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Business plan

Name

Institution

Date
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Business Plan

Executive Summary

Ceram Agrofarm Company is a new agricultural Company that specializes in livestock

farming. The livestock ranges from goats to cows. Currently, all our livestock are for meat.

Shortly, Ceram Agrofarm Company aims at rearing dairy goats and cows. Our vision is to be the

highest producing milk and meat company in the West.

To succeed in being the best, our management has come up with a few recommendations.

Firstly, the company aims at attracting the local market. To achieve this, we will get our supplies

from within and form partnerships with locals on essential supplies such as feeds and

medication. Currently, we are importing feeds from other suppliers but as the business catches

up, the company aims at starting a feed production unit. That will help in reducing the high cost

of feeds and eventually attract more profits.

Secondly, the company seeks to drill and employ competent and experienced staff.

According to the proposal made by the research team, employees with experience are likely to

reduce the cost of damages and are in a better position to handle livestock appropriately. Since

our company is located in a tick and tsetse fly-infested area, experienced employees who can

discern diseases instantly will be more beneficial to our company. The fact that experienced

employees require more resources is a drawback to our company which still depends on capital

from the owners.

Our company is currently having financial crisis and it might take some time before the

company gains financial stability. The company is still in a first trial juncture and the main

financial setback is that the financial quotations are not adding up. Once financial stability is

achieved, we are optimistic that the constraints will reduce and the business will further grow to
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a first-class Agrofarm company. Upon achievement of the stability goals, the main need of the

company will be the market for our products. The company management aims at fulfilling the

customer’s needs and satisfaction.

Goals and Objectives

The primary purpose of the business is raising livestock for meat and milk purposes. The

business has the following strategies and goals:

Key Business strategies;

1. Set goals and work towards achieving the goals

2. Sharpen the management and marketing skills of our employees

3. Search for the best livestock keeping practices

4. Motivate our staff regularly to enhance productivity

5. Employ high impact marketing

6. Keep financial score

Business goals;

1. To enhance productivity

2. Earn profits from the business

3. Gain stability

4. Attain diversity

5. Be a flexible business

6. Attain time dispersion

7. Sustainability

8. Be a compatible business with the environment and be complementary

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Company Background

Our company was founded in July 2021. We started as a goat-keeping company where

we had four dozen goats and 5 employees. Over the past few months, our company has grown

from a goat-keeping company to a livestock company where we rear cows and goats. We are

presently keeping the livestock for meat purposes. Shortly, we intend to keep dairy cows and

goats and expand our business further.

For the few months that the business has been running, we have managed to have a

couple of strengths. Firstly, our company has been able to maintain the hygiene and

environmental conditions that favor our livestock. Vaccines have also been offered on time and

feeding did appropriately. On that note, our livestock has not been infected by any illnesses or

malnutrition. Secondly, the company’s proximity to the market is an advantage. The fact that the

employees are passionate, skilled, and experienced in handling livestock is also a strength

evident in the company.

On the other hand, the company has reported a few weaknesses as well. One of the

primary weaknesses of the company is financial management. The finance department has not

yet attained high levels of stability, balancing, and accountability. The improper management has

therefore attracted losses that could otherwise be minimized. Secondly, The company is having a

problem in communication with business partners. The measures that have been put in place to

work on improving communication are still underway and hopefully, the problem will soon get a

solution.

Ownership, Management, and Human Resources

The company is a family business. The business is owned by two siblings who inherited

ownership barely two months after the commencement of the company operations. The two
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siblings are shareholders and each of them has half of the company’s shares. The succession plan

of the company is on the owner's children. Their father is the managing director of the company.

The human resource manager is however a professional who is not a member of the family. The

dividends of the company are equally shared by the two siblings who own the company. Their

father who is the manager of the company gets paid just like any other employee.

Moreover, the company currently has twenty employees working in different

departments. Going forward, the company plans to increase the number of employees as the

company grows. There are employees tasked with feeding and cleaning livestock houses. They

are the least paid employees followed by the team leaders who ensure that the general workers

do the correct thing. There is also the sales and marketing team who ensure that sales are made

and profits realized. Lastly, we have a manager who currently serves as the bursar and the

finance professional. Going forward, the company seeks to increase posts and skilled employees

to ease work and increase productivity.

Financial positions and Projections

Currently, the business has run for a few months and the projections cannot be accurate

yet. However, as a result of the increasing trends of productivity and growth, the company will

be able to make future projections at the end of this year. Below is a balance sheet for the

previous year's sales.

BALANCE SHEET AS OF 31ST DECEMBER 2021

ASSETS

1 CURRENT ASSETS
A/C RECEIVABLES 80000
INVENTORY 5000
PREPAID EXPENSES 2000
CASH 50000
OTHER CURRENTASSETS 3000
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WORKING CAPITAL 20000

TOTAL CURRENT ASSETS 160000

2 FIXED ASSETS
LAND AND BUILDINGS 1000000
PLANT AND MACHINERY 200000
SHARES, BONDS, 10000
LIVESTOCK- RAISED 220000
LIVESTOCK-PURCHSED 50000

TOTAL FIXED ASSETS 1480000

TOTAL ASSETS 1640000

LIABILITIES

1 CURRENT LIABILITIES

A/C PAYABLE 20000

CREDIT CARD PAYMENT 3000
TERM LOAN 55000
INTEREST OF TERM LOAN 32000
INCOME TAX FEDERAL 10000
OTHER CURRENT LIABILITIES 10000
TOTAL CURRENT LIABILITIES 130000

2 LONG TERM LIABILITIES

MORTGAGE PAYABLE 1150000

LONG TERM LOANS PAYABLE 330000

TOTAL LONG TERM LIABILITIES 1480000

OWNERS EQUITY 30000

TOTAL INVESTMENTS 30000

TOTAL LIABILITIES AND OWNERS EQUITY 1640000

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Products and Services

Our company offers the sale of meat and livestock skin. Shortly, the company will supply

milk as well. The cow dung from our cows is usually burnt and freely given to the residents as

fuel. That generosity has made the company unique and attracted more customers due to its

uniqueness.

Target Market

The potential market for our products comprises a range of individuals. The first group is

domestic consumers of beef and milk. Most households do not have livestock and depend on

commercial vendors for the products. The second potential market would be the shoemakers who

use wool in the production and repair of shoes for commercial use. The business also targets

dairy companies and butcheries. Most of the clients that the company has heard so far are mostly

individuals who purchase a small number of our products for domestic use. Some have made

routine orders for hotel use and make payments monthly. The company aims at attracting more

tenders and markets as it grows and the products and services replicate.

Industry Analysis

The company is based in a business-oriented area but livestock farming is not prominent.

The few livestock owners are small-scale farmers who in most cases supply dairy products. Most

of the meat consumed in the area is imported from far towns. There has been an increasing trend

of livestock farming ever since the meat importation crisis surfaced and most livestock farmers

are currently shifting from dairy farming to the provision of meat. The business competitiveness

and the government policy which banned overly refrigerated animal protein products have also

been a threat to the industry. To research, the company anticipates being the number one meat
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and dairy product producer in the west. The company also aims to serve more clients as time

progresses. The fact that most farmers around are small-scale farmers presents an opportunity to

our company which has flexible and a diverse range of products. With the diversity, our

company is projected to salvage through all the challenges and competition present in the

industry to turn out as the most popular company around.

Competition

The competitive advantage of businesses of this nature is that the competition motivates

employees to offer the best services to remain at the top of the rank. The business has

competition from small-scale livestock farmers and farmers who have been in this business

previously. Some customers value consistency and would still wish to stick to their long-term

suppliers. The competition therefore encourages and compels the company to offer the best

products and services to attract new customers.

Marketing and Sales Plan

The company has various marketing and sales plans. The plan that will prove to be the

most effective one will permanently be adopted and the others dismissed upon trial. The first

marketing plan will be advertising our products in media houses and on our company website.

The company aims at employing a marketing team soon. The company will also accept routine
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tenders from individuals and institutions. The tenders can comprise either meat or dairy orders.

There will equally be weekly expos where individuals will be allowed into the company and

clearance sales made. In the future, the company seeks to start a sales unit where clients can walk

in any time of the day and get served.