BUSINESS PROPOSAL

FOR THE

BROILERS CHICKEN

BUSINESS

BUSINESS NAME:

BUSINESS ADDRESS : PROVINCE,ZAMBIA

EXECUTIVE DIRECTOR: MR. S

CONTACT PHONE #: +260 97

EMAIL :

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1.0 EXECUTIVE SUMMARY

is a start up registered legal entity that will specialize in Broiler

chicken rearing with future plans to venture into egg production. The
business is owned by Ms. a and other members. The group members also
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serve as a Directors for the farm and will perform all the management
functions such as strategic planning, organizing, controlling, coordinating,
decision making and general leadership for the business. However, in our
quest to Foster continuous improvement, the business will allow inputs from
employees and customers in all its decisions.

Located in Kitwe, Copperbelt province, our targeted market is Kitwe and the
entire Copperbelt Province . We deliberately chose this area due to among
other reasons population size, economic activities and near proximity to key
markets. Copperbelt is also near the Democratic Republic of Congo, a strategic
market, especially once our production surges.

Though there are many players and high competition in this business, we are
not afraid of taking the risk and will not back out. We will devise strategies to
keep our business afloat and buoyant. Our location and our unmatched
customer care will give us a competitive advantage. Further, we will run our
business using a Kaizen (continuous improvement approach). The demand for
chicken meat is not expected to plummet anytime soon, which is why we will
put plans in place to continue to explore all available market around our
targeted area where our business will be located. We are confident we will be
profitable within the first year of our inception and maximize the profits after
wards.

Our plan is to position our cooperative to become one of the leading brands in
chicken production in Zambia and also to be among the top five within our
fourth anniversary.

This might look too tall a dream but we are confident and enthusiastic this
will surely come to pass because we’ve done our research and feasibility
studies and we are enthusiastic and confident that Kitwe is the right place to
launch this business before spreading to other parts of Zambia.

This business plan looks at all the requirements needed to operationalize this
project with regard to cost of fixed assets, labour, purchases, (feeds, day old
chicks) and overhead costs. All things being equal, we anticipate to
commission the farm in July 2022

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2.0 OUR MISSION STATEMENT

To build a food business entity that will precisely meet and exceed the needs
of our valued customers and prospective customers in our targeted area and
the nation at large.

3.0 VISION

To be amongst the top ten leading Broiler chicken producers and distributors
within our fifth anniversary

4.0 CORE VALUES

 Integrity
 Competence
 Professionalism
 Excellence
 Commitment
 Honesty
 Customer care
 Ethical
 Innovative
 Responsible

5.0 GOALS

 To secure a reputation of high quality products backed by a high calibre of

management
 To have unparalleled commitment to customer care/service
 To complete and deliver all our jobs on time and within budget
 To produce what the customer wants, not what we want

6.0 OBJECTIVES

 We will put in place a number of objectives to get as performance

yardsticks.

These objectives will be smart in nature

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 S Specific
M Measurable
A Attainable
R Realistic
T Time bound

6.1 Short Team Objectives

 To create three (03) jobs at inception

 To make annual sales of K349,000 by July 2023
 Realizing a net profit of K99,484 by July 2023
 To rear 4,000 chickens within one year
 Creation of opportunities to outlets where we will supply our chickens
 Creation of business to suppliers of point of lay pullet hens and feed
suppliers
 Contributing to national food security

6.2 Long term Objectives

 To expand our business and start supplying our products to corporate

customers e.g chain stores, restaurants, lodges, boarding schools
 To embark on capital projects e.g buying more fixed assets in 2023
 Creation of five more jobs by October, 2024 as we increase our production
levels
 To have a hatchery by 2026

7.0 BUSINESS LOCATION

We will be located in Kitwe at Kamfinsa area. This is a strategic location and

is only a few minutes drive from the Central Business District (CBD). The
place is near key suppliers of materials, has access to electricity, water and
accessible by road. This location is also near key markets such as Mongu

This strategic location will give us a competitive advantage and business

leverage.

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8.0 BUSINESS DESCRIPTION

Business Name
Business Director
Business Phone No/Email :
Business Address :
Business Bank :
Business Bank Account No. :
TPIN
Business Legal Document :

9.0 SOCIO ECONOMIC BENEFITS

Our business will have a number of trickle down effects to the economy of
Zambia.
The following are some of the economic benefits that will accrue as a result of
our operation:

 Job creation to our youths and women folk

 Tax contribution to the Republic of Zambia .Government needs this tax to
buy essential hospital drugs, build schools, construct roads, pay for
university student bursaries and other capital and revenue expenses for its
smooth operations
 Contribution to the Gross Domestic Products (GDP)
 Window of business opportunity to our suppliers of chicken feeds, fiexd
assets trays and chicken hens
 Creation of hunger for other entrepreneurs to jump into the bandwagon
and emulate us
 Contributing to natio6 food security

10.0 WHY US / KEYS TO SUCCESS

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 There being a number of competitions on the market, why would a customer
choose our products instead of the next door neighbor? Our keys to success
and why we believe we will win customers are threefold:

 We will provide value for money products at affordable and flexible prices.
Coupled with that is total adherence to customer care
 Customer feedback we intend to take customer complaints and
complements as key information in continuously improving our business.
This kaizen philosophy will be encapsulated in whatever we do

The customer will be a key stakeholder and the very reason for our
existence

 We will devise a unique sales and marketing strategy that will be cheap but
produces astounding results
 We will offer delivery services to bulky buyers

11.0 PRODUCT OFFERING

We will be keeping Broiler chickens for meat for the time being with plans to
consider integrating the business by having a hatchery and egg producin

12.0 MARKET ANALYSIS

The demand for chicken meat in Zambia is very high and is expected to
continue with the upswing for the foreseeable future. Although there are a
number of players on the market to carter for the growing demand, customers
are not entirely satisfied due to a number of reasons. One such reason is poor
quality and exaggerated prices.

Customers do not get value for money as they are compelled to buy poor
quality at prices that are not equal to the money's value. Further, customers
are powerless and have little choice but to buy chickens at fixed prices. We
want to come in and make it convenient for our esteemed customers to get
high quality and value for money. With our coming on board, the other
unfortunate issues of inconsistent supplies and stock outs will be a thing of

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the past. This is so, because we will be producing on a large commercial scale
especially in our second year.

With a good management system that puts costs to the minimal, we project to
be profitable within a year we commence the project, and will have much
healthier profits after year one.

12.1 MARKET SEGMENTATION

The market is segmented into two:

 Individual customers
 Corporate customers

We are targeting both types of customers.

12.2 MARKET TRENDS

The business of Broiler chicken production has been on the increase in

Zambia. This calls for the need to advance in modern farming
techniques by investing in technology and innovation so as to remain
competitive. Failure to do so has left many such businesses sluggish.

We intend to be innovative and avoid “applying yesterday’s methods to

solve today’s challenges”.
To remain at the top, we intend to use modern technology that allows
good quality and increases production at normal costs (efficiency).
These new technological advancements also will reduce the possible
risks of diseases. The benefits of such technological advancements in
farming will outweigh the costs by far.

12.3 PRICING STRATEGY

Price being one of the four Ps of the marketing mix plays a key role in
any business survival and growth. We will offer strategic prices that are
slightly below what our competitors offer so that we quickly penetrate
the market. But all in all, our prices will be dependent on what is
obtainable on the market. Each chick will be sold at k90

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13.0 SALES AND MARKETING STRATEGIES

The modern business world is highly competitive and only businesses that
have strategies in place do survive and tick.
We are alive to this fact and we intend to put in place a number of sales and
marketing strategies.

The following will be some of our sales and marketing strategies:-

 Directly involve our prospective customers through word of mouth on our

product offering
 Introduce our business by writing introductory letters to prospective clients
such as restaurants, boarding schools, chain stores, lodges, hospitals and
other similar institutions
 Leverage on the interest via various online platforms e.g facebook, twitter,
whatsapp etc 75% of Zambians own cellular phones and have access to
mobile interest. We believe we will meet/reach and engage more people
online.
 Offer special services e.g discounts to loyal repeat and bulk buyers
 Listing our business in yellow pages/directories
 Use of flyers in strategic places where our potential customers can see what
we will be offering
 We intend to also advertise our business on local radio in the targeted area

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14.0 BUSINESS OWNERSHIP

This cooperative is headed by Ms. Sarah Sichilya who will also serves as the
Director. She has vast experience and will be assisted by qualified workers
in poultry and egg production.

The Director will perform all management functions such as planning,

organizing, directing, controlling, coordinating, leadership and decision
making for the company.

However, a “bottom up” management style will be applied, allowing inputs

from workers and customers in decision making. This will be done in order to
foster continuous improvement and quality. At our company we believe the
customer is part of management

15.0 HUMAN RESOURCES

At inception we will employ three (03) workers to help run the business. They
will be qualified and experienced workers in poultry from a recognized
institution. Our workers will be our greatest assets.

Duties and Responsibilities

 Feeding the chickens by administering necessary feeds and water
 Ensuring the poultry equipment and is spotlessly clean so as to prevent
diseases
 Ensuring that the chickens are not overcrowded by measuring the
number of space as directed by the Director
 Doing errands e.g bringing in of feeds to the farm
 Any other duties as assigned by the Director
 Providing security for all assets

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 EMOLUMENTS / MONTHS

DESIGNATION QTY QUALIFICATION SALARY/ TOTAL

MONTH (K)
Farm Manager 01 Certificate in 2,000 2,000
Agriculture/Animal
health

Security Guard 01
Full grade 12 1,000 1,000
certificate
General Worker 01 Full Grade 12 1,000 1,000
Certificate with
knowledge in poultry
TOTAL WAGE BURDEN / MONTH 4,000

The total annual wage burden will therefore be K48,000. We will strive to
motivate our workers so that they become more goal congruent (putting the
interest of the company before self interest) and more productive. This will
also make them more willing to grow with the company and reduce incidents
of pilferage.

16.0 RISK SENSITIVITY

This business like any other business is also susceptible to a member of

potential risks, among them being the following:-

 Possible risk of disease outbreaks for the flocks

 The Russia Ukraine war may adversely affect us indirectly
 Current Covid 19 pandemic could adversely affect our business
 New technological advancements/threats
 External economic malaise/meltdown
 New technological threats
 Change in consumer behavior
 Price wars with big produces. This may create unfair competition and eat
into the profit of a small starter (new business)

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 But, the risk of disease pandemic is negligible as we will ensure our competent
worker vaccinates and procures all flock from reliable and registered suppliers.
Our chickens will be fed on quality feeds that promote good health.

17.0 COMPETITOR/SWOT ANALYSIS

Within our targeted market of Kitwe are a number of players involved in

similar businesses, some of whom well respected Therefore, we will not be
operating in a vacuum. To remain buoyant and competitive we will conduct a
SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis.
A SWOT analysis is a business appraisal system of analyzing how a business
is doing in relation to its environment, the environment being its competitors
SW (Strengths and Weaknesses) are internal factors that affect a business e.g
a good location and poor customer care respectively.
OT (Opportunities and Threats) are external factors that affect a business
such as continuous demand and economic meltdown respectively.

Other macro environmental factors to consider are coined as:-

P Political
E Environmental
S Social / Cultural Norms
T Technology
E Economical
L Legal Issues

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17.1 SWOT ANALYSIS FOR US

STRENGTHS
 Good location
 Quality large chickens
 Good customer care
WEAKNESSES
 New in the business with
no repeated customers
 We cant lower prices
further

OPPORTUNITY THREATS
 Continuous demand for  Price wars with big
chickens companies
 Room to grow production  Importation of products
  High cost of feeds
 Covid 19 pandemic

17.2 SWOT ANALYSIS FOR ONE COMPETITOR (NAME WITH HELD FOR
CONFIDENTIALITY)

STRENGTHS
 Well established
 Qualified staff
 Strategic location
WEAKNESSES
 Poor location, away from key
market
 Produces small chickens at
expensive prices
 Inconsistent and on a small scale

OPPORTUNITY THREATS
 Continuous demand for  Lacks the modern farming
chicken meat technology
 COVID 19 PANDEMIC
 Government restrictions

Our quality of products and good customer care coupled with affordable prices
will make us the number one choice to our customers.

We are therefore not afraid to take the business risk. Moreover, the demand
for chicken meat is ever skyrocketing and despite a number of players on the
market, customers still need more producers, especially with touch of quality.

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18.0 OPERATING PLAN

All things being equal, we intend to commence production in July 2022. We

plan to begin with a batch of 500 broilers. These will be sourced from reliable
suppliers and free of diseases. A proper feeding and vaccination program will
be put in place to ensure our chickens meet and exceed customer
satisfaction.
Each cycle will last 6 weeks and we anticipate to have 8 cycles per year. Our
annual production will therefore be 4,000 chickens.

18.1 COST OF PURCHASES

Purchases will constitute the cost of:


 Purchase of feeds
 Purchase of chicks
 Saw dust

18.1.1 DAY OLD CHICKS

We will buy chicks from reliable suppliers at a market price of K13. So

the total cost for a batch of 500 chicks is k6,500

18.1.2 FEEDS

3.5 × 500 chicks = 35 bags per 6 weeks cycle

50kg
Each bag selling at an average of k360. So the total cost of feeds per cycle is
K12,600

18.1.3 SAW DUST

 K1,000

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 TOTAL PURCHASES/CYCLE: K20,100 and K160,800 per 8
annual cycles.

18.2 PROJECTED SALES

PRICE / TRAY(K) NO. OF TRAYS TOTAL (K)

4,000 chickens less 3%
mortality provision
equal to 3,880
chickens
per annum. Each sold 349,200
at K90

18.3 FIXED ASSET REQUIREMENTS

ITEM ESTIMATED COST (K)

Chicken building 20,000

Drinkers 10 @ k130 1,300

Feeders 10 @ k130 1,300
Infra red lights 3 @ k100 300
Wire 600
Back up brazier 3 @ k80 240
TOTAL 23,740

All the above assets except the chicken building can simply be called
equipment and their total is K3,740

18.3.1 DEPRECIATION ON FIXED ASSETS / ANNUM

ITEM COST DEPRECIATION DEPRECIATION NET USEFUL

(K) RATE COST BOOK LIFE
VALUE
Chicken 20,000 5% 1,000 19,000 25 years
building

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 Equipment 3,740 20% 748 2,992 5 years
TTOTA 23,740 1,748 21,992

Deprecation is calculated by the straight line method and the total cost is
K1,748

18.4 OVERHEAD COSTS / MONTH

ITEM ESTIMATED COST (K)

Electricity 400
Transport /Distribution 1,000
Communication 250
Administration 1,000
Marketing Cost 500
TOTAL 3,150

Annual overheads K25,200

18.5 TOTAL PROJECT COST

ITEM ESTIMATED COST

FIXED ASSET REQUIREMENTS
Building 20,000

Equipment 3,740

INITIAL WORKING CAPITAL REQUIREMENTS

Salaries 4,000
Purchases 20,100
Overheads costs 3,150

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 PRE-OPERATING EXPENSES
Feasibility study 1,500
Equipment transportation 600
TOTAL PROJECT COST 53,090
Added 5% imponderables/contingency 2,654.5
TOTAL PROJECT COST 55,745

18.7 FINANCIAL PROJECTIONS

LAND - E - PARKE

18.7.1 INCOME STATEMENT FOR THE YEAR ENDING JULY

2023

K
SALES 349,200
Less cost of goods sold:

Purchases 160,800
(160,800)
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 Gross Profit 188,400

LESS EXPENSES
Salaries 48,000
Overhead Costs 25,,200
Depreciation 1,748
(74,948)

NET PROFIT BEFORE TAX 113,452

Tax (13,968
NET PROFIT AFTER TAX 99,484

After one year of trading our profit margin is at K99,484. This will be a
viable profitable business that will be able to pay all its financial
obligations on time and still remain operational and liquid. Management
will embark on an aggressive marketing crusade that will see sales
increase by 35% in 2024 and 45% in 2025

BALANCE SHEET AS AT 31 JULY 2023

NONE CURRENT ASSETS COST DEPR COST NBV

Building 20,000 1,000 19,000

Equipment 3,740 748 2,992

23,740 1,748 9l21,992

CURRENT ASSETS

Account receivable 15,000

Bank 78,000

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Cash in hand 1,300
94,300
LESS LIABILITIES

Account payable (9,800)

84,500
NET ASSET 106,492

CAPITAL 55,745
NET PROFIT 99,484
155,229
Dividends (48,737)
NET ASSETS 106,492

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