BUSINESS PLAN

ZAMBIA AGROVET

P.O BOX 59- 100810- KITUI

TEL.NO: 0112028852
Email: zambiaagrovet@gmail.com
PRESENTED BY: BAHATI FREDRICK SIFA
COURSE CODE: 2927
UNIT CODE: 108
REGISTRATION NO: C076//1971/2021
SUPERVISED BY: Dr. AMOS
SUBMITTED TO: KENYA NATIONAL EXAMINATIONAL COUNCIL
DATE OF PRESENTATION: APRIL 2022
DECLARATION
I hereby truthfully declare that this business plan is my original work and it has never been
presented anywhere to any examination board.

AUTHOR: BAHATI FREDRICK SIFA

SIGNATURE: ……………………………

DATE: APRIL 2022

SUPERVISOR: Dr. AMOS

SIGNATURE: ………………………

DATE: ……………………………
DEDICATION

I kindly dedicate this business plan to my family and friends for their moral and financial support
During the entire project section.

Special dedication to my lecturer Dr. Amos for giving me guidance and entrepreneurial skills
needed for this project to be accomplished.
ACKNOWLEDGEMENT

My special thanks and gratitude for assistance and preparation and presentation of this business
plan goes to my lecturer Dr. Amos.
 TABLE OF CONTENTS
ACKNOWLEDGEMENT
PREFACE
INTRODUCTION
COVER PAGE
PRELIMINARY PAGE

CHAPTER ONE
Executive summary……………………………………………………………………………….6
Business description …………………………………………………………………………….6
Marketing plan ………………………………………………………………………………….6
Organization and management plan.………………………………………………………….6
Production and operational plan………………………………………………………………6
Financial plan……………………………………………………………………………………7

CHAPTER TWO
Business description……………………………………………………………………………8
Business name………………………………………………………………………………….8
Business location and address…………………………………………………………………8
Form of ownership…………………………………………………………………………….10
Type of business……………………………………………………………………………….10
Products and services…………………………………………………………………………10
Justification of opportunities…………………………………………………………………11
Industry……………………………………………………………………………….……….12
Goals of business………………………………………………………………………………13
Entry and growth strategies………………………………………………………………….14

CHAPTER THREE
Customers………………………………………………………………………………………15
Market share……………………………………………………………………………………16
Competition……………………………………………………………………………………17
Method of promotion and advertising……………………………………………………….18
Pricing strategy……………………………………………………………………………….19
Sales tactics……………………………………………………………………………………20
Distribution strategy…………………………………………….……………………………20

CHAPTER FOUR
Organization and management plan………………………………………………….………21
Organization structure…………………………………………………………………………21
Key management personnel……………………………………………………………………21
Other business personnel………………………………………………………………………22
Recruitment training and promotion of personnel…………………………………………...23
Renumeration and incentives for personnel…………………………………………………..24
License, permits and by laws…………………………………………………………………..25
Other support services………………………………………………………………………….25
CHAPTER FIVE
5.0 Operational and production plan………………………………………………………….26
Production facilities and capacity……………………………………………………………...26
Production strategies…………………………………………………………………………...27
Production process……………………………………………………………………………...27
Regulations affecting operations………………………………………………………………28
CHAPTER SIX
6.0 Financial plan……………………………………………………………………………….29
Pre-operational cost…………………………………………………………………………….29
Working capital…………………………………………………………………………………30
Proforma income statement……………………………………………………………………30
Proforma balance sheet………………………………………………………………………...31
Break-even point………………………………………………………………………………..32
Profitability ratios………………………………………………………………………………33
Desired financing proposed capitalization……………………………………………………34
Projected cashflow statement…………………………………………………………………..35
Appendices………………………………………………………………………………………36
 CHAPTER ONE
1.0 EXECUTIVE SUMMARY
It briefly describes the business nature in respect to business description, marketing plan,
organization and management plan and financial plan of the business.

1.1 BUSINESS DESCRPTION

The business will be a sole proprietorship ownership, which will sell farm products and
veterinary services such as agrochemicals and animal feeds.
It will be located in Kitui County on the first floor of Kwa Vonza trading center.

1.2 MARKETING PLAN

The business environment will provide ready market and favorable market share due to high
population of potential customers. Promotion and advertisement of the farm products will be
done through media, exhibitions and educational literature. The business will operate in
discounting, market pricing with a zero channel distribution method over counting purchasing.

1.3 ORGANIZANIONAL AND MANAGEMENT PLAN

The business will be owned and managed by single general manager with the help of other
personnel such as accountant, sales clerk, production assistant manager and veterinary doctor.
The management will ensure licensing of the business, remuneration of its employees will be
done according to employees qualification and working experience.

1.4 PRODUCTION AND OPERATIONAL PLAN

The business will commence its early daily operations from 8:00 a.m to 8:00 pm. Modern
technology machinery will be used to ensure efficiency in production.
The business will incur monthly expenses for production such as labour cost, raw materials cost
and production of finished goods and distribution.
Rules and regulations that bind the business will be catered for to ensure maximization of sales
cost of production.
 1.5 FINANCIAL PLAN
Cash required starting and progress the business is approximately Kshs 500,000. This will be
used to purchase machinery products and equipment, fixed assets, production cost and purchase
raw materials. This includes pre-operational and registration of the business, the business will be
financed by:
Bank loan from Kenya Commercial Bank Kshs 120,000
Personal savings Kshs 200,000
Family and friends contribution Kshs 180,000
In return of the financial gross profit this will be 60% of services offered to customers and goods
return on investment.
 CHAPTER TWO
2.0 BUSINESS DESCRIPTION

2.1 BUSINESS NAME

The name of the proposed business will be ZAMBIA AGROVET ; the name is derived from the
owners’ fathers’ agrovet in Taita-Taveta county. The name of the business is also easy to read
and remember. The business owner will acquire a certificate of registration from the county
council of Kitui County.
ZAMBIA AGROVET is a business owned under sole proprietorship. The business will sell farm
products and services such as agrochemicals, animal feeds and seeds. It will also provide
veterinary services such as deworming, cleaning and vaccination of livestock such as cows, pigs,
cats and dogs.
The business will be financed by the owner and his fathers’ contribution which after sale will use
the profit and return to venture by opening other branches.
Its main objective is to ensure effective supply and availability of farm products and services to
its customers.
2.2 BUSINESS LOCATION AND ADDRESS
The business will be located in Kitui county. It will be situated on Kwa Vonza trading center
building first floor door number 4 next to REMBO COSMETICS. The business will be directly
opposite Kwa Vonza petrol station along the Machakos-Kitui highway.
The business address will be:
ZAMBIA AGROVET
P.O BOX 59-100810, KITUI
TEL: 0112028852
Email: zambiaagrovet@gmail.com

2.3 FORM OF OWNERSHIP

The business will be sole proprietorship type of business. There are many factors and reasons
why the business is preferred as a sole proprietorship form of ownership:
1. The business is easy to form and dissolve, it does not require many people to start and
maintain is the owner himself.
 2. There is freedom in decision making and implementation of policies, strategies of how
the business is supposed to be run and the activities involved.
3. The business owner enjoys all the benefits that are occurring in the business alone since
he is the person to integrate co-ordinate the business and account for the losses incurred
and the profit gained.
4. It fosters creativity and innovation enabling the proprietor to exploit his talents and
abilities without limitations.

Contributor Amount (Kshs) Percentage(%)

Personal Savings 120,000 24
Friends & family contribution 200,000 40
Loan from bank 180,000 36
Total 500,000 100

2.4