Business plan _

Business plan _

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  University of NigeriaNsukka A Business plan on Livestock management in the partial fulfillment of the requirements of Course: CED342 Presented by: Ogbonna Ifeanyichukwu Charles Reg No: 2007/147482 Faculty:Engineering Department: Mechanical Engineering Lecturer: Mr.OdigboOkey Date: 08/12/2010
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  Business plan topic: LivestockManagement
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  Table of Content 1.0Executive Summary 2.0 Background 2.1 Introduction 2.2 Vision and Mission 2.3 Ownership of enterprise 2.4 Legal status 2.5 Location and facilities 2.6 Product and services 2.7 Business strategy 2.8 Key success factors 2.9 Revenue Base 3.0 Marketing and Clients 3.1 Nature and Size 3.2 Target client 3.3 Key competitors 3.4 Production process 3.5 Service delivery 4.0 Marketing plan 4.1 Quality Assistance 4.2 Demand supply analysis 4.3 Technology 4.4 Competitive edge 4.5 Promotion and Distribution Strategy 4.6 Alliances 4.7 Marketing position 4.8 Service delivery 4.9 SWOT Analysis 5.0 Organisation 6.0 Legal, Regulatory social and environmental issues 6.1 Values and norms 7.0 Financial plan
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  7.1 Funding planstatement 7.2 Funding requirements 7.3 Project income statement 7.4 Project cash flow statement 7.5 Profitability analysis 7.6 Breakeven point analysis 8.0 Risk analysis, contingency plan and exit strategy 8.1 Exit strategy 9.0 Other considerations, conclusion and recommendation 9.1 Commercial viability
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  Livestock Management BusinessPlan 1.0Executive summary 1.1The report below relates to the proposal of Ogbonna livestock management firm to establish a livestock firm in Nigeria. 1.2The proposed project is to be fully implemented with an investment of N808,000 which comprises of 458,000 fixed capital and 350,000 working capital 1.3The company’s vision is to increase the agricultural firms in Nigeria, reduce unemployment and also increase the profit of their investors. 1.4The company will be limited to goat management but looks forward to adopting other livestock as the company grows financially. 1.5The proposed business will be located at no 13 Ezediokpu street Ogbaru Anambra state Nigeria 1.6The business requires funding worth N350,000 as the promoters of the business has a startup capital of about N458,000 1.7The company’s competitive edge is having astute investors who will make shrewd investment with the most modern models available in the market. 2.0Background 2.1Introduction: The most important things are the things we tend to neglect most because we always want things that we think they are very farfetched. Man eats every day for him to survive no matter what happens, due to this man’s primary need is food. Man eats not everything but things that come from plants and animals. Owing to this, man can do almost anything to feed. Food and nutrition is the main source of human existence, therefore any business that has to do with this would be very successful if well managed. Livestock management is such a business which would boost if well managed. This business plan proves the possibility of livestock management strategies that will create a good market. This livestock management business plan shows an insight on the hidden treasure (“Livestock Management”).
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  2.2Vision and Mission:The vision of this business is to provide the market with enough and well breed livestock by trying to handle the hurdles professionally and efficiently. The mission of this business is to provide investor with profit for their investment by harnessing all available opportunities. 2.3Ownership of enterprise: It is going to be a private liability company, but here the investors need not to know much about the business. They just need to invest their money. 2.4Legal status: The business is about to be registered with NAFDAC and other livestock management companies. 2.5Location and facilities: Due to the availability of water, cheap building for lease, cheap labour and availability of animal feeds at Ogbaru LGA in Anambra state,it is located at No 13 Ezediokpu street Ogbaru LGA, Anambra state. The building is gotten on lease. 2.6Products and services: Full grown goats, young goats, manure 2.7Business strategy: Making sure that the breeds we rear are good breads and keeping the environment clean. 2.8Key success factors: Making sure that the breeds bought are of good origin and will not develop sickness and are very adaptive to change in environment. This breeds should also be resistant to infections. 2.9Revenue base 3.0Marketing and Clients 3.1Nature and size: My clients are those who have other businesses but need to invest, those who want to invest in livestock management but do not have the technical knowledge. 3.2Target client: The target clients are like those above. 3.3Key competitors: Competition brings about more work in order to beat the competitors. The more competitors you have the more you struggle to beat them. It makes you want to be the best in whatever you do. The competitors in this business include the few livestock farmers in Nigeria. 3.4Production process: The livestock are taken care of until they are grown enough to be sold. This involves feeding them keeping their
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  environments clean toavoid infections and giving them proper medication. 3.5Service delivery: The grown livestock are delivered through the sales department of the company. They are also taking to the market for the creation of awareness and attraction of customers. 4.0Marketing plan 4.1Quality assistance: It is well ascertained that the quality of the products are up to standard this will be done by the quality supervisor who makes sure that the quality of a livestock is ok before sending it to the sales department. 4.2Demand supply analysis: Goods are supplied on demand to wholesalers who may be the major customers of the company. 4.3Technology: There isn’t much technology needed in this business. But the business will be run with the most recent techniques available. The company will acquire the new electronic ways of keeping records rather than the use of files and shelves. 4.4Competitive edge: There are no many competitors in the business because there are few of this business. This makes the business rather to be the one you only need to produce for you are always sure of sales. 4.5Promotion and distribution strategy: The first and the most important promotion strategy are the production of healthy and livestock. This makes the goods to start advertising themselves. Adverts would be placed on newspapers and on local televisions to help sensitize people about the products and services. The products will be sold at considerable lower prices to help get new customer and help retain old ones. 4.6Alliances: We would have alliance with Egbi farm, Egbejimba farm at Odekpe this farms will advise us on their production process and their management strategies to enhance our own knowledge and also show us the better ways of livestock management. 4.7Market positioning: The market is positioned in a place where the decision of trade unions won’t interfere with the marketing strategies.
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  This market positionis a place accessible with good roads, water, electricity, and close to a place where people can easily assess. This place will be secured and free from attacks may be by the locales or collection of all the unnecessary levies. 4.8Service Delivery strategy: The service delivery of products to customers increases the rate at which the customers trust the supplier. On time delivery of services makes you a very reliable producer and this makes your customers to keep coming back. The delivery strategy that will be use is delivery on demand. Once a customer requests a product, the product will be sent to him. This makes you to be the first consideration of your customers. 4.9SWOT Analysis: 4.9.1 Strength: The strength of this business includes the favourable market condition where the market is positioned, the favourable climate condition surrounding the area where it is positioned, the experts managing the business and the availability of raw materials. 4.9.2 Weakness: There is no plan that does not expose a form of weakness. The weakness associated with this plan is making the products known to people. But with the marketing plans adopted, this will be properly checked. 4.9.3 Opportunities: In the midst of all this limitations, there are chances of survival. In this country, many people consume agricultural products but only a very few are in the business of producing this products, owing to this, the few that venture into it tends to be very successful if they play their cards very well. The only luck needed in this business is the production of quality products and the business booms. 4.9.4 Threats: threat is one thing that is prevalent in almost any business. In this business, the threats facing it are; government policy, climate conditions, health of the livestock. Competitor to an extent can be regarded as threats owing to the fact that their activities affect the market.
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  5.0 Organization andmanagement: CEO/Manager Accountant Sales/qu worker worker Customer Security ality /service 5.0 6.0 6.1Legal, Regulatory social and environmental issues: The name of the business will be Ogbonna Livestock management Firm which will be located at no 13 ezediokpu street ogbaruLGA,anambra state Nigeria. The chief executive officer is ifeanyi Charles Ogbonna. The business is will be registered with NAFDAC and other nutrition management cooperation. The business looks forward to employing young graduates to reduce unemployment in our country and increase the national economy. They also want to reduce the dependency of the country on the importation of livestock and its products. 6.2Values and norms: The Company is obliged to be financially prudent in every trade entered into and is accountable to every client no matter the level of investment. The company is subject to the norms and ruling of the securities of livestock management. The company would at sometimes hire experienced veterinary doctors to monitor and comment on the livestock.
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  7.0 Financial plan Fixed Capital FIXED CAPITAL AMOUNT Generator N150,000 Young goats N20,000 Building rent N200,000 Feeding equipment N15,000 Cages for livestock N38,000 Feeds N35,000 Total N458,000 Working Capital WORKING CAPITAL AMOUNT Salaries N200,000 Administrative expenses N30,000 Fuel/gas N50,000 Medication of the livestock N50,000 Water supply N20,000 Total N350,000 7.2) funding and plan statement: the total project cost is planned to be funded as follows Owners contribution……………………………………………………….N458,000 Investors contribution…………………………………………………….N350,000
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  Total project cost…………………………………………………………….N808,000 7.3)funding requirements The funding requirement for this project is N350,000, which would be obtained as investment by clients. With a propose return of 26.2% on their investment. Depreciation schedule ITEM COST(N) SCRAP LIFE SPAN AMOUNT(N) VALUE(N) Generator 150,000 70,000 10 6,000 Projected income statement 2009 2010 2011 Turnover less N3,145,000 N5,235,020 N10,330,650 operating expenses Rent N200,000 N200,000 N200,000 Utility an gas/oil N35,000 N38,000 N40,000 Maintenance N10,000 N11,000 N12,100 Admin. Expense N30,000 N35,000 N40,000 Salaries N200,000 N300,000 N350,000 Depreciation N29,000 N29,000 N29,000 Total operating 494,000 N634,000 N671,000 expense Net operating N2,651,000 N4601,020 N9,659,650 profit Projected cash flow statement
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  Cash inflows 2009(N) 2010(N) 2011(N) Owners 350,000 - - contribution Total cash 350,000 - - inflow(A) Cash outflows Fixed assets 481,000 493,000 501,000 Operating 301,000 322,000 335.000 expenses less depreciation Returns on 105,000 132,000 181,000 investors capital Total cash 887000 947,000 1,017,000 outflow(B) 7.6)Profitability analysis 2009 2010 2011 Return n owners 166.2% 208.8% 292% capital Return on total 91.48% 151.7% 172.2% investment 7.7) breakeven point analysis BEP=FC/1-VC/S Where FC=fixed cost………….N458,000 VC=variable cost………N350,000 S=sales………………..N808,000 458000/1-350000/808000 = 457999.57
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  8.0)risk analysis, contingencyplan and exit strategy Risk Mitigant Theft Security and insurance Fire outbreak Extinguishers and insurance Market fluctuation Hedging Bad investments Insurance 8.1) Exit strategy: When there is any sign of serious infection we exit. 9.0: Other considerations, conclusion and recommendation There is an infinite opportunity in the livestock management industry. Everyday people eat animal which obviously they don’t want to stop doing so. This makes this business an all-weather business. The only thing we just need to do is just make the livestock available and they are sold. 9.1 Commercial viability The livestock management has been dominated by few individuals who have seen the opportunities in the business and yet their products are yet to satisfy the market need for livestock. This gives us an advantage of survival for there is even none in the area we are planning on setting up this company.