A POUTRY BUSINESS PLAN FOR KEZDEN ENTERPRISE LTD.

PRESENTER: KEZIAH MUHABI

REG NO. BCO/0143/20. TELEPHONE: 0741933328.

EMAIL ADDRESS: KEZIAHMUHABI@GMAIL.COM

BUSINESS PLAN PRESENTED TO SCHOOL OF BUSINESS AND

ECONOMICS (SOBE)

DEPARTMENT OF FFA /BAM

KIBABII UNIVERSITY

2022

i.
 DECLARATION.

I Keziah Muhabi, am hereby declare that this is my own business plan and this plan has never
been presented to any institution of higher learning for examination purposes.

Name: Keziah Muhabi

Signature:

Date: 21/04/2022.
 DEDICATION.

Am glad to have this opportunity to dedicate this plan to my family especially my parents Mr.
and Mrs. Shimonyo who devoted her time and contribute to the writing of this plan. Apart from
them there is also my fiancé Dennis, sister Getruce, and my brother Philip can't forget you guys
you sacrifices a lot of your time to make this document the way it is now. I appreciate all of you
as you stood by my side to make this work more successful despite your daily tight schedule,
you devoted everything to ensure this plan is Successfully completed. Thanks for your support.
 ACKNOWLEDGEMENT.

Am hereby, taking this Opportunity to appreciate the following people,

i. My lecture Nyabora Daniel

ii. Tatu umazi.

iii. Leah.

iv. Elisha

Thank you for your support both economically and in terms of developing my ideas. I salute all
of you for the sacrifice you made to ensue this plan is well documented.

Receive my appreciation.

TABLE OF CONTENTS.
  Declaration…………………………………………………………………………………………………………
 Dedication ………………………………………………………………………………………………………….
 acknowledgement……………………………………………………………………………………………….

CHAPTER ONE. EXECUTIVE SUMMARY.

• objectives ……………………………………………………………………………………………………………

• Mission……………………………………………………………………………………………………………….

• Key to success ………………………………………………………………………………………………………

• Financial summary. ………………………………………………………………………………………………

• Net income……………………………………………………………………………………………………………

• Chart. ……………………………………………………………………………………………………………………

CHAPTER TWO

Company description.

• company ownership and structure…………………………………………………………………….

• History ………………………………………………………………………………………………………………

• Management team…………………………………………………………………………………………….

CHAPTER THREE

• Production and services…………………………………………………………………………………….

CHAPTER FOUR

• Market analysis………………………………………………………………………………………………….

• Target market…………………………………………………………………………………………………….

• Competition……………………………………………………………………………………………………….

• Regulation …………………………………………………………………………………………………………

CHAPTER FIVE

Market strategy.

• Competitive edge…………………………………………………………………………………………
 • Pricing …………………………………………………………………………………………………………

• Marketing plan.

CHAPTER SIX.

• competition analysis …………………………………………………………………………………………

• Competition edge. ……………………………………………………………………………………………

CHAPTER SEVEN.

Risk and mitigation.

• marketing strategy ………………………………………………………………………………………

• Pricing and promotion strategy. ……………………………………………………………………

• Sales strategy. ………………………………………………………………………………………………

CHAPTER EIGHT.

operation

• Human resources ………………………………………………………………………………………

• Key assets ………………………………………………………………………………………………….

• suppliers…………………………………………………………………………………………………….

CHAPTER NINE.

• financial plan. ………………………………………………………………………………………………

• Projected profit and loss. …………………………………………………………………………….

• Projected balance sheet. …………………………………………………………………………….

• Swot analysis …………………… ……………………………………………………………………….

CHAPTER ONE.
 EXECUTIVE SUMMARY.
KEZDEN poultry farm is a farm focused on both egg and meat production, which provides large
market range. It also produces manure as a by-product. The farm is located in Nyandarwa
County, ol Joro or ok sub-county at Kasuku market center, along Nyahururu Nairobi highway.
The major factor that makes me to start this farm is the health implications of red meat and am
creating this this business to meet the increased demand of white meat and eggs in the area.

OBJECTIVES.
The success of KEZDEN poultry farm will be measured through the following objectives;

i. To satisfy the local demand for eggs and white meat.

ii. To open-up the rural area (Nyandarwa) for development

iii. To utilize the local available resources

iv. Provide employment opportunities to others especially the youth.

MISSION.
KEZDEN poultry farm's mission is to:

 provide customers with quality, fresh no valuable products from the farm.
 To respect all employees
 enable everyone to say a word concerning the affairs of the farm.
 Quality and valuable products are our priority.
 To provide investors with an opportunity to receive a good return on their investments
and a high-quality growth.
 Lastly is to contribute to the welfare of the community in which the farm is located.

KEY TO SUCCESS.
The let go success of the farm is based on the great opportunity as the demand eggs and white
meat has always exceeds the supply in the market. KEZDEN poultry farm aim to fill this gap in
both the local and foreign market of eggs and chicken meat.

ASSUPTIONS TO SUCCESS.;
 • There will be favorable climate throughout the year.

• The economy will be stable

• There will be no inflation in the market.

• No/little disease outbreak.

• There is ready market for the products (eggs and chicken meat)

• The business has a good plan to enter the into the market and will grow.

FINANCIAL SUMMARY.
The farm is requiring ksh 800000 as a startup capital. Out the amount ksh 100000 will be
personal savings, ksh 300000 will be sourced from the family (father) and the rest ksh 400000
am requesting it from KENYA COMMERCIAL BANK as a loan. I have chosen this bank because it
is readily available, its services are obtained even in the rural area. It is easy to transact any
amount of money as it has connected it services with Safaricom especially Mpesa service, which
has made its services to be very convenient to its customers.

MAIN ITEMS OF EXPENDITURE WILL BE;

Cost of birds. Chickens. 500 @ 100 50000

Cost of the place (rent) 4000 per month 4000*12= 48000 per year.

Equipment cost 100000

Staff cost 3000 per month 3000*12=36000

Poultry feeds and other raw 200000

materials

Marketing and transport 4000 per month 48000 per year

Miscellaneous expense 6000 per month 72000 per year.

TOTAL EXPENSES. 5540

000

PROJECTED PROFIT FOR THE FIRST YEAR.

details Amount (in the first six months) Amount per year.

SALES

Chickens (450 @ 1000) =450000 900000

Eggs (crates) 300 @ 300= 90000 180000

Manure (wheelbarrow) 2 @200= 400 800

Totally sales. 540400 1080800

Cost of sales.

Adverts 1000 per month 12000

Distributions cost. 1000 per month 12000

Net cost of sale. (12000) (24000)

OTHER EXPENSES.

Salaries 9000 per month 108000

Veterinary services 10000 per month 120000

Purchase of birds 500 @100 100000

Poultry food 10000 per month 120000

Drug expenses 12000 per month 144000

Legal fee 834 per month 10008

Miscellaneous expenses 6333.333 per month 76000

Net expenses (339004) (678008)

Net profit 189396 378792

CHAPTER TWO.
 COMPANY OWNERSHIP AND STRUCTURE.
The farm will be a partnership, that mean will be owned by two people, that is Keziah and
Dennis. KEZDEN ltd company will have Keziah Muhabi as the managing director of the company
and Dennis Wekesa as the financial manager.

Structure

Managing director

Financing director

Subordinate staff: cleaners’ suppliers

HISTORY

This is a company that was started two years ago by only one person Keziah as KEMUSHI
enterprises as a small-scale farm. By that time the number of poultry were less able to be
managed by one person in a day. At first the production of eggs was almost 10 eggs per day and
meet was also not that much. The progress has been so encouraging having simple
improvement day by day then I decided to match with the partner as the financial manager and
employed more staff who are assisting in the managing of the company, on positions such as
cleaning, feeding the poultry, treating them, farm record keeping and accounting. The company
has created job opportunities for several people and having a vision of creating more. The
business has incurred challenges such as drop in demand of the product, competition from
other firms and paste and diseases that affect the poultry. The company is located in
Nyandarwa county in kasuku sub county along Nyadarwa Nairobi highway

INTERNAL ENVIRONMENT.

i. Communication with customers to get information about quality of the product am

offering.

ii. Parking information

iii. Relationship with prospective customers.

EXTERNL ENVIRONMENT.

• Diseases like Avian influenza.

• Competition from other farms.

• Prolonged drought.
 • Government policies like price control to poultry products.

CHALLENGES FACING THE INDUSTRY.

As any other industry, poultry farming industry has got some challenges that needs to be put in
consideration with vigor. Some of the challenges facing the industry are;

Death of chickens:

In a poultry farm one to many chickens usually die due their fragile nature and the weather
they are living in.

• High rate of diseases and pest’s attack.

• Lack of loan and credit procurement.

• High cost of poultry feeds.

• Supply of poor-quality chicks.

• High cost of veterinary services.

MANAGEMENT TERMS
Having undergone undergraduate studies bachelor’s degree in commerce gave me more urge
and skill to start up a business and be able to manage it. I also choose on poultry that is
agriculture having gained the skills since my high school studies and knowledge from and also
have been having so many seminars and training on poultry keeping which has also given me
opportunity to look for experts to work in my firm.

CHAPTER THREE
 MARKET ANALYSIS
The market of my business is so large keeping its an enterprise that more people buy the
products from. The meet and eggs are sold in large quantities at a wholesale price we do supply
to different places like the hotel schools and companies such as backer

MARKET SEGMENTATION.
From the research I have conducted, have find that nearly everyone not only in Nyandarwa
county but the entire country consumes eggs and chicken meat, so am targeting the whole
nation market, individuals, homes firms that uses eggs and chicken meat in large quantity,
especially hotels, restaurant and bakeries and food joints, retails and wholesalers that deals
with eggs and chicken will be my major target market which will ensure high sales of my farm’s
products.

Hotels and 20%

restaurants

Bakeries and 20%

food joints

Retail shops 20%

Homes 20%
 Individuals 10%

Others 10%

TARGET MARKET.
Target market segmentation shows that individuals are small are small sectors in the market
segmentation. They are pretty large group but they buy relatively small number of eggs and
chickens but the part of the market that I hope to supply large number of chickens and eggs are
industries that needs plenty of eggs and chickens. These industries include, hotel industry,
bakeries and food joints to mention some. I have strategically put in place the plans to reach my
target market. One of the strategies is the channel of which I will use to distribute the products,
the best channel that I will use is from the producer to the final consumer to avoid the tricks of
the middlemen which will want to benefit from the farm and also on the expense of the
customer.

COMPETITION.
From the research I have done, competition is not intense in the market as many people are
focusing on animal rearing the is goats and cattle. However, with time, it will exist main reason
being poultry products is not is to be branded thus what usually matters is effective positioning
and timing. As being the only poultry farm in the area, I will make sure I have the best timing
and will position myself well and better to cub up any competition that will arise.

CHAPTER FIVE
 MARKETING STRATEGY
KEZDEN poultry farm will strive to produce product of highest quality and I plan on employing
the following strategies. The location puts me the proximity of a major hotels, restaurant,
schools, campuses and homes deliver food centers that I will be supplying to. I would also make
contract with hawkers in the market to sell the products, live chickens, and the chicken’s
products on my behalf. This will ensure maximum sales which will results to higher returns. This
will also ensure constant supply of the farm's products in the market which will help the farm to
win loyalty from the customers.

PRICING AND PROMOTION STRATEGY.

The prices of the chickens will range from cash 1500 to 1700 depending on the size and quality.
Also, the price for one egg will create from ksh 600 to ksh 100. The prices of a wheelbarrow of
manure will be sold at about ksh 200. The prices would also vary depending on the existing
market price of poultry meat and eggs. As I compete with others poultries, I will set my prices
slightly lower compared with prices of others so as to make more sales.

WEB STRATEGY.

KEZDEN poultry farm has a website where customers can interact with the farm and get
feedback of what the farm is all about. I know of two or more sites where I can place
advertisement and I would also mention out my farm's products in online newspapers and
magazines. All this will help my customers both the existing and new to know that am still in the
market supplying my products to them.

SALES STRATEGY.

Include the following;

• Better farm management practices.

• Regular visit by veterinary doctors.

• Recycling waste as fertilizer. "Consumer is the king" policy

CHAPTER 6
 MILES STONES.
GOALS AND OBJECTIVE.

OBJECTIVES.

The success of KEZDEN poultry farm will be measured through the following objectives;

i. To satisfy the local demand for eggs and white meat.

ii. To open-up the rural area (Bamba) for development

iii. To utilize the local available resources

iv. Provide employment opportunities to others especially the youth.

CHAPTER SEVEN
 RISK AND MITIGATION.

FINANCIAL RISK.
Financial risk includes the following;

i. Rising interest rates.

ii. Restricted credit availability.

iii. Prospects of loan being called by lenders

All of the above are aspects of financial risks especially when a business borrows money and
create an obligation to repay debts. Apart from that, there is also.

• Change in our pricing policy or that of our competitors will put farm's financial plan to a
risk.

• Fluctuations in revenue from distributors and retailor.

• Timing of costs related to acquisition or payments.

All this affects the financial plan of the farm either positively or negatively, but as the manager,
I have put measures to ensure the farm will generate enough cash to payback it's loans and to
sustain its operations.

HEALTH RISK.

Contiguous diseases and virus outbreak are very fatal, if one of the chickens is affected by the
disease, all of the chickens would be infected and if it is not recognized earlier and treated all
chickens could die which will lead to a greater loss in the farm.

Also, some of the diseases are contiguous to human beings not only chickens which all affects
the operation of the farm. In my case, I have a veterinary personal who will be assessing the
chicks to be sure nine of them has a contiguous disease to avoid the loss as a result of chicken’s
death and also to prevent my customers from these diseases.

TECHNICALLY RISK.

Technology is good but it also has its dons. These are normally problems involved in using
technology. I. e the use of a machine that collects eggs may fail to work or spoil making the
work to be slow and adding more costs to the business by repairing it. Cost of electricity is also
not easy and also some electric problems can lead to fire outrage and burn the business
structure. All this affects the plan of the business as the owner I will work closely with the best
insurance company to ensure no loss is incurred due to the above risk the farm is facing.
 CHAPTER EIGHT.

OPERATIONS.
KEZDEN poultry farm has a setup cost of around ksh 700000 and I need a bank account, I have
chosen my bank to be KENYA COMMERCIAL BANK because of its proximity in the area.

HUMAN RESOURSE.
KEZDEN ltd company will employ twelve workers that will be:

managing director in charge of overall supervision.

Financial manager in charge of financers in and paying of the workers.

Two vetinary officers in charge of treating and maintaining the health of the poultry.

Two security officers to guard the chicken against any external attack

Two cleaners to maintaining the hygiene of the place.

Two people for feeding the chicken with food and water

KEY ASSETS
KEZDEN ltd company will posses’ key assets like vehicle for transportation of the products by
suppliers, buildings and lang for construction

SUPPLIRES.
My main suppliers will be my two employees. Then will have those venders who are interested
in taking stock at a cheaper price to sell and also through that much advertising will have those
immediate and regular customers who might either be in indeed of picking for themselves or
we deliver for them the goods. On goods delivered there shall be a delivery fee for every.
 CHAPTER NINE

FINANCIAL PLAN.

DETAILS AMOUNT

insurance 2000

advertisement 3000

telephone 1000

Rent 10000

Water 4000

Banking 1000

Salaries 200000

Total 221000

PROJECTED PROFIT AND LOSS ACCOUNT.

FOR THE NEXT THREE YEARS.

Year 1 Year 2 Year 3

Sales 29180 172500 315000

Direct cost of sales 6000 10000 30000

Total cost of sale 23180 162500 285000

Gross margin 23180 162500 285000

Gross margin % 76% 71% 71%

Expenses

Pay roll 15000 20000 20000

Marketing/promotions 120 3000 400

Depreciation 6000 6000 6000

Building expenses 10000 12000 15000

Equipment expenses 3000 0 0

Legal 500 500 500

Rent 4000 0 0

Inventory 900 1000 1500

Total operating expenses (26020) (42500) (43400)

Gross profit (2840) 120000 241600

Interest expenses (1000) (1000) (1600)

Taxes incurred (0) (2000) (2000)

Net profit/loss (3840) 117000 238000

Net profit/loss % (83%) 4% 6%

KEZDEN POULTRY FARM

BALANCE SWEET.

Asset. Year 1 Year 2 Year 3

Current

Cash 300000 250000 200000

Inventory 8500 250000 300000

Another current asset 30000 35000 40000

total current asset 338500 535000 540000

Non-current asset

Long-term asset 150000 150000 150000

Depreciation (40000) (40000) (40000)

Net long-term asset 110000 110000 110000

 Total asset 448500 645000 650000

Liabilities and capital

Accounts payable 3000 2500 3500

Current borrowing 15000 13000 12000

Long-term liability 40600 28600 8600

Paid-in-capital 393740 483900 387900

Earnings (3840) 117000 238000

Net liabilities and capital 448500 645000 650000

HIRING PLAN
Apart from management team, (family) being spearheaded by Keziah the founder and owner of
the business other personal includes;

• Distributors

• Sale personnel

• Veterinary officer.

zines. All this will help my customers both the existing and new to know that am still in the
market supplying my products to them.

SWOT ANALYSIS.

SWOT stand strength, weaknesses, opportunities and threats. I have made an analysis in each
case as shown.

STRENGTH.

• Produce high quality eggs enriched with protein.

• Good marketing system.

• Poultry are environmentally friendly.

• In this area the poultry business has not been over exploited.

• Relatively good infrastructure system.

• Eggs and chickens are not seasonal as people always think.

OPPORTUNITIES.

• expansion in large scale production of by product (fertilizer and detergents)

• Export my products neighboring towns

• A large and successful security will ensure a good security to the area.

WEAKNESS.

• Capital intensive; starting a Poultry business requires a large capital funding.

• Outbreak of diseases can ruin the entire business in a go.

• The smell of poultry by product can be quite disturbing.

THREATS.

• More competition.

• Avian diseases outbreak.

• High feed ingredients prices.

• Treat of import frozen chickens.

REFERENCES.

i. Abdallah G.K and Elijdemberg, E.L (2019)

ii. Norton Paley (2004) Successful Business Planning- Energizing your company’s Potential.
iii. Lomash (2008) Business Policy and Strategy Management, Vikas Publishing House PVT LTD.
iv. Jeffrey I. Andrew Z and Stephen S, (2004) Business Plans that work. MCGRAW-HILL.