Poultry Farming Business Plan Business Plan Upmetrics

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Hencube PoultryBusinessPlanPrepared By10200 Bolsa Ave, Westminster, CA, 92683John Doesupport@upmetrics.co(650) 359-3153https://upmetrics.co

Table of ContentsExecutive Summary3Objectives3Mission Statement3keys to success3Financial Summary4Net Income4Business Overview5Company Ownership5OwnersLocation and facilitiesMarket Analysis557Industry Analysis7Challenges facing the poultry industry7Market segmentation7Target market segment strategy8Market trends8Startup SummaryStartup costs1010Products & Services11Product description11Future products11Service Description11Future services11Competitive Analysis13Competition13Competitive edge13Marketing Strategy and Implementation14Marketing strategy14Pricing and promotion strategy14Web strategy14Sales strategy14SWOT analysis15PEST analysis16Socio-cultural161 / 26

Technological17Economic17Political17Management and Organization Structure18Management team18Organizational structure18FAUSTIN HATEGEKIMANA18AISHA ALIMI18KHADIJAH KHALID18ASMAU ABUBAKAR19ERIC HAGENIMANA19LAWAL NURA BADA19Hiring Plan19Financial Plan20Projected Profit and Loss20Projected Cash Flow22Projected Balance Sheet24Risk Assesment26Financial risks26Health risks26Technological risks262 / 26

Executive SummaryHencube poultry is a farm focused on both egg and meat production thatprovides for a large market range. It also produces manure as a by-product. Itis based in yola city, wuro Haussa. The founders have noticed the healthimplication of red meat and are creating a business to meet the increaseddemand for white meat and eggs. Chickens happen to be a great source ofwhite meat and are also largely known for egg production. The personswhoReadMore have come together to start this business are Faustin Hategekimana, AishaStart Writing here.ObjectivesHencube poultry will measure its success by its ability to achieve the followingobjectives:Becoming the "Best and most hygienic poultry producer in the area"complying by the national standards for food and drugs.Turn in profits from the first six months of operations.Read More upmetrics.coStart Writing here.Mission StatementHencube poultry’s mission is to provide customers with quality, fresh, andvaluable products. To respect all employees and enable everyone to have asay in company affairs. Quality and service are our number one priority. Toprovide investors with opportunities to receive a nice return on investment andhigh-quality growth. To contribute to the community through physical andsocial programs. Hencube’s poultry farm intends to have the largest poultryRead More farm products. We plan to increase and expand our production of chicken toStart Writing here.keys to success2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry3 / 26

Hencube poultry will follow these principles in order to achieve success in itsmarket:State of art cage framework accommodating an optimum number ofchickens with lessened possible hazards.Diverse slaughters network, market chain management, optimumRead More inventory level, and ‘customer is king’ policy.Start Writing here.Financial SummaryNet IncomeSalesGross MarginNet ar2Year2Financial YearSalesGross MarginNet ar23100002000001500002020 - 21 Bu sin ess P la n Hen cu be P ou lt ry4 / 26

Business OverviewCompany OwnershipHencube poultry is owned by six persons. They are namely FaustinHategekimana, Aisha Alimi, Eric Hagenimana, Lawal Nura bada, KhadijahIbrahim Khalid, and Asmau Abubakar Umar. It is a partnership and eachperson has an equal share in the business and is also equally liable for anybusiness debts or claims.Read More Start Writing here.Owners20%20%Faustin Hategekimana20 SharesAisha Alimi20 Sharesupmetrics.co20%10%10%20%Eric Hagenimana20 SharesLawal nura bada10 SharesKhadijah Ibrahim Khalid10 SharesAsmau Abubakar Umar20 SharesLocation and facilities2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry5 / 26

At this point in the business, we don’t have an exact point yet but we havenarrowed the location down to wuro Haussa, yola city. We are trading from thisspot because is it a great place to reach our target market. We think thepopulation base is large enough for our business and it has a stable economicbase that promotes a healthy environment for the poultry. Also, we think it is aspot that could tap a healthy workforce. We also considered pedestriantrafficReadMore and we think a large percentage of them are potential customers. We plan onStart Writing here.2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry6 / 26

Market AnalysisIndustry AnalysisThe poultry industry in the last 40 years has shown dramatic changes in bothdomestics and international environments. Those environmental forces includeare classified into 2 categories: the internal forces and external forces. Internaland external forces include:1. Poultry industry competitors: When the company has few competitors, itRead More is more likely to get more profit. For example in Nigeria, competition isStart Writing here.Challenges facing the poultry industryPoultry farming has some challenges that need to be attended to with vigor.Below are some of the common challenges that are faced by poultry farmers:Death of chickens: In poultry, one or many chickens usually die because oftheir fragile nature and the weather they are living in. Some factors such asheat and overcrowding causing that death can be controllable.Read Moreupmetrics.co Start Writing here.Market segmentationAlthough in the Nigerian populace, there are a few taboos, religious or culturalpractices that will prevent the consumption of poultry products, during themarket segmentation, we found out that nearly everybody eats eggs and meat,so we are targeting the whole market, individuals, homes, and firms that useeggs and chicken in large quantities. Specifically, there is a high demand forlive chickens for home consumption or as gifts during festivals like Christmas,Read More Eid-al-Fitr, New Year, Easter, etc.Start Writing here.2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry7 / 26

Others: 10.0 %Hotels and restaurants: 20.0 %Individuals: 10.0 %Homes: 20.0 %Bakeries and food joints: 20.0 %Retail shops: 20.0 %Market SegmentationMarket ShareHotels and restaurants20Bakeries and food joints20Retail shops20Homes20Individuals10Others10Target market segment strategyIndividuals are a small sector in the market segmentation. They are a prettylarge group but they buy a relatively small amount of eggs.The part of the market that we hope to supply a large number of eggs to arethe industries that need eggs. We have strategically placed our site close tothese industries. They are bakeries, restaurants, boarding schools, homeRead More delivery food centers, retail shops, and supermarkets.Start Writing here.Market trends2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry8 / 26

While some countries are reputed to be important exporters of poultryproducts, Nigeria has a problem of meeting its local demand for poultryproducts. This problem started for the poultry market in 1984 when the federalgovernment banned the importation of maize. This had quite an effect ondeclining poultry production.Read More But the poultry market has seen more favorable times since the independenceStart Writing here.2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry9 / 26

Startup SummaryOur business has start-up cost and we will need a bank account, we chose ourbank to be GTBank because of its proximity in the area. This section of theplan shows projected startup costs prior to our opening.Start-up expenses for Hencube poultry include initial insurance paymentscovering both general liability and product liability, pre-launch marketingtoRead More cover flyers, a direct mail campaign, and advertisements in local papers, theStart Writing here.Startup costsItemsCosts( )Business cards20Printer200Leaflets10Blank 0Others500Total12350EquipmentCost( )Feeders and drinkers80Crates150Lighting system500Egg tray50Cages3000Others1000Total equipment47802020 - 21 Bu sin ess P la n Hen cu be P ou lt ry10 / 26

Products & ServicesProduct descriptionWe offer chicken eggs and chicken meat that will be gotten from layers andbroilers to our target market. We plan to take pride in the uncompromisingquality of our products. We also offer fertilizer in the form of chicken manure.This is mostly used in vegetable farming and as an ingredient for feed in fishfarming. Hencube poultry shall produce high quality, contaminant-freechickens, and the freshest eggs to satisfy the taste of our beloved costumers.Read More The products shall be distributed into a number of distributors - supermarkets,Start Writing here.Future productsWe have big plans for the future. We plan on supplying cracked eggshells forsome detergent companies for use. These special detergents are used inwashing basins and pots. Another thing we have planned for the future is thesale of processed chicken meat.upmetrics.coRead More Start Writing here.Service DescriptionWe plan on servicing our customers by providing home delivery for customerswho are willing t buy at least a certain amount of our products.Read More Start Writing here.Future services2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry11 / 26

In the future, we plan on creating a restaurant that has eggs as its main menu.It will be like a breakfast restaurant. In the future, if this business gets largeenough, we would also like to build our own bakery. A major ingredient in mostbaked goods is eggs and we will be funding that through the poultry.Read More Start Writing here.2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry12 / 26

Competitive AnalysisCompetitionCompetition is not so keen on the markets, however, it still exists. The reasonsare;Poultry products are not branded products; hence what usually mattersis effective positioning and timing.The poultry market is not crowded, it’s a seller’s market.Read More Start Writing here.Competitive edgeOur strength over its competitors is firstly based on the fact that we are notentering this business to make much money. We are entering this industry tosolve the present problem that our population is facing. We are here to providequality affordable chicken products. We saw that some of our competitors areseasonal they only produce their chicken at a given period of time. We won’twork like that always is ready to provide chicken and eggs. We know theRead More importance of time and know that people have many and varying activities;upmetrics.coStart Writing here.2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry13 / 26

Marketing Strategy and ImplementationMarketing strategyHencube poultry will strive for the production of products with the highestquality and we plan on employing the following strategies. Our location puts usin the proximity of a major hotel, restaurant, schools with campuses and homedeliver food centers we will be supplying to. We would also make contractswith hawkers in markets to sell our live chickens and eggs. We would alsomake contracts with retail shops for a constant supply of eggs at intervals.Read More Start Writing here.Pricing and promotion strategyThe price of the chicken would range from N1500 up to N1700 depending onthe size and quality. Also, the price for a crate of eggs ranges from N600 toN1000. The price of a wheelbarrow of manure costs about N200. These priceswould also vary depending on the existing market price of poultry meat andeggs. As we compete with other poultries, we will promote our productsthrough advertisements with the aid of streamers and pamphlets. WeReadcan Morealso make our business known through recommendations and connections withupmetrics.coStart Writing here.Web strategyHencube poultry also has a website where customers can interact with us andget a feel of what the business is about. We know a site or two where we canplace online advertisements and we would also make mentions of our poultryin online newspapers.Read More Start Writing here.Sales strategy2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry14 / 26

Better farm management practicesRegular visit by veterinary doctorsRecycling wastes as fertilizer“consumer is king” policyKeeping up with new technology for production efficiencyRead More Start Writing here.SWOT analysisSWOT stands for strength, weakness, opportunities, and threats and we havemade an analysis in each case.Read More Start Writing here.2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry15 / 26

StrengthsWeaknessesProduce high-quality eggs enrichedwith proteinCapital intensive. Starting a poultrybusiness requires a large capitalfunding.Relatively good infrastructure systemsOutbreak of disease can ruin entirebusiness in a goGood marketing systemEggs and chicken are not seasonalproducts and can be eaten at any timeof the yearThe smell can be quite disturbingIn this area, the poultry business hasn’tbeen over-exploitedPoultry are environmentally friendlyOpportunitiesS WO TThreatsExpansion into large scale productionof byproducts(fertilizer and detergent)More competitionExport to neighboring townsHigh feed ingredients pricesA large and successful poultry willensure food securityThreat of import of frozen chickenAvian diseasesPEST analysisEating habits of our consumers will definitely affect our business. Also, thesuccess of restaurants and other firms that order our products will indirectlyaffect our business.Read More Socio-culturalStart Writing here.2020 - 21 Bu sin ess P la n Hen cu be P ou lt ry16 / 26

A good technical infrastructure would lead to better production and hencelower costs. Technology will also mean more effective business marketing.Read More TechnologicalStart Writing here.Economic trends such as demand and

We offer chicken eggs and chicken meat that will be gotten from layers and broilers to our target market. We plan to take pride in the uncompromising quality of