Poultry Farming Business Plan

May 15, 2017, 7:22 am

 
One of the problems hindering the growth and development of agriculture in
Nigeria is funding. Lots of farmers need money to expand their current
operations and many people thinking of starting an agricultural business need
money to kick start their operations.

There is a lot of money out there from public and private institutions available
to back agriculture businesses but many people aren’t able to access these
funds. The major reason why people can’t access these funds is because they
aren’t able to convince lenders (public and private lenders) that their money
will be put to good use.

This inability to convince lenders is because farmers and entrepreneurs aren’t

able to properly articulate why they need the money and how they intend to
use the money once they get it. You can only convince lenders that you will put
their money to good use via a well-written business plan. With a well-written
business plan, your chances of accessing the billions in the coffers of private
and public institutions is greatly improved.

This post will help you access the money you need for your agriculture
business by showing you how to write an agribusiness plan. We will use a
poultry farming business has the template for writing our business plan and
you’ll be walked through the key components of a business plan that receives
funding.

The 12 key parts of a good poultry farming business plan are:

Poultry Farming Business Plan

1. Company name and logo (optional)

Your company name should appear at the top of your business plan pitch or
proposal. Also, get a good graphic designer to design a nice logo for your
company. Doing this will give your business plan a professional look and it will
immediately make it stand out from the crowd.

For our sample poultry farming business plan, the company name is Rayfield
Poulry Farms Limited

2. Headline

The next step is to describe your company and the business opportunity it will
be taking advantage of. Make sure you use strong, compelling and graphic
words to describe your company and its business opportunity. Include in your
headline the things that will make your company successful (e.g. innovative
products, industry experience etc.)

For our sample poultry farming business plan, the headline will be: Rayfield
Poultry Farms Limited is a full service poultry farming business setup to
provide quality and affordable poultry products to the millions of Nigerians
earning less than the minimum wage. This will be achieved through our
unique and proprietary methods of raising poultry gained from over 20 years
of experience in the poultry farming industry.

3. Problem(s) your company will solve

Here you have to state the problem(s) that your company intends to solve for
your target customers. These problems can be unmet needs or wants in the
market or a unique and different method of solving the present needs and
wants in your target market.

For our sample poultry farming business plan, the problems we intend to
solve will be expressed as follows:
Rayfield Poultry Farm Ltd intends to address the following problems/pain
points in the market:

 Making poultry products affordable to low-earning workers who only

eat poultry on special occasions (Christmas, birthdays etc.)
 Ensuring that poultry products are well packed and prepared
hygienically

4. Your company’s solution

In this section you must explain how your company intends to solve the
problems your target customers face. The lenders must see clearly what your
company offers and how your solution provides a different and unique
alternative to what is presently in the market place.

 For our sample poultry farming business plan, the solutions we will bring will
be expressed as follows:

Rayfield Poultry Farms Ltd will make poultry affordable to the masses by

 Drastically reducing the cost of raising poultry by using new feeding

methods, practices and feed materials
 Eliminate the middle men in product distribution by supplying directly
to the consumers through use of e-commerce and community peer sales
outlets

5. Explain your target market

You must be crystal clear about the type of people your agriculture business
intends to serve. Your business plan must be clear on the customers you want
to concentrate on, the segment of the populace who will represent your
primary market, the segment of the populace your business will actively ignore
etc. As you identify the potential customers for your agriculture business,
ensure to get figure and statistics about them. You need to know the number
of people who make up your target market and how much they averagely
spend each year to address the problem you intend to solve. Some market
research will be needed for this aspect and you can get market data from
sources like the United Nations, World Bank, and National Bureau of
Statistics.

For our sample poultry farming business plan, the target market are the low-
income earners in Nigeria. Some facts and figures about this segment of the
population can be seen below:
6. Your competitive landscape

A key feature or component that defeats most business plan in real life is not
taking competition into consideration. To prevent this from happening to your
business, you need to have a good grasp of your competitive landscape. In this
section, you will make a short list of your competitors. Your competitors are
divided into two categories: direct and indirect. Direct competitors are those
businesses that already exist in your intended market or industry space and
who are producing similar products and services. Your indirect competitors
are those businesses who aren’t producing similar or the same products and
services like you intend to but who are still competing for money your target
customers could have spent with you.

As you list your competitors, describe or state what makes your solution better
or more attractive than theirs.
The competitive landscape for our sample poultry farming business plan is
listed below:

Direct Competitors

Better packaging, More  

Roostville
variety
Cheaper price, More
Chi Farms  
variety
Cheaper price, Better
Zartech  
packaging
Cheaper price, Better
Fiesta
packaging  

Indirect Competitors

Pork meat Mass appeal  

Meat sellers Better hygiene
Tastier, Better  
Fish sellers hygiene, Better
packaging
Canned  ProductsHealthier, Fresher  

7. Funding needs

In this section, you state the amount of money you want to raise and how you
intend to spend the money on your agriculture business.

For our sample poultry farming business plan, the funding needs can be stated
as follows:
Rayfield Poultry Farms Ltd intends to raise N160,200,000 which would
be spent as shown below:

 Processing Equipment and Machinery— N105,000,000

 Staff & Personnel— N4,800,000
 Birds— N5,400,000
 Feeding Material— N45,000,000

8. Your sales channels

In this section, you explain and describe how you plan to get your products or
services to market. Are you selling and delivering to your target customers
directly through a retail store, website, or catalogue? Do you plan to have a
sales team? Do you plan to sell through intermediaries — distributors, dealers,
resellers, or others? Identifying your sales channels is important to
understanding the economics of your business model.

For our sample poultry farming business plan, the sales channels will be
outlined as follows:

Rayfield Poultry Farms Ltd intends to get her poultry products directly to
her customers through the following sales channels:

 Online store: where customers can order directly to their homes

 Community peer channels: we will setup clusters of peer sales outlets in
densely populated areas where customers can buy poultry products from
 Farm sale shops

9. Marketing activities

In this section, you explain how you plan to attract attention, build interest in
your offerings, and convert prospects into customers. Describe your web
presence. What sort of online marketing do you do? Do you advertise online,
in print, or elsewhere? Do you attend trade shows or sponsor events? If your
direct marketing is largely done by resellers or dealers, what kind of marketing
will you do to attract and keep those key partners?

For our sample poultry farming business plan, the marketing activities will be
listed as follows:

 Facebook marketing campaign

 Product flyers and banners
 Radio advert
 Twitter promotion
 Google adword campaign

10. Financial Forecast

When you are confident that you have identified a market with a problem
worth solving, it's time to put together a quick financial forecast for your
solution. Can you actually turn a profit? Some opportunities look good at a
glance, but don't hold up to financial scrutiny.

Some of the things you would have to put into consideration when drawing up
the financial forecast for your business plan are:

 What does it cost to make what you sell?

You need to know your direct costs. The idea behind direct costs is that every
time you make a sale, you incur more costs. Common examples of direct costs
(also known as costs of sales, costs of goods sold, or just COGS) are the raw
materials you need to manufacture your products, wholesale purchases of
products you are reselling, and sales commissions. Where regular expenses
like rent, marketing, and insurance may remain steady as your sales fluctuate,
making more sales always means incurring more direct costs.
For our poultry farming business plan and for your plan, you need to separate
direct costs from other expenses because it lets you understand your gross
margin. Shown on the profit and loss statement, gross margin shows the
portion of your revenue — as a monetary value and a percentage — that is left
over after paying your direct costs, but not your other expenses. This gives you
a sense of how much potential profit your company has to work with.

Who do you need to execute your plan?

This is where you will cover the salaries and related costs paid to yourself,
your employees, and any contract workers. Depending on how big your
company is, you can list every employee by name or title, or you can group
them into common roles or departments if that makes more sense.

For our poultry farming business plan and for your own plan, putting together
your personnel plan is a valuable opportunity to think through your staffing
needs, now and in the future. How much will you pay your staff? When do you
need to add new positions? How will those positions be compensated? Does it
make more sense to hire full-time employees or use contract resources?

What else do you need to spend money on?

This is where you add all of your company’s regular expenses here — rent,
utilities, insurance, marketing costs, office supplies, and so on. If your
company is just getting started, be sure to include any one-time or short-term
start-up expenses in the early months as you get up and running. For our
poultry farming business plan, we must also put this into consideration.

Do you have any major purchases with long-lasting value?

In business finance, and for our poultry farming business plan, it is customary
to treat long-lasting purchases (called “assets”) differently than regular
expenses. Take two purchases as an example: a company generator and a tank
of fuel to power it. The fuel is a short-lived purchase. Buy it in May, use it in
May. It won’t continue powering your generator later in the year. That’s how
regular expenses work. The generator itself is different, though. It’s an
expensive purchase, and if treated as a one-time expense, it might be a big hit
on the company’s profitability. Then again, it won’t be gone at the end of the
period. A good generator will deliver value for years to come, so it makes sense
to spread out its cost over time. That’s the idea behind asset purchases in our
poultry farming business plan.

The way that the financial statements handle an asset is by recording its full
value on the balance sheet, then calculating the amount of value it will lose
each month over its useful life (that’s the idea of “depreciation”), and then
expensing only that amount each month until the full value of the asset has
been depleted. We will purchase lots of assets like land, machinery, vehicles
etc. for our sample poultry farming business plan.

What does your tax situation look like?

Taxes are a fact of life in business, so you need to include a reasonable

allotment for them. Don't stress too much about this, though. This is business
planning, not tax planning. The taxes you have to consider here are theoretical
expenses based on theoretical profits. It would be silly to get too specific about
the details. Just set your standard rates to make sure that your forecast
includes basic tax coverage. This is put into consideration in our poultry
farming business plan
Do you plan to issue dividends to your shareholders?

Enter any dividends or other distributions of earnings here. Dividends (for

corporations) or distributions (for Limited liabilities or partnerships) are a
way to pass current or past profits along to the company's owners or
shareholders. Companies can issue dividends at any time, but typically do so
at the end of the fiscal year. That timing makes sense, given that dividends are
based on after-tax profits. Our poultry farming business plan covers this too.

Our sample poultry farming business will be selling eggs and poultry parts and
after computing all these financial data for our sample poultry farming
business plan, the following are the financial projections we arrived at:

 
 

11. Team and key roles

In this section of our sample poultry farming business plan, we identify the
key members of our organization, and explain why their involvement is
important to our future success. In your plan, ensure you include company
owners and members of the management team. You may also want to add key
employees with strategically valuable skills or connections, noteworthy roles
you plan to fill later, trusted advisors, or other valuable contributors.

12. Partners and resources

In this last section of the poultry farming business plan, we identify any
relationships, equipment, facilities, patents, or other resources that are
strategically important to our business model.

I hope this post as shown you how to write the type of business plan and
proposal that receives funding. I wish you success in getting your agriculture
business funded!

By the way, if you don't want to go through all the stress and hard work of
writing a poultry farming business plan, or if you don't have the time and
energy to prepare a poultry farming business plan, we have good news for you.
You can get our already-prepared, world-class poultry farming business plan
that contains all the elements discussed in this article!

You can see a screenshot of our already-prepared, world-class poultry farming

business plan below:

 
  All you have to do with our poultry farming business plan is to edit the
company name and management team members and replace it with your
company name, management team members and submit it to banks and aid
agencies to apply for funding. Our poultry farming business plan costs
N15,000 and if you're interested in getting it,  call +2348089864121 or send
a mail to agsolutions@agricdemy.com

Also, if you need a world-class agribusiness plan on pig farming, poultry

processing, sorghum farming, palm oil farming, cassava farming etc. and you
don't have the time, skill and energy to write one by yourself, click here.

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