BUSINESS PLAN
OF

Chicken, Egg Farm

Reg. No.

GENERAL INFORMATION

   LOCATION
 INANDA DAM
Physical address  
  Wushwini kaNgcolosi
Inanda Dam

Postal address
1859 Iboza Street
Mount Moriah
Phoenix
Durban
 Email address:
mial1706@outlook.co.za
Phone numbers
+27746428338
+27787529997
   

Bankers details:
Standard Bank
Account Number: 10077649824
Branch code:051001
 

 
TABLE OF CONTENTS     

                                                                                                                    Pages

 Executive Summary                                                                        x

 Objectives                                                                                         x

 Mission                                                                                               x

 Key to success                                                                                    x

 Management team                                                                            x         

 Company summary                                                                            x

 Company history                                                                                x

 Company ownership                                                                          x

 Products                                                                                               x

 Production process                                                                             x

 Choice of location                                                                               x

 Marketing                                                                                             x

 Competition and buying patterns                                                    x                           

 Strategy and implementation                                                           x

 The business model                                                                            x         

 Financial management                                                                       x

 Monitoring and evaluation                                                                x

 Cash flow projections                                                                         x

 SWOT analysis                                                                                     x

 Approval and acceptance                                                                  x

 
 Executive Summary

1.0 Executive Summary

The purpose of this business plan is to raise R900,000 for the development of a chicken farm
and stable facility while showcasing the expected financials and operations over the next
three years. Chicken, Egg Farm. CEF is a Newly start-up based enterprise that will provide
sales of live chickens and eggs to customers in its targeted market. The Company was
founded by Magdeline Khanyile.

  Objectives.

List your objectives – what you plan to achieve.

  Mission.

The Chicken Farm’s mission is to become the recognized leader in its targeted market for sales of
chickens and eggs.

A mission statement – what you would like to be and a brief statement about how you see
yourself

 Key to Success

What makes you special and what will be your advantages and keys to success.

 Management Team

Who is involved in the business – who are the directors and partners and who will be managing
the farm and various aspects like production, accounting, marketing and sales.

 Company Summary

What you do and what you plan to do?

  Company History

A bit about your business – where you are, who you are, how long have you been trading, are you
registered – what organizations doe you belong to?
 

 Company Ownership

YOUR COMPANY NAME is a co-operative owned by directors. The YOUR COMPANY NAME  - who
owns the business.

 Products

What are you selling – eggs, meat, free range or organic – list everything

 Eggs Production Process or broiler production process.

The YOUR COMPANY NAME xxxxx enter a description of the type of farming you plan to do and
the processes involved.

Facts and Figures

ENTER all the projects and how you plan to make money
Packaging and labeling of products (branding can be included)

Storage and refrigeration of eggs and poultry products

Describe how you plan to store and keep your products before they get to market
Transport
Describe how you will get you poultry products to market

 Business location

Explain the choice of your location – how big the farm is and why it is a good location – think
about where your customers are and who you can sell to in your area.

 Marketing

How you will market your product – where you might advertise and your unique angle that will
make your chickens or eggs sell better than the opposition – it may include that your products are
free range or organic

Marketing through resellers

Will you sell to middlemen or resellers – who are they and what margins will they make – will your
products still be competitive?

 Marketing costs and pricing

How much will your products cost and how much will the marketing and branding cost? What
price can you get for your eggs or chickens and how much money will you make?
Market Analysis Summary

Summarize the above information into a brief description – be to the point and pretend you are
selling your business and have to persuade some one.

Marketing Strategy

How will you market you products? Outline plans and strategies that you have considered.

Sales Strategy

Who will you sell to and why will they buy from you – do you plan to sell to shops and
supermarkets and/or directly to the public?

 Competition

Who are the competition – what are they selling to and who are their customers. How much do they
charge? Think about – Price, Availability and Ability to deliver consistently on long-term contracts.

 Strategy and Implementation Summary

Summarize the above briefly and to the point.

 The business model

Talk about how you will manage your farm – what checks and balance you will have in place. Think
about:
- Rearing,  Housing, Equipment, Feed , Labor, Vaccinations,  other expenses like electricity, water
etc..

 Financial Management

Talk about the accounting processes, how you will manage your money and who your bankers are.

(a) Financial Planning

How you plan to raise and spend the money – short term, medium term, long term
(b) Financial Control
Who is you accountant – what qualifications and what controls you will have in place to measure
production, sales and costs.
(c) Financial Decision-making
Who is responsible, how you will authorize spending, how you will monitor your budgets?
(d) Financial resources required
How much money do you need? What will you spending it on – thinks housing, land, equipment,
feed, etc. What money or assets are you putting in and what other share holders are there – how
much money do you need now and in the future.

 Monitoring and Evaluation.

Evaluating employees and their input, evaluating cost and sales – think about:

 Job expectations

 Performance

 Steps for improving performance

 Rewards for good performance

 Cash Flow Projections

This will have to be more detailed – all of your costs should be shown – don’t forget to show how
much you are spending on chickens, layers, day old chicks, medication, breakages, mortalities,
chicken egg boxes, labeling, advertising, transport etc.

  2012 2013 2014

Sales x x x

       

Administration x x x

       

Chicken food x x x

       

Stipends x x x

       

Maintenance and repairs x x x

       

Transportation x x x

       

Electricity, Gas and Water      

      x

Net surplus/Loss x x x
 

Projected Statement of Financial Position

  2012 2013 2014

ASSETS      

       

Non-current assets:      

       

Property, plant and equipment x x x

       

Current assets:      

       

Inventory x x x

       

Trade and other receivables x x x

       

Cash and cash equivalent x x x

       

TOTAL ASSETS x x x

       

EQUITY AND LIABILITIES      

       

Members contributions x x x

       

Retained earnings x x x

       
       

       

Non-current liabilities:      

       

Long-term liabilities x x x

       

Current liabilities:      

       

Accounts payables x x x

       

Short-term liabilities x x x

       

TOTAL EQUITY AND LIABILITIES x x x

19. SWOT Analysis

Strengths:

 LIST YOUR STRENGHTS

Weaknesses:

 LIST YOUR WEAKNESSES

Opportunities:

 LIST YOUR OPPORTUNITIES

Threats:

 LIST THREATS TO YOUR BUSINESS

 Approval and Acceptance.

 

This business plan was approved and accepted by members of

YOUR COMPANY NAME and the names of your partners or co-operative
At a special general meeting held on ________________________________

Chairperson                                                                                         Secretary

-----------------------------  -----------------------------
NAME                                                                                   Name                                  

Free Chicken Farm Business Plan

For Raising Capital from Investors, Banks, or Grant Companies!

Please note that the financials in this complete free business plan are completely fictitious and may
not match the text of the business plan below. This free business plan demonstration purposes only.
If you are interested in purchasing the completed editable MS Word and Excel documents for this
business plan, please click the button below! Also, the text of the business plan is formatted with a
fully automated table of contents.

Return to Samples Page

It should be noted that there is no special software required to use these templates. All business
plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

 Excecutive Summary

 Company and Financing Summary

 Products and Services Overview

 Strategic Analysis with current research!

 Marketing Plan

 Personnel Plan

 3 Year Advanced Financial Plan

 Expanded Financial Plan with Monthly Financials

  FREE 30 Page Sample Private Placement Memorandum

 FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise R900,000 for the development of a chicken farm and
stable facility while showcasing the expected financials and operations over the next three years.
Chicken Farm, Inc. (“the Company”) is a New York based corporation that will provide sales of live
chickens and eggs to customers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

As stated above, the primary revenue stream for the business will come from the sale of bred
chickens to farmers within the target market. The Company anticipates that each chicken will
generate approximately R10 of revenue for the business. Secondary streams of revenue will include
providing sales of slaughtered chickens/ eggs to distributors throughout the United States. The third
section of the business plan will further describe the services offered by the Chicken Farm.

1.2 The Financing

Mr. Doe is seeking to raise R900,000 from as a bank loan. The interest rate and loan agreement are
to be further discussed during negotiation. This business plan assumes that the business will receive
a 15 year loan with an 8% fixed interest rate. The financing will be used for the following: •
Development of the Company’s Chicken Farm location. • Financing for the first six months of
operation. • Capital to purchase equipment needed for the Chicken Farm. Mr. Doe will contribute
R100,000 to the venture.

1.3 Mission Statement

The Chicken Farm’s mission is to become the recognized leader in its targeted market for sales of
chickens and eggs.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the
animal sales industry. Through his expertise, he will be able to bring the operations of the business
to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials
over the next three years.
1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of
operation. Mr. Doe intends to implement marketing campaigns that will effectively target farms,
chicken wholesalers, and slaughter houses within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Chicken Farm, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Chicken Farm requires R900,000 of debt funds. Below is a breakdown of how these
funds will be used:
2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Chicken Farm, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a
significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell
the business on behalf of the Chicken Farm. Based on historical numbers, the business could fetch a
sales premium of up to 8 times earnings (including the value of appreciated real estate).

3.0 Products and Services

Below is a description of the services offered by the Chicken Farm.

3.1 Sales of Chicken

The primary revenue stream for the business will come from the sale of chicken to farms and
slaughterhouses within the Company’s targeted market. As stated in the executive summary, the
anticipated revenues generated from the sale of each grass fed chicken will generate approximately
$10 of revenues. The business intends to generate a significant amount of interest in the Chicken
Farm due to the fact that organic farming methods will be used and all chickens will only be fed
grass.

3.2 Sales of Meat and Eggs

Additionally, the facility will also provide for the sales of chicken to distributors throughout the
United States. Chicken and eggs are in demand on a year round basis, and the Company will be able
to generate substantial revenues from selling high quality grass chicken.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, chicken farming industry, the customer
profile, and the competition that the business will face as it progresses through its business
operations. Currently, the economic market condition in the United States is sluggish. This slowdown
in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many
economists expect that this sluggish will continue for a significant period of time, at which point the
economy will begin a prolonged recovery period. This should have only a modest impact on the
Company’s ability to generate revenues from its chicken farming and egg/chicken sales operations.

4.2 Industry Analysis

Within the United States, there are approximately 65,000 farms that specialize in the production of
chicken meat and egg production. Each year, these businesses generate almost $85 billion of
revenues and provide jobs to more than 700,000 people. Annual payrolls in each of the last five
years has exceeded R10 billion. This is a mature industry, and the expected future growth rate is
expected to equal that of the general economy. The demand for chicken has continued to remain
strong despite the current economic climate.

4.3 Customer Profile

The Chicken Farm’s average client will be a slaughterhouse, farmer’s market, or chicken distributor
in the Company’s target market. Common traits among clients will include: • Annual revenues
exceeding R1,000,000 • Operates no more than 25 miles from the Company’s location. • Will spend
R5,000 to R30,000 with the Company on an annual basis. • Is licensed by the USDA to acquire,
slaughter, and sell chicken.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key
to writing a strong competitive analysis is that you do your research on the local competition. Find
out who your competitors are by searching online directories and searching in your local Yellow
Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to
describe each one) then showcase the number of businesses that compete with you, and why your
business will provide customers with service/products that are of better quality or less expensive
than your competition.

5.0 Marketing Plan

The Chicken Farm intends to maintain an extensive marketing campaign that will ensure maximum
visibility for the business in its targeted market. Below is an overview of the marketing strategies and
objectives of the Company.

5.1 Marketing Objectives

 • Establish relationships with veterinarians, local farms, and chicken distributors throughout
the target market.

 • Implement a local campaign with the Company’s targeted market via the use of flyers,
local newspaper advertisements, and word of mouth advertising.

 • Develop an online presence by developing a website and placing the Company’s name and
contact information with online directories.

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow the Chicken Farm to easily
target buyers within the target market. These strategies include traditional print advertisements and
ads placed on search engines on the Internet. Below is a description of how the business intends to
market its services to the general public. The Chicken Farm will also use an internet based strategy.
This is very important as many people seeking local services, such as chicken farms, now the Internet
to conduct their preliminary searches. Mr. Doe will register the Chicken Farm with online portals so
that potential customers can easily reach the business. The Company will also develop its own online
website showcasing the facility, its inventory of chickens, preliminary pricing information, and
contact information. Finally, Mr. Doe will develop ongoing referral relationships with veterinarians
that regularly work with owners of farmers of chickens. As time progresses, these referral
relationships with become and invaluable source of revenue for the business.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much
information as possible about your pricing as possible in this section. However, if you have hundreds
of items, condense your product list categorically. This section of the business plan should not span
more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget
6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your
work experience, your education, and your skill set. For each owner or key employee, you should
provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

 • The Chicken Farm will have an annual revenue growth rate of 10% per year.

 • The Owner will acquire $900,000 of debt funds to develop the business.

 • The loan will have a 15 year term with an 8% interest rate.

7.2 Sensitivity Analysis

During times of economic recession or a sluggish economy, the Company may have issues with top
line income as ranchers scale down their buying activities and farmers cut back on capital
expenditures. However, the demographics target by the Company have tremendous economic
staying power, and as such, declines in general economic productivity should have only a moderate
effect on the Company’s revenues.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis
 

7.7 Balance Sheet

.

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis