Chicken Farmer
From Startup
The Thousand Rand Challenge Business Plan Template
This document provides a template of headings for presenting any business idea. The objective is to produce a step-by-step tool that illustrates every step of the business creation process. It should be possible, by following the information, to produce a viable business.
All text in italics should be deleted (including these introductory paragraphs) for use as a template on newly created business idea pages. Please ensure that the new page you're creating really is a new idea. Check the front page for a current list of businesses, or perform a search.
This heading area should contain a brief outline of the nature of the business - change the heading at the top to list the type of business - e.g. Fish and Chips Frying
[edit] Description of the business
Within each sub-heading are a series of questions that require detailed answers. Simply fill in your commentary beneath the headings. Note that these headings and the methodology are here, partly to be pedantic, but mostly to ensure a consistent approach across a number of unrelated businesses. It makes searching for information far easier if you know where to start.
What exactly is it that is going to be sold or done? - I would buy live chicken & sell them live to the Public Place your research into the business under each of the bold headings and delete the text in italics.
What skills are needed to do this? Where is this taught and how much will it cost? - Marketing skills
What tools or equipment are needed? Where can they be bought, and how much will they cost? -A storage Cage ( already Build one)
How much space is needed to work from?
- at the back of my home - no rent Where will the space be found, and how much will it cost to rent?
What sort of people will buy the product? Who are they and where do they live? -People in the neighbouhood ( Thembalethu) & walkby clients. How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
-Business wil be open everyday & they will come to my home
[edit] Upstream Businesses
A list of businesses and ideas that provide the services and products that this business needs.
[edit] Downstream Businesses
A list of businesses and ideas that this business could provide products for.
[edit] Competitors
What major competitors will attract clients' spending away from the business' products? - No on in my area- but farmers that sell directly to the public.
What prices and products do these companies have?
- The sell live chickens
What makes them popular / unpopular? - POPULAR - Cheap prices - UNPOPULAR - far from the public
What do they do to attract customers? Specials? Interesting marketing / advertising? - Word of mouth Which of the competitors stand out as being particularly good at what they do?
-The Chicken Farm
What can be done to stand out against them? What can be done that is more exciting / more interesting? - Intensive advertisement
[edit] Marketing the business to clients
What sort of people will buy the products and how important is product consistency to them (e.g. must every loaf of bread be identical)? - Local people - no consistency
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?
-All year round
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)? -Fresh & healthy chickens at reasonable price
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest? - My cage is placed at the corner of my house for the people to see. above it will an adverising board.
Do the clients want the same things sold in the same way, or do they want things to change all the time?
-
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?
- Tell people about it ( Direct Market)
[edit] The business inputs and outputs
List all of the inputs (products that are required to produce the products): - As Well just buy & then sell live chickens, we only food until the chicken are sold. List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
List all of your outputs (products created by your business): - Live Chicken
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)? - We sell it for R25.00 Per chicken - Profit of R7.00 per chicken can be made
Do the outputs have a shelf-life? Must they be sold within a specified time limit before they go off / can't be sold? Which ones? - Chicken can be kept for a very long time
[edit] Setting up the business
List everything that needs to be done to prepare the business to be ready (list everything needed to have as well, both equipment and stock):
- REGISTER AT EDEN MUNICIPALITY - Complete my Business Plan - Negotiaate with the right suppliers - Open a bank account - Set up a cage for the chickens
How long will it take to get all of these things and how much will they cost to get? - 2 Weeks to register & complete business plan - about 3 days to open the account - it will take one or two days to set up a cage
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
- Phone - R60.00
- Transport - R60.00
- Wages- R400.00
Total amount for fixed costs: R520.00
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?
-one staff member @ R 400.00 per month ( to start) only on certain days
What training will they need, how long will it take and how much will it cost? - Customer Service training cost R50.00 one day @ SCBC.
[edit] The manufacturing or production process
List every step, from start to finish, to produce the product - Find the right supplier - Check the chickens - Place an order & buy - Store the chicken in the cage - Distribute or sell the chickens to the community
Allocate each of the manufacturing steps to a process and a process to a staff member (e.g. all manufacturing steps A to process 1):
- Iwil be involved in all the steps
- the satff member will mainly be involved in step 4 & 5
What possible problems may happen during each step of the manufacturing process? - Prices can go up - Suppliers might not have chickens as requested
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
- Find more than one supplier
- Make sure that your current prices is high enough to carry unforseen event circumstances
What is the maintenance program for all the equipment? - The cage needs to be cleaned daily by the staff member
What safety requirements are important for production? - Keep cage cleaned to avoid sicknesses How will quality control and client feedback be handled? - PERSONAL CONTACT WITH CLIENTS
[edit] Costing and bookkeeping
How many of each of the stock items can reasonably be sold each day (and month)? - 20 chickens per day ( Work for 6 days per week) - 480 Chickens per month.
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)? - The same amount can be sold through the year What sort of pricing strategy will be chosen (cheapest or best)? - The best & most affordable price What profit margin will be chosen for the products
Write down the cost prices plus the margin for each stock item you will sell, and the selling price - Cost price= R18.00 - Mark-uo R1.08 -Total R19.08
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much? - I'll sell the chicken for R25.00 - Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable? -
Set out the products, costs, margins and selling prices:
about 21 chickens need to be sold to be profitable (R520.00/R25.00)
|
Item |
Daily Target |
Monthly Target |
Cost Price |
Margin |
Selling Price |
Total per Month |
|
Item A |
X |
X x number of working days in a month |
R y.yy |
R z.zz |
R y.yy + R z.zz |
= monthly target x selling price |
What trends are included in the projections? - R25.00 loan repayment per month - R60.00 each for telephone & transport P.M - R400.00 FOR staff P.M - R300.00 Profit increase P.M
[edit] Running the business
What is the process for running the business on a typical day? Who will be responsible for each step? Link this back to the production process. - Open at 8 o'clock - Feed chicken & make sure storage cage is clean - Awats for clients to come & buy - Close at 17:00
Who will act as backup should the person responsible not be there? What do they need to act as backup? - The staff menber will be my back up and vice versa
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required? - Throughly clean the cage - Buy more chickens as needed
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required? - Bank Money from sales - Pay staff wages What is the schedule for training and motivating staff? - Weekly staff meeting so that staff member can provide input
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need? The owner is responsible for everything
[edit] Before beginning
List some of the support services available (legal, business and other) that might be needed - SOUTH ACPE BUSINESS CENTRE - BUSINESS ADVICE - Agri Business Centre for Advice on keeping chickens
What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?
- No major laws that i am aware of
[edit] Related articles
Insert links to articles on Wikipedia or other Wikis that may be useful (such as recipes, legal discussions, accounting articles, and so on)
[edit] External links
List links to outside websites that may be useful for anyone starting this business
[edit] Business Trials
List your name if you started a business based on this plan, where you started the business, and how you did Links to case histories - you are welcome to develop these and insert them in your personal page (create this by developing a personal profile) Retrieved from "http://startup.wikia.com/wiki/TRC_templates"
