Latheethen Feeds, Inc. currently offers our customers products and supplies (Feed, Wormer, Treats, Beading, etc.) for the following animals:
Latheethen Feeds will continue to offer all of the above great products, while evaluating the desire and need by our customers for the following items.
Latheethen Feeds, Inc. will continue to offer the existing services, but we will also be expanding our services to include the following as customers demonstrate an interest in supporting the addition of such services.
Latheethen Feeds is the only custom feed manufacturer in the Midland, Michigan area and surrounding 50 mile radius. In the past, our market has been individual end users. Recent market analysis suggests that our custom feeds could be marketed to other direct feed stores outside of this 50 mile radius.
In reviewing our existing customer base, and recognize the broad range of local organizations such as 4-H and Future Farmers of America (FFA) and area farms and ranches, we have seen the possibilities for potential market growth. Latheethen’s has never had a direct sales force, advertised, or approached the specialized market they dominate with any zest for growth.
More than sixteen years in this business with success in the creation of formulas of high quality, cost-contained custom feed, mixed with the energy of youth and enthusiasm to grow this family business is greatly reinforced by the simple market analysis outlined below.
Latheethen Feeds, Inc. will focus on the following markets:
Market Analysis | |||||||
2004 | 2005 | 2006 | 2007 | 2008 | |||
Potential Customers | Growth | CAGR | |||||
4-H Enrollments | 5% | 9,846 | 10,338 | 10,855 | 11,398 | 11,968 | 5.00% |
Cattle Farms | 2% | 1,450 | 1,479 | 1,508 | 1,538 | 1,570 | 2.00% |
Horse Owners | 5% | 2,750 | 2,887 | 3,032 | 3,183 | 3,343 | 5.00% |
Hunters | 8% | 20,434 | 22,068 | 23,834 | 25,740 | 27,800 | 8.00% |
Other Livestock Farms | 3% | 649 | 668 | 23,833 | 25,741 | 731 | 3.00% |
Total | 6.63% | 35,129 | 37,440 | 63,062 | 67,600 | 45,411 | 6.63% |
Strategically targeting all the 4-H enrollments close to our business helps serve the needs and requirements of our local customers, and ties in logically with our marketing plan (see below) and our style of feed store. The youth of the 4-H are our future. These customers have regimented schedules, and find value in exceptional service, low prices and high quality feed. This first tier of our market segment is also the primary focus of our marketing plan, which has a deep commitment to focusing on the support of the 4-H kids and their community.
Our THIRD-TIER group, Horse Owners, will find that Latheethen’s special blend of oats and grains, all mixed in with our high quality minerals, results in premium feed at an affordable cost. All of these things are essential factors in a customer’s feed-buying decision. Our specialty horse feeds are made for both the average horse and for the equine racer, both of which are numerous in our area. We need to market the right avenues to gain industry share in this rapidly expanding market.
Our FOURTH-TIER, Hunters, is simply the largest in number of individual purchasers. Hunters are mostly seasonal customers, from the months of September through December we will see our numbers skyrocket when compared to the other eight months of the year. For projection purposes, we figured on having a low 30% of the total available market (69,232). This total potential market includes hunters from six of our surrounding counties (within a 50 mile radius). The actual number of hunters that stop by on their way to their cabins or blinds is substantially higher than forecasted.
Our FIFTH-TIER, Other Livestock Farms, represents a market that has an abundant number of feed users. Our custom feed mill allows us to manufacture any type of animal feed we desire, which help us acquire the available customers in this tier. From sheep and goat feed to rabbit and turkey feed, we make it all. Again, when we make our high quality feed, we make it with the highest quality products and sell it at wholesale prices. This market is basically up for grabs, as there are currently no competitors within a 125 mile radius that can supply these customers with such a high quality feed at the lowest costs possible.
We acquired our data for our market analysis from the Department of Natural Resources, the 4-H Council, and from USDA National Agricultural Statistics Service.
All of our projections are based on actual, real-life numbers (number of people/farms/etc.). We forecasted conservatively to show the actual amount of business we can easily obtain through a few advertisements and direct marketing.
Currently, Latheethen Feeds, Inc. is involved in the manufacture and retail sale of custom feed and related products. Latheethen Feeds straddles two industries – manufacturers of feed, and retailers of feed and farm supplies. Latheethen’s 16 years of success in the custom feed industry is the strong foundation for the success and continued growth.
There are over 7,000 farm product raw materials businesses in the United States, according to the 2002 U.S. Census Economic report. According to the same source, farm supplies and raw materials wholesalers currently sell over $62,000,000 of goods per year. Of these, only 843 of these were selling poultry and livestock feeds mixed on location. With total sales of $8,141,368, businesses like ours sold an average of $9,658 in goods each, per year. This reflects the fact that most of the custom-feed mixers in the United States are very small operations; many of them are farmers who mix their own feed for their own livestock, and sell the extra to neighbors. Latheethen Feeds started out this way, but expanded its product line with snacks for people, and wild and exotic animal feed. By becoming a full-service custom-feed store, and developing a reputation for great service and high quality feed, we have far surpassed the industry average for revenue.
Our products are purchased from wholesale suppliers and re-sold to retail consumers. Our custom feed is a huge competitor with other retail products. The raw goods and time to manufacture cost at least 80% less than similar feeds. With more focus on the overall quality of our feeds, the cost savings to our customers will become more of a word of mouth advertising from end user to end user. Direct referrals are always the best source of committed customer and sustained reliable growth.
There really is no competitor within a 50 mile radius of Latheethen Feeds for custom feed for the wide variety of animals we provide for. Our tasks are to encourage our customers to make referrals, to implement direct marketing to groups such as the 4H and FFA, and to go out to the various ranches and livestock farms and introduce our company and our line of custom feeds.
At this point, we are a great-kept secret, when comparing our customer base to the existing market research potential.
Within the feed and farm supply industry, businesses compete on price, quality, customer service, and delivery. Customer service can include things like ability to produce a range of quantities, and custom-feed options. Customers must also trust the supplier for regular, reliable service and consistent quality, since sudden changes in feed can really disrupt their animals’ digestion and health.
Our existing customers have pretty routine buying patterns. The same customers come at the same time of the week or every other week. Their deliveries are scheduled for the same time, with the same volumes each time. When asking our customers why they use our products, they always have the same answer: “your custom feed is so good for my animal and it is priced just right.”
Most of our customers have been doing business with us for several years. Solid customer relationships, a friendly atmosphere and being available to provide quality products at a good price all add to a successful bottom line.
We strongly believe that by offering delivery services, we will gain a substantial number of new customers, both through the advantages of the new service, and with the new advertising (signs on our truck). We will gain the recognition of new customers through our focused marketing plan.
Latheethen Feeds, Inc. will be entering into direct sales for the first time. Starting in October and November, we will approach members of our target markets within 10 square miles both via phone and with direct visits. Where possible, we will ask existing customers to provide us with an introduction or to mention us to their neighbors and friends before we approach them. This will both lend credibility and pre-qualify potential customers as genuinely in need of our services, based on others’ knowledge of them.
We will tell them about our current products and services, and then ask them clearly what we need to do to earn their business. We will listen to their desires and individual goals. We will then mirror back to them what they have said, to be sure we understand their needs. Finally, we will create an individualized sales proposal with their specific needs (products, volumes, frequency, price, other services) included.
We will present the proposal as a written agreement ready for signature by both parties to begin doing business.
Follow up calls will go to each customer within 24 hours of each delivery to ensure satisfaction. If for any reason there is an issue, it will be handled immediately by one of the owners directly with the customer.
Latheethen’s has previously been successful do to repeat customers. As the business switches hands we will also focus on keeping the existing customers happy and successfully introducing our new products and services. We will always focus on our repeat customers. The loyalty and respect we get from those customers will all play a big role in growing the business and taking it to the next level.
The sales forecast for Latheethen Feeds, Inc. includes all varieties of feed, as well as non-feed supplies and future forecasts for boarding stable revenue.
Adding the boarding stable will utilize vacant land and make it work for the company. The addition of the boarding stable will add to our company’s feed sales, and to the specialized services we offer. Boarding Stable costs include laundering of horse blankets, feed used by horses during their stay, and wear and tear on grooming instruments.
The annual growth rates fluctuate and are defined as:
The reasoning behind the initial dramatic increase in sales is due to accurate reporting and tracking, and growth of sales (generated through direct sales and advertising). For 2007, 2008 and 2009 we are forecasting significantly increases in our sales as we open the boarding stable. We anticipate that it will take three years to book out all of our stalls.
In 2009, we are forecasting a modest increase of 12.84%, based on the growth of feed sales and stable services alone. We are also planning on bringing back the rodeos and livestock shows that the previous owners have held in past years. This year could prove to be the year to bring back some of the good old days to the new Latheethen Feeds location.
Sales Forecast | |||||
FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 | |
Sales | |||||
Equine Feed | $38,040 | $39,942 | $41,939 | $44,036 | $46,238 |
Deer Feed | $12,000 | $12,960 | $13,997 | $15,117 | $16,326 |
Livestock Feed | $93,346 | $102,680 | $112,948 | $124,243 | $136,668 |
Misc. Products & Supplies | $6,000 | $7,000 | $8,000 | $9,000 | $10,000 |
Boarding Stable | $0 | $0 | $42,000 | $63,000 | $84,000 |
Total Sales | $149,386 | $162,582 | $218,884 | $255,396 | $293,232 |
Direct Cost of Sales | FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 |
Corn, Oats, Molasses, Other Ingredients | $40,400 | $42,258 | $44,202 | $46,236 | $48,362 |
Misc. Products & Supplies | $3,000 | $3,500 | $4,000 | $4,500 | $5,000 |
Boarding Stable | $0 | $0 | $8,400 | $12,600 | $16,800 |
Bags, Ties, Pallets, Labels | $1,440 | $1,506 | $1,575 | $1,648 | $1,724 |
Subtotal Direct Cost of Sales | $44,840 | $47,264 | $58,177 | $64,984 | $71,886 |
Emphasize customer service We will differentiate ourselves with CUSTOMER SERVICE! We will establish our business as a clear and viable alternative for our target market, from the scores of competitors known for “do-it yourself,” “no we don’t offer that product,” and “no delivery available.”
Customer service is paramount in our business and our business plan. The management team will accomplish this goal by training employees and by providing encouragement.
The new management team of Latheethen Feeds, Inc. believes that an employee who is happy at work will enjoy working. It is always easier to please customers with staff that cares, a facility that is clean and equipment that is kept in proper working order.
Latheethen Feeds, Inc. will also work toward establishing community involvement programs that will demonstrate how the business can contribute to a better quality of community life. Community project groups such as the 4-H Council, the FFA, Schools, churches, and other groups will be welcomed for tours of the facilities and will be shown how the facility can be used to help raise funds for their needs.
Build a relationship-oriented business Build long-term relationships with customers, not single-visit deals. Become their “feed dealer of choice.” Teach them the value of the relationship.
Focus on target markets We need to focus our offerings on specific population groups as the key market segment we should own. We definitely want to be able to sell to smart, quality conscious customers.
Latheethen Feeds, Inc. has one of the most sought-after competitive edges in the industry. We have our own individual feed mill that can produce any animal feed requested. All we need is a few ingredients and some time to make our specialty custom feeds.
Our custom mill was built and wired with a 3-phase electrical system (industrial strength) and the best equipment on the market today. Other feed stores dream of having access to their own mill; this is where you make most of your money. Instead of having to be the middle man and purchase a large inventory of generic feeds, we custom-blend and produce our own feed to keep the costs down. When we can produce and market feed that costs us nearly 80% less than it costs to purchase a generic feed, we can keep our shelf prices lower than our competitors.
Let’s face it, lower prices + higher quality feed = money in the bank.
From the very first day Latheethen’s was open for business in 1989, the owners never advertised. They let the word get around (word-of-mouth advertising). This has obviously worked in their favor, as they are operating a profitable business, as is reflected in net profit increases annually.
In the future we, the new owners of Latheethen’s, will market our products to new customers in various strategic ways. This will aid in bringing in more customers…and will also aid in spreading the word that we are expanding our business. Most of the existing customers come from within a 30 mile radius of the store. Through delivery, we can offer our products and services to anyone willing to pay for it.
Our next competitive edge is that we will be running our delivery truck on a daily basis (once we implement delivery and obtain the necessary business). Most of our other competitors do not deliver or only deliver within a short distance from their location. Again, we will serve our customers with a higher quality feed, high level of professional service, and be willing to take it to their door.
Our strongest competitive edge is that we are family owned and operated and that our knowledge of the feed industry runs deep. With the resources available, the energy we can contribute at our young age, the raw talent for business and deep understanding of customer service, the potential to grow this already exciting business is tremendous.
Latheethen Feeds, Inc. will implement the following Marketing Strategies upon the business transfer in the following order:
Through marketing our products in these ways, we project that Latheethen’s will almost double its business within the first 2 years of new ownership.
The following detailed milestone table shown identifies the primary tracking points for our initial company takeover, for our growth and our development process. We have included budgets for each subject and the name of which company came in with the lowest bid price.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business Title Transfer | 10/4/2004 | 10/31/2004 | $0 | Chris | Department |
Implement POS System | 11/1/2004 | 11/30/2004 | $6,000 | Dennis | Department |
Print Product Catalogs | 11/1/2004 | 11/30/2004 | $250 | Dennis | Department |
Buy Delivery Truck | 11/1/2004 | 12/1/2004 | $15,000 | Dennis | Department |
Begin Delivery Service | 12/1/2004 | 12/5/2004 | $0 | Dennis | Department |
Advertise in Newspapers | 11/1/2004 | 12/31/2004 | $1,000 | Dennis | Department |
Affiliate with related website | 11/1/2004 | 12/31/2004 | $400 | Dennis | Department |
Contact 200 potential customers | 11/15/2004 | 1/1/2005 | $0 | Dennis & Kay | Department |
Build Web Site | 11/1/2004 | 1/15/2005 | $1,500 | Dennis | Department |
Get 50 new contracts | 1/1/2005 | 3/1/2005 | $0 | Dennis & Kay | Department |
Track hunter snack preferences | 11/1/2004 | 3/1/2005 | $0 | Dennis | Department |
Average livestock feed sales of $7775/month | 11/1/2004 | 10/31/2005 | $0 | Dennis | Department |
Renovate Boarding Stable | 3/1/2006 | 10/1/2006 | $100,000 | Dennis | Department |
Landscaping, fencing, etc. | 10/1/2006 | 7/1/2007 | $25,000 | Dennis | Department |
Totals | $149,150 |
Latheethen Feeds, Inc.’s website will enable us to offer customers current information on special sales, promos, new product releases, events, and public service announcements. We also plan on utilizing the Web to sell and market our products and services. An e-store will also be implemented into our web design, allowing customers to place orders for the feed they need right on our website. We will be able to accept and process check and credit card orders immediately online. Our customers will still have the options of paying by cash, check or money order as well.
Our website will be promoted through the use of sponsor listings and affiliate memberships [confidential and proprietary information removed]. Our site will be registered with all of the major search engines. We will also share links with our distributors and manufacturers.
Latheethen Feeds, Inc.’s website will be initially developed with few internal technical resources. IPowerWeb will host the site and provide the technical back end. MX-Productions will produce the graphics, logos, artwork, and flash media as they will be developing our website from scratch. Our site will be maintained by one of the owners.
Latheethen Feeds, Inc. is presently made up of three employees. The two current owners and one mill operator put in approximately 75 hours a week. As the new business ownership takes effect and various marketing plans are implemented, the product volume will increase. There is sufficient room in the production mill to expand and produce more feed daily. It is planned that the two new owners will oversee the production and day to day business practices.
We will also be contracting a new outside CPA to handle the corporate book keeping and business accounts (listed in the Profit and Loss table). We value and understand how important proper accounting and reporting of all sales activities are to the successful growth of a company. It is through development of this accuracy that true business growth will be verified and available for the continued security of this well-established family business.
Latheethen Feeds, Inc. is currently run and operated by one person in the mill and one person in the store. In time, as we implement our marketing plan, we will need to hire in an additional person to assist in the mill, and possibly another person to assist Kay in the store. We also could possibly need to hire a delivery person in the year 2005. When the business expands with new customers and larger feed orders, Dennis will need to be on site to assist Kay with inspecting the orders prior to delivery to ensure quality and accuracy of all orders. As growth evolves other family members may be of age to assist in the processes or employees may need to be placed.
As we expand we will hire independent contractors. We believe this way would best suite a company our size. Instead of spending the amount of money required by law to actually hire an employee, we feel we would all benefit more from setting up our personnel in this aspect.
Personnel Plan | |||||
FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 | |
Dennis | $12,000 | $18,000 | $20,000 | $25,000 | $25,000 |
Kay | $12,000 | $15,000 | $15,000 | $15,000 | $15,000 |
Extra Mill Operator | $7,000 | $12,000 | $18,000 | $18,000 | $24,000 |
Extra Store Help | $0 | $0 | $10,000 | $15,000 | $18,000 |
Total People | 3 | 3 | 4 | 4 | 4 |
Total Payroll | $31,000 | $45,000 | $63,000 | $73,000 | $82,000 |
The financial plan is to borrow $15,000 now as a short-term loan from Citizens Bank, at an interest rate of 7%, to buy a delivery truck suitable to our needs. We will repay this loan within two years from the cash flow of the business. This truck will allow us to expand our services to include delivery, giving us a further edge over the local competition and enabling us to further expand into our target market, while increasing recognition of our name and services.
The second phase of the plan is to borrow $135,000 in long-term loans from the bank in early 2006, to fund the renovation of the existing property’s barn and outbuilding into a structurally-sound, attractive, and livable horse boarding stable, and to install fencing and landscaping suitable to that purpose. This renovation will be completed within 7 months, although final landscaping and fencing is not expected to be finished until early 2007. We will repay this loan over 10 years. We will secure this loan with our equity in the value of the existing property. The boarding stable will open up a new revenue stream for the business, and attract new steady customers.
With aggressive target marketing and the sales strategies outlined above, we will increase sales over 3% in the first year. We expect a bigger increase in year two, with the extensive renovation generating some free publicity and with existing customers making referrals, but the largest expansion is planned for 2008, when we can first realize a full year’s revenue from the boarding stable.
From the very start, the new owners of Latheethen’s will start building the business and taking it to the highest level. The new owners have bright futures ahead of themselves, as does Latheethen Feeds, Inc. The once small, unknown feed store will be transformed into the area’s premier livestock feed store and equine boarding facility. The new Latheethen Feeds will be capable of hosting large scale rodeos and other livestock shows by the end of 2009.
This business plan was developed for Latheethen Feeds, Inc. assuming the following:
General Assumptions | |||||
FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 | |
Plan Month | 1 | 2 | 3 | 4 | 5 |
Current Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
Long-term Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 | 0 | 0 |
Break-even is based on fixed costs of approximately $5,900 including loan repayment, insurance, maintenance and labor. Additionally, controllables such as service labor, payroll taxes, property taxes, advertising and legal/professional fees are included.
The following chart shows that we need to produce approximately $8,500 from sales per month to break-even (according to the assumptions). That is less than what the previous owners have accomplished in previous years. We strongly believe we will succeed and provide handsome returns for our company and its owners.
Margins are harder to assume. Our FY 2005 gross margin is forecasted at 69.98%. In the following years our gross margin will continue to grow beyond our starting point because of the continued growth in total product sales and the release of our new equine boarding stable. The products manufactured in the mill cost about $3.50 for 50 pounds of feed on average. The lowest sale (market) price on those products is $5.50 with the highest coming in at $10.75. The majority of our gross profit on feed products is made directly as a result of having the luxury of our own custom mill.
Not only will we serve a much higher number of customers monthly than required by this break-even chart, we believe that we are going to possibly double the amount projected in our cash flow charts in this business plan, because we are going to be the only facility of its kind within a 150 mile radius. As advertising and direct sales follow suit from outside areas, our delivery service will prove to be valuable to our company and our customers.
Break-even Analysis | |
Monthly Revenue Break-even | $7,929 |
Assumptions: | |
Average Percent Variable Cost | 30% |
Estimated Monthly Fixed Cost | $5,549 |
Outlined below and in the following table and chart, are some of the intrinsic facets of the projected profit and loss for Latheethen Feeds, Inc.
Cost of sales reflects our cost to manufacture the feed and purchase all other non-manufactured products. Gross margin will continue to rise at a steady pace throughout the years forecasted.
Payroll expenses currently includes income for the two owners. As forecasted, additional employees will be brought aboard as required to keep up with the growing pace of Latheethen Feeds, Inc. Further details are available in our Personnel table (above).
Advertising and marketing expenses (news ads, magazine ads, etc.) are projected to increase as net profits increase and positive results are accomplished as a direct result of the same marketing and advertising. All direct sales and marketing is performed by Dennis. Commissions are not paid to him as a result of a gained customer as he is one of the two major owners of the corporation.
Depreciation forecasted includes normal wear and mechanical tune-ups on trucks, tractors and all equipment in the mill.
Fuel costs are projected to grow as the amount of sales made that require delivery increase. This projected expense includes fuel for the trucks, tractors, etc.
Utilities are projected to increase year to year. The current market prices for utilities will change as the years past. We have prepared for an annual $100 increase.
Insurance: Latheethen’s was quoted an insurance premium of $1,200/monthly, which includes liability, property, theft, fire, and personal insurance. The equipment (Mill machines, vehicles, and tractors) is also included in the monthly premium amount.
Payroll taxes include social security, unemployment and workers compensation, etc. Feed dealers permit and state sales tax license is projected to be paid in one annual installment in the month of January. Latheethen’s anticipates paying sales taxes monthly, and income tax quarterly, as required by law.
All website expenses are listed below, from initial development, to hosting, to account management for our e-commerce transactions.
Boarding Stable: The expensed portion of the barn renovations in year two is shown as an operating expense. The remainder ($125,000) is shown as purchase of new long-term assets in the Cash Flow table, representing the increased value of the property after renovation.
Pro Forma Profit and Loss | |||||
FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 | |
Sales | $149,386 | $162,582 | $218,884 | $255,396 | $293,232 |
Direct Cost of Sales | $44,840 | $47,264 | $58,177 | $64,984 | $71,886 |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 |
Total Cost of Sales | $44,840 | $47,264 | $58,177 | $64,984 | $71,886 |
Gross Margin | $104,546 | $115,318 | $160,707 | $190,412 | $221,346 |
Gross Margin % | 69.98% | 70.93% | 73.42% | 74.56% | 75.48% |
Expenses | |||||
Payroll | $31,000 | $45,000 | $63,000 | $73,000 | $82,000 |
Advertising & Marketing | $1,110 | $1,500 | $1,800 | $2,100 | $2,400 |
Depreciation | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Fuel | $7,185 | $7,490 | $7,822 | $9,000 | $9,600 |
Maintenance of Delivery Truck | $3,000 | $3,500 | $3,500 | $3,500 | $3,600 |
Utilities | $3,072 | $3,400 | $3,600 | $3,600 | $3,600 |
Insurance | $14,400 | $14,400 | $15,400 | $15,400 | $15,400 |
Payroll Taxes | $0 | $0 | $0 | $0 | $0 |
Postage | $180 | $180 | $190 | $190 | $210 |
Bank Charges | $240 | $240 | $240 | $240 | $240 |
Stable Renovation Expenses | $0 | $10,000 | $0 | $0 | $0 |
Accounting & Legal | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
Feed Dealers Permit | $15 | $15 | $15 | $15 | $15 |
Website Development | $1,500 | $0 | $300 | $0 | $200 |
Website hosting | $300 | $300 | $300 | $300 | $300 |
Online Payment Account Mgmt | $360 | $360 | $380 | $380 | $400 |
Sales Tax License | $25 | $25 | $25 | $25 | $25 |
Total Operating Expenses | $66,587 | $90,610 | $100,772 | $111,950 | $122,190 |
Profit Before Interest and Taxes | $37,959 | $24,708 | $59,935 | $78,462 | $99,156 |
EBITDA | $40,959 | $27,708 | $62,935 | $81,462 | $102,156 |
Interest Expense | $729 | $4,457 | $8,033 | $7,088 | $6,143 |
Taxes Incurred | $11,169 | $6,076 | $15,571 | $21,412 | $27,904 |
Net Profit | $26,061 | $14,176 | $36,332 | $49,962 | $65,109 |
Net Profit/Sales | 17.45% | 8.72% | 16.60% | 19.56% | 22.20% |
The cash flow projection for Latheethen Feeds, Inc. shows that provisions for ongoing expenses are adequate to meet the needs of the company, as the business generates sufficient cash flow to support operations and future expansions.
Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included here and in our Cash Flow table. Detailed monthly numbers are included in the Appendix.
Cash Flow shows the purchase of long-term assets as follows:
The table also shows the new loans required, and the projected repayment schedules.
Pro Forma Cash Flow | |||||
FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 | |
Cash Received | |||||
Cash from Operations | |||||
Cash Sales | $149,386 | $162,582 | $218,884 | $255,396 | $293,232 |
Subtotal Cash from Operations | $149,386 | $162,582 | $218,884 | $255,396 | $293,232 |
Additional Cash Received | |||||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $15,000 | $0 | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $135,000 | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 | $0 | $0 |
Subtotal Cash Received | $164,386 | $297,582 | $218,884 | $255,396 | $293,232 |
Expenditures | FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 |
Expenditures from Operations | |||||
Cash Spending | $31,000 | $45,000 | $63,000 | $73,000 | $82,000 |
Bill Payments | $75,770 | $103,070 | $116,585 | $129,680 | $143,333 |
Subtotal Spent on Operations | $106,770 | $148,070 | $179,585 | $202,680 | $225,333 |
Additional Cash Spent | |||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $9,167 | $5,833 | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $13,500 | $13,500 | $13,500 | $13,500 |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 |
Purchase Long-term Assets | $15,000 | $125,000 | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 | $20,000 | $20,000 |
Subtotal Cash Spent | $130,937 | $292,403 | $193,085 | $236,180 | $258,833 |
Net Cash Flow | $33,449 | $5,179 | $25,799 | $19,216 | $34,399 |
Cash Balance | $33,976 | $39,155 | $64,953 | $84,169 | $118,569 |
The Balance Sheet shows healthy growth of net worth, and strong financial position. The monthly estimates are included in the Appendix. The balance sheet for Latheethen Feeds, Inc. is quite solid. We do not project any trouble meeting our debt obligations. Our management is strong enough and more than capable of keeping the business on track for total repayment of any obligations (loans).
Our major capital asset (the property and affixed buildings) is valued at about $170,000. Our current assets include all the mill equipment ($71,463) and the tractor ($4,000). These items will be purchased upon funding of the requested loan, for the amount of $100,000.
We (the new owners) will also be paying off some old personal debt that will allow us to lower our monthly personal expenses. This will enable us to work hard at growing the business and not have to worry about taking money out of the company for personal reasons. The payroll amounts forecasted will be more than sufficient to cover our personal income needs.
We will have a solid starting balance in the company account. This will allow us to start the business takeover with a security nest and will allow us to grow our cash balance at a more steady pace.
Our projected balance sheet is presented in the table below.
Pro Forma Balance Sheet | |||||
FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 | |
Assets | |||||
Current Assets | |||||
Cash | $33,976 | $39,155 | $64,953 | $84,169 | $118,569 |
Inventory | $5,970 | $6,293 | $7,746 | $9,038 | $10,377 |
Other Current Assets | $75,463 | $75,463 | $75,463 | $75,463 | $75,463 |
Total Current Assets | $115,409 | $120,910 | $148,162 | $168,670 | $204,408 |
Long-term Assets | |||||
Long-term Assets | $185,000 | $310,000 | $310,000 | $310,000 | $310,000 |
Accumulated Depreciation | $42,089 | $45,089 | $48,089 | $51,089 | $54,089 |
Total Long-term Assets | $142,911 | $264,911 | $261,911 | $258,911 | $255,911 |
Total Assets | $258,320 | $385,821 | $410,073 | $427,581 | $460,319 |
Liabilities and Capital | FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 |
Current Liabilities | |||||
Accounts Payable | $10,620 | $8,279 | $9,699 | $10,745 | $11,874 |
Current Borrowing | $5,833 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $16,453 | $8,279 | $9,699 | $10,745 | $11,874 |
Long-term Liabilities | $0 | $121,500 | $108,000 | $94,500 | $81,000 |
Total Liabilities | $16,453 | $129,779 | $117,699 | $105,245 | $92,874 |
Paid-in Capital | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Retained Earnings | $214,805 | $240,866 | $255,042 | $271,374 | $301,336 |
Earnings | $26,061 | $14,176 | $36,332 | $49,962 | $65,109 |
Total Capital | $241,866 | $256,042 | $292,374 | $322,336 | $367,446 |
Total Liabilities and Capital | $258,320 | $385,821 | $410,073 | $427,581 | $460,319 |
Net Worth | $241,866 | $256,042 | $292,374 | $322,336 | $367,446 |
Latheethen Feeds, Inc.’s projected business ratios are provided in the table below. The final column, Industry Profile, shows significant ratios for the Feed Store Industry, as determined by the Standard Industry Classification (SIC) Index code 5999-0803.
Ratio Analysis | ||||||
FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 | Industry Profile | |
Sales Growth | 3.37% | 8.83% | 34.63% | 16.68% | 14.81% | 3.97% |
Percent of Total Assets | ||||||
Inventory | 2.31% | 1.63% | 1.89% | 2.11% | 2.25% | 38.92% |
Other Current Assets | 29.21% | 19.56% | 18.40% | 17.65% | 16.39% | 24.26% |
Total Current Assets | 44.68% | 31.34% | 36.13% | 39.45% | 44.41% | 79.54% |
Long-term Assets | 55.32% | 68.66% | 63.87% | 60.55% | 55.59% | 20.46% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 6.37% | 2.15% | 2.37% | 2.51% | 2.58% | 43.26% |
Long-term Liabilities | 0.00% | 31.49% | 26.34% | 22.10% | 17.60% | 14.36% |
Total Liabilities | 6.37% | 33.64% | 28.70% | 24.61% | 20.18% | 57.62% |
Net Worth | 93.63% | 66.36% | 71.30% | 75.39% | 79.82% | 42.38% |
Percent of Sales | ||||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 69.98% | 70.93% | 73.42% | 74.56% | 75.48% | 33.23% |
Selling, General & Administrative Expenses | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 20.52% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 2.10% |
Profit Before Interest and Taxes | 25.41% | 15.20% | 27.38% | 30.72% | 33.81% | 1.04% |
Main Ratios | ||||||
Current | 7.01 | 14.60 | 15.28 | 15.70 | 17.22 | 1.67 |
Quick | 6.65 | 13.84 | 14.48 | 14.86 | 16.34 | 0.65 |
Total Debt to Total Assets | 6.37% | 33.64% | 28.70% | 24.61% | 20.18% | 2.45% |
Pre-tax Return on Net Worth | 15.39% | 7.91% | 17.75% | 22.14% | 25.31% | 62.21% |
Pre-tax Return on Assets | 14.41% | 5.25% | 12.66% | 16.69% | 20.21% | 6.49% |
Additional Ratios | FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 | |
Net Profit Margin | 17.45% | 8.72% | 16.60% | 19.56% | 22.20% | n.a |
Return on Equity | 10.78% | 5.54% | 12.43% | 15.50% | 17.72% | n.a |
Activity Ratios | ||||||
Inventory Turnover | 11.97 | 7.71 | 8.29 | 7.74 | 7.41 | n.a |
Accounts Payable Turnover | 8.13 | 12.17 | 12.17 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 34 | 28 | 29 | 29 | n.a |
Total Asset Turnover | 0.58 | 0.42 | 0.53 | 0.60 | 0.64 | n.a |
Debt Ratios | ||||||
Debt to Net Worth | 0.07 | 0.51 | 0.40 | 0.33 | 0.25 | n.a |
Current Liab. to Liab. | 1.00 | 0.06 | 0.08 | 0.10 | 0.13 | n.a |
Liquidity Ratios | ||||||
Net Working Capital | $98,955 | $112,631 | $138,463 | $157,925 | $192,535 | n.a |
Interest Coverage | 52.05 | 5.54 | 7.46 | 11.07 | 16.14 | n.a |
Additional Ratios | ||||||
Assets to Sales | 1.73 | 2.37 | 1.87 | 1.67 | 1.57 | n.a |
Current Debt/Total Assets | 6% | 2% | 2% | 3% | 3% | n.a |
Acid Test | 6.65 | 13.84 | 14.48 | 14.86 | 16.34 | n.a |
Sales/Net Worth | 0.62 | 0.63 | 0.75 | 0.79 | 0.80 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | 0.40 | 0.31 | n.a |
Latheethen Feeds, Inc. is expected to grow at a steady pace. In conversations with other feed owners, this topic is already a common theme. Many feed stores are beginning to experience record breaking growth rates. This is an exciting time to purchase an already established and successful store in this market. As we expand our customer base, offer more products and bring the dreamed of equine boarding stable to life, we will be positioning Latheethen Feeds, Inc. amongst the elite dealers in the state of Michigan.
We will continuously review our business plan as we implement changes. By doing so we will ensure accuracy and stability. Our goal is to take over this great business, protect it, nurture it, and provide for it. Doing these things will enable us to grow and expand the business in a professional atmosphere.
Long-term | ||||||||||
FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | |
Sales | $149,386 | $162,582 | $218,884 | $255,396 | $293,232 | $0 | $0 | $0 | $0 | $0 |
Cost of Sales | $44,840 | $47,264 | $58,177 | $64,984 | $71,886 | $0 | $0 | $0 | $0 | $0 |
Gross Margin | $104,546 | $115,318 | $160,707 | $190,412 | $221,346 | $0 | $0 | $0 | $0 | $0 |
Gross Margin % | 69.98% | 70.93% | 73.42% | 74.56% | 75.48% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Operating Expenses | $66,587 | $90,610 | $100,772 | $111,950 | $122,190 | $0 | $0 | $0 | $0 | $0 |
Operating Income | $37,959 | $24,708 | $59,935 | $78,462 | $99,156 | $0 | $0 | $0 | $0 | $0 |
Net Income | $26,061 | $14,176 | $36,332 | $49,962 | $65,109 | $0 | $0 | $0 | $0 | $0 |
Current Assets | $115,409 | $120,910 | $148,162 | $168,670 | $204,408 | $0 | $0 | $0 | $0 | $0 |
Long-term Assets | $142,911 | $264,911 | $261,911 | $258,911 | $255,911 | $0 | $0 | $0 | $0 | $0 |
Current Liabilities | $16,453 | $8,279 | $9,699 | $10,745 | $11,874 | $0 | $0 | $0 | $0 | $0 |
Long-term Liabilities | $0 | $121,500 | $108,000 | $94,500 | $81,000 | $0 | $0 | $0 | $0 | $0 |
Equity | $241,866 | $256,042 | $292,374 | $322,336 | $367,446 | $0 | $0 | $0 | $0 | $0 |
Sales Forecast | |||||||||||||
Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | ||
Sales | |||||||||||||
Equine Feed | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | |
Deer Feed | $2,800 | $2,800 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $2,800 | $2,800 | |
Livestock Feed | $7,200 | $8,900 | $6,400 | $6,300 | $6,600 | $7,200 | $8,654 | $8,200 | $7,900 | $8,600 | $9,300 | $8,092 | |
Misc. Products & Supplies | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Boarding Stable | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Sales | $13,670 | $15,370 | $10,170 | $10,070 | $10,370 | $10,970 | $12,424 | $11,970 | $11,670 | $12,370 | $15,770 | $14,562 | |
Direct Cost of Sales | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | |
Corn, Oats, Molasses, Other Ingredients | $5,600 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $4,000 | $5,600 | |
Misc. Products & Supplies | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Boarding Stable | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Bags, Ties, Pallets, Labels | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | |
Subtotal Direct Cost of Sales | $5,970 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $4,370 | $5,970 |
Personnel Plan | |||||||||||||
Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | ||
Dennis | 0% | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Kay | 0% | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Extra Mill Operator | 0% | $0 | $0 | $0 | $0 | $0 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Extra Store Help | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
Total Payroll | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
General Assumptions | |||||||||||||
Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
Long-term Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | ||
Sales | $13,670 | $15,370 | $10,170 | $10,070 | $10,370 | $10,970 | $12,424 | $11,970 | $11,670 | $12,370 | $15,770 | $14,562 | |
Direct Cost of Sales | $5,970 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $4,370 | $5,970 | |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $5,970 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $4,370 | $5,970 | |
Gross Margin | $7,700 | $12,200 | $7,000 | $6,900 | $7,200 | $7,800 | $9,254 | $8,800 | $8,500 | $9,200 | $11,400 | $8,592 | |
Gross Margin % | 56.33% | 79.38% | 68.83% | 68.52% | 69.43% | 71.10% | 74.48% | 73.52% | 72.84% | 74.37% | 72.29% | 59.00% | |
Expenses | |||||||||||||
Payroll | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
Advertising & Marketing | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $10 | |
Depreciation | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Fuel | $629 | $672 | $542 | $539 | $547 | $562 | $598 | $587 | $579 | $597 | $682 | $652 | |
Maintenance of Delivery Truck | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Utilities | $256 | $256 | $256 | $256 | $256 | $256 | $256 | $256 | $256 | $256 | $256 | $256 | |
Insurance | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Postage | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | |
Bank Charges | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | $20 | |
Stable Renovation Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Accounting & Legal | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Feed Dealers Permit | $0 | $0 | $15 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Website Development | $500 | $500 | $500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Website hosting | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | $25 | |
Online Payment Account Mgmt | 15% | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 |
Sales Tax License | $0 | $0 | $25 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $5,375 | $5,418 | $5,328 | $4,785 | $4,793 | $5,808 | $5,844 | $5,833 | $5,825 | $5,843 | $5,928 | $5,808 | |
Profit Before Interest and Taxes | $2,325 | $6,782 | $1,672 | $2,115 | $2,407 | $1,992 | $3,410 | $2,967 | $2,675 | $3,357 | $5,472 | $2,784 | |
EBITDA | $2,575 | $7,032 | $1,922 | $2,365 | $2,657 | $2,242 | $3,660 | $3,217 | $2,925 | $3,607 | $5,722 | $3,034 | |
Interest Expense | $88 | $83 | $78 | $73 | $68 | $63 | $58 | $53 | $49 | $44 | $39 | $34 | |
Taxes Incurred | $671 | $2,010 | $478 | $613 | $702 | $579 | $1,005 | $874 | $788 | $994 | $1,630 | $825 | |
Net Profit | $1,566 | $4,690 | $1,116 | $1,429 | $1,637 | $1,350 | $2,346 | $2,040 | $1,838 | $2,319 | $3,803 | $1,925 | |
Net Profit/Sales | 11.46% | 30.51% | 10.97% | 14.19% | 15.79% | 12.31% | 18.88% | 17.04% | 15.75% | 18.75% | 24.12% | 13.22% |
Pro Forma Cash Flow | |||||||||||||
Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $13,670 | $15,370 | $10,170 | $10,070 | $10,370 | $10,970 | $12,424 | $11,970 | $11,670 | $12,370 | $15,770 | $14,562 | |
Subtotal Cash from Operations | $13,670 | $15,370 | $10,170 | $10,070 | $10,370 | $10,970 | $12,424 | $11,970 | $11,670 | $12,370 | $15,770 | $14,562 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $15,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $28,670 | $15,370 | $10,170 | $10,070 | $10,370 | $10,970 | $12,424 | $11,970 | $11,670 | $12,370 | $15,770 | $14,562 | |
Expenditures | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | |
Expenditures from Operations | |||||||||||||
Cash Spending | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
Bill Payments | $231 | $6,881 | $5,791 | $6,664 | $6,394 | $6,479 | $6,385 | $6,823 | $6,677 | $6,589 | $6,904 | $9,952 | |
Subtotal Spent on Operations | $2,231 | $8,881 | $7,791 | $8,664 | $8,394 | $9,479 | $9,385 | $9,823 | $9,677 | $9,589 | $9,904 | $12,952 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $834 | $834 | $834 | $834 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $15,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $17,231 | $9,714 | $8,624 | $9,497 | $9,227 | $10,312 | $10,218 | $10,656 | $10,511 | $10,423 | $10,738 | $13,786 | |
Net Cash Flow | $11,439 | $5,656 | $1,546 | $573 | $1,143 | $658 | $2,206 | $1,314 | $1,159 | $1,947 | $5,032 | $776 | |
Cash Balance | $11,966 | $17,622 | $19,168 | $19,741 | $20,884 | $21,542 | $23,748 | $25,062 | $26,221 | $28,168 | $33,200 | $33,976 |
Pro Forma Balance Sheet | |||||||||||||
Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $527 | $11,966 | $17,622 | $19,168 | $19,741 | $20,884 | $21,542 | $23,748 | $25,062 | $26,221 | $28,168 | $33,200 | $33,976 |
Inventory | $8,904 | $5,970 | $3,300 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $4,370 | $5,970 |
Other Current Assets | $75,463 | $75,463 | $75,463 | $75,463 | $75,463 | $75,463 | $75,463 | $75,463 | $75,463 | $75,463 | $75,463 | $75,463 | $75,463 |
Total Current Assets | $84,894 | $93,399 | $96,385 | $97,801 | $98,374 | $99,517 | $100,175 | $102,381 | $103,695 | $104,854 | $106,801 | $113,033 | $115,409 |
Long-term Assets | |||||||||||||
Long-term Assets | $170,000 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 | $185,000 |
Accumulated Depreciation | $39,089 | $39,339 | $39,589 | $39,839 | $40,089 | $40,339 | $40,589 | $40,839 | $41,089 | $41,339 | $41,589 | $41,839 | $42,089 |
Total Long-term Assets | $130,911 | $145,661 | $145,411 | $145,161 | $144,911 | $144,661 | $144,411 | $144,161 | $143,911 | $143,661 | $143,411 | $143,161 | $142,911 |
Total Assets | $215,805 | $239,060 | $241,796 | $242,962 | $243,285 | $244,178 | $244,586 | $246,542 | $247,606 | $248,515 | $250,212 | $256,194 | $258,320 |
Liabilities and Capital | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $6,689 | $5,568 | $6,451 | $6,178 | $6,266 | $6,157 | $6,600 | $6,458 | $6,362 | $6,574 | $9,586 | $10,620 |
Current Borrowing | $0 | $15,000 | $14,167 | $13,334 | $12,501 | $11,668 | $10,835 | $10,002 | $9,169 | $8,335 | $7,501 | $6,667 | $5,833 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $21,689 | $19,735 | $19,785 | $18,679 | $17,934 | $16,992 | $16,602 | $15,627 | $14,697 | $14,075 | $16,253 | $16,453 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $21,689 | $19,735 | $19,785 | $18,679 | $17,934 | $16,992 | $16,602 | $15,627 | $14,697 | $14,075 | $16,253 | $16,453 |
Paid-in Capital | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Retained Earnings | $205,465 | $214,805 | $214,805 | $214,805 | $214,805 | $214,805 | $214,805 | $214,805 | $214,805 | $214,805 | $214,805 | $214,805 | $214,805 |
Earnings | $9,340 | $1,566 | $6,256 | $7,372 | $8,801 | $10,439 | $11,789 | $14,135 | $16,175 | $18,013 | $20,332 | $24,136 | $26,061 |
Total Capital | $215,805 | $217,371 | $222,061 | $223,177 | $224,606 | $226,244 | $227,594 | $229,940 | $231,980 | $233,818 | $236,137 | $239,941 | $241,866 |
Total Liabilities and Capital | $215,805 | $239,060 | $241,796 | $242,962 | $243,285 | $244,178 | $244,586 | $246,542 | $247,606 | $248,515 | $250,212 | $256,194 | $258,320 |
Net Worth | $215,805 | $217,371 | $222,061 | $223,177 | $224,606 | $226,244 | $227,594 | $229,940 | $231,980 | $233,818 | $236,137 | $239,941 | $241,866 |
Inventory Detail | |||||||||||||
Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | ||
Months of Inventory On-hand | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |
Minimum Inventory Purchase | $500 | ||||||||||||
Inventory Balance | |||||||||||||
Beginning Inventory Balance | $8,904 | $5,970 | $3,300 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $4,370 | |
Less Inventory Used as COGS | $5,970 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $4,370 | $5,970 | |
Plus Inventory Purchase | $3,036 | $500 | $3,040 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $5,570 | $7,570 | |
Ending Inventory Balance | $5,970 | $3,300 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $3,170 | $4,370 | $5,970 |
Fill-in-the-blanks and automatic financials make it easy.
No thanks, I prefer writing 40-page documents.
Discover the world’s #1 plan building software
Hire Bizvestor for business research & planning, content writing, digital advertising, or to create a similar website for you → Contact Us
Share this Post:
This is a sample business plan for a poultry farm based in Nigeria. The sample business name used is Nutrichic Farms.
The business operates a poultry farm that breeds broiler and layer chickens, and is located in Nasarawa state.
The business plan outline used is a simple business plan that follows a standard business summary template used by most business schools and is usable for applying for loans, grants, and equity funding.
You can use this business plan as a guide to develop a business plan for your poultry business.
Nutrichic Farms is a poultry farm located in Nasarawa state, Nigeria. We rear broiler and layer chickens for eggs and meat production and sales.
Through our farm, we produce healthy chickens and eggs, which are distributed at local markets in Nasarawa and other neighboring states.
Nutrichic Farms operates a lean model poultry farm that houses a chicken shelter and a feed production chamber.
We produce our chicken feeds in-house to reduce cost of breeding and to ensure healthy nutrition for our chickens.
This ensures that our layer chickens lay more eggs, and our broilers are ready for sale as quickly as possible.
To ensure a fast and efficient sales process for our eggs and chickens, we have a distributor network that consists of 20 egg distributors and 15 chicken distributors within Nasarawa.
This makes our sales process faster and remittance of payments more accountable.
We are looking to make our production and distribution even more efficient by procuring more feed production machines and distribution vans for transporting our products to the market.
Our fresh eggs are sold at a wholesale price of 720 Naira per crate. Our mature broilers are sold at a wholesale price of 1,500 Naira, while our old layers are sold at a wholesale price of 1,300 Naira.
On the average, we sell 65 crates of eggs, and 80 chickens per week.
Business model.
Our business model focuses on producing healthy chickens and eggs, reducing production costs, utilizing competitive price points, and being fast to market by leveraging our distributor network.
Since we already operate a direct B2B sales model using our distributor network, our customer base is already set.
We have 20 egg distributors and 15 chicken distributors already. Once we increase our production capacity, we’ll be able to triple this number and grow our sales.
Currently, we are able to distribute 65 crates of eggs and 80 chickens per week, which brings us an annual revenue of 2.4 million Naira and 5.8 million Naira.
We estimate that our total annual revenue of 8.2 million can be tripled once we scale our production and make our distribution more efficient.
Our production costs include procuring day-old chickens for 100 Naira each, raw materials for feed production, vaccination, and fuel to power the production plant, pump water, and power the chicken shelter.
Our distribution costs include weekly transportation, logistics and other miscellaneous expenses.
Currently, our profit margin stands at 65% but we are looking to scale that up to 80% once we begin the next phase of our expansion plans.
Nutrichic Farms was launched by Solomon, who is currently the CEO of the business.
Solomon has a background in agric economics and farming, and has been managing his family farm since the past 20 years.
The current business has remained a family holding, with staff consisting mainly of family members.
Other team members include Mr. Hassan, the feed plant technician; Mr. Kehinde, the truck driver and distribution head, and Ms. Victoria, our quality control and business development manager.
Each person on this team brings a unique skill set that is required to drive the business forward and fulfill the needs of our customers.
Nutrichic Farms was launched in 2015 by Solomon due to his passion for poultry and farming.
The business was launched with a capital of 300,000 Naira, which purchased 50 birds, built a makeshift chicken shelter, and purchased some chicken feeds.
Over the past 5 years, Nutrichic Farms has grown so much that we have been able to build a larger and more standard chicken shelter, drilled a borehole, and started our own feed production.
Since then, we have sold over 30,000 chickens and 10,000 crates of eggs, making sales of over 10 million Naira.
In that time, we have also implemented our strategy for business development and grown our distributor network. We are hoping to grow this network further in the next phase of our business.
Market size/target audience.
According to Sahelcp, the poultry market in Nigeria is worth 80 billion Naira.
We estimate that the poultry market in Nasarawa and its environs is worth 0.5% of the total poultry market in Nigeria.
Hence, our market size is estimated to be worth 400 million Naira.
With the population in Nasarawa growing impressively year-on-year, we estimate that our target customers comprise over 4,000 retailers of chickens and eggs, and over 1.5 million consumers of chicken and egg.
Our marketing plan involves incentivizing and leveraging our distributor network.
We want to help these distributors of chicken and egg get the right products promptly at the right prices and to make more profit.
We plan to grow our distributor network to at least 2,000 distributors in the next 2 years.
This would help us boost sales and collect better feedback on the needs of retailers and final consumers.
Strengths: Our Strengths lie in our strategic distributor network, strong business efficiency, and growing brand.
Weaknesses: Our identified weak areas are limited markets due to physical nature of business, and Poor transport infrastructure which relies too much on external logistics partners.
Opportunity: Our identified opportunities include the growing population and demand for chicken and eggs, strong local brand identity, and the room for growth in our production and distribution.
Threats: We see threats to our business in different areas such as individual sellers in the market competing on price, logistics partners failing on deliveries, and wholesalers buying from outside the state.
Nutrichic Farms is in need of funds to purchase more machinery for our feed plant, purchase trucks for our distribution, and marketing to grow our distributor network.
We plan to grow our distributor network to at least 2,000 distributors in order to capture more market share and consolidate our brand positioning.
If these requirements are met, it would help us meet our business & financial goals.
Over the next two years, we plan to grow our distributor network from less than 50 to 2,000.
This would help us capture a wider segment of the market, triple our sales, and enjoy a strong market advantage.
To create a cash flow Projection for your poultry farm business plan, click here to use our Simple Financial Template .
Chijioke Solomon
Share This Post:
From writing a business plan to collecting eggs, everything you need to know.
Treehugger / Julie Bang
Maybe you've been raising laying hens for your family and wanted to expand, or perhaps you're starting fresh with a new flock and already know you want to get into the business of selling eggs. Either way, raising chickens who produce farm-fresh eggs can be a fun and profitable venture. There are just a few things to consider when starting your own egg business that will ensure your success.
Treehugger / Julia Cook
You'll need to make sure that a market for homegrown eggs exists in your area. And you'll want to see what prices others are commanding per dozen. When looking at other local egg offerings, consider: are the chickens fed organic feed? Are they "pastured," where they spend all day out on the grass, eating bugs and the growing tips of plants as well as chicken feed?
You'll want to determine where you will sell your eggs. Many states have exceptions for farmers selling eggs on a small scale. But if you want to go beyond that, you may need to set up a USDA-inspected egg washing facility. If looking locally, how much turnover does your local food co-op or grocery store have for eggs? Many places can't keep stock of good, local eggs, but in some towns or rural areas, there may be an oversupply.
As mentioned above, depending on your state and local laws, you may need to set up special facilities to clean your eggs. You may be allowed to, or prohibited from, recycling egg cartons from other companies to package your eggs. If you put the word "organic" on your eggs, you will probably need to meet organic standards, which can be time-consuming and costly.
Your county extension agent is a good place to start to find out what local and federal laws may apply to your egg-selling business.
The second step after knowing your market is to formalize your marketing plan by writing a business plan . A small farm business plan will not only identify your target market, but it will also look at how you might grow your business down the road, what price to set your eggs at, what costs contribute to producing the eggs, and what profit you can hope to generate.
With your business plan in place, you can work backward from the number of eggs you plan to sell each week, to how many chicks you need to get to meet that goal. Figure that during her prime, a laying hen will, on average, produce three to five eggs a week. If you plan to sell 10 dozen eggs a week, or 120 eggs, you can do the math to determine that 25 or 30 chicks will be a good number to start with.
Make sure you've done the hard work and that you have a market that can support the number of chicks you are getting for your flock.
You can also figure out pricing. What are your expenses each month for feed and other costs? Divide that by the number of dozens of eggs you plan to sell, and make sure you're charging well above your break-even point. You may have to spread the investment of building a chicken coop or putting up fencing over several years to make a profit, though, so don't calculate initial investment when setting your price.
Be sure when you choose your chicks, you're picking a breed that is very productive in the egg-laying department, and that also are hardy enough to survive in your climate. If you are in the north, you will want to consider supplementing with light in the winter, so that your hens produce eggs all year round.
Raising laying hens on pasture can make for better eggs, and discerning customers now know the difference. Deep, rich orange yolks bursting with flavor is what many now expect - and what you should easily get from hens with access to grubs, grasses, and the ability to roam over several acres to find the tastiest meals. On top of pasture, you'll want to provide high-quality feed and possibly additional calcium for strong shells. You can also supplement with food and garden scraps.
How you collect and clean eggs is extra important when you are selling them to others. Make sure that you know how to properly clean your eggs so that you minimize the risk of salmonella poisoning.
Once collected, it's time to package and sell your eggs . Consider your business plan when thinking about how to package your eggs. A nice label with a graphic logo can go a long way toward selling your eggs over another local brand. Make sure to follow all the requirements of your local and state laws when packaging and selling eggs.
With any business, ongoing assessment and evaluation of the success of the business are key. If things are not running smoothly with your egg business, it may be time to reassess - the markets, your infrastructure (coop and fencing), and even whether continuing to sell eggs is the right choice for you. Don't be afraid to reevaluate your egg business from time to time to make sure it's working well for your small farm .
“ Sale Of Eggs In Minnesota .” State of Minnesota Department of Agriculture .
“ Egg Sales & Licensing .” State of Wisconsin Department of Agriculture, Trade and Consumer Protection.
“ Sanitation Requirements .” U.S. Department of Agriculture.
Golson, Terry. The Farmstead Egg Guide & Cookbook. Houghton Mifflin Harcourt . 2014.
Hermes, James. “ How To Feed Your Laying Hens .” Oregon State University.
Search this blog, poultry farm, 5000 chicken farming business plan, shed size, investment cost and project report 2022.
United States is the number one country which holds the maximum number of poultry farms globally. China raise the maximum number of chickens in the world for meat.
According to statista.com report, there were more than 23.7 billion chickens in the world in 2019. In current reports, chicken is 22% part of total meat globally.
Principal purpose of chicken farm is to raise chickens for meat. It is not developed for layer egg farming.
In an integrated farming system poultry farming is one of the major parts of the business model, which is helpful to solve problems of farmers.
Poultry farming is a method of raising chickens for meat . In this method, a specific kind of rooster is the primary choice for meat. You can convert Poultry farming into sustainable poultry farm too.
Before getting the method and idea of poultry farming, let's understand initial investment to start a poultry farm.
TOTAL COST - 3100000 INR( $41500)
TOTAL COST - 410000 INR ($5470)
Some of the Indian breed of chickens for poultry farming are kadaknath, Giriraja, Garmapriya, Indian giant, etc.
Although poultry farming looks like an easy farming business model there are some difficulties and challenges on the ground reality.
Chicken farming business depends on a factors like Budget, variety of chicken, chicken-feed, land, and temperature.
To start a poultry farming Business, follow the given instructions-
Selection of land for the busines must be very subjective. If you have enough non fertilized land then it is best for the subject.
If you are thinking about a 5000 chickens farm, then you must have at least 0.5m x 0.5m square meter area for a chicken till its full growing process time. That means you should have a 1500 square meter area of 15m x 100m.
If you don't have this much area then your cost will depend on your area type. In a rural area, it is easy to buy land at a cheper price than in urban areas.
It depends on you how much can you invest in buying an above-measured Land but you have to get this first for sure.
According to their land requirement, housing must be fixed to protect all the area surrounded.
The house roof needs to be slopy-like hill regions to protect birds from over moisture in the rainy season.
You can manage to design the wall structure of Tin metal(which is cheaper), but it will not effective in summer.
For a 1500 square meter area, you need 15x100 square meter dimensions to make housing.
Housing must have proper exhaust features and a drain system. It is not necessary but you can use layer platforms if you have a shortage of land.
Housing will cost you around 300000 INR, including tin roof cover and labor.
In case of broiler chicken bird, a small chicken bird cost around 10 INR, so total cost becomes 10x5000= 50000 INR( $670) for 5000 chickens.
You can also read cow breeds identity and performance in Dairy farming business
Every chicken bird is insecure in the poultry farming business if they don't get proper vaccination.
If you ask veterinary surgeons, they suggest getting them to vaccinate after one month of their birth.
Every chicken must be vaccinated because they are easily caught in infectious diseases. If even one of them has an illness, then the entire business comes under threat.
So make the sure birth period of chicken birds during buying them from the seller.
It will cost you around 15000 to 25000 INR for all birds.
The growth of chickens depends on their feed and cure.
Chicken Feed is one of the most important the factor in the growth of chickens. If you give them a proper diet then they will take approximately 4 months to grow fully.
Cereal grains and oilseeds mixture in 70:30 respectively is the best diet in a study of food experts cereal grains are most of the part of the protein in their diet.
The total feed for a chicken in a day is one-fourth of a pound in a day which is 113 grams per day.
Cost and requirement:
That means you have to use 113 x 5000 = 565000 grams of chicken feed which is 565 kg daily. In the market, a 50 kg bag of the average quality of chicken feed is around 1300 INR. Around 12 bags of chicken feed is enough for a day. That means you have to spend 1300 x 12 = 15600 INR($208) daily.
You can ask for a connection with the local government water supply for the chicken farm. It is the best option.
If you want to make an automatic system of water then you have to fix this at the time of construction.
It will need long pipes with a hole beside next with fixed distance as same as the distance between two chickens or you can provide them water by making a slot for them directly.
Usually, in poultry farm people provide them water in particular pots.
Cost and requirement:
It will cost you 50 holes in a 100-meter pipe. That means you need a hundred pipes for the purpose. The pipes should be two inches thick. It will cost around 100 rupees per meter and total 100 x 100x 100 = 100000 INR($ 1334).
this cost is additional for the automatic system but you can use simple methods too.
A fully grown broiler is fixed based on its weight. A full-grown broiler chicken has an average weight of 2 kg. The broiler wholesale price in the market is 80 INR per kg.
That means you will have 160 INR for a chicken. That takes towards earning of minimum 800000 INR.
In the first year, you will get a profit of around 300000 to 350000 INR. Remember one-time investment cost is 3100000 INR. By this speed, you will get 3 batches every year and earn a profit of 1200000 INR.
That means you will have to invest 3 years to recover your total cost of the business.
After this, you will have a better model of earning and you can increase that too.
Remember it's on you how you recover your construction cost by this profit. But this is sure that you will get fixed profit in every batch with little bit ups and downs.
A general perception of starting a business is risky among beginners. Their thought process is very doubtful towards every business, which is a natural thing.
Poultry farming demands full knowledge and information on how to handle poultry birds in any case. Only reading knowledge is not enough to start a poultry farming business.
Even sometimes those people don't get much profit who have poultry farm for a very long time.
Although poultry farming Business is highly profitable but it is also true that everyone doesn't get success in it.
Only expertise can't give one larger return instead its major part is depends on the way of how business is performed.
There are some factors that decide the success rate of the business.
Those who are able to manage these factors then they always own almost a guarantee to get a very good return.
On state level, there are many states in India those provide subsidy on a small poultry business.
There are some scales of subsidies in poultry farming but those are not effective or available for small farms. Mainly, subsidy starts from 3000 to 5000 poultry birds, which is up to 20 to 25% on loan provided from the bank.
There are no specific subsidies on small poultry businesses as mushroom farming, gobar gas plant, polyhouse farming, etc.
Following are some point to point challenges in the poultry farming business-
People, who start poultry farming first time and they consider a profit from it without the training then they are wrong,
One out of fifty people can be successful in the poultry farming business without training. The rest of them fail and they imprecate their luck after.
Without training, it is a challenge to execute the right things without mistakes while you can't take the risk.
Poultry birds get infectious diseases because of living and walking on moisture, particularly in the rainy season.
Without proper feed and health check-ups, birds can keep fever for a long time.
It is necessary to take regular check-ups of their health and keep them vaccinated.
You can't give rough feed to your poultry birds to grow properly.
Chicken birds need high protein and mineral feed to sustain for the average time period.
Your diet plan for chicken depends on their size and growth period. It is not easy to provide proper feed on the fixed time period in bulk.
In the rainy season, it is not easy to maintain proper dryness inside and outside the poultry farmhouse. Poultry birds like a dry atmosphere to live,
It is not an easy task to maintain proper drain at least inside the poultry farm.
If your housing shed is of metal(Tin), then it is challenging for every bird to survive in the summer season.
The Tin shed gets hot quickly and keeps for 8 to 10 hours daily. This time period with high temperature can affect poultry birds and even they can die in it.
It doesn't easy to maintain the temperature in summer and winters up to 20 to 30 degrees Celsius.
One of the major challenges in the poultry farming business is the management of land and birds. It doesn't matter you have 500 birds or 5000 birds if you are not able to manage them in an available place(according to their comfort)
Poultry farming is a long-term business, It can be last for more than 10 years, so it is important to understand its economic and organic/bio contributions and aspects.
Farms got total closed, the situation of loan providers and getters, impact on market economy, poultry farming equipment.
There are some basic equipment required in poultry farming. Some of them use inside the house and some of them use for birds.
Thermometer - To check the temperature of birds and room from inside
Exhaust fans - To reduce the temperature to moderate.
Water pipeline for floor - to clean the floor and to maintaining hygiene.
Vacuum cleaner - To clean the dirt and broken feather of birds.
Driers - To dry the wet room and moisture.
Automatic Heaters - To maintain the temperature in winters to moderate.
Spirulina farming, project report per 1/4th acre, investment, profit per 1/4th acre, and challenges, 45 days chicken(broiler) business plan, requirements, license, investment, and profit calculations, hydroponic farming setup cost, subsidy, investment and profit margin in india, super napier grass, stem, cultivation process and yield per acre 2022, onion farming yield per hectare, investment, and profit per hectare.
IMAGES
VIDEO
COMMENTS
From inception to growth, your business plan evolves into a guiding light. An evolving document, it aligns your operations with your vision, ensuring a prosperous journey. Business Plan Template for a Chicken Farm Business Plan for [Chicken Farm Name] 1. Executive Summary. Overview: Brief description of the farm, its mission, and vision.
Your operations plan should have two distinct sections as follows. Everyday short-term processes include all of the tasks involved in running your poultry farm, including animal care / feeding, flock supervision, animal transportation, sourcing feed, etc. Long-term goals are the milestones you hope to achieve.
Smith Poultry Farm will have the following milestones complete in the next six months. 1/1/202X - Finalize purchase of farm land. 2/15/202X - Purchase farm equipment, supplies and materials. 3/1/202X - Finalize contracts for grocery store, chain, and restaurant clients. 4/15/202X - Begin networking at industry events.
Step 2. Write a Poultry Farming Business Plan. Poultry farming business plans help you keep yourself focused on your goals. Whether you just want enough to feed family and friends, you want to sell eggs or chicken meat locally, or you have dreams of becoming a major chicken farming business, a business plan will help. Check out our blog about ...
Poultry Egg Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding - 38 pages) Poultry Egg Farming Business Plan Automated Financial Statements - (Editable Excel File) The business plan can be used in any country and can be easily edited. The financial statements are automated.
Subsequently, a thorough understanding of business plan financial basics is a prerequisite to effective business plan writing for poultry wholesale businesses. Don't Overlook the Competition. Before you open a poultry wholesale business in your town, it's a smart move to see what the competition looks like. Use the link below to generate a list ...
The projected P&L statement for a chicken farm shows how much revenue and profit your business is expected to make in the future. A healthy chicken farm's P&L statement should show: Sales growing at (minimum) or above (better) inflation. Stable (minimum) or expanding (better) profit margins.
Download Template. Create a Business Plan. We'll walk you through a sample chicken farming business plan so you can start writing yours right now with Upmetrics. A business plan outlines your five-year growth strategy and a current picture of your poultry farm. It outlines your company's objectives and your plan for achieving them.
3. Create a business plan for your chicken farm. Write an outline for how you plan to run your chicken farm, as well as your long-term goals for the next 3-5 years. Include information like your history, structure, objectives, vision, products, target demographic, and marketing strategy in the plan.
This sample chicken farming business plan will cover how you can take advantage of the gap in the demand and supply and how you can make a name in the market. Step2: Establish a Brand. The next step in setting up a chicken farm is establishing a brand. People prefer buying from a brand with a known name.
During our three generations in the wholesale poultry industry we have consistently raised the bar for poultry products and streamlined the process for hundreds of grocery delis, restaurants, and convenience stores. Our breaded chicken tenderloins, breast filets, and boneless wings provide excellent taste, consistent piece counts, and an ...
One crucial step in ensuring your success is creating a well-thought-out business plan. A comprehensive business plan will serve as your roadmap, helping you make informed decisions and stay on track towards achieving your goals. In this ultimate guide, we will walk you through the key components of a successful chicken farming business plan.
This business plan document provides a workable framework for starting a poultry farm with a capacity for 10,000 poultry birds including 5,000 broilers and 5,000 layer birds.
Step2: Develop the Uniqueness. The next step before writing a poultry farming business plan is to develop the unique areas of your business. Henry used this step as a build-up of the idea. He knew the importance of marketable businesses and products, so he created a brand around the unique propositions of his farm.
A healthy layer chicken can lay up to 325 eggs in a year. Selling fully grown healthy chickens can earn a profit of $10 to $11 per bird. Poultry eggs can be sold for $2 to $3 per crate, with each crate containing 30 eggs. With 500 layers producing 12,000 eggs per month, a poultry farmer can make $1,500 per month.
Below are the sales projections for Osmosis Free Range Chicken Farms®, LLC it is based on the location of our business and other factors as it relates to free - range chicken farming start - ups in the United States; First Fiscal Year-: $250,000. Second Fiscal Year-: $500,000. Third Fiscal Year-: $750,000.
The egg supply business provides good profits due to its advantages over other protein-rich foods like Fish, Turkey, Chicken, and Meat. Some of these advantages of egg distribution are: 1. Affordability for customers. 2. Less stress in handling. 3. No need for a power supply. 4.
The recommended floor space per bird is 1 square foot for broilers and 2-3 square feet for layers. Equipment: The equipment required for a poultry farm includes feeding and watering systems, egg collection and handling equipment, incubators, brooders, and other tools for bird management.
According to the same source, farm supplies and raw materials wholesalers currently sell over $62,000,000 of goods per year. Of these, only 843 of these were selling poultry and livestock feeds mixed on location. With total sales of $8,141,368, businesses like ours sold an average of $9,658 in goods each, per year.
This is a sample business plan for a poultry farm based in Nigeria. The sample business name used is Nutrichic Farms. ... Our mature broilers are sold at a wholesale price of 1,500 Naira, while our old layers are sold at a wholesale price of 1,300 Naira. On the average, we sell 65 crates of eggs, and 80 chickens per week.
The main reason for the short-term 45 days chicken business plan is demand and supply in the market. Chicken demand is so huge in the market. If we follow poultry farms with more than 3 months of breeds, then it can affect the stability of chickens in the market. ... 1 kg broiler chicken wholesale price- 170 INR; The average weight of each ...
Treehugger / Julia Cook. With your business plan in place, you can work backward from the number of eggs you plan to sell each week, to how many chicks you need to get to meet that goal. Figure ...
The broiler wholesale price in the market is 80 INR per kg. That means you will have 160 INR for a chicken. That takes towards earning of minimum 800000 INR. ... In 3 months period, poultry farms' reach was not effective in all the places. But 45 days chicken business plan fulfills the requirement, demand, and supply in the market of chicken.