Decown Botswana Pty (Ltd )

ap
(+267) 71550499 email:okat k la!de"swana#"w P o Bo$ 1041 %&a'a#

Executive Summary
BUSINESS DESCRIPTION This business is submitted in an effort to secure Start- Up funds in the amount of P3, 990, 000.00 to allow Decown Botswana to start up and row in to a full operational business entit!. The fundin re"uest incorporates a hea#il! ratio of additional in#estment and operatin capital. These are intended to pro#ide the final pieces necessar! to start-up and implement the business. $e are see%in a lon term loan which will be repaid in fifteen !ears. This loan will initiall! enable us to purchase a farm & '(0 )a, and start a *+0 cow herd cattle for ranchin and combined with &0 steer monthl! offta%e, bou ht in for feedlot, farm de#elopment, pa! salaries for emplo!ees, le al ser#ices, insurance, #accination pro ramme, feedin , administration and other resources needed to ensure the business emer e. DECOWN BOTSWANA PTY (LTD, re istered as a Pri#ate -imited .ompan! will be wholl! owned and mana ed b! /r. 0 1atu%ula and was incorporated *+ 2o#, 300&, .ompan! 2o4 .0.300&5++&3 with two other directors namel! 2tsholetsan 6adintwa and $illie /iti who are no lon er with the .ompan!, since re istration the had ne#er one into business, thus 7 am intendin to do beef farmin or production. The .ompanies address will be in leased premises at 2ata area '( %m alon the 2ata51asane road, 6anch 2o. P0*( measurin appro8imatel! &'(0 ha. The farm is currentl! not de#eloped. 7t is desi ned for cattle breedin . The farm has ood ra9in area and located in an area with ood rainfall and as such we see it fit to offer a ood opportunit! for beef production. BACKGROUND IN OR!ATION ABOUT OTSILE "O#NSON KATUKULA :cademic Bac% ;round and Professional Trainin 0tsile 1atu%ula is a secondar! school raduate from .hobe Secondar! School. :fterwards he raduated from .hobe Bri ades de#elopment trust and obtained a certificate in :uto mechanics. )e continued stud!in and obtained 2<= -e#el ( with 2orthwest

Decown Botswana

Business Proposal, 2010

Uni#ersit!, also /r. 1atu%ula is stud!in with /ancosa doin Becomm- /ar%etin . 0tsile further went on to accomplish the followin courses4 :ccountin > ::T ?stud!in , )uman 6esources /ana ement 2<= -e#el( ?2orth-$est Uni#ersit!, 7 . D -- ;7PS Scania maintenance /achiner! lubrication Basic peer education ?)7@ and :7DS, 0#er head .rane 6adio .ontrolled $eaner Production and -i#estoc% /ar%etin -i#estoc% mana ement ?pendin trainin , W$r% Ex&erie'ce 0tsile 1atu%ula wor%ed for the Botswana Defence force for A !ears since *99+, as a Diesel /echanic. )e then mo#ed to Debswana Diamond /inin .ompan! where he is currentl! emplo!ed since 300(. There he is also emplo!ed as a Diesel /echanic. =urther Trainin The Director has been boo%ed for -i#estoc% Trainin Pro ram which he will attend at $oo 7nternational to enhance the /ana ement s%ills and %nowled e in Beef Production.

Pr$(uct a'( Service)

INTRODUCTION 0ur product for this business is beef cattle. 7n the short-term we will enter into a feedlotin contract with the B/., and finish of !earlin s and culls for a 90 da! period as detailed in the process below. 0n the other hand we will also introduce the bred heifers which will breed annuall! pro#idin a stoc% of on farm bac% rown steers and

Decown Botswana

Business Proposal, 2010

heifers which will be finished under feedlotin at *( months of a e in the lon term. WEANER PRODUCTION The best wa! to increase the farm off ta%e and profitabilit! runnin both a weaner production unit and a feedlotin will be to tr! and %eep a lar er breedin herd and sell out the weaners at an earlier sta e. 7n this scenario we are oin to be fattenin our own weaners as we curb off contracted feedlot fatteners. 0ur stoc% will be sold at 3* months of a e ha#in reached tar et wei hts of 3(0% and can be fattened to reach li#e wei hts of more than &(0% as described. To maintain a hi h offta%e we are oin to tar et a hi h cal#in rate. Therefore we are oin to assume a cal#in rate of +0B. $e are oin to use a controlled breedin whereb! the breedin season from Canuar! > /arch. .ows bred durin this period will cal#e mid 0ctober to earl! Canuar! at the time ra9in is plentiful to meet the nutrient re"uirements of the breedin herd and lactatin cows. The cal#in rate from then is influenced b! the breed, cow si9e, nutrition and health mana ement, all of which will be mana ed to obtain the best results. Under e8tensi#e mana ement, a bull can ser#e 30 > 30 cows dependin on the breed and a e5maturit!. Doun er bulls will be allocated not more than 30 cows. .al#es born, will be weaned at A months of a e, this will allow enou h time for the cows to reco#er for the ne8t lactation. :t the same time EEDLOTTING*PEN ATTENING

This s!stem in#ol#es the feedin of beef cattle in pens. There is no ra9in so as to pre#ent loss of mass from mo#ement. The s!stem ma%es it eas! for dail! routine wor%. The s!stem in#ol#es feedin cattle on feed of hi h #alue, such as rain, cereals, molassesE e. t. c. fattenin impro#es the rade of the animal, and i#en 3 > 3B -$ consumption for each animal, an e8pected a#era e dail! ain of *.' % -$ mass should be achie#ed in *00 da!s. Doun er animals which mi ht wei h less will be fed sli htl! lon er. )owe#er a number of factors will affect the performance of a fattenin pro ram. Some of these ha#e alread! been discussed, and these areE

Decown Botswana

Business Proposal, 2010

A'ima+ )e+ecti$' .onsistenc! of si9e and t!pe within pen Settin realistic performance tar ets in relation to the abo#e :#oidin waste :#oidin o#er-crowdin . :t least +m3 of pen per head and 30 m3 per head to start. =eedin space 4 &0-(0 cm of feed trou h space per head $ater space4 30 cm of water trou h fronta e per head Pre#ent heat stress @accination. 7nternal and e8ternal parasites <uantit! and "ualit! of feed =eedin re ime DECOWN BOTSWANA PTY (LTD, will be in#ol#ed in four distinct acti#ities4 .attle ranchin F =eedlotin =odder Production Pure breedin

Gi ht! to ninet! percent of the ross sales are e8pected in sales of steers and other products. :t the moment the compan! is not operational and we are intendin to emplo!ee atleast + permanent emplo!ees on the pa!roll and other Hobs will be subcontracted for professionalism. The compan!Is lon term obHecti#es ?within the ne8t three !ears, are to increase sales in all Di#isions, and to achie#e better or reasonable annual profit, net after ta8es, and also to establish a

Decown Botswana

Business Proposal, 2010

$eaner production and feedlot production, 7mpro#e in#entor! turno#er, reduce the cost of products sold while maintainin the hi h "ualit! of the products SU!!ARY LOAN BREAKDOWN The loan will be used to purchase the farm, animals, #ehicles and machiner!, e"uipment and construct the necessar! infrastructure worth a total of P3, '(A,+9(.+3 and co#er the initial 3 months operatin costs of before sales of P3*A. 3A3.33 plus a mea re contin enc! of P*&, A3*.00 to cater for spill o#ers. /ost of the capital will be used to purchase the land which is costin P*, '00, 000.00. :nother hea#! in#estment will be on the breedin herd purchase constitutin P990, 000.00 in first !ear. SU!!ARY O INANCIAL PRO"ECTIONS

The financial proHections show that the feedlotin acti#it! will be beneficial, i#en the cheaper rain and ha! is sourced efficientl! in sufficient "uantities. 0therwise the labour costs are the onl! costs which are hi h and those of restoc%in the feedlotin herd. : sales re#enue of P*, &9+, 333.00 enerated in the first !ear of operation is based on the mar%etin of feedlot steers tar eted a slau hter prime rade carcass mass of more than 300 % , o#er 90 da!s from 3(0% li#e wei ht. The proHected *0B of the re#enue is custom wor% and (B other income from li#estoc%, as such s%in hides, e.t.c. :fter deductions the net profit is substantial balancin off at P'3, ++A.00 in the second !ear. The compan!Is o#erall obHecti#e is to satisf! that mar%et se ment that demands inte rit! and "ualit! construction, and to maintain a stead! rowth in sales #olume that will sustain the compan! for !ears to come. !ARKETING OPPORTUNITIES The Botswana meat commission is the maHor mar%et for beef cattle in Botswana, with a few transactions happenin to other pri#ate companies who bu! directl! from farmers. 7n essence B/. is the bi est supporter of Beef farmers wish to sell their animals. 7n this respect we ha#e obtained #arious e#idence and letter of intent that we can sell all of our beef cattle to B/., for the best mar%et prices.

Decown Botswana

Business Proposal, 2010

CO!PETITI-E AD-ANTAGES a'( !ARKETING STRATEGY Beef farmin is common in Botswana but because of the hi h demand for the meat suppl! still has to meet the demand. /ost importantl! this reduces increases the competition with new farmers comin to produce "ualit! beef. 0ur meat "ualit! will ha#e a competiti#e ad#anta e because of the on farm rown finishers, as well as the t!pe of breed we en#isa e to %eep. B/. offers better commission for e8port "ualit! beef meat, and thatJs our tar et, and will i#e us an ed e abo#e other farmers. i'a'cia+ O./ective) The financial obHecti#es of DG.0$2 B0TS$:2: PTD ?-TD, o#er the ne8t few !ears are as follows4 Our ca)0 1+$2 &+a' i) t$34 /aintain enou h mone! on hand each month to pa! the cash obli ations the followin month. 7dentif! and eliminate deficiencies or surpluses in cash. :lter business financial plans to pro#ide more cash if deficiencies are found. .ontrol credit and terms to customers. 1eep enou h cash, as an added cushion for securit! on hand to co#er e8penses. 6educe accountant e8penses b! producin our own summar! statistics and proHections.

Please re#iew the loan proposal, and of course feel free to as% for an! additional information or e8planations !ou ma! want. 7 will call !ou in about one wee%Is time to arran e an appointment so that we can discuss the loan in person. 7 loo% forward to a mutuall! profitable relationship with the Botswana De#elopment .orporation.
Decown Botswana Business Proposal, 2010

Sincerel!, Dir4 0tsile C 1atu%ula Si KKKKKKKKKK

Decown Botswana

Business Proposal, 2010