Tshiamo poultry

THE CHICKEN. THE BEST

Company address CONTACT DETAILS
Moteti B Dennilton Limpopo TEL: 013 110 9495
FAX: 013 110 9496
EMAIL: Admin@tpoultry.co.za

FIND US
Web: www.Tshiamopoultry.co.za

Information provided in this business plan is unique to this business and confidential; therefore,
anyone reading this plan agrees to not disclose any of the information in this business plan without
prior written permission of the company.

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Table of contents

EXECUTIVE SUMMARY
Objectives 5
Mission to success 5
Key to success 5
Financial summary 6
Net Income 6
Chart 6
BUSINESS OVERVIEW
Company Ownership 6
Owners 6
Location and facilities 6
MARKET ANALYSIS 7
Industry Analysis 7
Challenges facing the poultry industry 7
Market segmentation 7
Chart 7
Target market segment strategy 8
Market trends 9
START SUMMARY 10
Start costs 10
PRODUCTS AND SERVICES 10
Products description 11
Future products 11
Service Description 11

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 Future services 11
COMPETITIVE ANALYSIS 11
Competition 12
Competitive edge 12
MARKETING STRATEGY AND IMPLEMANTATION 12
Marketing Strategy 12
Pricing and promotion strategy 13
Web strategy 13
Sales strategy 13
SWOT analysis 13
PEST analysis 14
Socio- cultural 14
Technological 14
Economic 14
Political 14
MANAGEMENT AND ORGANIZATION STRUCTURE 15
Management team 15
Organizational structure 15
Tshiamo Ramatji 15
Temosho Ramatji 15
Remofilwe Ramatji 15
Sinah Ramatji 15
Enisha Ramatji 16
Minah Ramatji 16
Tumelo Ramatji 16
Hiring plan 16
FINANCIAL PLAN 16

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 Financial risks 18
Health risks 18
Technological risk 19

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1.
EXECUTIVE SUMMARY

Objectives
Mission statement
Keys to success
Financial summary

Tshiamo poultry is farm focused on both and meat production that

provides for a large market range. It also produces manure as a by-
product. It is based in Dennilton, Groblersdal Limpopo. The founders
have noticed the health implication of red meat and are creating
business to meet the increased demand for white and eggs.

OBJECTIVE
Tshiamo poultry will measure its success by its ability to achieve the
following objectives
 Becoming the best poultry that produce quality eggs and meat as
we focusing on the eggs production
 Complying with the rules and regulation to measure the standards
of eggs production in the country.
 Maintain 50% gross margin ratio
 Turn in profits from the first six weeks
 Winning the hearts and taste of our beloved consumers and
establishing a brand image of campaigns in the first one year.

MISSION STATEMENT
Tshiamo poultry’s mission is to provide customers with quality, fresh,
and valuable products. To respect all employees and enable everyone to
have a say in company affairs. Quality and service are number one

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priority. To provide investors with opportunities to receive a nice return
on investment and high-quality growth.
KEYS TO SUCCESS
Tshiamo poultry will follow these principles in order to achieve success
in its market:
 State of art cage framework accommodating an optimum number
of chicken with lessened possible hazards.

FINANCIAL SUMMARY

NET INCOME

NET INCOME
350000

300000

250000

200000

150000

100000

50000

0
SALES PROFIT MARGIN NET PROFIT
-50000

YEAR 1 YEAR 2 YEAR 3

FINANCIAL YEAR SALES GROSS MARGIN NET PROFIT

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YEAR1 60000 40000 -30000
YEAR2 160000 90000 40000
YEAR3 310000 200000 150000

2. OVERVIEW BUSINESS

COMPANY OWERSHIP
LOCATION

COMPAY OWERSHIP
TSHIAMO poultry is owned by seven persons. They are namely
Tshiamo Ramatji, Temosho Ramatji, Kamogelo Ramatji, Remofilwe
Ramatji, Sinah Ramatji, Minah Ramatji, Enisha Ramatji.it is partnership
and each person has an equal share in the business and is also equally
liable for any business debts or claim.

OWNERS
1. TSHIAMO RAMATJI 14,29
2. TEMOSHO RAMATJI 14,29
3. KAMOGELO RAMATJI 14,29
4. REMOFILWE RAMATJI 14,29
5. SINAH RAMATJI 14,29
6. MINAH RAMATJI 14,29
7. ENISHA RAMATJI 14,29

LOCATION AND FACILITIES

At this point in the business, we don’t an exact point yet but we have
narrowed the location down to Moteti, Groblersdal Limpopo. 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

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and it has a stable economic base that promotes a healthy environment
for the people of Moteti.
3.
MARKET ANALYSIS

Industry Analysis
Challenges facing the poultry
Market segmentation
Target market segment strategy
Market trends

INDUSTRY ANALYSIS
The poultry industry in the last 40 years has shown dramatic changes in
both domestics and international environments. Those environments
forces include are classified into 2 categories:
 The internal force
 The external force

CHALLENGES FACING THE POULTRY INDUSTRY

Poultry farming has some challenges that need to be attended to with
vigor. Below are some of the common challenges that are faced by
poultry farmers.
 Death chickens in poultry one or many chickens usually die because
of their fragile and weather they are living conditions.

MARKET SEGMENTATION
Although in the South Africa populace, there are few taboos, religious or
cultural practices that will not prevent the consumption of poultry
products. During the market segmentation, we found out that nearly
everybody eats eggs and meet, so we are targeting the whole market,

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individuals, homes and firms that use eggs and chicken in large
quantities, Specifically the retail shops.

Market segmentation and market share

Other Hotel and

10% restaurants
Idividuals
10% 20%

Bakeries and food

Home
joints
20%
20%
Retail shops
20%

Hotel and restaurants Bakeries and food joints Retail shops Home Idividuals Other

TARGET MARKET SEGMENT AND STRATEGY

Individuals are a small sector in the market segmentation. They are
pretty large group but they buy a relatively small amount of eggs.
The part of the market that we hope to supply a large number of eggs to
are industries that need eggs. We have strategically improve to have a
large market to supply in the retail and home by 13% of the market.

MARKET TRENDS
While some countries are reputed to be important exporters of poultry
products, South Africa has a problem of meeting its local demand for
poultry products. This problem started for the poultry market in 1984
when the federal government banned the importation of maize. They
had quite effect declining poultry production.

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4.
STARTUP SUMMARY
Startup cost
Our business has start-up cost and we will need a bank account. We
chose our bank to be NETBANK because of its proximity in the area.
This section of the plan shows projected start-up costs prior to our
opening.
The following are the start-up costs of Tshiamo poultry

STARUP COSTS
ITEMS COSTS
Business card 200
Printer 2500
Leaflets 150
Blank invoices 500
Computers 5600
Internet 400
Insurance 1500
Land 400
Building 5000
Advertising/marketing 200
Others 900
TOTAL 16950

EQUIPMENT COSTS(S)
Feeders and drinkers 15000
Crates 1000
Lighting system 10000
Egg tray 3000
Cages 2000
Others 1000
TOTAL EQUIPMENT 32 000

5.
PRODUCTS & SERVICES

PRODUCT DESCRIPTION

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FUTURE PRODUCTS
SERVICE DESCRIPTION
FUTURE SERVICE

PRODUCT DESCRIPTION
We offer chicken eggs and chicken meat that will be gotten from layers
and broilers to our target market. We plan to take pride in the
uncompromising quality of our products. We also offer fertilizer in the
form of chicken manure. This is mostly used in vegetable farming and as
ingredient for food in fish farming. Tshiamo poultry also offer high quality
products that are suitable for the market.

FUTURE PRODUTS
We have big plans for the future. We plan on supplying cracked
eggshells for some detergent companies for use. These special
detergents are used in washing basins and pots. Another thing we have
planned for the future is the sale of processed chicken meat.

SERVICE DESCRIPTION
We plan on servicing our customers by providing home delivery for
customers who are willing to buy at least a certain amount of our
products.

FUTURE SERVICES
In the future, we plan on creating a restaurant that has eggs as its main
menu. It will be like a breakfast restaurant. In the future, if this business
gets large enough, we would also like to own bakery. A major ingredient
in most baked goods is eggs and we will be funding that through the
poultry.

6.
COMPETITIVE ANALYSIS

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COMPETITION
COMPETITIVE EDGE
COMPETITION
Competition is not so keen on the markets, however, it still exits. The
reasons are:
 Poultry products are not branded products, hence what usually
matters is effective positioning and timing.

COMPETITIVE EDGE
Our strength over its competitors is firstly based on the fact that we are
not entering this business to make much money. We are entering this
industry to solve the present problem that our population is facing. We
are here to provide quality affordable chicken products. We saw that
some of our competitors are seasonal they only produce their chicken at
a given period of time

7.
MARKET STRATEGY AND IMPLEMANTATION
Marketing strategy
Pricing and promotion
Web strategy
Sales strategy
SWOT analysis
PEST analysis

MARKETING STRATEGY
Tshiamo’s poultry will strive for the production of products with the
highest quality and we plan on employing the following strategies. Our
location puts us in the proximity of a major hotel, restaurant, schools with
campuses and home deliver food centres we will be supplying to. We

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would also make contracts with hawkers in markets to sell our live
chicken and meat.

PRICING AND PROMOTION STATEGY

The price of the chicken would range from R75 up to R90 depending on
the size and quality. Also, the price for a crate of eggs from R300 TO
R900. The price of a wheelbarrow of manure costs about R200. These
prices would also vary depending on the existing market price of poultry
meat and eggs. As we compete with other poultries, we will have a
implementation strategy depending on season of production.

WEB STRATEGY
Tshiamo poultry also has a website where customers can interact with
us and get a feel of what the business is about. We know a site or two
where we can place online advertisements and we would also make
mentions of our poultry in online newspapers.

SALES STRATEGY
 Better farm management practices
 Regular visit veterinary doctors
 Recycling waste as fertilizer
 “consumer is king” policy

SWOT ANALYSI

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 STRENGTHS
*Produce high-quality eggs enriched with protein
*Relatively good infrastructure systems
*Good marketing system
*Eggs and chicken are not seasonal products and can be eaten at any
time of the year
*In this area, the poultry business hasn't been over- exploited
*Poultry are enviromentally friendly
WEAKNESS
*Capital intensive. Starting a poultry business requires a large capital
funding.
*Outbreak of disease can ruin entire business in a go
*The smell can be quite disturbing

SWOT

OPPORTUNITIES THREATS
*Expansion into large scale production of byproducts( fertilizer and *More competition
detergent) *Avian diseases
*Exort to neighboring towns *High feed ingredients prices
*A large and successful poultry will ensure food security *Threat of import of frozen chicken

PEST ANALYSIS
Eating habits of our consumers will definitely affect our business. Also
the success of restaurants and other firms that order our products will
indirectly affect our business.
SOCIO-CULTURAL
A good technical infrastructure would lead to better production and
hence lower costs. Technology will also mean more effective business
marketing.
TECHNOLOGICAL
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.
ECONOMIC
This will include government policies concerning inspection by ministry
of health and organizations like
POLITICAL

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8.
MANAGEMENT AND ORGANIZATION STRUCTURE
Management team
Organization structure
Hiring plan
MANAGEMENT TEAM
The management team is simply the partners in this business. They are
Tshiamo Ramatji, Temosho Ramatji, Remofilwe Ramatji, Sinah Ramatji,
Enisha Ramatji, Minah Ramatji, Tumelo Ramatji

ORGANIZATIONAL STRUCTURE
TSHIAMO RAMATJI
Tshiamo.R@tpoultry.co.za
As the top manager, the CEO, he is typically responsible for the entire operations
and of the poultry. It is his responsibility to implement decisions and initiatives and to
maintain the smooth operation of the poultry, with the assistance of the management
team.

TEMOSHO RAMATJI
Temosho.R@tpoultry.co.za
As the COO, he looks after issues related to marketing, sales, production, and
personnel. More hands-on than the CEO, the COO looks after day-to-day activities
while providing feedback to the CEO.

REMOFILWE RAMATJI
Remofilwe.R@tpoultry.co.za
Also reporting directly to the CEO, she is responsible for analysing and reviewing
financial data, reporting financial performance, preparing budgets and monitoring
expenditures and costs. The CFO routinely checks the corporation’s financial health
and integrity.

SINAH RAMATJI
Sinah.R@tpoultry.co.za

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 She reports directly to the CEO and is a more internally oriented person focused on
technology needed for running the poultry. She is also in charge of the web designs
of the poultry.

ENISHA RAMATJI
Enisha.R@tpoultry.co.za
She is responsible for all revenue generation processes in an organization, and is
ultimately accountable for driving better integration between all revenue-related
areas.

MINAH RAMATJI
Mnah.R@tpoultry.co.za

As the CVO, he decides on the general direction of a company, and has a broad and
comprehensive knowledge of all matters related to the business of the organization
and the vision required to steer its course into the future. The CVO is generally in
charge of defining corporate strategies, working plans, and often product ideas.

HIRING PLAN
Apart from the management team, other personnel include
1. Cleaners
2. Security
3. Technician
4. General assistants
5. Administration team

9.

FINANCIAL PLAN
Projected profit and loss
Projected balance sheet

PROJECTED PROFIT AND LOSS

YEAR 1 YEAR 2 YEAR 3

SALES 29 137 172 500 315 00

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 COST OF SALES 6 799 50 350 93 600
GROSS PROFIT

EXPENSES
Payroll 5000 90 000 120 000
Marketing 180 300 400
Depreciation 6000 15 45 000
Building expense 804 400 800
Equipment expense 3 000 0 0
Utilities 5 719 8 000 15 000
Phone/fax 1 266 1 500 1 800
Legal 500 250 250
Rent 3 996 0 0
Repair maintenance 3 798 1 500 4 500
Inventory 966 1 00 2 500
Auto/truck expense 9 600 5 000 5 000

Total Expenses 40 829 107 965 195 250

Interest expense 5 788 4 877 3 077

Tax incurred 0 2 792 6 922

Net profit

PROJECTED BALANCE SHEET

ASEETS YEAR 1 YEAR 2
NON-CURRENT 1 007 800 1 128 000
ASSETS
Property ,plant 987 800 1 028 000
and equipment
Other financial 20 000 100 000
assets

CURRENT assets 171 050 572 700

Inventories 58 000 54 000
Trade and other 88 650 58 700
receivables
Cash and cash 24 000 460 000
equivalents
TOTAL ASSETS 1 178 850 1 700 700

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EQUITY AND
LIABILITIES
Capital 951 350 1 374 700

NON- CURRENT 150 000 100 000

LIABILITIES
Long-term
borrowing

CURRENT 127 500 176 000

LIABILITIES
Trade and other 127 500 176 000
payables
Bank overdraft - -

TOTAL EQUITY 1 178 850 1 700 700

AND LIABILITIES

10.
RISK ASSESMENT
FINCIAL RISKS
HEALTH RISKS
TECHNOLOGICAL RISKS

FINANCIAL RISK
 Checks in our pricing policy or that of our competitors
 Fluctuation in revenue from distributors and retailers
 Timing of costs related to acquisition or payment
HEALTH RISK
Contagious disease and virus outbreak and very deadly; if one of the
chickens should catch the disease, all of them will be affected and if It’s
not recognised and treated early it will lead to the death of all the
chickens which is a great loss for the business.

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TECHNOLOGICAL RISKS
Technology is good but they also have their disadvantages. There are
normally problems involved in using technology; the use of machine that
collects eggs may fail to work or spoil, making the slow and adding more
cots to the business by repairing it.

CONCLUSION
As a conclusion, Tshiamo poultry is a business establishment that
always wants to make it in the poultry business services. Our business
can compete well with other similar business as well. Moreover, Tshiamo
poultry has make lots of efforts during the survey for the establishment
of business and in terms of its financial projections. In connection with
that, we are aiming to provide our service according to our customers
wants, desire and needs. We are very confident and believe that our
business venture will create and establish a very satisfactory investment
return every year
Our business will continuously make concrete in the business strategies,
especially in terms of marketing to ensure that the business is well
known to the customers. We hope that we will be able to build a goad
loyal customer base in every year.

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