment
 Contribute to better Gross Domestic Product

8
 Chapter Two

MARKETING PLAN
2.1 DESCRIPTIONS OF PRODUCT(S) OR SERVICE(S):
Godwith’s Farm Nig is into the production of healthy chicken, sales of
eggs, frozen chicken, dressed chicken, organic manure and training
services.

Product/Service Packaging/Delivery
Our products are mainly healthy chicken, sales of eggs, frozen chicken,
dressed chicken, organic manure and training services. The egg is
packaged in egg-crates which is made of paper and plastic while the
healthy chicken is sold to customers a life, dressed or frozen. Service
delivery of our products will be available for those who buy in large
quantity.

2.2 DESCRIPTION OF THE BUSINESS INDUSTRY/ INDUSTRY

ANALYSIS
The poultry industry in Nigeria have experienced continuous production
and expansion in recent years giving the sudden increase in demand for
day old chicks, mature chicken and eggs. In the past chicken were kept
in the backyard for domestic use, now it has become one of the most
demanded source of food, the sudden increase is trace to high demand
for chicken and egg product by hotel, fast food and individuals.

Poultry farming or poultry production is the practice of raising

domesticated birds such as chickens, turkeys, duck and geese as a
sub-category of animal husbandry, for the purpose of producing meat
and/or eggs for food. Chickens of all the domesticated birds are
produced largely for its economic value.

9
 The poultry industry has become very lucrative due to high demand for
chicken meat in the market. Production has never met up to demand, so
that makes it very interesting and profitable. Also government policies to
boost agriculture have been a factor to the boom in this sector
especially with the ban on the importation of frozen chicken.

Chickens are raised all year round as a source of food, for both their
meat and egg.

Potential challenges in the business industry

1. Adulterated vaccines
2. Lack of high quality disease resistant and high yield breeds
3. Short shelf life of feeds
4. Seasonal feed shortage
5. Epidemic
6. Poor electricity supply

2.3 THE OPPORTUNITY

We all know that protein intake is very important for the survival and
good state of health of both human and animals. The poultry product is
much more easily available as animal protein for human consumption
when compare to other category of animal. The ban placed on the
importation of poultry products like table size eggs and frozen chicken
by the federal government has deliberately open up market for local
producer of these products.

This is the major opportunity Godwith’s Farm Nig has identified in the
industry and capitalizes on to make the products available and
affordable for our customer. Also to increase our production capacity to
meet the increasing demands of our customer.

2.4 TARGET MARKET

10
  Individual

 Restaurant owners

 Hotel operators

 Church members

 Eggs merchants

 Wholesalers

 Event managers

 Boarding schools

 Bakery operators

 Fast food operators

 Vegetable farmers

2.5 MARKETING STRATEGY

Advert/promotiona Budget per Details on frequency and
l annum justification of budget
Strategies
Signage 10,000 Permanent
Handbill 10,000 Once yearly
Bulk SMS 10,000 Yearly
Total 30,000

Other note on advertising and promotional strategies

Referral, Word of mouth, personal contact, social media

2.6 Distribution strategies / sales methods:

 Sales in the farm
 Home delivery
 Sales outlets
 Retailers
 Cash sales

11
  Bank payment
 Cheques

2.7 COMPETITIVE ANALYSIS

Table 1 Competitor’s analysis schedule
COMPETITIVE ANALYSIS
Name of Godwith’s Farm Gbagolo Unical Farms
Competitors Nigeria Farms Ltd
Location of Calabar South Akpabuyo Calabar South
competitors ?
Products and Life bird, frozen Life birds, Life birds, eggs,
services chicken, eggs, droppings droppings
offered droppings
Pricing Cost base Skimming Skimming
Strategy
What are their Healthy and weighty Healthy and Healthy and
uniqueness birds/eggs/ home weighting weighting birds,
delivery birds, home home delivery
delivery
What are their Strategic location Poor Poor accessibility
other strength accessibility
?
What are their Small startup Power supply No power supply
weakness?
How long startup 4 years 9 years
have they
been
existing?

12
 Chapter Three

PRODUCTION PLAN / OPERATIONAL PLAN

3.1 DESCRIPTION OF THE LOCATION / FACTORY

Godwith’s Farm Nig is located in Calabar South LGA, Cross River
State in a proposed leased two plot of land. The location is strategic and
is easily accessible. There is power supply, water supply which will be
gotten from the Unical as well as the public source. The environment is
secure and conducive for the business. we will adopt the deep litter
system and later change to the cage system to check cannibalism and
spresd of disease. We will use block half wall open sided poultry house
and also include brooding house, ofiice and space for store.

3.2 RAW MATERIALS/ CONSUMABLE NEEDED/SUPPLIES

Table 3.1b list of Raw materials
Materials
Day old birds( stock )
Starter mash feeds
Grower mash feeds
Pre-Layer mash feeds
Layers mash feeds
Vaccine
Water
Saw dust
Description/uses Key supplier/source
Young birds to be nurture into maturity Chicks supplier
For birds between 0 - 4weeks Gabty Agric service
For birds between 7 -12 weeks Gabty Agric service
For birds between 13-18 weeks Gabty Agric service
For birds between 19 and above Gabty Agric service
For immunity Gabty Agric service
For drinking and cleaning up From borehole.
Bedings Timber market

Table 3.1a list of Consumables

Materials Description/uses Key supplier/source
Disinfectant To keep the yard free from rodents Shops
Kerosene For lighting the lantern Petrol station
Fuel To power the generator Petrol station
Charcoal To produce heat for the day-old birds Market
Broom For routine cleaning of the farm Market
Water For drinking and washing in the farm Waterhole
Wood shaving To keep the birds Timber dealers or carpenters
Stationeries For record keeping Bookshop

13
3.3 PRODUCTION EQUIPMENT / CAPITAL EXPENSES
Table 3.2a Initial Stock

INITIAL STOCK/OPENING STOCK

Quantit Unit
Item Amount
y Cost
Layers (1 day 20 240,000.0
1200
old) 0.00 0
2,75 1,237,500.0
Feed 450
0.00 0
32,00 32,000.0
vaccines 1
0.00 0
20 20,000.0
Saw dust 100
0.00 0
25 12,500.0
Kerosine 50
0.00 0
14 7,250.0
fuel 50
5.00 0
50 5,000.0
detergent 10
0.00 0
50 10,000.0
izal 20
0.00 0
10,00 10,000.0
Stationeries 1
0.00 0
1,574,250.0
Total
0

Table 3.2b Equipment Depreciation Table

14
 EQUIPMENT DEPRECIATION TABLE
Life Span
Unit
Cost per Estimatio Monthly
Equipment Require Value
Unit n in Depreciation
d
Months
800 48,00 1,333.3
Feeders adult 60 36
.00 0.00 3
400 16,00 444.4
Feeders small 40 36
.00 0.00 4
12,000 12,00 333.3
Wheelbarrow 1 36
.00 0.00 3
1,500 3,00 83.3
Iron buckets 2 36
.00 0.00 3
60,000 60,00 1,666.6
Generator 1 36
.00 0.00 7
850 51,00 1,416.6
drinkers adult 60 36
.00 0.00 7
drinkers 500 20,00 555.5
40 36
small .00 0.00 6
1,000 2,00 55.5
Rake 2 36
.00 0.00 6
1,000 1,00 27.7
Matchet 1 36
.00 0.00 8
Weighing 1,000 1,00 20.8
1 48
scale .00 0.00 3
1,500 3,00 83.3
shovel 2 36
.00 0.00 3
2,500 25,00 694.4
stove 10 36
.00 0.00 4
1,000 2,00 166.6
Basins 2 12
.00 0.00 7
1,500 15,00 416.6
Lanterns 10 36
.00 0.00 7
200 40,00 1,111.1
egg crates 200 36
.00 0.00 1
299,00
Total #DIV/0!
0.00

3.4 PRODUCTION / SERVICE PROCESS; / TECHNIQUES

 Construction of hen house
 Stock of birds ( broilers only for a start)
15
  Brooding of day old to mature
 Feeds the birds
 Provide drinkers for water
 Intensive care for the day old birds
 Vaccination
 Daily routine cleaning of the house
 Marketing of both life and frozen birds
 On the job training activities

3.5 Production Capacity

We intend to handle 1200 layers layers at every point in time. With best
practice on hygiene/sanitation prompt feeding and vaccination. We
generate production of at least 1000 pcs of spent layers in 20 weeks
from stocking and average of 16 creates of eggs per day.

3.6 Pricing Strategy

We intend to adopt the cost based pricing strategy. However we may
equally adopt fixed pricing strategy which will be determined by the size
and weight of both the birds and eggs.

Table 3.4 Proposed price list

S/ Products Description Proposed selling

n price
1 Live Layers Per bird 1,400
2 Frozen chicken Per bird 1,500
3 Dressing Per bird 100
4 Organic manure (25kg Per bag 100
bag)

3.8 Record/Stock Control Process

Table 3.5 (A) Record Keeping Documents
S/N Books to be kept Reason
1 Purchase day book To ascertain the various batches
16

2 Sales day book
3 Cash book
4 Receipts
5 Petty cash voucher
6 Vaccine record
7 Mortality record
8 Feeds record
To record original entry maintained to reaccredit
purchase
To record all prime entry, for credit sales of the
day
To records all receipt and payment of cash of
daily transaction
To show all credit sales and purchase also all
debit sales and purchase on daily bases
To record daily expenditure of the business
To records the routine of vaccination
To Ascertain the numbers of dead birds
To keep the record of feeds purchase from
starter to finisher and their cost

3.7 PRE-OPERATING ACTIVITIES AND EXPENSES

Table 3.4a: pre-operating activities

PRE-OPERATING ACTIVITIES
Item Description Amount
Equipment 299,000.00
Insurance 2.5% of Capital 43,500.00
Advert Signage, bulk sms, fliers 30,000.00
Legal fees local govt permits 5,000.00
-
-
Advert -
Total 377,500.00

CHAPTER FOUR

ORGANIZATIONAL AND MANAGEMENT PLAN

4.1 OWNERSHIP OF THE BUSINESS
17
 Our form of business ownership is sole proprietorship.
We choose this form of business ownership because it is very easy to
run and relatively cheap to establish. Quick decision making and easy to
maintain records

4.2 PROFILE OF THE PROMOTER

The promoter of Godwith’s Farm Nig is Mr Akinlalu Akintade Segun.

He is very passionate about agricultural activities which was one of the
family’s main stay and is 3years experienced in poultry farming. He has
currently under gone entrepreneurship training with the Bank of Industry
Entrepreneurship Development training on the Graduate
Entrepreneurship fund to acquire necessary skills for successful
business operations.
2
4.3 DETAILS OF EMPLOYEE
Our management team will consist of a man and a woman for a start.
Table 12: key management team

S/N Position Skills, qualification and Functions and responsibility

experience required
1 CEO Managerial skills Strategic planning
2 Farm Manager HND To control and supervise all
works in the farm on daily
bases and keep record

We will operate from Monday to Sundays, our resumption period will be

from 7.00am, and closing time will be 6.00pm.

4.4 DETAILS OF SALARY SCHEDULE

Table 13: Staff Salary Schedule

Salary Schedule
Monthly Total
No. of Annual
Position Salary Monthly
Staff Salary
per Head Salary
18
 20,000. 20,000. 240,000
Manager/CEO 1
00 00 .00
Poultry 10,000. 10,000. 120,000
1
Attendent 00 00 .00
Poultry 10,000. 10,000. 120,000
1
Attendent 00 00 .00
12,000. 12,000.
Accountant 1
00 00
15,000. 15,000. 180,000
Marketer 1
00 00 .00
10,000. 10,000. 120,000
Security 1
00 00 .00
77,000. 780,000
Total 6
00 .00

CHAPTER FIVE

5.0 FINANCIAL PLAN

19
 5.1 FINANCIAL ASSUMPTIONS

 Assumption for inflation 5% on equipment.

 Assumption on interest rate 25%.
 Assumption on Tax 5% on net profit.
 Assumption of depreciation will be straight line method.
 Assumption on salary increment at 5% yearly.
 Assumption on insurance 5% on equipment and initial stock.

5.2 START UP CAPITAL ESTIMATION

Table 5.2: Required Startup Capital Estimate

Start-up Capital Estimate

Activities Amount
882,427.
Pre-operating Expenses 50
579,050.
Initial Stock 00
1,366,400.
6 Months
Initail Operating Expenses 49
2,827,877.
Total
99

5.3 SOURCE OF FUNDS

Table 5.3: Source of Funds

SOURCES OF FUNDS AMOUNT %

Personal Fund /Equity 830,000.00 30%

20
 Bank Loan 2,000.000.00 70%

Total Funds Sourced 2,830, 000.00 100%

5.4 LOAN DETAILS (IF APPLYING FOR LOAN)

The loan will be used specifically for the expansion of the farm.
The loan will be paid back within 60 months at a proposed interest rate
of 0% and a proposed moratorium of 12 months
Table 16: Loan Repayment Plan

Table 16: Loan Repayment Plan

LOAN REPAYMENT TABLE
Total Loan Amt.
2,000,000
(Principal)
Interest Rate (%) 0%
Loan Tenure 60
Moratorium (in
12
months

Monthly
Monthly Monthly Interest +
Outstanding Debt Cumulative
Mnth Principal Interest Monthly
(principal) Payment Made
Repayable Repayable Principal
(P+I)
2,00
0
0,000.00 - - - -
2,00
1
0,000.00 - - - -
2,00
2
0,000.00 - - - -
2,00
3
0,000.00 - - - -
2,00
4
0,000.00 - - - -
2,00
5
0,000.00 - - - -
2,00
6
0,000.00 - - - -
2,00 111, 111, 111,
7
0,000.00 111.11 - 111.11 111.11
1,88 111, 111, 222,
8
8,888.89 111.11 - 111.11 222.22
21
 1,77 111, 111, 333,
9
7,777.78 111.11 - 111.11 333.33
1,66 111, 111, 444,
10
6,666.67 111.11 - 111.11 444.44
1,55 111, 111, 555,
11
5,555.56 111.11 - 111.11 555.56
1,44 111, 111, 666,
12
4,444.44 111.11 - 111.11 666.67
1,33 111, 111, 777,
13
3,333.33 111.11 - 111.11 777.78
1,22 111, 111, 888,
14
2,222.22 111.11 - 111.11 888.89
1,11 111, 111, 1,000,
15
1,111.11 111.11 - 111.11 000.00
1,00 111, 111, 1,111,
16
0,000.00 111.11 - 111.11 111.11
88 111, 111, 1,222,
17
8,888.89 111.11 - 111.11 222.22
77 111, 111, 1,333,
18
7,777.78 111.11 - 111.11 333.33
66 111, 111, 1,444,
19
6,666.67 111.11 - 111.11 444.44
55 111, 111, 1,555,
20
5,555.56 111.11 - 111.11 555.56
44 111, 111, 1,666,
21
4,444.44 111.11 - 111.11 666.67
33 111, 111, 1,777,
22
3,333.33 111.11 - 111.11 777.78
22 111, 111, 1,888,
23
2,222.22 111.11 - 111.11 888.89
11 111, 111, 2,000,
24
1,111.11 111.11 - 111.11 000.00
2,000, 2,000,
Total 000.00 - 000.00

CHAPTER SIX

6.1 BUSINESS RISKS

 High mortality rate
 Disease outbreak
22
  Theft
 Extreme weather condition
 Poor storage of raw materials
 Pest infestation

MITIGATION STRATEGIES
 Good cultural practice / management system
 Fumigations ( occasionally)
 Safe storage system
 Disinfectant
 Secure the farm with iron gate protector
 Insurance
 Proper accounting,
 Regular staff salary payment
 Security personnel

6.2 Business SWOT Analysis Schedule

Factors Implications

Strength
 Good knowledge of the business  Increased productivity and
sustenance
 Location of the business
 Ensures smooth run of activities
 Strength of character
 Ensures stability in tough time.

Weakness
 Lack of funds  Hinders investment

 Vast number of illegitimate poultry  Hinders good access to market

farms

 Low production capacity

 Low scale start-up

23
Opportunities
 Favourable government policies  Allows for long term plan
 Malnourished populace  Creates a sure market
 Fast growing food industry  A sure and good customer base

Threats
 Seasonality  Makes room for varied quantity of
stock
 Instability in lending rates
 This can alter the projected
 Collateral for loan
financial plan
 Hinders access to loans.

24
 Financials
SALES FORECAST

Sales Period TOTAL

1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12
Qt
0 450 1830 2234 2296 1932 735 1830 2234 2296 1932 755
y.
Eggs Pr
per ic
Crat 600.00 650.00 700.00 700.00 650.00 650.00 700.00 700.00 700.00 650.00 650.00
e
e
A
27 1,1 1,5 1,6 1,2 4 1,2 1, 1,6 1,2 4 12,
m
- 0,000.00 89,645.06 63,556.75 07,078.13 55,986.81 77,750.00 81,156.22 563,556.75 07,078.13 55,986.81 90,750.00 562,544.66
t.
Qt
y. 1 1 1 1 1 1 1 1 1 1 1 1
Live Pr
1,
Chic ic
500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
kens e
A
1,
m
470.00 1,470.00 1,470.00 1,470.00 1,470.00 1,470.00 1,470.00 1,470.00 1,470.00 1,470.00 1,470.00 1,470.00 17,640.00
t.
Spen Qt
t y. - - - - - - 901 - - - - 901
Laye
rs Pr 1,
ic 400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00
e

25
 A
1,2 1,2 2,
m
- - - - - - 60,918.19 - - - - 60,918.19 521,836.37
t.
Qt
25 25 25 25 25 25 25 25 25 25 25 25
y.
Chic Pr
ken ic
Drop 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00
e
pings
A
6,
m
250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 75,000.00
t.
Qt
y. 50 50 50 50 50 50 50 50 50 50 50 50
Pr
Dres ic
sing e 100 100 100 100 100 100 100 100 100 100 100 100
A
Chic m
5,
000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 60,000.00
ken t.
Qt
y. 100 100 100 100 100 100 100 100 100 100 100 100
Pr
Froz
ic 1,50
e
en 0 1,500 1,500 1,500 1,600 1,600 1,600 1,600 1,700 1,700 1,700 1,700
A
Chic m
150, 15 1 1 1 1 1 1 1 1 1 1,
000.00 0,000.00 50,000.00 50,000.00 60,000.00 60,000.00 60,000.00 60,000.00 170,000.00 70,000.00 70,000.00 70,000.00 920,000.00
ken t.
Total 157, 42 1,3 1,7 1,7 1,4 1,9 1,4 1, 1,7 1,4 1,9 17,
Revenue 720.00 7,720.00 47,365.06 21,276.75 74,798.13 23,706.81 06,388.19 48,876.22 741,276.75 84,798.13 33,706.81 29,388.19 097,021.04

26
 PROFIT AND LOSS PLAN

Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12
TOTAL

Jan. - Apr. - Jul. - Oct. - Jan. - Apr. - Jul. - Oct. - Jan. - Apr. - Jul. - Oct. -
Expenses Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec.

Total 2,240,130. 1,120,065 2,240,130 1,120,065 2,240,130 1,120,065 3,360,196 1,120,065 3,360,196 1,120,065 19,041,112
sales/revenue - - 85 .43 .85 .43 .85 .43 .28 .43 .28 .43 .23

Operating 237,518.9 236,018.9 952,033.9 235,518.9 652,033.9 235,518.9 802,033.9 235,518.9 802,033.9 235,518.9 5,363,783.
Expense 86,000.00 0 654,033.95 0 5 0 5 0 5 0 5 0 15

-
- 237,518.9 1,586,096. 884,046.5 1,288,096 884,546.5 1,588,096 884,546.5 2,558,162 884,546.5 2,558,162 884,546.5 13,677,329
Gross Profit 86,000.00 0 90 3 .90 3 .90 3 .32 3 .32 3 .08

EXPENSES

76,529.31 76,529.31 76,529.31 76,529.31 51,019.54 51,019.54 51,019.54 51,019.54 - - - - 510,195.37

Interest

17,833.33 17,833.33 17,833.33 17,833.33 17,833.33 17,833.33 17,833.33 17,833.33 17,833.33 17,833.33 17,833.33 17,833.33 214,000.00
Depreciation

0,000.00 0,000.00 0,000.00 0,000.00 0,000.00 0,000.00 0,000.00 0,000.00 0,000.00 0,000.00 0,000.00 0,000.00 0,000.00
Insurance

0,704.17 0,704.17 0,704.17 0,704.17 0,704.17 0,704.17 0,704.17 0,704.17 0,704.17 0,704.17 0,704.17 0,704.17 8,450.00
Ammortisation

27
 95,066.81 95,066.81 95,066.81 95,066.81 69,557.04 69,557.04 69,557.04 69,557.04 18,537.50 18,537.50 18,537.50 18,537.50 732,645.37
Total Expenses
- -
1,491,030. 788,979.7 1,218,539 814,989.4 1,518,539 814,989.4 2,539,624 866,009.0 2,539,624 866,009.0 12,944,683
Net Profit 181,066.8 332,585.7
09 2 .86 9 .86 9 .82 3 .82 3 .71
Before Tax 1 0

- 126,981.2 126,981.2
-9,053.34 74,551.50 39,448.99 60,926.99 40,749.47 75,926.99 40,749.47 43,300.45 43,300.45 647,234.19
16,629.29 4 4
Income Tax
- -
1,416,478. 749,530.7 1,157,612 774,240.0 1,442,612 774,240.0 2,412,643 822,708.5 2,412,643 822,708.5 12,297,449
Net Profit After 172,013.4 315,956.4
59 4 .87 2 .87 2 .58 8 .58 8 .53
Tax 7 2

CASH FLOW PLAN

Period Period Period Period

Pre- Period 1 2 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 10 Period 11 12
TOTAL
Startup
Jan. - Apr. - Jul. - Oct. - Jan. - Apr. - Jul. - Oct. - Jan. - Apr. - Jul. - Oct. -
Components Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec.

CASH IN-FLOW

-
323 170,04 1,103,56 1,667,55 2,639,62 3,228,32 4,485,39 5,074,09 7,505,27 8,346,522 10,904,68
127,375
,518.90 2.93 1.95 2.04 4.25 3.62 5.84 5.21 6.29 .37 4.69
Cash at Hand .99

2,240,1 1,120,06 2,240,13 1,120,06 2,240,13 1,120,06 3,360,19 1,120,06 3,360,196 1,120,065 19,041
Cash Sales/Total - - 30.85 5.43 0.85 5.43 0.85 5.43 6.28 5.43 .28 .43 ,112.23
Revenue

28
 367,340. 367
67 ,340.67
Equity
857,128. 857
23 ,128.23
Loan Proceed

1,224,46 323 170,04 2,112,75 2,223,62 3,907,68 3,759,68 5,468,45 5,605,46 8,434,29 8,625,34 11,706,71 12,024,75 65,586
8.90 ,518.90 2.93 4.86 7.38 2.89 9.68 4.47 1.27 1.48 1.71 8.64 0.11 ,803.22
Total Cash Inflow

CASH OUT-FLOW

540
Pre-operating 540,950
,950.00
Expenses
Opening 360, 360
Inventory/Initail 000.00 ,000.00
Stock

-
Total Cost
86 237, 654, 236, 952, 235, 652, 235, 802, 235, 802 235 5,363
Operating ,000.00 518.90 033.95 018.90 033.95 518.90 033.95 518.90 033.95 518.90 ,033.95 ,518.90 ,783.15
Expenses
76 76, 76, 76, 51, 51, 51, 51, 510
- - - -
,529.31 529.31 529.31 529.31 019.54 019.54 019.54 019.54 ,195.37
Interest
204, 204, 204, 204, 204, 204, 1,224
- - - -
- - 078.15 078.15 078.15 078.15 078.15 078.15 ,468.90
Loan Repayment

-
Rent

- - - - - - - - - - - - -
Insurance

29
 -
Other Purchases
-
74,551. 39,448.9 60,926.9 40,749.4 75,926.9 40,749.4 126,981. 43,300.4 520,252.9
-9,053.34 16,629. 0,000.00 43,300.45
50 9 9 7 9 7 24 5 4
Income Tax 29

900, 153,475.9 297,41 1,009,1 556,075. 1,268,05 531,366. 983,058. 531,366. 929,015. 278,819. 802,033.9 278,819.3 8,519,650
Total Cash 950.00 7 8.92 92.91 34 8.63 06 63 06 20 35 5 5 .36
Outflow
-
323, 170 1,103,5 1,667,55 2,639,62 3,228,32 4,485,39 5,074,09 7,505,27 8,346,52 10,904,68 11,745,93 57,067,15
127,37
518.90 ,042.93 61.95 2.04 4.25 3.62 5.84 5.21 6.29 2.37 4.69 0.77 2.86
Cash Balance 5.99

SENSITI
VITY
ANALYSI
S

0 1 2 3 4 5 6 7 8 9 10 11 12
Cash
Inflo 1,224, 323, 2,112,7 2,223,62 3,759,69 5,468,45 5,605,46 8,434,29 8,625,3 11,706, 12,024,
w 469 519 170,043 55 7 3,907,683 0 4 1 1 42 719 750
Red
Rev 258, 1,690,2 1,778,90 3,007,75 4,374,76 4,484,36 6,747,43 6,900,2 9,365,3 9,619,8
20% 815 136,034 04 2 3,126,146 2 4 9 3 73 75 00

30
Cash
Outfl 900,95 153, 1,009,1
ow 0 476 297,419 93 556,075 1,268,059 531,366 983,059 531,366 929,015 278,819 802,034 278,819
Inc
Cost 176, 1,160,5 1,130,51 1,068,36
15% 497 342,032 72 639,487 1,458,267 611,071 7 611,071 7 320,642 922,339 320,642

Pres
ente (900,9 170, 1,103,5 1,667,55 3,228,32 4,485,39 5,074,09 7,505,27 8,346,5 10,904, 11,745,
d 50) 043 (127,376) 62 2 2,639,624 4 6 5 6 22 685 931
Scen
erio (900,9 105, 1,222,82 2,476,38 3,391,70 3,953,00 5,818,41 6,621,4 8,563,3 9,340,9
1 50) 339 (161,385) 681,011 7 1,858,088 6 5 3 8 54 41 81
Scen
erio (900,9 147, 1,584,14 3,148,61 4,337,93 4,994,39 7,365,92 8,304,6 10,784, 11,704,
2 50) 022 (171,989) 952,183 1 2,449,415 9 7 0 4 99 380 108

Present Scenario
ed 1 Scenario 2

8,963,7 6,581,47 8,634,239

NPV 91.59 2.23 .56

IRR 78% 66% 75%

31