Business Plan

Utibe Livestock Farm

Providing High Quality Meat for the nation

BUSINESS PLAN INFORMATION DISCLAIMER

Some of the statements contained in this BUSINESS PLAN, including information incorporated by reference, discuss future
expectations, or state other forward looking information. Those statements are subject to known and unknown risks,
uncertainties and other factors, several of which are beyond the Company’s control, which could cause the actual results to
differ materially from those contemplated by the statements. The forward looking information is based on various factors
and was derived using numerous assumptions. In light of the risks, assumptions, and uncertainties involved, there can be
no assurance that the forward looking information contained in this BUSINESS PLAN will in fact transpire or prove to be
accurate.
Important factors that may cause the actual results to differ from those expressed within may include, but are not limited
to:
• The success or failure of the Company’s efforts to successfully market its products and services as scheduled;
• The Company’s ability to attract and retain quality employees;
• The effect of changing economic conditions;
• The ability of the Company to obtain adequate debt or equity financing;

The Company makes no representation and undertakes no obligation to update the forward looking information to reflect
actual results or changes in assumptions or other factors that could affect those statements.
CONTACT INFORMATION :

Company name:
Address:
Phone:07052945186
Email: info@ideakinle.com
Website: www.ideakindle.com
Table of Contents
i. OVERVIEW............................................................................................................................................5
1. EXECUTIVE SUMMARY...................................................................................................................5
1.1 Benefits..............................................................................................................................................6
1.2 Objectives.........................................................................................................................................7
1.3 Vision................................................................................................................................................7
1.4 Mission..............................................................................................................................................8
1.5 Keys to Success.................................................................................................................................8
1.6 KEYS DRIVERS.........................................................................................................................8
2.0 Company Summary.............................................................................................................................9
2.1 Company Ownership.......................................................................................................................9
2.2 Location and facilities....................................................................................................................10
2.3 Start-Up Summary........................................................................................................................11
2.3.1 Required Funds...........................................................................................................11
3.0 Product Description...........................................................................................................................13
3.1 Services...........................................................................................................................................13
4.0 Market Analysis.................................................................................................................................13
4.0.1 Market Summary....................................................................................................................13
4.0.2 Market Trend..........................................................................................................................14
4.0.3 Marketing Plan.......................................................................................................................14
4.1 Target Market................................................................................................................................14
4.2 Industry Analysis...........................................................................................................................15
4.2.1 OVERVIEW............................................................................................................................15
4.2.2 INDUSTRY VALUE CHAIN................................................................................................15
FIGURE 2: PHYSICAL FLOWS OF MEAT AMONG THE DIFFERENT COMPONENTS...16
Figure 2: Core functions of the beef value chain...................................................................................16
THE LIVESTOCK PROCESSING INDUSTRY VALUE CHAIN................................................16
4.2.3 INDUSTRY SIZE AND MAJOR PLAYERS......................................................................16
4.3 Demand...........................................................................................................................................17
4.3.1 Overview..................................................................................................................................17
4.3.2 SUPPLY...................................................................................................................................17
4.3.3 DEMAND................................................................................................................................17
4.4 Challenges Facing Livestock Farming.........................................................................................18
4.5 SWOT Analysis..............................................................................................................................19
4.5.1 Strengths..................................................................................................................................19
4.5.2 Weakness.................................................................................................................................19
4.5.3 Opportunities..........................................................................................................................20
4.5.4 Threats.....................................................................................................................................20
4.6 External Environmental Analysis................................................................................................20
4.7 Competition and Buying Patterns................................................................................................20
4.7.1 Main Competitors...................................................................................................................21
4.8 MARKETING PLAN....................................................................................................................21
4.8.1 MARKETING OBJECTIVES..............................................................................................21
4.8.2 MARKETING OBJECTIVES..............................................................................................21
4.8.3 TARGETING STRATEGY...................................................................................................22
4.9 Publicity and Advertising Strategy..............................................................................................22
4.10 Sales Strategy...............................................................................................................................22
4.10.1 Sales Forecast........................................................................................................................24
5.0 Strategy and Implementation Summary.........................................................................................27
 5.1 Competitive Edge...........................................................................................................................27
6.0 Management Summary.....................................................................................................................29
6.1 Organizational Structure..............................................................................................................29
6.2 Management Team........................................................................................................................29
6.3 Personnel Plan................................................................................................................................31
Table: Salaries and Wages................................................................................................32
7.0 Management Summary.....................................................................................................................33
7.1 Important Assumptions.............................................................................................................33
7.2 Break-even Analysis...................................................................................................................33
Table: Break-even Analysis..............................................................................................33
7.3 Projected Income Statements...................................................................................................34
Table: Income Statements 3 years summary........................................................34
7.4 Projected Cash Flow......................................................................................................................36
Projected Cash flow Year-one...........................................................................................................36
Projected Cash Flow Year-two..........................................................................................................37
7.5 Projected Balance Sheet..................................................................................................................37
Chart: Balance Sheet................................................................................................................38
7.6 Operating Expenses Years 1-3..................................................................................................39
Table: Operating Expenses Years 1-3........................................................................39
i. OVERVIEW
In Nigeria, meat has always been a dietary demand. Traditionally and up to date, red meat is supplied “hot”
(unrefrigerated) to consumers and sold in generic open markets. The agricultural industry of which
livestock farming or better still cattle rearing is a subset of is no doubt among the leading industry in most
countries of the world; it is the industry that produce food for the populace and raw materials for industries.
Because of the significant role the agriculture sector plays, the government of most countries ensures that
they go all the way to subsidize seedlings, fertilizers, and farming implements and machinery for farmers
and also encourage entrepreneurs to go into various kind of farming including cattle rearing.
There are several business opportunities available in the agricultural industry and one good thing about the
industry is that there is market for all the produce from the industry. Cattle rearing is of course a thriving
and profitable business because usefulness of beef and other by products from cattle. People eat beef, drink
their milk, and use their fur and skin. With cattle milk, cheese can be made, along with other dairy products.
The Beef Cattle Farming industry is indeed a large industry and pretty much active in countries such as
United States of America, Israel, Argentine, Holland, Egypt, China, Germany, Turkey and Nigeria. There is
no single livestock farming company that has dominate market share in the industry hence smaller cattle
rearing business can successfully make profits.
One thing is certain about cattle rearing business, if you are able to conduct your market research and
feasibility studies, you are more likely not going to struggle to sell your cattle and its products because there
are loads of people out there we eat beef, drink milk and industries that make use of by-products from cattle
in manufacturing their products.
Over and above there are few barriers to entry into the livestock production industry. Usually, all inputs are
readily available. In the nearest future, players in this industry may face the highest costs associated with
accessing technology, especially in relation to genetic modification engineering in livestock breeding.

1. EXECUTIVE SUMMARY
Utibe Livestock Farm is a privately owned company currently in the process of establishing a modern
livestock farming/fattening facility to be situated on a land site of approximately 15 plots at 2.7m per plot
within Lagos State. The target of the company is to increase the supply of high quality meat through the
adoption of highly efficient and hygienic livestock farming practices through the fattening of the animals at
the farm and distribute to various slaughterhouse up till the storage and distribution of meat.

Our cattle rearing business is a going to be standard one hence will be involved in commercial breeding of
cattle, rams and goats. We will also be involved in boarding services, breeding services, dairy support
services, livestock health services, farrier services, and shearing services as well.

In the nearest future, hopefully within the first five years of officially running Utibe Livestock Farm, we
will start our meat processing plant and milk processing plant and also start exporting our products to other
parts of the world.

Which is why aside from the fact that we’ve secured the required farming land for breeding cattle in
commercial level, we have also hired some key employees who are currently undergoing training so as to
be able to fit into the ideal picture of the 21st century cattle rearing business workforce that we want to
build.

Through research and extensive consultation, Utibe Livestock Farm has developed strategies to ensure
efficient farming practices that would support and enhance the maximum development of the animals thus
improving the quality and quantity of the output. The ultra-modern facilities would be supported by
adequate storage facilities that would aid the distribution process. The facility will operate to meet high
environmental standards and would be equipped with an efficient and hygienic waste disposal process.
 We are in the cattle rearing business because we want to leverage on the vast opportunities available in the
livestock farming industry, to contribute our quota in growing the Nigerian economy, in national food
(meat) production, raw materials production for industries, to export agriculture produce from Nigeria to
other countries and over and above to make profit.

Utibe Livestock Farm is well positioned to become one of the leading commercial livestock farms and meat
production business in Nigeria, which is why we have been able to source for the best hands and machines
to run the company with. We have put process and strategies in place that will help us employ best practices
when it comes to commercial livestock farming processes as required by the regulating bodies in Nigeria.

At Utibe Livestock Farm, our customer’s best interest will always come first, and everything we do will be
guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the
highest standards by meeting our client’s needs precisely and completely. We will cultivate a working
environment that provides a human, sustainable approach to earning a living, and living in our world, for
our partners, employees and for our clients.

Our proficient uses of the internet to intensify awareness about our business and the products and services
we offer are part of the sustainable practices that is obtainable at Utibe Livestock Farm.

This company shall create several direct and indirect jobs and will always consider the 7 Ps of marketing:
place, price, promotion, product, positioning, packaging and people to ensure the growth and sustainability
of the business.

The company required total capital of ₦12,040,000. Of the total capital required, the owner would
contribute N4,040,000 while the balance of N8,000,000 would be source from the bank as bank loan.

When fully operational, the company would generate a revenue of ₦22,440,000 and net profit of
₦1,419,753 in the first 12 months and total sales of ₦40,580,000 and net profit of ₦7,038,588 by year
three.

1.1 Benefits

 High quality meat and highly nutritious and hygienic

 Kill-Cut-Wrap-Freeze (KCWF) Services
 All year round availability in commercial volume
 A clean finish to all of our products to ensure that our customers get that first class feeling while
purchasing our products.
 Provision of after purchase service where a customer can contact us for feedback and suggestions.
 Absence of harmful chemicals in our products
 Unique, quality and great taste
 Uncompromising commitment to quality
 High class customer service
 Fair and lowest possible prices

1.2 Objectives

The overall goal of the business is to provide top quality animal protein products and related services to the
Company’s target customers in the most convenient and acceptable manner. This will be achieved through
the use of world class technology, equipment, practices and processes and a highly skilled professional and
dedicated workforce in all areas of the business.

The specific goals during the next five years of operation are aimed at positioning Utibe Livestock as a
well-respected brand serving distinct market segments within its geographical service area. These goals are
as follows:
  Develop a sustainable livestock farming business that generates superior value for its shareholders.
 Provide customers with high quality product/service offerings;
 Create market awareness for the Company’s brand and product/service offerings;
 Develop and grow market share for the Company;
 Develop a robust and functional feedlot scheme to provide a high nutrient value feeds for our vari-
ous livestock’s.
 Become a major player in the livestock industry
 To be a top livestock (meat) supplier to companies, abattoirs, and homes in the regional market.
 Aim to have 70% of sales in high-end residential customer segment.
 20% of sales in mid-range residential customer segment.
 10% of sales in commercial development segment.
 To have a farm size of 50 Plots and a fully standard abattoir by December 2025.
 Provide quality products at reasonable price with exemplary services
 To have our products in fast-food, homes, lounges and bars in Lagos and Nigeria as a whole
 Provide quality sales service and products at fair and best possible prices.
 Revenues to more than double Year1 levels by the end of Year2.
 Expand our customer base through direct referrals and aggressive direct sales.
 Expand our product line gradually, based on customer requests.
 Expand the types of services offered to our customers, as their desires are identified.

The ultimate intent is to create a stable business platform that will create prosperity for all those involved in
the business venture at all levels, and to uplift unemployed Nigerians who are willing to participate in this
venture.

1.3 Vision

Our Vision is to become one of the leading livestock farming brands not just in the environs we are situated
in, but in Nigeria as a whole through the provision of excellent sales services and products.

1.4 Mission

Our mission is to sell our Livestock, by-products and meat in commercial quantities both locally, nationally
and internationally. We want to build a livestock farming business that can favourably compete with other
leading livestock farming brands in Nigeria and exceed the customers' expectations by providing
exceptional customer care services.

1.5 Keys to Success

Our keys to making this venture a success are:

 Finance: Fund is one of the major success factors here. Without enough fund we can’t do much.
 Quality: We take pride in the high standard of the products we offer and also always give room for
improvement to the satisfaction of our customers’.
 Expertise: This is a key factor to successfully manage any business. Owner has well over 10 years
of experience
 Adequate supply of trained operations personnel
 Availability of regular and sufficient feed and water supply
 Aggressive management of costs leading to cost dominance or lower operating costs
 Constant research of industry to keep knowledgeable of market needs.
 Providing superior quality livestock that outdo others in the areas of inherent characteristics –
colour, taste, texture, nutritional value, visual appeal – as well as the value added characteristics
such as compliance to standards, consistency and convenience.
  Identify consumer requirements and offer products that match those requirements. Constantly ad-
apt to changing consumer demands / expectations
 Maintain low operating costs.
 Reliable backup generators in case of electricity supply failure
 Keep the supply chain to a minimum number of steps to ensure convenience for our target market.
 Product quality.
 Management: products delivered on time, professional customer service, managing budgets.
 Constant evaluation of strengths and weaknesses with adjustments made as warranted.

1.6 KEYS DRIVERS

The key drivers for processed livestock products within Nigeria are as follows:

1. Population and Rising GDP Per Capita

Rising population, and an increasing middle class with a rising GDP per capita

2. Sophistication and Changing Tastes

Increasing sophistication of the Nigerian populace has resulted in the increasing demand for convenience
foods and processed meat products such as burgers, beef patties, sausages etc. Changing tastes and require-
ments have also resulted in new demand for better quality, standardised and packaged products.

3. Shift from Traditional to Modern Retail

A shift from traditional (open market) retail to formal (modern) retail outlets such as supermarkets and hy-
permarkets with standardised measures and weights.

4. Improved Livestock Production Techniques

Current interest in modern practices of slaughtering and storage of livestock which has brought to a reduced
rate of disease outbreak and an increase in red meat output.

2.0 Company Summary

Utibe Livestock Farm is a registered and licensed livestock farming company that will be based in 124,
Egbeda Road, Egbeda, Lagos. We have done our detailed market research and feasibility studies and we
were able to secure a 15 plots of land to start our livestock farming/fattening business.

The farm is situated in an area which is easily accessible due to its closeness to the road; this will help aid in
marketing and transportation of the livestock and other products to abattoirs and also to the market for
customers who require live animals.

The company is registered with corporate affairs commission of Nigeria as Utibe Livestock Farm with
registration number: RC:136599.

The company offers various products from Cattle, goat, ram and also by-products so as to maximize profit.

The team has spent, in total, hundreds of man hours in the research and study of the business and the
method of rearing healthy livestock that will bring high ROI.

To date we have studied and developed a fully functional method to ensure lowest mortality rate, big and
 healthy livestock.

As a team largely composed of personnel who are experienced and educated in the field, together we form a
powerful unit.

2.1 Company Ownership

Utibe Livestock Farm is a private registered livestock farming company that is owned by Utibe Etim.

He is a graduate of animal sciences of the faculty of Agriculture from the prestigious University of Lagos.
Before starting Utibe Livestock Farm, Mr. Etim has worked with some of the leading livestock farms in the
Nigeria including Obasanjo Farm. He has worked in the industry for well over 10 years before resigning to
start his own livestock farming/fattening business.

2.2 Location and facilities

The facility is located at 124, Egbeda Road, Egbeda, Lagos.

We are trading from this spot because is it a great place to reach our target market. We think the population
base is large enough for our business and it has a stable economic base that ensures healthy environment for
the products. Also we think it is a spot that could tap a healthy workforce. We also considered pedestrian
traffic and we think a large percentage of them are potential customers. The location will help us reach
customers in Ogun, Abuja, Port Harcourt and other neighbouring states.

We also chose this spot as it has a well-drained land that is firm enough to sit heavy structures and
equipment, ample neighbouring space for future expansion and its far from the towns and there is reduced
risk of environmental pollution extending to residential areas.

In order to meet up with and achieve its aims and objectives of running a commercially viable and
sustainable company, Utibe Livestock Farm must install infrastructure and facilities to service the needs of
its target markets. The following are the infrastructure and utilities that are expected to be built or installed
at the site:

 Perimeter fencing

 Gate house/security office/ Command and Control Centre

 Main Farm

 Office Building

 Changing rooms, toilets and showers

 Waste Treatment Plant

 Internal Roads

 Water boreholes (with pumps) and storage tanks

 Water Reticulation system

 Generator House

 Electrical Power, Switchgear and Reticulation & Lighting installations

  Livestock Reception and Holding Facilities

 Livestock Offloading Facilities.

 Trucking Bay
 Customers/Staff Car Park

Some of the equipments at our farm will include:

 Feeder Stand
 Fenced Feeder Stand
 Hook Hay Feeder
 Rounded Hay Fodder
 Double sided Fodder
 Feeder Cart
 Hook Fodder Feeder
 Emu Feeders Drinkers(Mate finish)
 Emu Feeders Drinkers(Mirror look)
 Double sided grain feeder

In future we intend to upgrade our equipments to boost operations and processing efficiency. These
ventures require adequate housing and funding.

2.3 Start-Up Summary

When it comes to calculating the cost of starting a commercial livestock farm, there are some key factors
that should serve as a guide. The most important expense is the construction of the cattle ranch / cages /
fencing as the case may be.

For example, the start – up cost for a fish farm is different from the start – up cost for mechanized crop
farming, so also the start – up cost for poultry farming is different from the start – up cost of cattle ranch
(dairy farm) et al. As a matter of fact, if you choose to start a mechanized crop farming, then you should be
willing to raise huge capital base to start the business. This is so because some cultivation machines /
equipment can be pretty expensive.

This section of the plan shows projected startup costs.

Start-up expenses for Utibe Livestock Farm include initial insurance payments covering both general
liability and product liability, pre-launch marketing to cover flyers, a direct mail campaign, and
advertisements in local papers, the development of a website for customer interaction, and the normal legal
expenses for consultation and permitting. Other current assets include office and store furniture, shelving, a
computer, phone system, and tools.

Below are some of the basic areas we will spend our start – up capital in setting up our commercial
livestock farm;

2.3.1 Required Funds

Start-up Expenses Year 1 (Starting Balance Sheet)

Prepared By: Company Name:

Etimate Global Services Utibe Livestock Farm

 Fixed Assets Amount Depreciation (years) Notes

       

Land 1,500,000 Not Depreciated  

Buildings Construction 2,500,000 20  

Leasehold Improvement   7  

Equipment 2,000,000 7  

Furniture and Fixtures 300,000 5  

Vehicles   5  

Other 400,000 5  

Total Fixed Assets ₦ 6,700,000    

Operating Capital Amount Notes

Pre-Opening Salaries and Wages 230,000  

Prepaid Insurance Premiums 300,000  

Inventory    

Legal and Accounting Fees 180,000  

Rent Deposits    

Utility Deposits 110,000  

Supplies    

Advertising and Promotions    

Licenses 120,000  

Other Initial Start-Up Costs 400,000  

Working Capital (Cash On Hand) 4,000,000  

Total Operating Capital ₦ 5,340,000  

Total Required Funds ₦ 12,040,000  

Loan Term in
Sources of Funding Percentage Totals Rate Months

Owner's Equity 33.55% 4,040,000    

Outside Investors (grant) 0.00%     

Additional Loans or Debt        

9.00
Commercial Loan 66.45% 8,000,000 % 60
3.0 Product Description
Utibe Livestock Farm deals in the farming and Fattening of livestock. We are established to cater largely to
processing companies, homes, hotels, bars, commercial and industrial clients via our farm.

We are established to make profit legally as permitted by various laws and governing bodies in Nigeria;
however, we also believe in creating multiple sources of income and as a result, we intend to sell of waste
and by-products gotten from the livestock at our farm to other farmers and companies who intend to use it
as bio-fuel.

Our product offerings are listed below;

 Sale of Cattle
 Sale of Meat (beef)
 Sale of Hides and skin
 Waste/ litter as a by-product

Our high quality and well-packaged products will also be made available to resellers/wholesale and
companies in Nigeria.

We offer all of the above great products, while evaluating the desire and need by our customers for
improvement and other products.

3.1 Services

While offering all the great products stated above we shall offer various services as a means of generating
more income for the company and also contributing our quota to the community. In view of this we shall
offer the following services:

 Boarding services
 Breeding services
 Livestock health services
 Farrier services
 Shearing services
 Livestock farming related consultancy and advisory services

4.0 Market Analysis

4.0.1 Market Summary
The market for animal protein products is a universal one as food forms one of the basic needs of mankind.
The livestock sub-sector is an important and integral component of Nigeria’s agriculture and is a major
source of household wealth and food security. Cattle are the single most important livestock species in
terms of outputs and capital value. While sheep, goats, pigs and poultry are raised throughout the country,
cattle are largely concentrated in the dry savannah parts of the country including areas that are not tsetse fly
free. Large herds of cattle are predominantly managed by semi sedentary agro-pastoralists and the transhu-
mant pastoralists who hold about 95 per cent of the national cattle population. A large proportion of the na-
tional livestock resource is managed under the smallholder production systems, with poultry, sheep and
goats owned and raised virtually by every rural household, resulting in a minimal availability of livestock
products nationwide.
The livestock sub-sector contributed about 19 per cent of the agricultural GDP in 2007 (CAADP, 2008).
Nigeria is one of the four leading livestock producers in Sub-Sahara Africa. In 2007, Nigeria’s national
livestock population was estimated to consist of 16 million cattle, 52.5 million goats, 33 million sheep, 6.6
million pigs, 19,000 camels and 166 million chickens (FAO, 2009). The national cattle herd population in-
creased at an average rate of 1.4% annually between 1997 and 2007. The low national herd growth rate is
supplemented by the importation of live cattle from the neighbouring countries through transhumance trad-
 ing. Ruminant animal production plays important economic roles through the provision of milk, draught
power, manure, meat and hides employment and income, and profitable forms of livelihoods for rural and
peril-urban dwellers. For example, the use of draught animal power not only increases cultivated areas, but
also increases productivity, leading to an increase in available crop residues for ruminant animal feeding,
household income and the national gross domestic product.
The livestock sub-sector form part of the physiological needs of human beings and therefore demand for
them cuts across every strata of society.
There are no restrictions, social or religious that restrict the consumption of the Company’s products, thus
they have a mass appeal.

4.0.2 Market Trend

Agriculture in Nigeria is beginning to show resurgence primarily due to the efforts of Governments, NGOs
and private sector organisations. The following are some of the trends currently taking hold in the industry:

 Increasing commercialization of agriculture

 Increasing urbanization and changing social trends leading to change in lifestyles and increased de-
mand for processed foods and convenience etc.
 Increasing health awareness of the citizenry which has resulted in concern about the quality of animal
protein.

4.0.3 Marketing Plan

The marketing strategies to be implemented by Utibe Livestock Farm are aimed at:
 Creating customer awareness of the products and services offered,
 Developing and continuously expanding the clientele base, and building customer loyalty and
referrals.
 Taking account of the customers, competitors, risk and opportunity factors;
 Definition the resources required to address the risks and opportunities;
 Evaluation products’ fit with customer needs;
 Evaluation of options for PR, advertising, direct mail campaigns;
 Integration of marketing plans with long term (3-5 years) financial plans;
 Establishment of a scorecard system for monitoring progress of strategy implementation.
4.1 Target Market

Naturally, the target market of those who are the end consumer of livestock farm produce and also those
who benefits from the business value chain of the agriculture industry is all encompassing; it is far –
reaching.

Every household consumes produce from livestock farms be it meat and the skin which is consumed in
Nigeria daily as pomo and also used in making leather used for bags, belts and shoes production. So also a
large chunk of manufacturing companies depends on livestock farms for some of their raw materials.

In essence, we aim at reaching out to the following target market:

 Abattoirs
 Meat Processing Plants
 Local Markets
 Households
 Restaurants
 Hotels

We will ensure that we position our business to attract consumers of agriculture produce not just in Lagos
 alone but also other parts of the country and other countries which is why we will be exporting some of our
farm produce either in raw form or processed form to other countries of the world.

4.2 Industry Analysis

4.2.1 OVERVIEW
As long as humans exist, there will always be need for food and the two major sources of food for mankind
are crops and animals. Meat, milk, and egg are major food items from animals. Other parts that are of
industrial use are the bones, horns, Turks, hides and skins and others. The great demand for these items due
to large population of Nigeria makes animal husbandry a most profitable one.
The Meat Industry consists of all those activities involved in the rearing and preparation of animals and
their by-products for food and industrial purposes. The industry is not as well developed as other segments
of the Nigerian Agricultural Industry.
It is characterised by several players struggling for market share with no dominant player. Most players are
in the MSME sector using largely manual methods and farm in small scale. There are a few large scale
companies, especially in the area of cattle fattening, many of whom also have slaughtering facilities. There
are also a number of large scale companies that are primarily engaged in mostly harvesting activities –
slaughter, cleaning, cutting and packaging of red meat.
Aside from the harvesting activities, there are very few organisations engaged in further processing such as
production of beef patties, burger meat, fillets, sausages, minced meat, bacon, etc. Processing of blood,
dung, and other by-products is rarely done.
4.2.2 INDUSTRY VALUE CHAIN
Meat industry development is an integral part of the strategy for the advancement of the entire livestock
value chain development with a strong degree of integration of the producers and consumers. Many
countries have different meat consumption patterns and livestock production systems which impact on the
products delivered to the market. The demand for meat across countries and regions has been studied to be
rapidly on the increase with a 2030 projection of per capita consumption of 36.7 kilogram (kg) of meat per
year for the developing countries (FAO 2003). This projection however varies across the Sub-Sahara Africa,
Asia, Latin America and the Caribbean. It could be as low as 13.4kg for Sub-Sahara Africa, 11.7 kg for
South Asia and, as high as 58.5kg for East Asia and 76.6kg for Latin America and the Caribbean by 2030
(FAO 2003). This exponential increase in demand for meat has implications for production both in quantity
and the quality of livestock to be produced and the subsequent meat products to be obtained from them. In
Eastern and Central Africa (ECA) for example, there is growing demand for quality meat products and it is
driving opportunities for value addition.
 Figure 1. below shows the Structure and various actors in the beef value chain.

FIGURE 2: PHYSICAL FLOWS OF MEAT AMONG THE DIFFERENT COMPONENTS

The core functions in a beef value chain are inputs supply, production, trade (marketing), processing
and consumption. These core functions involve different activities as indicated in figure 2 which
provides details of the various activities performed.

Figure 2: Core functions of the beef value chain

THE LIVESTOCK PROCESSING INDUSTRY VALUE CHAIN

In Nigeria the chain of further processing especially in the red meat subsector is absent. All other aspects of
the value chain are serviced by the players in the Nigerian meat processing industry.
4.2.3 INDUSTRY SIZE AND MAJOR PLAYERS
There are very few reliable metrics available as most organisations charged with producing statistics are
either reluctant to provide figures or when they do, their figures are at the best unreliable. Most of the
metrics are based on extrapolations as the small unit size and widely diversified nature of the individual
participants in the industry also makes it difficult to compile proper industry metrics.
 There are several companies competing for a share in this market with no dominant player.
4.3 Demand
4.3.1 Overview
There has been an increasing demand for beef and milk, the main sources of domestic animal protein in
Nigeria, and this has resulted in a domestic supply gap owing to poor production and productivity levels of
the indigenous production systems. The current economic situation in Nigeria indicates that domestic sup-
ply of animal protein is growing at 1.8% per annum while the overall demand is estimated to be rising at
5.1% annually. In spite of its importance and the existence of an unsatisfied internal demand for livestock
products, the livestock sub sector has suffered from inadequate investment by both the public and the pri-
vate sectors Although there is limited formal importation of beef into Nigeria, the national supply gap is
mainly filled in by the live animals coming in from the neighbouring countries. According to the central
bank of Nigeria report of 2010 (Bullion 2010), the increasing consumption trends have cost the government
a substantial amount of foreign exchange to import dairy products into Nigeria.

4.3.2 SUPPLY
There are no formal market or industry statistics so it is impossible to determine the actual output of pro-
cessed livestock products. This is attributable to the fact that many surveys are outdated and therefore fig-
ures are based mainly on extrapolations; for instance, the most recent survey of the livestock sector was car-
ried out by the NBS in 2005. Data from various sources give conflicting figures regarding the number and
weight of meat products. The recent FAO figures for the stock of livestock are detailed in the Table below:

Product 2008 2009 2010 2011 2012

Cattle 16,293.20 16,434.98 16,577.96 19,041.27 19,206.93

4.3.3 DEMAND
Just as it is difficult to state the actual supply figures for this industry, so it is also difficult to determine the
demand for the products of the meat processing industry. The absence of active professional trade groups
and associations has also made it difficult to gather data on a regular basis.
Most of the agricultural output within the country is consumed locally. There are no taboos, religious or
cultural practices that prohibit the consumption of beef or goat meat. Thus the prospective market
comprises almost the entire populace of the country.
Product 2008 2009 2010 2011 2012

Cattle 2,525.00 2,540.00 2,500.00 2,950.00 3,000.00

slaughtered

It is pertinent to point out that these figures do not capture leakages such as the thousands of livestock
bought live and slaughtered privately by the buyers nor does it capture the number of home reared livestock
that are also slaughtered privately.

4.4 Challenges Facing Livestock Farming

Livestock farming has some challenges that need to be attended to with vigor. Below are some of the
common challenges that are faced by livestock farmers:

Poor Funding: This is a major problem facing livestock farmers in Nigeria. In one area or the other, capital
contributes to the success of any business as the amount of capital determines the level of the farm and
determines how the farm will be equipped.

Access to capital makes the farm grow faster than those that lack access to any financial assistance.
 Though, starting a goat farm business requires little money, but that is when you can access this at right
time. Some farmer wants to get loan from micro finance bank, the interest charge on the little they can
afford is much, so they had to withdraw from such program.

Lack of Information in the Livestock Farming System: This problem is as bad as the first point. In order
for any business to succeed the management should be equipped with the right information.

This is not the case in Nigeria as some people just rush into livestock farming system without the proper
information, while some got information from the wrong source.

Getting the right information will help in all area of the farm and you will get the reward on time.

Diseases and parasites: Diseases and parasites can cause death of offspring’s.

To get healthy kids (goat offspring) measures needs to be taken to prevent them against any kind of disease.
And in case of any outbreak give them urgent treatment.

Although goat are animals that have proven to survive in almost environment there are still susceptible to
some diseases and this needs to be taken care of by farmers to prevent major loss.

Feed: Another challenge faced by goat farmers is getting access to feeds for their goats as they need to
provide them with essential nutrients to ensure that they remain healthy, grown bigger and be resistant to
some diseases.

Nutrient deficiencies can adversely affect the growth of the goats and the rate of offspring’s born. The level
of feed a goat will eats depend on it sizes, and age.

Amount of feed consumed also depend on the breed of the goat.

Drugs: This is a big threat to livestock farmers, not all drugs required are available in the market, and
sometime those available are not effective, meaning they are fake.

When some are prolong in used, they build resistance to its effect i.e. they will not be effective when they
are administered.

The available drugs are not effective like the former one, so this cause a lot of problem for us farmers.
Aside this, we should consult veterinary doctors for proper prescription of drugs we must administered

4.5 SWOT Analysis

Becoming a renowned business means striving and attaining excellence. Our desire for excellence cannot
be disputed and it is due to this that we have with the help of our hired business consultant gone through our
proposed business structure and concept to critically evaluate the business which we have intended to go
into. Our evaluation was done to determine if the business was a worthwhile venture that required all the
desired investment and resources that were needed.

Due to the fact that we intend to run a standard cattle fattening farm, we are striving to ensure that we put
up processes; plan and structures that will allow us attain this excellence.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our
business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our
 risks and be equipped to confront our threats.

Utibe Livestock Farm employed the services of an expert HR and Business Analyst with bias in retailing
and distribution to help us conduct a thorough SWOT analysis and to help us create a business model that
will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Utibe Livestock Farm.

4.5.1 Strengths
 Consistency: Our core strength lies in our ability to consistently deliver premium cattle and other
products on a long term basis.
 Quality: We offer our customers’ high quality meat. This means that customers who use other sub-
stitutes because they feel those are better for their diet will stick to our own products instead.
 Location: We are based in a location that is not only strategic but also convenient for our custom-
ers and employees to access.
 Facilities: Our facility is one that is conducive enough for our employees, while also being of high
standard hygienically to for cattle farming/fattening.
 Customer Service: Our excellent customer service culture will definitely count as a strong strength
for us.
 Experience: The owner has more than 10 years’ experience the livestock farming industry and in
management and will ensure that we are able to achieve our intended goals and objectives.
4.5.2 Weakness
 Size: The size of our start-up is small. We may not be able to handle all major demands from our
various clients. This puts us at a disadvantage and reduces our level of competitiveness. However,
all hopes are not lost as we will eventually attain such levels by providing premium products.
 Lack of funding: We do not yet have the necessary finances and staff strengths as our already es-
tablished competitors.
 No reputation yet: A major weakness that may count against us is the fact that we are a new com-
pany in the industry.
4.5.3 Opportunities
 Customer Loyalty: Customers are looking company that can deliver cattle products on long terms.
 Growing market: The market for the sale of cattle and meat is a large one and is growing and the
demand is very high as meat is widely consumed by a whole lot of people.
 Our location is in a high-volume area with little direct traffic, and will thus be highly convenient to
significant numbers of passers-by each day.
 Sales: We know that there are loads of homeowners and industries that will source for cattle, meat,
and other products and also industries that will source for the raw materials from our livestock
farms both in Lagos and other parts of the Country.
 We have been able to conduct thorough feasibility studies and market survey and we know what
our potential clients will be looking for when they patronize our products and services; we are well
positioned to take on the opportunities that will come our way.
4.5.4 Threats
 Similar size plant: plant with similar plant have being in business
 Economic Downturn: Just like any other business, one of the major threats that we are likely going
to be faced with is economic downturn. It is a fact that economic downturn affects purchasing /
spending power.
 Unfavorable government policies
 Stiff competition

4.6 External Environmental Analysis

Socio-cultural – habits of our consumers will definitely affect our business. Also, the success of the
hospitality industry and other companies that orders our products will indirectly affect our business.

Technological - A good technical infrastructure would lead to better production and hence lower costs.
 Technology will also mean more effective business marketing.

Economic – economic trends such as demand and supply will determine the sustenance and profitability of
the business. Also inflation rates will affect the way we pay our employees and the price of the product.

Political – this will include government policies concerning inspection by the ministry of health and
agencies like NAFDAC.

4.7 Competition and Buying Patterns

There has been a strong demand (sellers' market) for high quality and premium goat meat for several years.
Traditional buying patterns in this industry are based on quality, price, and reputation of the company,
delivery times and proximity to markets. During such a sellers' market, buying patterns are often more
influenced by availability.

The buying patterns of the different customers are typically based on these variables:

 Price
 Quality
 Availability
 Ability to deliver consistently on long-term contracts
 Consistency.

4.7.1 Main Competitors

Currently, the demand is high and the local Farmers/Producers are unable to meet demand. In Lagos state or
the whole Nigeria, there are various competitors and will be grouped in three categories: Unregistered small
scale producers, registered small scale producers and established or well-known brand in Nigeria and
international. But the demand for premium goat meat is so high and the market is still buoyant.

4.8 MARKETING PLAN

4.8.1 MARKETING OBJECTIVES
1. To develop and secure spot in the market for Utibe Livestock Farm brand within the proposed target
market.
2. To develop a brand name that is recognised and accepted within the target market.
4.8.2 MARKETING OBJECTIVES
The marketing strategies to be implemented by Utibe Livestock Farm are aimed at:
 Creating customer awareness of the products and services offered,
 Developing and continuously expanding the clientele base, and building customer loyalty and
referrals.
The Company will employ marketing tools and strategies to effectively harness the market potentials of the
business. Such strategies include the following:
1. Identify and develop such services and products that will help fill the gap that the local markets are unable
to meet.
2. Implement market penetration strategy to ensure that Utibe Livestock Farm products achieve immediate
patronage on introduction to the various markets
3. Excellent Customer Relationship Management coupled with constant customer interface.
4. Continuously create brand awareness and build Utibe Livestock Farm into a recognised brand through
quality products, value added services and brand identifications through logos, packaging, colours and
trademarks, etc.
5. Competitive pricing of our products taking into cognisance the prices of our competitors’ products.
6. Develop and implement differentiation strategies to ensure attractiveness of our products and services.
7. Develop target based distribution channels with different categories.
The marketing strategies chosen are centred on Market Penetration. The Market Penetration strategy
seeks to generate growth by selling existing products into existing markets. The main objectives of the
Company’s penetration strategy would be to:
1. Secure market share for the products and services
2. Secure brand recognition
3. Reduce the influence of competitors
4. Increase usage/patronage of our products/services by existing customers of competitors
As part of the market penetration strategy Utibe Livestock Farm will employ the following tools and tactics:
i. Competitive pricing strategies – lower prices, quantity discounts etc.
ii. Advertising – regular and consistent use of diverse promotional channels
iii. Aggressive promotional campaign backing a simple marketing message
iv. Packaging in attractive sealed packages that attract consumers
v. Improved quality of the product
vi. Introduction of loyalty schemes in order to increase usage / purchase by existing customers
vii. Branding of the products through packaging, labelling etc.
4.8.3 TARGETING STRATEGY
The targeting strategy that will be implemented by Utibe Livestock Farm is a “differentiated marketing”
strategy. This strategy is directed at several market sub-segments with offers tailored to meet the
requirements of each.
These segments are targeted in several ways: - advertising, sales promotion, public relations/publicity,
personal selling, direct marketing and digital marketing.

4.9 Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be
ready and willing to utilize every available means (both conventional and non – conventional means) to
advertise and promote the business. We intend growing our business which is why we have perfected plans
to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a
corporate identity for our commercial livestock farming business. Below are the platforms we want to
leverage on to boost our commercial livestock farm brand and to promote and advertise our business;

 Place adverts on both print (newspapers and magazines) and electronic media platforms
 Sponsor relevant community based events / programs
 Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube,
Google + et al to promote our business
 Install our Bill Boards on strategic locations all around Lagos
 Engage in road show from time to time in targeted neighborhoods
 Distribute our fliers and handbills in target areas
 Contact corporate organizations and residence in our target areas by calling them up and informing
them of Utibe Livestock Farm and what we sell
 List our commercial livestock farms in local directories / yellow pages
 Advertise our commercial livestock farms in our official website and employ strategies that will
help us pull traffic to the site.
  Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well
branded with our company logo

4.10 Sales Strategy

The Company’s marketing intends to influence the perception of need as much as the knowledge and
awareness of the product categories and their benefits to the customers. We will emphasise our competitive
advantages of all year round availability, hygienic and healthy products, improved technology and
production processes in selling to our target market.
Upon start-up, we will approach our target market customers via selling/direct marketing, and targeted
advertising/publicity to lure and inform potential customers / distributors about the products/services the
Company offers as well as the benefits of choosing these products / services over those of competitors. We
will tell them about the different varieties of products we offer and then ask them clearly what we need to
do to earn their business.
We will appoint major (zonal) distributors for the various regions who will in turn appoint sub-distributors,
meat marts, butchers and meat dealers who will sell to the households. Our sales team will focus on end
users such as hotels, institutional households, abattoirs, restaurants and other wholesale end-users.
For business to consumer products, actual selling will be carried out through our distribution channels from
major distributors to sub-distributors to retail outlets. Sales of business to business products/services will be
actualised by the Sales Representatives and Internet marketing. In addition to their basic salaries all Sales
Representatives and Sales Canvassers will be paid commissions on the value of sales they generate.
Sales team members will undergo regular training to improve their selling skills. In order to boost sales,
Utibe Livestock Farm may extend credit to certain categories of clients; however, credit will only be
extended after a thorough background check of such organisations.

Pricing Strategy

Utibe Livestock Farm intends to be a competitive player in the market place. The Company will operate a
competitive pricing scheme that is aimed at acquiring market share as quickly as possible. Consequently, as
much as is feasible, Utibe Livestock Farm will sell its products at a price equal to, if not lower than the
traditional market place. To this end, market surveys have been carried out to determine the price bands for
the various services and products offered to customers.
Utibe Livestock Farm will operate a competitive pricing strategy by benchmarking its prices with those of
major competitors as well as differentiating through marketing-mix incentives. However, the overall market
penetration strategy will be executed not on the basis of lower prices but through the use of price discounts
based on quantity and loyalty as well as introductory price schemes and delivery charges etc. Consequently,
Utibe Livestock Farm will charge fees for such value added services such as home/office delivery.
Utibe Livestock Farm pricing strategy will be used to position the Company as a unique competitor.
Analysis of major competitors shall be conducted regularly to ascertain their pricing strategy and offers.
Billing will be carried out as follows:
1. Delivery charges will be on a mileage basis.
2. Meat products (Cattles) will be sold on the basis of weight (kg)
3. Raw hides/skins will be sold on a per unit basis
4. Rendered products will be sold on the basis of weight (kg)

Terms for Payment:

The terms of payment being adopted by Utibe Livestock Farm is all inclusive because we are aware of
different payment preference of different customers as it suits them, so we have put measures in place to
ensure that payment is quick, easy and convenient. At the same time, we will ensure that we abide by the
financial rules and regulations.
 Considering all we have stated above, here are the payment options that we will make available to our
clients;

 Payment via bank transfer

 Payment with cash
 Payment via online bank transfer
 Payment via check
 Payment via mobile money transfer
 Payment via bank draft

We will also accept cash on delivery.

In view of the above, we have chosen banking platforms that will enable our client make payment for our
products without any stress on their part. Our bank account numbers will be made available on our website
and promotional materials to clients who may want to deposit cash or make online transfer for our well –
branded and packaged products. After payment is confirmed we will issue an invoice as prove of payment
and delivery of product.

Follow up calls will go to each customer within 24 hours of each delivery to ensure satisfaction. If for any
reason there is an issue, it will be handled immediately by one of the owners directly with the customer.

4.10.1 Sales Forecast

Most of the food products produced in Nigeria are consumed within the country with very little available
for export, if any. Indeed shortfalls are augmented through smuggling; consequently, our sales forecast is
well within the estimated market demand for the products.
The proposed project will generate revenues from:
 Sale of Cattle
 Sale of Meat (beef)
 Sale of Hides and skin
 Slaughter of animals for customers;
 Sale of Waste/ litter as a by-product
 Boarding services
 Breeding services
 Livestock health services
 Farrier services
 Shearing services
 Livestock farming related consultancy and advisory services

Below are the projections that we were able to come up with for the first three years of running Utibe
Livestock Farm.
Table: Sales Forecast

Complete This Chart First:  

COGS Per
Product Lines Units
Sales Price Per Unit
Unit Margin Per Unit
₦
Livestock Cow ₦ 100,000
60,000 ₦ 40,000.00
Livestock Goat ₦ 20,000 ₦ 9,500 ₦ 10,500.00
        ₦ -
         ₦ -
        ₦ -
        ₦ -

Chart: Sales by Year one

Catego ry
Product Line s January Fe bruary March April May June July August Se pte mber Octo ber N ove m ber De ce m be r Annual Totals Breakdo wn Catego ry / To tal
Live stock
Cow Sold 11 31 18 15 25 41 141 25.3%
Total Sales - - - - - - 1,100,000 3,100,000 1,800,000 1,500,000 2,500,000 4,100,000 ₦ 14,100,000 100.0% 62.8%
Total COGS - - - - - - 660,000 1,860,000 1,080,000 900,000 1,500,000 2,460,000 ₦ 8,460,000 60.0% 68.1%
Total Margin - - - - - - 440,000 1,240,000 720,000 600,000 1,000,000 1,640,000 ₦ 5,640,000 40.0% 56.3%

Live stock
Goat Sold 6 21 32 43 60 67 87 101 417 74.7%
Total Sales - - - - 120,000 420,000 640,000 860,000 1,200,000 1,340,000 1,740,000 2,020,000 ₦ 8,340,000 100.0% 37.2%
Total COGS - - - - 57,000 199,500 304,000 408,500 570,000 636,500 826,500 959,500 ₦ 3,961,500 47.5% 31.9%
Margin - - - - 63,000 220,500 336,000 451,500 630,000 703,500 913,500 1,060,500 ₦ 4,378,500 52.5% 43.7%

Pro duct 3
Units Sold 0 0.0%
Total Sales - - - - - - - - - - - - ₦ - 0.0% 0.0%
Total COGS - - - - - - - - - - - - ₦ - 0.0% 0.0%
Margin - - - - - - - - - - - - ₦ - 0.0% 0.0%

Pro duct 4
Units Sold 0 0.0%
Total Sales - - - - - - - - - - - - ₦ - 0.0% 0.0%
Total COGS - - - - - - - - - - - - ₦ - 0.0% 0.0%
Margin - - - - - - - - - - - - ₦ - 0.0% 0.0%

Pro duct 5
Units Sold 0 0.0%
Total Sales - - - - - - - - - - - - ₦ - 0.0% 0.0%
Total COGS - - - - - - - - - - - - ₦ - 0.0% 0.0%
Margin - - - - - - - - - - - - ₦ - 0.0% 0.0%

Pro duct 6
Units Sold 0 0.0%
Total Sales - - - - - - - - - - - - ₦ - 0.0% 0.0%
Total COGS - - - - - - - - - - - - ₦ - 0.0% 0.0%
Margin - - - - - - - - - - - - ₦ - 0.0% 0.0%
To tal Units Sold 0 0 0 0 6 21 43 74 78 82 112 142 558
To tal Sale s ₦ - ₦ - ₦ - ₦ - ₦ 120,000 ₦ 420,000 ₦ 1,740,000 ₦ 3,960,000 ₦ 3,000,000 ₦ 2,840,000 ₦ 4,240,000 ₦ 6,120,000 ₦ 22,440,000
To tal Cost of Go ods Sold ₦ - ₦ - ₦ - ₦ - ₦ 57,000 ₦ 199,500 ₦ 964,000 ₦ 2,268,500 ₦ 1,650,000 ₦ 1,536,500 ₦ 2,326,500 ₦ 3,419,500 ₦ 12,421,500
To tal Margin ₦ - ₦ - ₦ - ₦ - ₦ 63,000 ₦ 220,500 ₦ 776,000 ₦ 1,691,500 ₦ 1,350,000 ₦ 1,303,500 ₦ 1,913,500 ₦ 2,700,500 ₦ 10,018,500

Year 1-3 Sales Projections

Revenue 2020   2021   2022  

Livestock 14,100,000   21,720,000   27,150,000  
Livestock 8,340,000   10,744,000   13,430,000  
Product 3 -   -   -  
Product 4 -   -   -  
Product 5 -   -   -  
Product 6 -   -   -  
100 100 100
Total Revenue ₦ 22,440,000 % ₦ 32,464,000 % ₦ 40,580,000 %
Cost of Goods Sold            
Livestock 8,460,000   13,032,000   16,290,000  
Livestock 3,961,500   5,103,400   6,379,250  
Product 3 -   -   -  
Product 4 -   -   -  
Product 5 -   -   -  
Product 6 -   -   -  
Total Cost of Goods Sold 12,421,500 55% 18,135,400 56% 22,669,250 56%
Gross Margin 10,018,500 45% 14,328,600 44% 17,910,750 44%
5.0 Strategy and Implementation Summary
Emphasize customer service.

We will differentiate ourselves with CUSTOMER SERVICE! We will establish our business as a clear and
viable alternative for our target market, from the scores of competitors known for "do-it yourself," "no we
don't offer that product," and "no delivery available."

Customer service is paramount in our business and our business plan. The management team
will accomplish this goal by training employees and by providing encouragement.

The management team of Utibe Livestock Farm believes that an employee who is happy at work will enjoy
working. It is always easier to please customers with staff that cares, a facility that is clean and equipment
that is kept in proper working order.

Utibe Livestock Farm will also work toward establishing community involvement programs that
will demonstrate how the business can contribute to a better quality of community life. Community project
groups such as

Build a relationship-oriented business that ensures long-term relationships with customers, not single-visit
deals. Become their “company of choice." Teach them the value of the relationship.

Focus on target markets

We need to focus our offerings on specific population groups as the key market segment we should
own. We definitely want to be able to sell to smart, quality conscious customers.

5.1 Competitive Edge

Unlike the local cattle farmers, Utibe Livestock Farm services and products will have certain features that
will make them a delight for prospective customers.
These features are as follows:

1. Healthiness: The Company will implement top level bio security measures to ensure that customers get only
top quality, healthy, disease-free cattle and meat products. All animals fed at our farm will be inspected by
the Company’s veterinary Officers in order to ensure that there are no diseased animals in the farms thus
reducing the possibility of contamination of good meat or diseased meat products sold to our customers.
2. Quality: All cattle products will be of good quality, not just tasty but physically appealing. They will be
well treated to ensure they grow big, strong and will be free of bruises and other unappealing features.
3. Customer Choice: Customers will be given a choice when it comes to buying cattle from us.

Other features Includes:

 Good relationship with our various vendors.

 Employment of state-of-the-art processes in our feedlot.
 Professional customer service with the interest of the customer and the business at heart.
 Affordability
 Delivery services
 Strong online presence
 Use of modern techniques to maximize profit and efficiency.
6.0 Management Summary
The company's management is highly experienced and qualified, with seasoned investors. The company
strives to hire qualified people who take pride in their work. The company's management philosophy is
based on responsibility and mutual respect. Utibe Livestock Farm maintains an environment and structure
that encourages productivity and respect for customers and fellow employees.
The following subtopics outline both the management team, and its team of employees.
6.1 Organizational Structure

The organizational Structure of Utibe Livestock Farm is planned to be a simple and traditional one. All
production and manufacturing operations will report to the COO. All administrative and finance functions
will report to the CFO. Both the COO and CFO will report to the CEO, who will also have the
responsibility for Sales and Marketing.

6.2 Management Team

Utibe Livestock Farm is a cattle fattening company that intend starting small in Imo State, Owerri, but hope
to grow big in order to compete favorably with leading cattle rearing and livestock farms in the industry
both in Nigeria and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the
kind of world class business we want to own. This is why we are committed to only hire the best hands in
and around Owerri.
At Utibe Livestock Farm, we will ensure that we hire people that are qualified, hardworking, dedicated,
customer centric and are ready to work to help us build a prosperous business that will benefit all the stake
holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff
and it will be based on their performance for a period of five years or more as agreed by the management of
the farm.
In view of the above, we have decided to hire qualified and competent hands to occupy the following posi-
tions; Below is the business structure of Utibe Livestock Farm;

 Chief Operating Officer

 General Farm Manager
 Administrator / Accountant
 Cattle Ranch Manager / Supervisor
 Sales and Marketing Executive
 Field Employees
 Front Desk Officer

Roles and Responsibilities

Chief Operating Officer:

 Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, coun-

selling, and disciplining managers; communicating values, strategies, and objectives; assigning ac-
countabilities; planning, monitoring, and appraising job results; developing incentives; developing a
climate for offering information and opinions; providing educational opportunities.
 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e.
leading the development and implementation of the overall organization’s strategy.
  Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

General Farm Manager

 Responsible for the planning, management and coordinating all farm activities across the various sec-
tions on behalf of the organization
 Supervises other section manager
 Ensures compliance during project executions
 Provides advice on the management of farming activities across all section
 Responsible for carrying out risk assessment
 Using IT systems and software to keep track of people and progress of the growth of crops, fishes,
birds and animals
 Responsible for overseeing the accounting, costing and sale of farm produce after harvest
 Represent the organization’s interest at various stakeholders’ meetings
 Ensures that farming goals desired result are achieved, the most efficient resources (manpower, equip-
ment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible
for preparing financial reports, budgets, and financial statements for the organization
 Responsible for overseeing the smooth running of HR and administrative tasks for the organization
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Oversees the smooth running of the daily farming activities across the various farming sections.

Administrator / Accountant

 Responsible for overseeing the smooth running of HR and administrative tasks for the organization
 Defining job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Responsible for preparing financial reports, budgets, and financial statements for the organization
 Responsible for financial forecasting and risks analysis.
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensuring compliance with taxation legislation
 Handles all financial transactions for the company
 Serves as internal auditor for the company

Cattle Ranch and Animal Manager / Supervisor

 Responsible for managing the commercial breeding of cattle

 Responsible for managing boarding services, breeding services, dairy support services, livestock health
services, farrier services, and shearing services et al.
 Works closely with the General Manager to achieve the organizations’ goals and objectives

Sales and Marketing Officer

 Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
 Identifies development opportunities; follows up on development leads and contacts; participates in the
structuring and financing of new business
 Writing winning proposal documents, negotiate fees and rates in line with company policy
 Responsible for handling business research, marker surveys and feasibility studies for clients
 Responsible for supervising implementation, advocate for the customer’s needs, and communicate with
clients
 Develops, executes and evaluates new plans for expanding increase sales
  Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company

Field Workers / Contract Staff

 Responsible for feeding cattle and other livestock as instructed by the supervisor
 Responsible for cleaning the cattle ranch
 Change the water in the water trough / trench as instructed by the supervisor on a regular basis
 Handles farm implements and machines as instructed by the section manager / supervisor
 Assists in handling the breeding of cattle
 Carries out task in line with the stated job description
 Assist in transport working tools and equipment from the farm and back to the designated store room
 Handles any other duties as assigned by the farm manager

Client Service Executive / Front Desk Officer

 Welcomes guests and clients by greeting them in person or on the telephone; answering or directing in-
quiries.
 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a
personalized customer service experience of the highest level
 Through interaction with clients on the phone, uses every opportunity to build client’s interest in the
company’s products and services
 Manages administrative duties assigned by the cattle ranch manager in an effective and timely manner
 Consistently stays abreast of any new information on the company’s products, promotional campaigns
etc. to ensure accurate and helpful information is supplied to clients
 Receives parcels / documents for the company
 Distributes mails in the organization
 Handles any other duties as assigned by the line manager

6.3 Personnel Plan

Utibe Livestock Farm is responsible to its employees, the men and women who work with the company
throughout the state. At Utibe Livestock Farn, everyone is considered as an individual; the company
respects their dignity and recognizes their merit. Employees are encouraged to have a sense of security and
pride in their jobs. Additionally, employees are free to make suggestions and complaints. The company
affords equal opportunity for employment, development, and advancement for those qualified.

Table: Salaries and Wages

Payroll Years 1-3

Prepared By: Company Name:

Etimate Global Services Utibe Livestock Farm

Growth Growth
Rate 1 Rate 2
Employee Types Year 1 Totals to 2 Second Year to 3 Third Year
Owner(s) 1,040,000 20.0% 1,248,000 30.0% 1,622,400
Full-Time Employees 1,206,400 20.0% 1,447,680 30.0% 1,881,984
Part-Time Employees 665,600 10.0% 732,160 30.0% 951,808
Independent Contractors - 3.0% - 3.0% -
 ₦
Total Salaries and Wages ₦ 2,912,000   ₦ 3,427,840   4,456,192
           
Payroll Taxes and Benefits          
Social Security 180,544 20.0% 216,653 30.0% 281,649
Medicare 42,224 20.0% 50,669 30.0% 65,869
Federal Unemployment Tax (FUTA) - 20.0% - 30.0% -
State Unemployment Tax (SUTA) - 20.0% - 30.0% -
Employee Pension Programs - 0.0% - 0.0% -
Worker's Compensation - 3.0% - 3.0% -
Employee Health Insurance - 3.0% - 3.0% -
Other Employee Benefit Programs - 10.0% - 10.0% -
Total Payroll Taxes and Benefits ₦ 222,768   ₦ 267,322   ₦ 347,518
           
Total Salaries and Related Expenses ₦ 3,134,768   ₦ 3,695,162   ₦ 4,803,710
7.0 Management Summary
7.1 Important Assumptions
This business plan was developed for Utibe Livestock Farm assuming the following:

 Steady growth from good management, barring any unforeseen local or national disasters.
 An adequate loan amount to allow for initial implementation of plans.
 Competition and buying patterns remain similar to those used for forecasting.
 Existing customer base maintained.
 Market research is on target and current (received from different state organizations).
 New customers will be gained through direct sales and advertising.
 VAT is 5%.

7.2 Break-even Analysis

Break-even is based on fixed costs of approximately…

Table: Break-even Analysis

Prepared By: Company Name:

Etimate Global Services Utibe Livestock Farm

Gross Margin % of Sales

Gross Margin ₦ 10,018,500
Total Sales ₦ 22,440,000
Gross Margin/Total Sales 44.6%
Total Fixed Expenses

₦ 3,134,768
Payroll

₦ 5,008,451
Operating Expenses
Operating + Payroll ₦ 8,143,219
Breakeven Sales in Naira (Annual)

44.6%
Gross Margin % of Sales

₦ 8,143,219
Total Fixed Expenses

₦ 18,239,641
Yearly Breakeven Amount
Monthly Breakeven Amount ₦ 1,519,970

7.3 Projected Income Statements

Outlined below and in the following table and chart, are some of the intrinsic facets of the projected income
statements for Utibe Livestock Farm.
 Cost of sales reflects our cost to manufacture the feed and purchase all other non-manufactured products.
Gross margin will continue to rise at a steady pace throughout the years forecasted.

Payroll expenses currently include income for the one owner. As forecasted, additional employees will be
brought aboard as required to keep up with the growing pace of Utibe Livestock Farm. further details
are available in our Personnel table (above).

Advertising and marketing expenses (news ads, magazine ads, etc.) are projected to increase as net profits
increase and positive results are accomplished as a direct result of the same marketing and advertising. All
direct sales and marketing is performed by James. Commissions are not paid to him as a result of a gained
customer as he is one of the two major owners of the corporation.

Depreciation forecasted includes normal wear and mechanical tune-ups on trucks and all equipment in the
mill.

Fuel costs are projected to grow as the amount of sales made that require delivery increase. This projected
expense includes fuel for the trucks, generator, etc.

Payroll taxes include social security, unemployment and workers compensation, etc. Feed dealers permit
and state sales tax license is projected to be paid in one annual instalment in the month of January. Utibe
Livestock Farm. anticipates paying sales taxes monthly, and income tax quarterly, as required by law.

All website expenses are listed below, from initial development, to hosting, to account management for our
e-commerce transactions. 

Table: Income Statements 3 years summary

Income Statement Years 1-3

Company
Prepared By:
Name:
Utibe Livestock
Etimate Global Services
Farm

Revenue 2020   2021   2022  

14,100, 21,720, 27,150,0
Livestock
000   000   00  
8,340,0 10,744, 13,430,0
Livestock
00   000   00  
Product 3
-   -   -  
Product 4
-   -   -  
Product 5
-   -   -  
Product 6
-   -   -  
₦ 100 ₦ 100 ₦ 100
Total Revenue 22,440,000 % 32,464,000 % 40,580,000 %
Cost of Goods Sold            
8,460,0 13,032, 16,290,0
Livestock
00   000   00  
3,961,5 5,103,4 6,379,2
Livestock
00   00   50  
Product 3
-   -   -  
Product 4
-   -   -  
Product 5      
 - - -
Product 6
-   -   -  
55 56 56
Total Cost of Goods Sold 12,421,500 % 18,135,400 % 22,669,250 %
45 44 44
Gross Margin 10,018,500 % 14,328,600 % 17,910,750 %

Payroll 3,134,768   3,695,162   4,803,710  

Operating Expenses            

Advertising 160,000   164,800   169,744  

Car and Truck Expenses 365,000   375,950   387,229  

Commissions and Fees 79,800   83,790   87,980  

Contract Labor (Not included in payroll) 55,500   57,165   58,880  

Insurance (other than health) 600,000   618,000   636,540  

Legal and Professional Services 180,000   185,400   190,962  

Licenses 120,000   126,000   132,300  

Office Expense 600,000   618,000   636,540  

Rent or Lease -- Vehicles, Machinery,
Equipment 240,000   247,200   254,616  
Rent or Lease -- Other Business Prop-
erty 120,000   123,600   127,308  

Repairs and Maintenance 36,275   38,089   39,993  

Supplies 155,000   159,650   164,440  

Travel, Meals and Entertainment 120,000   123,600   127,308  

Utilities 360,000   370,800   381,924  

Miscellaneous 600,000   618,000   636,540  

Other Expense 1            
Other Expense 2            
₦ 17 ₦ 12 ₦ 10
Total Operating Expenses 3,791,575 % 3,910,044 % 4,032,303 %
₦ 14 ₦ 21 ₦ 22
Income (Before Other Expenses) 3,092,157 % 6,723,395 % 9,074,737 %

Other Expenses            

Amortized Start-up Expenses 268,000   268,000   268,000  

Depreciation 550,714   550,714   550,714  

Interest            

Commercial Loan 666,162   541,714   405,592  

Commercial Mortgage -   -   -  

Credit Card Debt -   -   -  

Vehicle Loans -   -   -  

Other Bank Debt -   -   -  

 Line of Credit -   -   -  

Bad Debt Expense -   -   -  

₦ ₦ ₦
Total Other Expenses 1,484,876 7% 1,360,428 4% 1,224,306 3%
₦ ₦ ₦
Net Income Before Income Tax 1,607,281   5,362,966   7,850,431  
₦ ₦ ₦
Income Tax 187,528   563,097   811,843  
₦ ₦ 15 ₦ 17
Net Income/Loss 1,419,753 6% 4,799,870 % 7,038,588 %

7.4 Projected Cash Flow

The cash flow projection for Utibe Livestock Farm shows that provisions for on-going expenses are
adequate to meet the needs of the company, as the business generates sufficient cash flow to support
operations and future expansions.

Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration. The
annual cash flow figures are included here and in our Cash Flow table.

Projected Cash flow Year-one

January February March April May June July August Septe mber O ctober No ve mbe r De ce mber Totals
Be ginning Balance ₦ 4,000,000 ₦ 3,297,702 ₦ 2,600,405 ₦ 1,903,107 ₦ 1,203,010 ₦ 548,712 ₦ 11,915 ₦ 22,117 ₦ 949,720 ₦ 1,531,522 ₦ 2,048,725 ₦ 3,178,852
Cash Inflo ws
Cash Sales - - - - 120,000 420,000 1,740,000 3,960,000 3,000,000 2,840,000 4,240,000 6,120,000 ₦ 22,440,000
Accounts Receivable - - - - - - - - - - - - ₦ -
To tal Cash Inflo ws ₦ - ₦ - ₦ - ₦ - ₦ 120,000 ₦ 420,000 ₦ 1,740,000 ₦ 3,960,000 ₦ 3,000,000 ₦ 2,840,000 ₦ 4,240,000 ₦ 6,120,000 ₦ 22,440,000

Cash O utflo ws
Investing Activities
New Fixed Asset Purchases - - - - - - - - - - - - ₦ -
Additional Inventory ₦ -
Cost of Goods Sold - - - - 57,000 199,500 964,000 2,268,500 1,650,000 1,536,500 2,326,500 3,419,500 ₦ 12,421,500
Operating Activities
O perating Expenses 275,000 270,000 270,000 272,800 290,000 330,000 338,500 336,600 340,900 359,000 356,075 352,700 ₦ 3,791,575
Payroll 261,231 261,231 261,231 261,231 261,231 261,231 261,231 261,231 261,231 261,231 261,231 261,231 ₦ 3,134,768
Taxes - - - - - - - - - - - 187,528 ₦ 187,528
Financing Activities
Loan Payments 166,067 166,067 166,067 166,067 166,067 166,067 166,067 166,067 166,067 166,067 166,067 166,067 ₦ 1,992,802
O wners Distribution ₦ -
Line of Credit Interest - - - - - - - - - - - ₦ -
Line of Credit Repayments ₦ -
Dividends Paid ₦ -
To tal Cash O utflo ws ₦ 702,298 ₦ 697,298 ₦ 697,298 ₦ 700,098 ₦ 774,298 ₦ 956,798 ₦ 1,729,798 ₦ 3,032,398 ₦ 2,418,198 ₦ 2,322,798 ₦ 3,109,873 ₦ 4,387,026 ₦ 21,528,173
Ne t Cash Flo ws -₦ 702,298 -₦ 697,298 -₦ 697,298 -₦ 700,098 -₦ 654,298 -₦ 536,798 ₦ 10,202 ₦ 927,602 ₦ 581,802 ₦ 517,202 ₦ 1,130,127 ₦ 1,732,974 ₦ 911,827
Operating Cash Balance ₦ 3,297,702 ₦ 2,600,405 ₦ 1,903,107 ₦ 1,203,010 ₦ 548,712 ₦ 11,915 ₦ 22,117 ₦ 949,720 ₦ 1,531,522 ₦ 2,048,725 ₦ 3,178,852 ₦ 4,911,827
Line o f Cre dit Drawdown ₦ - ₦ - ₦ -₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ -
Ending Cash Balance ₦ 3,297,702 ₦ 2,600,405 ₦ 1,903,107 ₦ 1,203,010 ₦ 548,712 ₦ 11,915 ₦ 22,117 ₦ 949,720 ₦ 1,531,522 ₦ 2,048,725 ₦ 3,178,852 ₦ 4,911,827
Line o f Cre dit Balance ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ -
Projected Cash Flow Year-two
Ye ar 1 Totals January February March April May June July August Septem ber O cto be r No vem ber De cem be r Ye ar 2 Totals
Be ginning Balance ₦ 4,911,827 ₦ 4,633,993 ₦ 4,425,659 ₦ 3,949,825 ₦ 3,336,991 ₦ 2,934,657 ₦ 2,759,423 ₦ 2,890,789 ₦ 4,120,755 ₦ 4,871,712 ₦ 5,636,079 ₦ 7,132,445
Cash Inflows
Cash Sales ₦ 22,440,000 1,280,000 1,460,000 760,000 380,000 900,000 1,404,000 2,088,000 4,752,000 3,600,000 3,408,000 5,088,000 7,344,000 ₦ 32,464,000
Accounts Receivable ₦ - - - - - - - - - - - - - ₦ -
To tal Cash Inflows ₦ 22,440,000 ₦ 1,280,000 ₦ 1,460,000 ₦ 760,000 ₦ 380,000 ₦ 900,000 ₦ 1,404,000 ₦ 2,088,000 ₦ 4,752,000 ₦ 3,600,000 ₦ 3,408,000 ₦ 5,088,000 ₦ 7,344,000 ₦ 32,464,000

Cash O utflo ws
Investing Activities
New Fixed Asset Purchases ₦ - - - - - - - - - - - - - ₦ -
Additional Inventory ₦ - ₦ -
Cost of Goods Sold ₦ 12,421,500 758,000 868,500 436,000 193,000 502,500 779,400 1,156,800 2,722,200 1,980,000 1,843,800 2,791,800 4,103,400 ₦ 18,135,400
Operating Activities
Operating Expenses ₦ 3,791,575 325,837 325,837 325,837 325,837 325,837 325,837 325,837 325,837 325,837 325,837 325,837 325,837 ₦ 3,910,044
Payroll ₦ 3,134,768 307,930 307,930 307,930 307,930 307,930 307,930 307,930 307,930 307,930 307,930 307,930 307,930 ₦ 3,695,162
Taxes ₦ 187,528 - - - - - - - - 69,209 - - 493,888
Financing Activities
Loan Payments ₦ 1,992,802 166,067 166,067 166,067 166,067 166,067 166,067 166,067 166,067 166,067 166,067 166,067 166,067 ₦ 1,992,802
Owners Distribution ₦ - ₦ -
Line of Credit Interest ₦ - - - - - - - - - - - - - ₦ -
Line of Credit Repayments ₦ - ₦ -
Dividends Paid ₦ - ₦ -
To tal Cash Outflo ws ₦ 21,528,173 ₦ 1,557,834 ₦ 1,668,334 ₦ 1,235,834 ₦ 992,834 ₦ 1,302,334 ₦ 1,579,234 ₦ 1,956,634 ₦ 3,522,034 ₦ 2,849,043 ₦ 2,643,634 ₦ 3,591,634 ₦ 5,397,122 ₦ 27,733,407
Net Cash Flo ws ₦ 911,827 -₦ 277,834 -₦ 208,334 -₦ 475,834 -₦ 612,834 -₦ 402,334 -₦ 175,234 ₦ 131,366 ₦ 1,229,966 ₦ 750,957 ₦ 764,366 ₦ 1,496,366 ₦ 1,946,878 ₦ 4,730,593
Operating Cash Balance ₦ 4,633,993 ₦ 4,425,659 ₦ 3,949,825 ₦ 3,336,991 ₦ 2,934,657 ₦ 2,759,423 ₦ 2,890,789 ₦ 4,120,755 ₦ 4,871,712 ₦ 5,636,079 ₦ 7,132,445 ₦ 9,079,323
Line of Credit Drawdown ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ -
Ending Cash Balance ₦ 4,633,993 ₦ 4,425,659 ₦ 3,949,825 ₦ 3,336,991 ₦ 2,934,657 ₦ 2,759,423 ₦ 2,890,789 ₦ 4,120,755 ₦ 4,871,712 ₦ 5,636,079 ₦ 7,132,445 ₦ 9,079,323
Line of Credit Balance ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ - ₦ -

7.5 Projected Balance Sheet

The Balance Sheet shows healthy growth of net worth, and strong financial position. The monthly estimates
are included in the Appendix. The balance sheet for Utibe Livestock Farm .is quite solid. We do not project
any trouble meeting our obligations. Our management is strong enough and more than capable of keeping
the business on track. 

Our projected balance sheet is presented in the table below.

Chart: Balance Sheet

Balance Sheet Years 1-3

Prepared By: Company Name:

Utibe Livestock
Etimate Global Services
Farm

ASSETS 2020 2021 2022

Current Assets      
Cash 4,911,827 9,079,323 15,349,415
Accounts Receivable - - -
Inventory - - -
Prepaid Expenses 752,000 564,000 376,000
Other Initial Costs 320,000 240,000 160,000
Total Current Assets ₦ 5,983,827 ₦ 9,883,323 ₦ 15,885,415
       
Fixed Assets      
Real Estate -- Land 1,500,000 1,500,000 1,500,000
Real Estate -- Buildings 2,500,000 2,500,000 2,500,000
 Leasehold Improvements - - -
Equipment 2,000,000 2,000,000 2,000,000
Furniture and Fixtures 300,000 300,000 300,000
Vehicles - - -
Other 400,000 400,000 400,000
Total Fixed Assets ₦ 6,700,000 ₦ 6,700,000 ₦ 6,700,000
(Less Accumulated Depreciation) ₦ 550,714 ₦ 1,101,429 ₦ 1,652,143
₦
Total Assets
12,133,112 ₦ 15,481,894 ₦ 20,933,271
       
LIABILITIES & EQUITY      
Liabilities      
Accounts Payable - - -
Commercial Loan Balance 6,673,360 5,222,272 3,635,061
Commercial Mortgage Balance - - -
Credit Card Debt Balance - - -
Vehicle Loans Balance - - -
Other Bank Debt Balance - - -
Line of Credit Balance - - -
Total Liabilities ₦ 6,673,360 ₦ 5,222,272 ₦ 3,635,061
Equity      
Common Stock 4,040,000 4,040,000 4,040,000
Retained Earnings 1,419,753 6,219,623 13,258,211
Dividends Dispersed/Owners Draw - - -
Total Equity ₦ 5,459,753 ₦ 10,259,623 ₦ 17,298,211
₦
Total Liabilities and Equity 12,133,112 ₦ 15,481,894 ₦ 20,933,271
       
₦ - ₦ - ₦ -
Balance sheet in or out of balance?
Balanced! Balanced! Balanced!

7.6 Operating Expenses Years 1-3

The operational expenses show our OPEX for the next 3 years.

Table: Operating Expenses Years 1-3

Operating Expenses Years 1-3

Prepared By: Company Name:

Etimate Global Services Utibe Livestock Farm

Growt Growt
h Rate h Rate
Line Item 2020 1 to 2 2021 2 to 3 2022
Advertising 3.0% 3.0%
 160,000 164,800 169,744

Car and Truck Expenses 365,000 3.0% 375,950 3.0% 387,229

Commissions and Fees 79,800 5.0% 83,790 5.0% 87,980

Contract Labor (Not included in pay-
roll) 55,500 3.0% 57,165 3.0% 58,880

Insurance (other than health) 600,000 3.0% 618,000 3.0% 636,540

Legal and Professional Services 180,000 3.0% 185,400 3.0% 190,962

Licenses 120,000 5.0% 126,000 5.0% 132,300

Office Expense 600,000 3.0% 618,000 3.0% 636,540

Rent or Lease -- Vehicles, Machinery,
Equipment 240,000 3.0% 247,200 3.0% 254,616
Rent or Lease -- Other Business Prop-
erty 120,000 3.0% 123,600 3.0% 127,308

Repairs and Maintenance 36,275 5.0% 38,089 5.0% 39,993

Supplies 155,000 3.0% 159,650 3.0% 164,440

Travel, Meals and Entertainment 120,000 3.0% 123,600 3.0% 127,308

Utilities 360,000 3.0% 370,800 3.0% 381,924

Miscellaneous 600,000 3.0% 618,000 3.0% 636,540

₦ ₦ ₦
Total Expenses 3,791,575   3,910,044   4,032,303
           
Other Expenses          

Depreciation 550,714   550,714   550,714

Interest          

Commercial Loan 666,162   541,714   405,592

Commercial Mortgage -   -   -

Credit Card Debt -   -   -

Vehicle Loans -   -   -

Other Bank Debt -   -   -

Line of Credit -   -   -

Bad Debt Expense -        

₦ ₦ ₦
Total Other Expenses 1,216,876   1,092,428   956,306
₦ ₦ ₦
Total Operating Expenses 5,008,451   5,002,472   4,988,609