OJARA``S DAIRY FARM

P.O BOX 719

MOI’S BRIDGE

TELEPHONE 072855124

ENTREPRENEURIAL BUSINESS PLAN

PRESENTED BY : ONYANGO GEORGE OJARA.

INDEX NO : 5411010855

DEPARTMENT : BUILDING AND CIVIL ENGINEERING.

COURSE : DIPLOMA IN BUILDING TECHNOLOGY.

PAPER CODE : 305B

COURSE CODE : 2705

INSTITUTE : OL`LESSOS TECHNICAL TRAINING INSTITUTE

PRESENTED TO : KENYA NATIONAL EXAMINATION COUNCIL

DATE OF PRESENTATION: NOVEMBER / DECEMBER 2021

 EXECUTIVE SUMMARY

1.0 BUSINESS DESCRIPTION

The business name will be Ojara Dairy FARM”. It will be located in Moi’s Bridge Town

on the outskirts of Kitale Town, Kitale – Eldoret Highway.

Most of its operations will be within the town, however if pension after establishment

will take place it will take it’s products and services to other neighbouring towns and

places. The business is a sole – proprietorship which is expected to supply milk and

farmyard manure within the town and other places. With a capital outlay of Kshs 650,000

the business will specialize on supply of milk and rare animals (Cows).

2.0 MARKETING PLAN

The proposed business will serve commercial customers, domestic and institutional

customers. the business is targeting the traders dealing with supply of milk and it’s

products. Domestic customers, the business is targeting people living around the dairy

farm and those living in the nearby centers. Under institutional customers, the business is

targeting neighbouring school like, Riverbank academy, Moi’s Bridge High School, Star

of the Sea Academy, Moi’s Bridge Health Centre, Milimani High School, Eshikulu

Secondary School. Commercial customers will be those people operating small diary

joints. Advertisement and promotion of the business will be done by various means, i.e.

posters word of mouth. Supply of milk will be by bicycles, motorbikes and vehicles. The

pricing will be lower compared to other dairies i.e. lower. The business is expected to

enjoy a market share of 37.5 %.

3.0 ORGANIZATION PLAN AND MANAGEMENT

 The management of the business will be done by the proprietor of the proposed business

with the help of his assistant and an accountant . There will also sales persons to market

the milk, all this will have relevant qualifications for the jobs. The business will get some

supportive and advisory services from banks, postal services, insurance, lawyers and

Auditors. Afterwards the business will have to pay permits and licenses of Kshs 2,400 per

annum, Dairy Board of Kenya Kshs 4,000 per annum. Total for salaries will sum up to

Kshs 48,900 per annum.

4.0 OPERATIONAL PLAN AND PRODUCTION PLAN

The business will ensure there is adequate, steady supply of milk throughout the year.

This is by provision of enough animals feed in the store and water.

The production steps will be milking, boiling, culturing, cooling and finally supplying

the milk. A qualified veterinary will ensure that animals are in good health all the season

of the year. Some necessary equipment will be purchased monthly and some expenditure

incurred. The total amount for production cost will be Kshs 146,200, total amount for raw

materials Kshs 94,000, total amount for labour requirement Kshs 48,900. Production and

facilities will total to Kshs 341,200.

5.0 FINANCIAL PLAN

The proposed capital for BRIDGE WAY DAIRY FARM to start is expected to be Kshs

650,000 from which the proprietor expects to invest; there will also be a loan of Kshs 200,000,

which he will start at the beginning of the year. Sales will be estimated to Kshs 2,000,000 in

the first year hence increment to the second and third year respectively. The working capital

for the year estimation being Kshs 1,106,900, owner’s equity Kshs 981,900 while a loan of
Kshs 200,000 will be borrowed from Barclays Bank. The annual net profit for the first three

years is expected to be Kshs 1,186,900, Kshs 1,378,720, Kshs 1,674,220 respectively.