Executive Summary

Name of business: Tayo layer chicken farm

Legal form: Individual

Contact address: Jigjiga

Tel :0912160274
E_mail : [email protected]
Fax_________________ none

Type of business

Manufacturer Service provider Retailer Wholesaler

Brief description of the business idea

Products or services
This business is produces sales a product called Egg, which is used to produce, quality egg and
delivery to the customers directly to minimize unnecessary cost increment.

Customers / target group

Our target market will be Retailer, Hotels and restaurants, as well as exporters and individuals
who are interested to buy our products during festivals and other ceremonies.
Owner(s)
(Name, Address, Qualification, Function in the business, relevant experience)

Ali Denge Duba: Bvsc : Farm Manager:

relevant experience
 I have been working with Gode Polytechnic college as livestock farm manager and
Instructor of Animal Production department from March,01/2007 E.C.Up 2014. E.C,
 Poultry Farm experience such as at Gode polytechnic college for 7 years.
poultry farm management
Poultry house construction

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 Chicken vaccination
Chicken Feeding and watering system
Chicken farm bio security
Chicken treatment and diseases prevention
 Technical support experience for chicken farm enterprises around Godey city for 4 years.
2.________________________________________________

3.________________________________________________

4.________________________________________________

Business Idea and Market

Description of the business idea

(e.g. identified needs (market gap), who are the customers, type of products or services to
satisfy the needs, how to reach the customers, etc.)

 As we have conducted a market survey we have identified a high demand for our
product(egg) in the Somali Cities such as Jigjiga town, Dagah bur town ,Kebri dahar town
and Gode town as well as in the neighboring areas such as Tog-wajale, Hargesa and Borama.
 As we have explained earlier our customers are our target market will be retailers, Hotels
and restaurants, as well individuals who are interested to buy our products during
festivals and other ceremonies.
 We decided to deliver the product directly to the customers to avoid unnecessary price
increment which will affect the purchasing power of our customers.

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MARKETING PLAN
Description of the market
(e.g. geographical area, town, type of customers, size of total market,
description of competitors, market share for the new business, etc.)

 The planned location of the business will be in Jigjga town and we can get sufficient feed
supply from other Neighbouring regions such as Oromia region and Harari region.
 Our product will be transported to Somali Cities such as Jigjiga town, Dagah bur
town ,Kebri dahar town and Gode town as well as exporting to neighbour areas such as
Tog-wajale, Hargesa and Borama.
 As far as our survey is concerned there are some egg producer in jigjiga town but they does
not meet customer needs in the Jigjiga town and others nehbour towns like Jigjiga town,
Dagah bur town ,Kebri dahar town and Gode town.

Marketing Plan Product

Detailed description of the product or product range or service

Product/service type

 Our product serves the beneficiary through supplying quality and quantity Egg and we can
have as many customers as possible.
What is special about the product/ the unique characteristics of the product?

 The project differ from in the means by which use the younger stocks for egg laying and
rich for egg production in early ages which is highly preferred by most of our customers to
get quality egg.
 In addition to this we have the potential to deliver our products to our customers or
consumers in fair prices.

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Specification of the product (e.g. size, color, quality, Packaging etc)

Should not be cracked,

Should not have abnormalities like
blood or meat spots, double yolk etc
Stored under low temperature (≤ 23oC)

After sales service

1. Advise and transportation services

Marketing Plan Price

How much are customers willing to pay?
 Highest _____
 Average ____
 Lowest _____

How much are competitors’ price?

 Highest _____
 Average ____
 Lowest _____

How much is your price?

 Highest _____
 Average ____
 Lowest _____
What are the reasons for setting your price?

 We set our price based on the purchasing power of customers, product quality, size, color,
and prices on the local market.

Product/service Type(1) Type(2)

Highest ;
Average;
Lowest
Highest ; Highest ;
Average; Average;
Lowest Lowest

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 Highest ; Highest ;
Average; Average;
Lowest Lowest

Margin for discount? No Yes(_____ %) No Yes(____%)

Marketing Plan Place

Location of the business
Description of the planned location for the business
The planned location of the business will be Jigjiga town.
Reason for choosing this location
Our business practice is planned to be opened in Jigjiga Town for various reasons:

 There is highly increasing of urbanization in the Jigjiga Town.

 Highly increasing of human population in Jigjiga town.
 Easy to get chicken feed supply and vitamins and medicines.
 As we have conducted a market survey we have identified a high demand for our product in
Jigjiga town, e.g when we compere the price per egg in addis ababa and Jigjiga is
respectively 7.5-8 ETB and 12-15 ETB. So this indicates that our product Egg) high
demanded in Jigjiga Town.
 The environment is best for layer chicken production.

Reaching the customers by selling to

Individuals Retailers Wholesalers Others

Reason for choosing this way of distribution

 We decided to deliver the product directly to the customers to avoid unnecessary price
increment which will affect the purchasing power of our customers.

Marketing Plan Promotion

Description of the planned actions to inform customers about the opening of
the new business (e.g. printed information, brochures, posters, newspaper
articles, radio advertisements, opening ceremony, etc. Also make inquiries
about the costs for the different types of promotion)
 Description of the planned actions to inform customers about the opening of the new
business (e.g. printed information and posters, etc. Also make inquiries about the costs for
the different types of promotion)

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 We promote our product through different Social media like Face book, Telegram,
YouTube and TikTok and also we use personal selling. We will not use electronic media
because of its cost.
Legal Form
The legal form of the business will be:-

□ Sole proprietorship □ partnership □ limited company □ Corporation

Reason for choosing this legal form

 Simplified business ownership

 Full management control
 The easiest and cheapest way to start a business
 Strengthening sense of ownership

Start-Up Capital
Estimation of start-up capital Amount

INVESTMENT
Land 45,000.00 birr

Building 150,000.00 birr

Equipment 139,900.00 birr

Total Investment 334,900.00 birr

WORKING CAPITAL
____ months of staff costs 80,000.00 birr
____ months of operational costs 46,000.00 birr
Total working capital 126,000.00 birr
TOTAL START-UP CAPITAL 460,900.00 birr

List fixed assets needed and their cost

No. Item Quantity Amount
1 Land 45,000.00 birr
2 Building 1 150,000.00 birr
3 Equipments 15 139,900.00 birr
4 Purchased of two months of chicken stocks 2000 450,000.00 birr
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Total 784,900.00

List of raw materials needed

No Raw materials needed DIMENSION QUANTITY UNIT TOTAL COST

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 per month COST
1 Growth chicken feed Quantal 140 3650 511,000.00 birr
2 Vitamins and medicine sachet 168 220 36,960.00 birr
3 Vaccination Vial 15 800 12,000.00 birr
4 Disinfectant litre 25 500 12,500.00 birr
Total cost 57,2460 birr

Sources of Start-Up Capital

Sources of funding
Type Source Conditions Amount
(duration/interest)
Equity capital Own savings
Partner
Loan 1 Family
Friends
Money lender
Loan 2 Credit cooperative
Government scheme
Bank loan
TOTAL FUNDING

Information about funding sources

Loan 1
Name and address of creditor or credit institution
______________________________________________________________________________
______________________________________________________________________________
__________________________________________
Credit agreement under discussion finalized

Money available on (date) ________

Loan 2
Name and address of creditor or credit institution
______________________________________________________________________________
______________________________________________________________________________
____________________________________________________

Credit agreement under discussion finalized

Money available on (date) ________

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Debt Service

Repayment 1 2 3 4 5 6
period Amount Amount Amount Amount Amount Amount
Loan 1
Installment/principal
Interest
Loan 2
Installment/
principal
Interest
Debt service
Sum of Installments

Organization and Staff

Staff costs
Position Qualifications Salary Social Total
Per month security staff cost

1. __________ ___________ _________ ________ ______

2. __________ ___________ _________ ________ ______
3. __________ ___________ _________ ________ ______
4. __________ ___________ _________ ________ ______
5. __________ ___________ _________ ________ ______

Organization of business premises

(Sketch of planned shop, office or workshop)

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Business Operation and Costs
Monthly Sales Plan
All products, product range or services

Month 1 2 3 4 5 6 7 8 9 10 11 12

Product Price 12 br 12 br 12 br 13 birr 13 br 13brr 13br 13br 13br 13br 13br 13br
1
Quantity 48,000 51,000 54,000 57,000 57,000 57,000 57,000 58,50 58,50 58,5000 57,00 57,000
00 00 0
Turnover 576,000 612,000 64800 741,000 741,00 741,00 741,00 760,5 760,5 760,500 741,0 741,00
0 0 0 0 000 000 0 00 0

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 Monthly Operational Cost Plan
Planning is based on the monthly sales plan

Month 1 2 3 4 5 6 7 8 9 10 11 12
Product 1 Quantity
Materials All costs
Materials Total costs
+ Staff Total costs
+ Others Total costs
Operation Total costs
+ Capital Interest
cost Depreciation
= Grand Total
costs

Cash Flow Plan

Monthly Cash Flow Plan
Month Pre 1 2 3 4 5 6 7 8 9 10 11 12
operation
Cash beginning of
the month
+ Equity
+ Loans
+ Sales
+ Any other
I: Total cash in
+ Investment
+ Operational cost
+Installment/principal
+Interest
+ Any other
II: Total cash out 20,000
I – II Cash at the 80,000
end of the month

Profit Margin
Monthly Estimation of Net Profit
Month 1 2 3 4 5 6 7 8 9 10 11 12
Product 1 Quantity
Turnover
Product 2 Quantity

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 Turnover
I. Total Sales
- Operation Total costs
II. Total
Costs
I – II Profit
(before tax)
- Income tax _____%
Net profit
(after tax)

Opening Balance
Opening Balance of My Business (Date)

Assets Value Liabilities Value

Fixed Assets Equity

Land Long-Term Liabilities

Building Mortgage
Equipments Loans
Others Others
Total Fixed Assets Total Long-Term Liabilities

Current Assets Current Liabilities

Accounts payable
Cash and bank Taxes payable
Accounts receivable Others payable
Inventory Total Current Liabilities
Total Current

Total Assets Total Liabilities and Net Worth

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