BUSINESS PLAN FOR…GRAIN FARMING

1)  CERTIFICATE NR…. 01NEXIT/BA/AIDEV.LTD/22/1145

2) B TCH NR: A BATCH A

3) BUSINESS SECTOR..AGRICULTURE AGRICULTURE

4) BUSINESS SUBSECTOR…GRAINS FARMING RICE & MAIZE PRODUCTION

5) Name of Entrepreneur
i) Surname…. ABUBAKAR

ii) Other names SIRAJO

6) BVN…….. 22321714989

7) Phone numbers…… 7038494463

8) Personal e-mail…… sirajoabubakar1991@gmail.com

9) Gender…. MALE

10) State of Origin… BAUCHI

11) State of business Location….. BAUCHI

12) Training Institution.: A.I Development Services Ltd

13) Age Range:- 18-35 BELOW 35 Above 35

14) State of Residence BAUCHI

15) Start-Up/Existing EXISTING

16) Loan Tenure… 36

17) Loan Total 2,198,900

18) EQUIPMENT (NOT LESS THAN 70% TOTAL LOAN) 1,845,000

19) WORKING CAPITAL(NOT MORE THAN 30% TOTAL LOAN) 353,900

20) Years of Operation.. 2 years

21) Training Type..Entrepreneurship ENTREPRENEURSHIP

22) Geopolitical Zone..North East NORTH EAST

23) Business Ownership Type..Sole Proprietorship SOLE PROPRIETORSHIP

24) Business e-mail… sirajoabubakar1991@gmail.com

25) Business Phone number… 7038494463

26) Business Name… KWAFA FARM

1.0 GENERAL INFORMATION

1.1 NAME OF BUSINESS :
KWAFA FARM
1.2 BUSINESS DESCRIPTION:………….. is essentially engaged in agriculture.These are meant for local markets and individuals.

1.3 PROFILE OF ENTREPRENEUR(S): The entrepreneur has been involved in grains farming.He has acquired relevant knowledge and skills through this
NPOWER EXIT Entrepreneurship training conducted by A.I Development Services Ltd

1.4 SUMMARY OF LOAN REQUIRED

S/NR ITEM AMOUNT REMARKS
1 EQUIPMENT 1,845,000

2 WORKING CAPITAL 353,900

LOAN TOTAL 2,198,900

3 GRACE PERIOD 3
4 REPAYMENT PERIOD 33
5 LOAN TENOR 36
Principal Repyt/Mth 66,633
Interest rate 5% 109,945.00
Interest /Mth 36 3,054.03
Bank charges 4% 87,956.00
Ending cash balance 55,675,693.96
2.0 FINANCIAL PLAN
2.1 Project Cost Plan
S/NR DESCRIPTION QTY RATE AMOUNT BANK LOAN EQUITY

1.0 ASSETS
1.1 GRAINS STORE 1 300,000 300,000
1.2 15Ha FARMLAND 1 650,000 650,000
1.3 TUBE WELLS 3 60,000 180,000
1.3 HOES 6 7,500 45,000
1.4 0
1.5 0
Total Assets 1,175,000 1,175,000

2.0 Pre-Operational Expenses

2.1 Trade Reg. 1 15,000 15,000.00
2.2 Rents of FARMLAND 15 20,000 300,000.00
2.3 Land Preparation 15 5,000 75,000.00
2.4 Npower Exit Training 1 5,000 5,000.00
2.5 Market Survey 1 5,000 5,000.00
2.6 0.00
2.7 0.00
Total Pre operational expenses 400,000 400,000
3.0 EQUIPMENT
3.1 Motorised Ploughs 6 150,000.00 900,000.00
3.2 Irrigation Pipes 1 150,000.00 150,000.00
3.3 Ridgers 2 75,000.00 150,000.00
3.4 Sprayers 3 65,000.00 195,000.00
3.5 Hand held harvester 1 300,000.00 300,000.00
3.6 Tresher 1 150,000.00 150,000.00
3.7 0.00
3.8 0.00
Total Equipment 1,845,000 1,845,000 84%

4.0 WORKING CAPITAL Qty Rate Amount

4.1 Rice seeds in 25kg 5 7500.00 37,500.00
4.2 Main Seeds in 25kg 10 6500.00 65,000.00
4.3 Assorted Fertilisers 20 5500.00 110,000.00
4.4 Herbicides/Pesticides 13 2800.00 36,400.00
4.5 Overhead 3 15000.00 45,000.00
4.6 labour 3 20000.00 60,000.00
4.7 0.00
4.8 0.00
Total Working Capital 353,900.00 353,900 16%

5.0 TOTAL START-UP/EXPANSION COST 3,773,900

6.0 TOTAL EQUITY (ITEMS 1 & 2) 1,575,000
7.0 TOTAL LOAN REQUIRDS(Items 3+4) 2,198,900
3.0 PRODUCTION PLAN:This section is for those going into production
processes
3.1 Production Processes:
The production processe involves the following stages:- a) Purchase of working materials b) purchase of
equipment c) construction of sheds d) production e) Packaging and sales

3.2 Fixed Assets (Building and Machinery)

S/Nr Description Cost
1 GRAINS STORE 1 NR 300,000 300,000.00
2 15Ha FARMLAND 1 NR 650,000 650,000.00
3 TUBE WELLS 3 NR 60,000 180,000.00
4 HOES 6 Nr 7,500 45,000.00

Total 1,175,000.00

3.3 Pre-Operational Cost

S/NR ITEM QTY RATE AMOUNT REMARKS

1 Trade Reg. 1 15000 15,000.00
2 Rents of FARMLAND 15 20,000 300,000.00
3 Land Preparation 15 5,000 75,000.00
4 Npower Exit Training 1 5,000 5,000.00
5 Market Survey 1 5,000 5,000.00
Total 400,000.00
UNIT COST FOR 3MONTHS 533.33
3.4. Maintenance Procdure: Regular vaccination

3.5 Raw Materials Required for Initial and Subsequent Production Cycles
S/NR ITEM QTY UNIT RATE AMOUNT
1 Rice seeds in 25kg 5 Nr 7,500.00 37,500.00
2 Main Seeds in 25kg 10 Nr 6,500.00 65,000.00
3 Assorted Fertilisers 15 Nr 5,500.00 82,500.00
4 Herbicides/Pesticides 15 Nr 2,800.00 42,000.00
5 Overhead 3 Nr 20,000.00 60,000.00
6 labour 3 Nr 15,000.00 45,000.00

Total 332,000.00
UNIT COST FOR 3MONTHS 302.67

3.6 Sources Of Raw Materials

S/NR ITEM Location QTY Remarks
1 Equipment
2 Working materials

3.7 Direct and Indirect Labour

S/NR ITEM Location QTY Remarks

1 Mgt 1
2 Direct 2
3 Indirect 1
3.8 Cost of Labour per Operational Cycle in Months

S/NR ITEM No Time Rate Amount

1 Magt 1 3 15,000 45,000
Direct
2 Labour 2 3 10,000 60,000
Indirect
3 labour 1 1 10,000 10,000

total 115,000
UNIT COST FOR 3MONTHS 153.33
3.9 Availabilty of Labour

S/NR ITEM Seasonal All Year Remark

1 Mgt X
2 Direct
Labour X
3 Indirect
labour X

3.10 Worker Motivation

S/NR Item MOTIVATION 1 MOTIVATION 2 MOTIVATION 3

1 Mgt Prompt Salaries Bonuses Equity
2 Direct Labour Prompt Salaries Bonuses
3 Indirect labour Prompt Salaries Bonuses
3.11 Expected Overheads per Operational Cycle( in Months)
S/NR Item Time Qty Unit Rate Amount
1 Electricity 3 10 kwh 250 7,500.00
2 Water 3 140 ltres 25 10,500.00
3 Transport 2 1 item 7000 14,000.00
4 Fuel 3 10 ltres 165 4,950.00
5 ICT 3 1 item 1000 3,000.00
Total 39,950.00
UNIT COST FOR 3MONTHS 53.27

6 EXPECTED NR. OF 100kg RICE PADDY 300

7 EXPECTED NR. OF 100kg MAIZE 450
TOTAL PRODUCTION PER CYCLE 750

8 UNIT COST PER 100kg RICE PADDY 7,043

9 UNIT COST PER 100kg of MAIZE 6,043
4.0 MARKETING PLAN
4.1 MARKETING AREA AND TARGET CUSTOMERS
S/NR Products Area Target Customer Expectd Mkt Share
1 100KG RICE PADDY Super mkts/ Individuals 1%
2 100KG MAIZE Super mkts/ Individuals 1%
3

4.2 Demand Pattern for Products

S/NR Products Area Low FESH FISH High Remarks
1 100KG RICE PADDY BAUCHI X
2 100KG MAIZE BAUCHI X

4.3 Products,Production Costs and Proposed Selling Price

S/NR Products Unit Prod Cost Overhead +Profit Selling Price Remarks(Optional)
1 100KG RICE PADDY 7,043 20.00% 8,451
2 100KG MAIZE 6,043 20.00% 7,251
3

4.4 Expected Production Output Per Cycle of 3 months @ 5% steady increase

S/NR Products M1-M3 % INCRE. M4-M6 % INCRE. M7-M9
1 100KG RICE PADDY 300 0% 315 5% 331
2 100KG MAIZE 450 473 496
1a Sales for 100KG RICE PADD 2,535,336.00 2,662,102.80 2,795,207.94
2a Sales for 100KG MAIZE 3,263,004.00 3,426,154.20 3,597,461.91
M10-M12 % INCRE. M13-M15 % INCRE. M16-M18
1 100KG RICE PADDY 347 5% 365 5% 383
2 100KG MAIZE 521 547 574
1a Sales for 100KG RICE PADD 2,934,968.34 3,081,716.75 3,235,802.59
2a Sales for 100KG MAIZE 3,777,335.01 3,966,201.76 4,164,511.84
M19-M21 M22-M24
1 100KG RICE PADDY 402 5% 422 5%
2 100KG MAIZE 603 633
1a Sales for 100KG RICE PADD 3,397,592.72 3,567,472.36
2a Sales for 100KG MAIZE 4,372,737.44 4,591,374.31
% INCRE. % INCRE.
1 100KG RICE PADDY 0 5% 0 5% 0
2 100KG MAIZE 0 0 0
1a Sales for 100KG RICE PADDY
2a Sales for 100KG MAIZE

4.5 Sales & Promotional Strategies

S/NR Strategy 100KG RICE 100KG MAIZE Remarks
1 Radio Adverts X
2 TV Adverts
Social Media
3 Outdoor X
4 displays
5 Fliers
6 Door to door
sales
7 Discounts X X
8 Free Delivery X
emarks(Optional)

% INCRE.
5%
5%

% INCRE.
5%

5%
5%

% INCRE.
5%
5.0 ORGANISATIONAL AND MANAGEMENT PLAN
5.1 Organisational Structure Models
S/NR Model 1 Model 2 Model 3 Remarks(
1 OWNER OWNER OWNER Model 3 is the most
2 MANAGER OWNER-MGR OWNER-MGR- suitable for this
WORKER business
3 WORKERS WORKERS
WORKERS

5.2 Strengths,Weaknesses,Opportunities and Threats

(SWOT ANALYSIS)
S/NR Items Descriptions Remarks
1 Strengths Adequate capital & customer base
2 Weaknesses Highly competitive market
3 Opportunities Daily demand
4 Threats Irratic sources of materials
5 Risks

5.3 Risks and Mitigations

S/NR Risks Mitigations Remarks
1 Theft and banditry Provision of secured Farm Areas
2 Irratic source of feedAlternative sources of feeds
3 Low Purchasing Expanding market horizon
4 power
Competition Provision of high quality and healthy Grains
5 Pricing Affordable and competative prices
6.0 Monthly Sales and Cost Plan

S/Nr ITEMS MTH I MTH 2 MTH 3 MTH 4 MTH 5 MTH 6 MTH 7 MTH 8 MTH 9 MTH 10 MTH 11 MTH 12
1.0 Sales
1.1 100KG RICE PADDY 0.00 0.00 2,535,336.00 0.00 0.00 2,662,102.80 0.00 0.00 2,795,207.94 0.00 0.00 2,934,968.34
1.2 100KG MAIZE 0.00 0.00 3,263,004.00 0.00 0.00 3,426,154.20 0.00 0.00 3,597,461.91 0.00 0.00 3,777,335.01
1.3
1.4
Total Sales 0.00 0.00 5,798,340.00 0.00 0.00 6,088,257.00 0.00 0.00 6,392,669.85 0.00 0.00 6,712,303.34
2.0 EXPENSES
2.1 Staff Salaries 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33
2.2 Operational Cost 115,000.00 0.00 0.00 115,000.00 0.00 0.00 115,000.00 0.00 0.00 115,000.00 0.00 0.00
2.3 Loan Repayment 0.00 0.00 0.00 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33
2.4 Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.5 Loan Interest 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03
2.6 Bank Charges 87,956.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 244,343.36 41,387.36 41,387.36 223,020.69 108,020.69 108,020.69 223,020.69 108,020.69 108,020.69 223,020.69 108,020.69 108,020.69
3.0 Gross Profit(1-2) -244,343.36 -41,387.36 5,756,952.64 -223,020.69 -108,020.69 5,980,236.31 -223,020.69 -108,020.69 6,284,649.16 -223,020.69 -108,020.69 6,604,282.65
4.0 PIT/CIT 2% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.0 Net Profit -244,343.36 -41,387.36 5,756,952.64 -223,020.69 -108,020.69 5,980,236.31 -223,020.69 -108,020.69 6,284,649.16 -223,020.69 -108,020.69 6,604,282.65

S/Nr ITEMS MTH 13 MTH 14 MTH 15 MTH 16 MTH 17 MTH 18 MTH 19 MTH 20 MTH 21 MTH 22 MTH 23 MTH 24
1.0 Sales
1.1 100KG RICE PADDY 0.00 0.00 3,081,716.75 0.00 0.00 3,235,802.59 0.00 0.00 3,397,592.72 0.00 0.00 3,567,472.36
1.2 100KG MAIZE 0.00 0.00 3,966,201.76 0.00 0.00 4,164,511.84 4,372,737.44 4,591,374.31
1.3
1.4
Total Sales 0.00 0.00 7,047,918.51 0.00 0.00 7,400,314.44 0.00 0.00 7,770,330.16 0.00 0.00 8,158,846.66
2.0 EXPENSES
2.1 Staff Salaries 38,333.33 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
2.2 Operational Cost 115,000.00 0.00 0.00 115,000.00 0.00 0.00 115,000.00 0.00 0.00 115,000.00 0.00 0.00
2.3 Loan Repayment 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33
2.4 Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.5 Loan Interest 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03
2.6 Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 223,020.69 119,687.36 119,687.36 234,687.36 119,687.36 119,687.36 234,687.36 119,687.36 119,687.36 234,687.36 119,687.36 119,687.36
3.0 Gross Profit(1-2) -223,020.69 -119,687.36 6,928,231.15 -234,687.36 -119,687.36 7,280,627.07 -234,687.36 -119,687.36 7,650,642.80 -234,687.36 -119,687.36 8,039,159.30
4.0 PIT/CIT 2% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.0 Net Profit -223,020.69 -119,687.36 6,928,231.15 -234,687.36 -119,687.36 7,280,627.07 -234,687.36 -119,687.36 7,650,642.80 -234,687.36 -119,687.36 8,039,159.30
7.0 Projected Monthly Cash Flow Statements
S/Nr ITEMS MTH 1 MTH 2 MTH 3 MTH 4 MTH 5 MTH 6 MTH 7 MTH 8 MTH 9 MTH 10 MTH 11 MTH 12
1.0 Beginning Cash Bal. 0.00 3,529,556.64 3,488,169.28 9,178,488.58 8,955,467.89 8,847,447.19 14,827,683.50 14,604,662.81 14,496,642.11 20,781,291.27 20,558,270.57 20,450,249.88
2.0 Cash Receipts
2.1 Sales 0.00 0.00 5,798,340.00 0.00 0.00 6,088,257.00 0.00 0.00 6,392,669.85 0.00 0.00 6,712,303.34
2.2 Equity 1,575,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.3 Expected Loan 2,198,900.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Receipts 3,773,900.00 3,529,556.64 9,286,509.28 9,178,488.58 8,955,467.89 14,935,704.19 14,827,683.50 14,604,662.81 20,889,311.96 20,781,291.27 20,558,270.57 27,162,553.22
3.0 EXPENSES
3.1 Staff Salaries 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33
3.2 Operational Cost 115,000.00 0.00 0.00 115,000.00 0.00 0.00 115,000.00 0.00 0.00 115,000.00 0.00 0.00
3.3 Loan Repayment 0.00 0.00 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33
3.4 Loan Interest 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03
3.5 Bank Charges 87,956.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.6 Other Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 244,343.36 41,387.36 108,020.69 223,020.69 108,020.69 108,020.69 223,020.69 108,020.69 108,020.69 223,020.69 108,020.69 108,020.69
4.0
Cash surplus/Deficit 3,529,556.64 3,488,169.28 9,178,488.58 8,955,467.89 8,847,447.19 14,827,683.50 14,604,662.81 14,496,642.11 20,781,291.27 20,558,270.57 20,450,249.88 27,054,532.53
4.0 Ending Cash Bal 3,529,556.64 3,488,169.28 9,178,488.58 8,955,467.89 8,847,447.19 14,827,683.50 14,604,662.81 14,496,642.11 20,781,291.27 20,558,270.57 20,450,249.88 27,054,532.53

S/Nr ITEMS MTH 13 MTH 14 MTH 15 MTH 16 MTH 17 MTH 18 MTH 19 MTH 20 MTH 21 MTH 22 MTH 23 MTH 24
1.0Beginning Cash Bal. 27,054,532.53 26,831,511.83 26,723,491.14 33,663,388.95 33,440,368.26 33,332,347.56 40,624,641.30 40,401,620.61 40,293,599.92 47,955,909.38 47,732,888.68 47,624,867.99
2.0Cash Receipts
2.1Sales 0.00 0.00 7,047,918.51 0.00 0.00 7,400,314.44 0.00 0.00 7,770,330.16 0.00 0.00 8,158,846.66
2.2Equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.3Expected Loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Receipts 27,054,532.53 26,831,511.83 33,771,409.65 33,663,388.95 33,440,368.26 40,732,662.00 40,624,641.30 40,401,620.61 48,063,930.07 47,955,909.38 47,732,888.68 55,783,714.65
3.0 EXPENSES
3.1 Staff Salaries 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33
3.2 Operational Cost 115,000.00 0.00 0.00 115,000.00 0.00 0.00 115,000.00 0.00 0.00 115,000.00 0.00 0.00
3.3 Loan Repayment 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33 66,633.33
3.4 Loan Interest 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03 3,054.03
3.5 Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.6 Other Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 223,020.69 108,020.69 108,020.69 223,020.69 108,020.69 108,020.69 223,020.69 108,020.69 108,020.69 223,020.69 108,020.69 108,020.69
4.0
Cash surplus/Deficit 26,831,511.83 26,723,491.14 33,663,388.95 33,440,368.26 33,332,347.56 40,624,641.30 40,401,620.61 40,293,599.92 47,955,909.38 47,732,888.68 47,624,867.99 55,675,693.96
4.0 Ending Cash Bal 26,831,511.83 26,723,491.14 33,663,388.95 33,440,368.26 33,332,347.56 40,624,641.30 40,401,620.61 40,293,599.92 47,955,909.38 47,732,888.68 47,624,867.99 55,675,693.96