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  • Financial analysis
  • i.      Break-even Analysis

    The break-even analysis shows the level of sales or services required to pay for all the overheads of the business and at worst come out eve This is usually calculated over the first year of operation and can easily b made up from the profit & Loss and Cash Flow Statements. Some remarks with the numbers are enough to explain what the break-even saying.

    ii.      Return on Investment

    Your Personal money used up in the business is your investment. This is because you could have put the money where it will be earning interest in some other form of investment. Find out if the business will provide a return on the investment, if so, what return, when, and will it be adequate?

    Other considerations and conclusion.

    • Economic Justification: It is import that businesses should deliver benefits to the economy. Such benefits could be by the way of job creation, improvement of export potentials of an economy, or reducing the dependence of a given economy on import, contribution to GDP improvement, etc. Does the project offer good benefits to the industry, economy, and the society?
    • Commercial Viability: Is the project viable commercially? Can this be shown through the profit and loss projection, cash flow estimates and the net worth in the balance sheet?
    • Conclusion and Recommendation: In view of you have seen about the project, are you recommending it?

    Appendix.

    In documenting a business plan, a lot of claims are usually made; like that the business is registered, and that it has a patent, or operating under a franchise. The appendix is the portion you attach documents to prove your claims. Any other important document related to the plan could be attached and the list could include: financial projects from consultants, report of market research from professionals, etc.

    A Case Study

    We now present in full detail the full business plan for the establishment of a Piggery farm call Bon Qodus Piggery Farm

    TABLE OF CONTENTS FOR How To Write A Business Plan – Sample Template In Nigeria

    1.0       Executive Summary

    2.0       Introduction

    2.1       Vision

    2.2        Mission

    2.3        Key success factors

    2.4       Inherent risks

    2.5        Business ownership

    2.6       Locational factors

    2.7       Available markets

    3.0       Products

    3.1        Products description

    3.2       Costing

    3.3        Market demand

    3.4       Projected annual demand of porkers

    3.5        Demand supply gap of porkers

    4.0       Market Analysis

    4.1        Customers/market segmentation

    5.0       Marketing plan

    5.1        Promotional strategy

    5.2       Marketing strategy

    5.3        Market positioning

    5.4       Projected sales

    6.0       Technical analysis

    6.1        Schedule of operation

    6.2       Management and organization

    6.2.1     Owner/manager

    6.3 External support

    6.4 Values and norms of the company

    7.0 Legal issues

    7.1 Environmental

    7.2 Social

    7.3 Regulatory

    8.0 Risk analysis

    8.1 SWOT analysis

    8.2 Exit strategy

    9.0 Other considerations and conclusion

    9.1 Economic justification

    9.2 Commercial viability

    9.3 Conclusion

    10.0 Company financials

    10.1 Summary of project cost

    10.2 Fixed capital investment

    10.3 Utilities

    10.4 Other expenses

    10.5 Working capital forecast

    K

    10.6 Total investment outlay

    10.7 Financing plan

    10.8 Loan repayment schedule

    10.9 Depreciation

    10.10 Profit and loss account

    10.11 Cashflow projection

    10.12 Balance sheet projection

    11.0 Financial analysis

    THEMEK PIGGERY FARM

    Part I

    1.0 Executive Summary

    1.1   The following report and recommendation relate to the proposal by Themek Piggery Farm to establish a piggery at Emene Enugu,

    1.2  The Project would require a start-up capital of N2876000, made up of N2170000 for fixed assets and N706000 for working capital.

    1.3  The enterprises vision is to be the most outstanding producer of lean pork meat in South East of Nigeria, particularly Enugu.

    1.4 The project will be located at Enugu because of its easy access to targetmarket from that location.

    1.5 A huge market is available for the business to serve.

    1.6 The financial projections show that the project would be financially stableand liquid by the time it matures. The sales figures stand at Nil, 780.000for year I, year 2, and year 3 respectively. Also the profits after tax are:(N858000), N2096000.00, and N2, 650,000 for year I, year 2and year 3respectively. The cash flow position is equally good and encouraging by the second year through the third year.

    1.7 The competitive edge of the enterprise lies in its ability to produce pork meat of exceptional lean meat quality, which is got by crossing large while and Hampshire pigs.

    1.8 The profitability measures are as shown below:

     

    Year 1 Year 2 Year 3
    Turnover 1,780,000 2,096,000 2,650,000
    Profit Before Int & Tax (779000) 2490000 2994000
    Profit After Tax (853000) 2096000 2650000
    Return on sales N/A 36.04% 41.43%
    Return on Equity N/A 101.45% 99.40%
    Return on Investment N/A 72.88% 92.14%

    From the point of view of the analysis of our findings, the proposed project is found to be technically feasible, financially viable, and economically desirable. Thus, the project offers good investment benefits, and is therefore highly recommended for implementation.

    Part II

    2.0 Introduction:

    The planned piggery project is the result of strong industry and needs assessment studies undertaken in South Eastern Zone of Nigeria, particularly Enugu by the promoters of this project. The studies reveal that the demand for piggery products is high while there are few piggeries to meet with this demand. Also the bias that has hindered the consumption of pork by the population has gradually waned over the years that most individuals, today, consume pork (pig’s meat). This has made the demand for piggery products to be rising at astronomical rate. This expanding demand trend is expected to be sustained into the future.

    2.1 Vision of

    To be the most outstanding producer of lean pork meat in South East of Nigeria, particularly Enugu.

    2.2 Mission

    To produce lean pork meat using the best pig specie and adopting the latest pig rearing method.

    How To Write A Business Plan – Sample Template In Nigeria

    2.3 Key Success Factors

    The key success factors for are:

    1. The use of improved variety of pig specie got from a mix of large white and Hampshire species known for its lean meat quality.
    2. This cross breed of pig is highly resistant to diseases.
    3. The cross breed is also highly prolific
    4. The main promoter has undergone training in entrepreneurship
    5. Existence of reliable market outlets.

    2.4 Inherent Risks

    1. There is a currently lean resource to contain the expansion that is normal with piggeries.
    2. Will the implementation of this project attract more entrants to the business to complete with
    3. Provision of basic utilities like water supply and electricity is not guaranteed.
    4. There plans to use reliable mitigants of checkmate these identified risks.

    2.5 Business Ownership

    The business is a sole proprietorship wholly owned and managed by Boniface Kwenta.

    2.6 Locational Factors

    The piggery project is located at Emene Enugu. What informed the choices of this location are:

    1. Its nearness to produce markets in Enugu state will makeit easy to access feed supply sources for the piggery.
    2. Availability of land to contain expansion of the piggery.
    3. Existence of good road network and ease of market access.
    4. Availability of cheap and reliable labour

    2.7 Available Market

    Information from survey shows that about 4000 porkers are demanded yearly in Enugu area above while that of the South East of Nigeria hasbeen put at above 1,500,000 porkers per annum. This demand figure is expected to rise as the population within the market area beingtargeted increases, especially as the superstitions surroundingpork meat consumption taper off. Within Enugu area, expert opinionhas it that not more than 32% of existing demands for porkers are being met by existing suppliers, this leaves about 68% of demand-supply gap, implying a huge market available for new entrants into the business. This is cheering information for the promoters whose primary market in the Enugu area.

    How To Write A Business Plan – Sample Template In Nigeria

    PART III

    3.0 Products

    Themek Piggery farms will provide the following products

    • Dressed pork meat
    • Market hogs.

    3.1Product Description

    • Dressed pork meat

    At maturity, a mature pig is called market hog. There are plans to slaughter some of the market hogs and sell them as dressed porks.

    • Market hogs

    The planned care for the piggery is intensive type of care. It is expected that the piglets will reach full maturity at the 9th month and as such could be disposed off at the market as matured livestock (called market hogs)

    3.2Costing

    The costing of the products of the piggery is mainly built around two major cost items, they are:

      1. Feeding
      2. Drugs
    • Feeding

    The feeding supplements of the piggery are prepared locally by the business with local feed materials. No feed is required during the lactation stage, while feeding supplements during the wearer’s stage are enriched with both animal and vegetable proteins. The fattening stage feeds are of lower protein content while the market hog (porkers) stage feed contains more of carbohydrates. Table I shows the composition of the feeds used in the piggeries during various stages and their cost per tonne.

    Table I: Premier for the pig it various stages and cost per Tonne

    Stage Type of feed Composition Cost of Total
    supplement supplement supplement
    Weaners’ stage PKC 960kg 14000
    fish meal 20kg 4250 24250
    Soya beans cake 15kg 3250
    Bone meal 5kg 2750
    Growing/fattening PKC 970kg 10250
    Stage fish meal 15kg 3000
    Soya beans cake 10kg 2000 18000
    Bone meal 5kg 2750
    Market Hogs PKC 980kg 14500
    (porker stage) fish meal 20kg 500
    Soya beans cake Nil Nil 15000
    Bone meal Nil Nil

    Note that during lactation stage, the piglets feed only on their mother’s milk. At the weaners1 stage, a pig is expected to feed on about I40g (0.14kg) of feeds in a day. While during the growing/fattening stage and marketing 7IOg stage, the pigs are expected to feed on 1.5kg of the appropriate feed daily. For the purpose of the costing in this study see table 2 below.

    Table 2: Cost of I kg of all types of pig feeds/quantity needed per pig per month at all stages.

    s/n Types of feed Cost of ( 000kg Cost of Ikg(N) Quantity of feed per month per

    P»g

    Cost of feeding a pig (N)
    1 Parent stock 24250 24.25 45kg 1091.25
    2 Weaners

    feed

    24250 24.25 4.3kg 104.28
    3 Fattening feed 18000 18.00 45kg 810.00
    4 Porker feed 15000 15.00 45kg 675.00
    • Drugs

    The main medical challenge of pigs is in deworming it. Also cold and high PH acidity are other problems encountered. Drugs like Iron injection, Dewormers, Vitamins, Bicarbonates of Soda are mostly used.

    However, Themek has plans to retain the services of a seasoned veterinary expert to attend to the health needs of the pigs and charges per pig for his services. He is expected to visit the farm at most once in a month except when there is an emergency.

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