ARBA MINCH UNIVERSITY

SCHOOL OF POST GRADUATE STUDIES

COLLEGE OF BUSINESS AND ECONOMICS
DEPARTIMENT OF MANAGEMENT
MASTERS OF BUSSINESS ADIMINSTRATION
ENTERPREUNERSHIP ASSIGNMENT ON BUSINUSS PLAN.

GROUP MEMBERS
NAME OF STUDENTS ID NO

1. EYERUSALEM TIMHERTE Id no. PWBE/029/15

2. TESFANEH GORFU Id no. PWBE/033/15
3. TAMIRAT TEREFE Id no. PWBE//15
4. YAKOB PEKO Id no. PWBE//15

SUBMITTED TO : Getasew Y (Assi.professor)

July, 2023
SAWLA, ETHIOPIA
Table of Contents
1. INTRODUCTION ....................................................................................................................1
1.2 Nature of the business ............................................................................................................1
1.3 Statement of financing needed ...............................................................................................1
1.4 Statement of confidentiality....................................................................................................2
2. Executive summary ......................................................................................................................2
3. Industry analysis ...........................................................................................................................2
3.1 Analysis of competitors ..........................................................................................................3
3.2 Market segmentation ..........................................................................................................3
3.3 Industry forecast ...................................................................................................................3
4. Description of the venture ............................................................................................................3
4.1 Size of the poultry farm ..........................................................................................................3
4.2 Site and design of the poultry farm ........................................................................................3
4.3 Office Equipments ..................................................................................................................4
4.4 Man Power of the Poultry Farm .............................................................................................5
5. Production Plan ............................................................................................................................5
5.1 Equipment and Machinery .....................................................................................................6
5.2 Supplies and Raw Materials for Poultry Farm .......................................................................6
5.3 Food (Balanced Diet) .............................................................................................................6
6. Marketing Plan .............................................................................................................................6
6.1 Distribution.............................................................................................................................7
6.2 Promotion ...............................................................................................................................7
6.3 Product Forecast .....................................................................................................................7
6.4 Financial Plan .........................................................................................................................9
7. Organizational Plan ......................................................................................................................9
7.1 Back ground of the Entrepreneurs ........................................................................................10
8. Risk assessment ..........................................................................................................................11
8.1 Failure to produce the products ............................................................................................11
8.2 New Technologies ................................................................................................................11
8.3 Contingency plan..................................................................................................................12
9. AGREEMENT OF PARTNERSHIP .........................................................................................12

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 BUSINESS PLAN FOR GOFA POULTRY FARM

1. INTRODUCTION
The poultry industry is a vital part of the agricultural sector, providing a consistent supply of high-quality protein
to meet the growing demand for poultry products. With the increasing global population and changing dietary
preferences, there is a lucrative market for poultry products, both locally and internationally. This business is
required to establish a general partnership. The name of the business is Gofa poultry farm (enterprise).

The name of the partners

1. Antu Gorfu
2. Eden Guja
3. Marishet Olla
4. Misganaw Ayalew
5. Eniye Eyasu
6. Samuel Tesfaye

1.2 Nature of the business

Now a day the price of egg and live chicken is increasing due to the shortage of poultry farm
business activities that can match the increasing local customer’s demand of the sector. The
partner’s expectation is to fill the gap of the demand and supplies of the poultry products.
1.3 Statement of financing needed

Every business needs finance to be invested and implemented in particular to achieve the goals.
So our financial capacity depends partially on our capital contributed by the partners of the
enterprise which accounts for about 60% of the total capital. The partners or poultry farm business
owners handle planned to get the remaining capital 40% from debt financing institution (banks).
The total beginning capital needed to run the business is about 800,000.00 birr.

The following table shows the percent and amount of contribution by each partner and expected
debt from the micro financing institutions.
% of
No Name contribution Total amount in birr
1 Antu Gorfu 16.6666 80,000.00
2 Eden Guja 16.6666 80,000.00

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3 Marishet Olla 16.6666 80,000.00

4 16.6666 80, 000.00

Misganaw Ayalew

5 16.6666 80,000.00
Eniye Eyasu

6 16.66666 80,000.00
Samuel Tesfaye

7 Partners contribution 60% 480,000.00

8 micro financing 40% 320,000.00

Total Beginning capital 800,000.00

1.4 Statement of confidentiality

The partners agree to implement the project according to the plan and agreement written here
under. No additional statement is made without the agreement of all partners and it is not allowed
for others in whole or individually without permission of all partners

2. Executive summary
The poultry farm owned by the partners is conceived being a mindful of the increasing demand
and shortage of supply so as to contribute our part in filling this wide gap; furthermore, it plays a
great rote in development of the town in particular interims of investment and creation of job
opportunities. It also serves the community by supplying its products with lesser prices compared
to current market price. Because there is a shortage of poultry products (egg and chickens) supply
throughout the town and its surroundings, the current existing market price is too expensive. The
poultry farm business can be effective in loss capital compared to other industries which require
very huge and expensive machineries so that establishing the poultry farm business is profitable.

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 3. Industry analysis

The historical achievement obtained from individuals involved in this investment (business) showed that
the poultry farm business is highly profitable. From analysis of farms currently existing in the town, their
strength was and mass production mass sales leading to high profitability but their weakness was they
neglect the local customers or community pay special attention to whole buyers. Therefore, in the
meantime this poultry farm starts its business by selling eggs and in few years later it can also sell live
chickens to the local customers.

3.1 Analysis of competitors

Even though there are two known poultry farms (Chatolic and Bolla farms) in the town, they could not
satisfy the demand of the community especially local customers and their price is also too expensive. People
usually buy eggs and chickens from the market which came from the surrounding farmers. So that our aim
is to attract the community with lesser market penetrating price and more eservices

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 3.2 Market segmentation
Since the country follows free market policy, the partner’s assumption is to deduct the price from
the current price of the market and providing its products (eggs and chickens) in its full capacity
so as to attract customers.
3.3 Industry forecast
The poultry farm try its best so as to achieve its goals by utilizing the man power available the
financial capacity. It also contacts other farms to share their experiences.

4. Description of the venture

Gofa poultry farm is a partnership based business which will be established in Sawla. Ethiopia that
serves primarily the local customers or community and/or the community of Sawla and its
surrounding by supplying its products i.e. eggs and chickens. This farm is designed to give efficient
and effective service to the public and to enhance the customer satisfaction.
4.1 Size of the poultry farm
The size of this poultry farm is not large. It is just like a micro enterprise, though it will grow to
large partnership enterprise in the future. Currently the poultry farm Plans to start by having 1000
chickens which start laying eggs after three months
4.2 Site and design of the poultry farm
The farm is located in Sawla town, Sazga kebele. The farm will start its operation in compound
rented from private ownership. The compound has a size of 500m2, having all the necessary
facilities such as chickens house, offices, was tedump place, toilet, shop and guard home.
The size of the house for chickens is 18m x 50m which is sufficient for 1000 chickens. The
compound had rented on contractual basis with 48, 000 birr per annual for five consecutive years

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Chicken house

Store Waste dump

Offices

Toilet Shop
Guards

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4.3 Office Equipments
The following office equipment’s are required for the farm to run its business and achieve its goals

No Item Quantity Unit Price Total Price

1 Table 2 2000.00 4000.00
2 Chairs 10 200.00 2000.00
3 Shelf 1 800.00 800.00
4 File cabinet 1 1200.00 1200.00
Total 8000.00

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 4.4 Man Power of the Poultry Farm
The poultry farm will recruits 12 employees in the first time. Some of the partners are also
recruited as salaried employee.

Qualificatio Monthly Annual

No Rank Quantity Rank
N Salary Salary
1 General Managers 1 Diploma 4800.00 57,600.00 Partner
2 Finance Section 1 Diploma 4000.00 48,000.00 Partner
3 Purchaser 1 Diploma 4000.00 48,000.00 Partner
4 Animal Health Assistant 1 Diploma 4000.00 48,000.00 Part time
5 Sales man 2 Diploma 2x2000 48,000.00 Contract
6 Guards 2 8th Grade 2x2000 48,000.00 Contract
7 Daily laborers 4 5rd Grade 4x1600 76,800.00 Contract
Total 374,400.00

5. Production Plan
The poultry farm production plan is based on the size of the farm, as it is stated in the size of the
farm section, the farms assumption is to start by having 1000 chickens. All chickens are hens
(layers) and from these 1000 of them are expected to lay eggs per day after three months from the
beginning of the operation.

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5.1 Equipment and Machinery
As a new business this poultry plans to buy locally made equipment which has less price than the
imported ones.
Items Quantity Unit Price Total Price
Feeder 50 200.00 10000.00
Drinker 50 200.00 10000.00
Water tank 1 4000.00 4000.00
Total 24,000.00

5.2 Supplies and Raw Materials for Poultry Farm

Chickens
As we have discussed in our production plan, we will have 1000 chickens. The chickens will be
purchased from poultry farms that sell young chickens. The age of chickens planned to be
purchased is 1 month each costs 160.00 birr. The farm planned to purchase this young age chicken
because of inability to purchase incubator as it is too expensive. The total budget required for
purchasing of chicks will be 1000x160 i.e 160,000 birr.
5.3 Food (Balanced Diet)
Balanced diet feed will be purchased from farms that are preparing the diet with mixer. About
156,800 birr will be allocated for the feed consumption per year.

6. Marketing Plan
The price of the products is based on the current price of the market. However, the poultry farm
plans to deduct from the current market price by 15-20% firm eggs and 10-20% from live chickens.
The following table shows the comparison of market (current market) price and our pricing plan.
Item Current Market price Our price
Egg 11.0 birr 10.75 birr
Live chickens 160 150birr

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 6.1 Distribution
The poultry farm will distribute its products (eggs) Sawla town. It also plans to distribute daily
to the nearest towns.
6.2 Promotion
The poultry farm will expand its market plan to Arbaminch, Jinka and Sodo when the action plan
for other sites is effective and size of the farm expands.
6.3 Product Forecast
This poultry farm will get stable revenue for three years. The following table shows product
forecast of the farm.
Item 1st year 2nd year 3rd year 4th year 5th year
Egg 1,620,000 1,710,000 1,710,000 900,000 900,000
Chickens - - - 64,000 88,000
Total 1,620,000 1,710,000 1,710,500 964,000 988,000

Total expenses contingency, total revenue and profit of poultry farm for the next five years.
Expenses 1st year 2nd year 3rd year 4th year 5th year
House rent for the farm 48,000 48,000 48,000 48,000 48,000
Office equipment 8,000 - - - -
Equipment for chickens 24,000 - - - -
Medication 8,000 8000 8000 8000 8000
Chickens 80,000 - - - -
Food (balanced diet) 200,000 200,000 200,000 200,000 200,000
Water & Electricity 24000 24000 24000 24000 24000
Salary 374,400 374,400 374,400 374,400 374,400
Transportation 12000 12000 12000 12000 12000
Advertisement 8800 - - - -
Contingency plan 12,800 12,800 12,800 12,800 12,800
Total expenses 800,000 679,200 679,200 679,200 679,200
Revenues from egg sales 1,620,000 1,710,000 1,710,000 900,000 900,000
From chicken sales - - - 64,000 88,000
Total revenue (sales) 1,620,000 1,710,000 1,710,000 964,000 988,000

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Revenue before Tax 820,000 1026,000 1026,000 280,000 304,000
Tax expense 82,000 102,600 102,600 28,000 30,400

N1 (profit) 738,000 923,400 923,400 252,000 273,600

Revenue
(Profit) (in
Thousand)
240

210

180

150

120

90
60

1 2 3 4 5 6 Ti m e (year)

Table1: Expected Net income (profit) from the 1st to 5th years of operation

Description of Total Expense, Contingency, Total Revenue and Net income (profit) of the
poultry Business:
As indicated in the above table, the profit earned form the business in first year is small because
of the higher beginning expenses and the chickens lay eggs after three months from the start up.

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 i.e. the production plan of the first year is 9 months. There will be high income at 2nd and 3rd years
operation.
The product of the egg will decrease at 4th and 5th year, this is because some of the chickens will
stop laying egg due to upper age limit. There is a plan to replace the chickens with the young ones
at the end of 5th year in order to continue the business further to generate more profits from this
sector.

Gofa Poultry farm

Balance sheet June,
15, 2023
Assets Liabilities and partners’ capital
Cash …………480,000.00 Liabilities ……….320,000.00
Other asset …………..320,000.00 Antu capital ………80,000.00
Eden capital ………80,000.00
marishetcapits ………80,000.00
amuel capita ………80,000.00
misgancapital ………80,000.00
Eniyew capital ……….80,000.00
Total ……….800,000.00 Total 800,000.00

6.4 Financial Plan

As per agreement between the partners 40% of the profit will be retained to the capital of the
business which will assist to increase the size of the poultry farm. The financial plan is expected
to be reviewed and /or revised every five years time

7. Organizational Plan

General Manager

Finance Section Gen. Service

 Animal Health asst.  Day laborers
Purchaser
 Guards

7.1 Back ground of the Entrepreneurs

The all round knowledge of the partners would create conducive and innovative poultry business
that can compute in a free market. Some of the partners are professionals in animal’s health care
and others are graduates of business educations.

No Name of the partners Level of education

1 Antu Gorfu Diploma in HRM
2 Eden Guja Diploma in Accounting
3 Samuel Tesfay Doctor of Veterinary Medicine
4 Marishet Olla Diploma in Marketing

5 Eniye Eyasu Diploma in management

6 Misganaw Ayalew Diploma in Accounting

Responsibilities and Job Description of the partners as per the agreement made between the
partners each partners are assigned as follows:

General Manager: Antu Gorfu

 Controls of general activities of the poultry firm.

 Communicate with external organizations, gather information and discriminate it to the
partners as well as key workers of the business.

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 Finance Section: Eden Guja
 Controls and check financial flow of the partners.
 Controls the salesman.
 Act as G/Manager when the Manager is not available.

Purchaser: Marishet Olla

 Purchaser all the necessary items for the poultry farm.
 Controls the stocks.
 Act as an accountant in the absence of finance head

Job description of other employees of the farm.

 Sales man:- Sales eggs and life chickens

Day laboures.
 Clean house for the chickens.
 Give
 Food and water to the chickens.

Animal Health Asst.

 Treat and follow up the health status of chickens.
 Our partner Dr S a m u e l provide necessary follow up related to the health condition of
chickens as additional part of his contribution in running the poultry business.

8. Risk assessment
8.1 Failure to produce the products
Disease out break
Since chicken are living animals they are vulnerable to a lot of diseases that will result in
devastating the life of the chickens and their products. Therefore the farm planned strict boi-
security measures to prevent such occasions.
8.2 New Technologies
The invention of new sophisticated and poultry equipments for the purpose of computerized
feeding, hatching, etc are one of the challenge that may affect future expansion of the farm so the
farm has planned the fulfillment of such equipments for the next phase of production.

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8.3 Contingency plan
The farm has kept contingent finance in its production plan for price variations that may occur
during operation time.

Appendix

 Letter of agreement between partners.

 Letter to Sawla Town Industry office.
 Questionnaire to community to assess the demand and supply of poultry products.
may,20, 2023

9. AGREEMENT OF PARTNERSHIP
This letter of agreement is made on September,10, 2023 between the following partners. Owners
of Gofa poultry business.
1. Antu Gorfu
2. Eden Guja
3. Marishet Olla
4. Misganaw Ayalew
5. Eniye Eyasu
6. Samuel Tesfaye

1. The partners agreed to establish Family Poultry business at Swla.

2. The beginning capital of the poultry business is Birr 800,000 (Eight hundred
thousand birr) and all the partners have equal contribution and share.
3. The partners agreed to share 60% of their profit two times in a year and the remaining
40% will be retained to their capital.
4. A partner (s) who resign or terminate without sufficient reason before 5 Years of
agreement will not entitled his/her share.
5. A partner (s) who resign or terminate the agreement after 5(five) years of business
establishment shall be entitled his/her share and other benefits.
6. The partners are agreed to obey the rules and regulation written in this poultry business
far

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In witness the partners are affixed their signatures.
Name signature

1. Antu Gorfu ………………….

2. Eden Guja …………………..
3. Marishet Olla ……………………
4.Misganaw Ayalew …………………..
5.Eniye Eyasu …………………….
6.Samuel Tesfaye ……………………

Witness: Signature
1. Tadele Gezahign
2. Ribka Kalose
Nov, 05, 2023
Ref No. Swa/001
To: Trade and Industry office
Sawla

Subject: Application for trade license

Gofa Poultry Business is a general partnership established by three partners: Antu Gorfu, Eden
Guja, Marishe Olla. The beginning Capital of the poultry business is birr 800,000 (Birr Eight
hundred thousand).
We, the partners are therefore, kindly request your good office to allow a trade license. Enclosed
herewith please find our agreement of partnership and other relevant document

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Best regards.
1. Antu Gorfu
2. Eden Guja
3. Marishet Olla
4. Misganaw Ayalew
5. Eniye Eyasu
6. Samuel Tesfaye

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Questionnaire on Need Assessment of Poultry Products

Date

1. Name (optional): Age: Sex:

2. Address K: Town:
3. Family Status: Married: Single: Widowed Divorced
4. Number of children (if any) in your home
5. Do you like egg and chicken?
Yes NO
6. When do you buy egg?
 Every day
 Occasionally
 On public Holidays
7. Do you think current price of poultry products are expensive?
Yes NO
8. What hinders you to consume poultry products?
a. Price is expensive b . Shortage of supply
C. I do not like it
D. Others (specify)
Date may 20,2023
House Rent Agreement between poultry Business farm and Mr. Zekariya Dirko
Family Poultry business farm and Mr. Zekariya Dirko have agreed up on the following terms

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 1. Mr. Zekariya Dirkoa, the owner of House No. --- in Kebele 14. Near Sazga Secondary
preparatory School (Sawla town) which has a size of square meter agreed to let the
house for five year time with a rent of Br. 48,000.00 (Birr forty eight thousand) per year.
2. Gofa Poultry farm agreed to pay the amount indicated above per year in advance for three
years.
3. The House Rent agreement is effective as of Aug 1, 2023.
4. Both parties have the ability to make both parties agreement is non-acceptable.
Gofa poultry farm Antu Gorfu
Signature Signature
Date Date

Witness
1 Sitotaw Yakob
2.Getinet Lognakori

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