UNIT 4: BUSINESS PLAN FOR AN ENTERPRISE

Key Unit competence: 

To be able to prepare a business plan for the business they are running or intend
to start.

Introductory activity

Mangada and Manuela are twin brothers and NURSING graduates they have
always had a dream of being self-employed. Mangada sought of starting
a restaurant and Manuela sought of starting a piggery project having both
knowledge of entrepreneurship from school, they both secured financing
from their parent as well as personal savings accumulated while at school.

Mangada starts immediately and after a few months the business started
doing well but later before the year ended, she was in a great loss and decided
to close down.

Mangada starts immediately and after a few months the business started
doing well but later before the year ended, she was in a great loss and decided
to close down.

Manuela took her time to discover and learn about the business she intended
to start and devised/developed a plan as laying strategies on how to put
the plan in action, she starts later after five months a few challenges came
her way but she never gave up. She now has over 100 pigs and has recently
secured a sausage making machine and obtained enough market in Kigali to
supply her products as well as secured external market in Congo.

Questions

a) According to the case study what do you think is the secret of Manuela’s
success?
b) Why do you think it is important for a person to plan before undertaking
any action?
c) Suggest the elements that you would put into consideration while
preparing a business plan? 

4.1 Definition and Importance of the business plan

1. Using your previous knowledge obtained in O’level about business plan,
explain the meaning of a business plan.

2. Case study

Mugabo had a business idea of buying and selling boiled eggs in his village where
all people in this village were doing poultry farming. Mugabo has got a loan of
30,000Frw from Umurenge Sacco Gatumba and bought eggs, boiled them and
started selling them but unfortunately, he didn’t find any consumers to buy eggs.
After two days, all eggs were damaged and lost his capital.

Through this case study answer the following questions:

a. What do you think is the source of the loss of Mugabo’s capital?
b. Advise Mugabo on the challenges faced by his business.
c. Show Mugabo the importance of writing a business plan for his business 

4.1.1 Definition of a business plan 

A plan is a proposed or tentative course of action worked out beforehand for the
purposes of accomplishing a goal. It can also be described as a thought-out journey
that would take you to your desired destination. 

Ideally, planning is looking into the future and putting in place the means to reach
that future. It is setting goals and how to achieve them, deciding on the end and
the means to the end. We should all be concerned about the future because we will
have to spend the rest of our lives there. Future outcomes are a function of today’s
decisions. For anyone starting a business, a business plan is a vital first step and
every business requires a well-developed business plan.

The business plan is a planning tool that details the goals of the business and gives
the owner a path to follow. It is a written summary of an entrepreneur’s proposed
business venture highlighting its goals and objectives, and his skills, abilities and
requirements to implement it.

It helps the owner to make judgments and decisions on opportunities and threats
by providing a framework to assess the options. A business plan describes how the
business operates, how it is managed, how it interacts in the marketplace, how it
functions financially and what its strengths and weaknesses are.

The business plan should be an integral part of the management and oversight
of a financial institution/organization. It should therefore establish the institution’s
goals and objectives.

4.1.2 Importance of the business plan

Business plan serves in the following ways:
• To attract investors. Whether you want to shop your business to venture
capitalists, or attract angel investors, you need to have a solid business
plan. A poor presentation may anger their interest, but they will need a well

written document they can take away and study before they will be prepared
to make any investment commitment. Be prepared for your business plan
to be scrutinized; both venture capitalists and angel investors will want to
conduct extensive background checks and competitive analysis to be certain
that what is written in your business plan is indeed the case.

• To test the feasibility of a business idea: Writing a business plan is the best
way to test whether or not an idea for starting a business is feasible, other
than going out and doing it without having a plan. In this sense, the business
plan is your safety net. Writing a business plan can save you a great deal
of time and money if working through the business plan reveals that your
business idea is unsustainable.

• To give your new business the best possible chance of success: Writing a
business plan will ensure that you pay attention to both the broad operational
and financial objectives of your new business and the details, such as
budgeting and market planning.
• To secure funding, such as bank loans: Having a business plan gives you a
much better chance of getting the money you need to keep operating or to
expand. You’re going to need both operating and start-up capital to start a
new business and you have no hope of getting any money from established
financial institutions such as banks without a well-developed business plan.

• To make business planning manageable and effective: A business plan is
essential if you’re thinking of starting a business, but it is also an important
tool for established businesses. Viable businesses are dynamic; they change
and grow. The company’s original business plan needs to be revised as new
goals are set. etc. 

When to write a business plan

A business is not something static. The business can change over time as the
business develops, and any particular business may have multiple business plans
as its objectives change. Sometimes people often make the mistake of thinking of
a business plan as a single document that is just put together when someone is
first starting out and then set it aside. 

A business plan should be written when thinking of going into business, that is:

• Before starting a business
• When updating the business is required. For example, from plastic to metal
products.
• When new information is obtained. For example, changing colours and size
of the products as a result of consumer’s complaints.
• When new experiences are gained. Probably regarding new methods of
production. 

Users of a business plan and how they use it

Users of a business plan include but not limited to the following;

a. Business owners 

As the owner, you already know the obvious reasons, but there are so many other
good reasons to create a business plan that many business owners don’t know
about.

Such important reasons include:

– To create a new business. This helps the entrepreneur to mobilize and
coordinate resources.
– To better understand your competition.
– To better understand your customer.
– To assess the feasibility of your venture. How good is this opportunity?
– To document your revenue model. Documenting the revenue model helps to
address challenges and assumptions associated with the model.
– To determine your financial needs. This process is essential for raising capital
for business and for effectively employing the capital.
– To reduce the risk of pursuing the wrong opportunity. Writing the business

plan helps you assess the attractiveness of this particular opportunity, versus
other opportunities.
– To help you research and really know your market.
– To plot your course and focus your efforts. The business plan provides a
roadmap from which to operate, and to look for direction in times of doubt.
– To position your brand. Creating the business plan helps to define your
company’s role in the marketplace.
– To judge the success of your business. A formal business plan allows you to
compare actual operational results versus the business plan itself. 

b. The Government agents

– The business plan made by entrepreneur helps the government to assess the
viability of a business to determinate specific incentives like tax exemptions,
credit guarantees and subsidies that the government may give to the
entrepreneur.
– The business plan helps the government to plan for infrastructures and other
services that it may want to put up.
– With business plan, the government ensures which tax a business should be
taxed.
– In some cases, the entrepreneur may want to borrow money from financial
institutions like, banks; such loans require the government to guarantee
basing on how good a business plan is. 

c. The Managers

The importance of business plan to managers is as follows:
– Business planning is important to managers because the whole point of
management is to allow a business to operate more efficiently and to be able
to achieve its goals.
– Business plan helps managers allocate scarce resources appropriately.
– It enables managers to control the different aspects of their projects and
processes to ensure each task stays on course.
– Business plan also provides the framework for measuring the progress of the
different processes and tasks.
If there is no business plan, decisions will be taken each day based simply on
immediate needs. This will not allow the business to move forward in an organized
and purposeful way towards its future goals. Such a business is unlikely to succeed
because it would have long range plan.

d. Employees

The business plan is important to the employees of the business in the following
ways:
– The business plan helps the workers to determine production targets that
they have to achieve within set periods.
– The business plan gives the employees assurance about the duration of their
employment. It gives them job security because they know the expected life
cycle of the business.
– The organizational plan helps define tasks and responsibilities of each of the
workers and so helps reduce conflict.

– The business plan helps employees to know the mission and vision of the
enterprise.

e. Financial institutions

A well-prepared business plan is vital when approaching any financial institution
for finance. It helps them to assess whether it is appropriate to lend money to
the business based on revenue projections and other information included in the
business plan. Almost all the banks expect you to submit a business plan along
with your loan application.

The following are what most financial institutions look for:

– Most financiers will closely look and verify the following parts of your business
plan: The balance sheet is probably the first thing your loan officer will turn to.
The balance sheet records your assets, liabilities and capital.
– Along with the balance sheet, they will look very carefully at the profit or loss
and the cash flow, which should be very closely related to the balance sheet
and to each other.
– Bankers will also look for hard evidence of founders and managers who know
their business. 

f. Investors 

– A business plan attracts investors. The business plan answers investors’
questions such as: Is there a need for this product/service (is there a target
market)? What are the financial projections? What is the company’s growth
or exit strategy? 

1. Assuming that you have completed secondary studies:
a) Develop your personal plan for daily, weekly, monthly and yearly
activities.
b) What business do you plan to do after your studies and in your life?
c) How and when do you plan to achieve your goal?
2. Think of a feasible business of your interest and identify who will be the
users of your business plan and explain how it will be used.

4.2. Elements of a business plan

Assume that you are selected by an NGO in Rwanda specializing in
entrepreneurship called Educate! to train youths on business planning.

Explain what will be entailed in your training presentation as the main elements
of a business plan.

Business plans vary in content according to their intended purposes, but the
basic format remains the same. It consists of three elements: First, discuss
the business model and describe your products and services. Then place the
business in its industry and discuss your intended marketplace, including your
target customers and how you will reach them, beating your competition. Last,
relate these plans to the real world, discussing your contingency plans and
finishing off with spreadsheets detailing your anticipated sales, costs of doing
business and resulting profits. Though, formats may vary, clarity is the most
important quality of any business plan.

A successful business plan should have the following components:

a. Executive summary

The executive summary should be the first section of a business plan after the
table of contents, though it is typically written last after all the other sections.

Basically, an executive summary discusses the following items:

• Business name, address and contact person.
• Business idea and goals: This section provides an overview of the business
project, what product or service is being sold and what the entrepreneur’s
goals are. It also indicates where the business expects to be in a year’s time
and later.
• Legal form: e.g. sole proprietorship, partnership, company.
• Marketing: This part looks at how the products or services of business will
be sold. Who will be the main target markets (customer groups)? And what
are the main elements of the proposed advertising and promotion strategy
for the firm?
• Operations: This is concerned with where the business will be located. How
many staff will be needed and how they will be managed. 

• Finances: How much money is required to finance the plan, where will such
capital be obtained from and how it will be repaid. How much profit the firm
is expected to make by the end of the business plan time period?

b. Business description

The business description section of a business plan is another section, coming
after the executive summary. The business description outlines vital details about
your company, such as:

i. The name of a business: This is the official name of your business as
registered in the country where you do business.
ii. Contact address: This is the contact anyone can use to ask some information
about your business. It may be a phone number, email, website, fax and the
location address of the business, etc.
iii. Legal form: A legal form of business refers to businesses allowed by the
government to be run by business entrepreneurs. The business owner
must choose the legal structure of his business. e. g. sole proprietorship,
partnership, company, cooperative, etc.
iv. Type of business: The type of business refers to the nature of business-like
agribusiness, manufacturing; trading, service, etc.
v. Description of the business idea and market:

This section includes the following;
– Information about the owner: The first item in a plan should be written in the
description of business owner background, including name, address, email,
phone number, education, family status, sex etc.
– Mission statement: A clear mission statement that represent the purpose
of your business. E.g.: To provide uncompromised quality product to our
customers
– Objectives: An outline of what you want to accomplish in the mediate future
based on the data in the rest of the business plan as well as future growth
goals. E.g.: To increase the market share by 13% by the end of 2021
– Vision statement: About how you envision the future of the company, e.g.:
Transforming the livelihood of the population.
– Business location: Where is the business / company and its headquarters?
– Business history: When did the business start or when do you plan to start if
it is a new business. What inspires you to start the business?
– Products or services and target market: A brief overview of what you plan to
sell and to whom. 

– Description of market: Which include geographical area, type of customers,
size of total market, description of the competitors, market share for the new
business, etc.
– SWOT analysis: The analysis of strengths, weaknesses, opportunities and
threats (SWOT analysis).
• -S- STRENGTH OF THE BUSINESS: These are aspects within the business
that give it advantage over other businesses. These can include:
– Skilled and motivated staff.,
– Modern equipment.
– Strong research team.
– Sufficient working capital.
– Excess capacity.
– Wide distribution network
• -O- OPPORTUNITIES OF THE BUSINESS: Aspects outside the business
that are likely to be of benefit to the business: e.g.:
– Favorable government policy.
– Increasing dement of the product.
– Other industries that complement the business.
– Improved infrastructure.
– Reduced taxes on such product.
– New channels of distribution.
– Invention of better technology.
• T- THREATS OF THE BUSINESS: These are things outside the business
that are likely to affect the business negatively. E.g.: Possibility of entry of
new competitors.
– Change in government policy.
– Scarcity of raw materials.
– Declining of population (reduction in demand).
– Negative changes in customers’ testes and preferences. 

– Collapse of infrastructure.
– Raising costs of electricity.
– Economic depression.

Note: You should assess the above factors along comparing with those of the
rivals. In case your favoring factors are not as big as those of the competitors, you
will need to be very cautious in planning and running for your business.
Moreover, the following can guide your decisions:
1. If your strength is greater than your weaknesses, then advance.
2. If you observe more opportunities coming your way added to your strengths,
please Invest more.
3. But if you mark weaknesses and you observe more threats ahead of you,
please flee.
4. Finally, if your strength and weaknesses are similar to those of the rivals
please compete.

c. Marketing plan

A marketing plan is a business document outlining market strategy and tactics. It
is often focused on a specific period of time (12 months) and covers a variety of
marketing related details, such as costs, goals and action steps. The marketing
plan is built from the results of the marketing research and the specific value
proposition of the product or a service.
For a business to grow it also needs a marketing plan, therefore, the right marketing
plan should identify the following:
– Who your target customers are.;
– How you will reach them, and finally.;
– How you will retain your customers so that they repeatedly buy from you.
– When done properly, the marketing plan will be the roadmap to follow in order
to get unlimited customers and dramatically improve the success of the
organization.
– How much are customers willing to pay?
– Product description, current production, distribution channel that will be
used.,
– What are competitors’ prices? Forms of advertisement and pricing strategies
to be used, how the price will be determined? and
– What is your price? What promotion strategies are you planning to use?

d. Production plan

This consists of projected needs for manufacturing the proposed product. It is then
necessary to assess whether production at this scare is technically feasible.
The production plan mainly focuses on:
– A description of the product and what it does, manufacturing process.,
– Product innovation, suppliers of raw materials, quality control, nature of
packaging, production staff, …
– Machinery, equipment and techniques used.
– Product development and substitution.
– Intangible assets and protection. 

e. Financial plan

Financial plan is a statement that indicates the balance sheets, income statements
and cash flow statements for the previous three years, along with five years’ cash
flow, income statements and balance sheets forecasts. It indicates costs of your
business: seed capital, sales forecasting along with cost of operations, selling and
administrative costs.

Those financial statements found in this plan, can show where your business
was at a certain period in the past, where it is right now and provides you with the
information you need to make future decisions.

• It is important to keep your statements current and to refer to them on a
monthly basis.
• You should include the following financial forms with projections for three to
five years:
– Income statement
– Cash-flow projections
– Balance sheet

Other elements of the financial plan include:
– Expected source of finance
– Start-up budget: Capital and Expenditure
– Financial forecast / cash flow plan
– Opening Balance sheet
– A breakeven point analysis
– Payback period.
– Return on Investment.
– When making financial projections, it is important to explain any assumptions
– how you determined the figures you used.
– If you are looking for financial assistance, lenders will want to know where
you will get financing for your business and how you will spend the money.
They will also want to see historical records for the past three to five years. 

f. Organizational plan 

This part describes the form of business ownership, the lines of authority and
accountability for members of the new venture.
It includes items such as:
– Form of ownership.
– Identification of business partners or principal shareholders.
– Authority of principals.
– Management team and background.
– Roles and responsibilities of members of the organization.
– Decisions on the numbers or types of workers that are required to operate the
proposed business.
– Compensation i.e. salary, bonuses... that you offer to the key members of the
management team.

g. Action plan for implementing the business plan.

An action plan is the careful lay out of the sequenced steps towards achieving
the business goals. This is the most crucial aspect for starting any business. The
main purpose of the action plan is to guide the entrepreneur as a time table for
implementing the business plan and to help him/her become and remain focused
in the implementation of his/her business.
The action plan in particular will help the entrepreneur to:
• Find road blocks in advance or expected challenges so as to take appropriate
steps to solve them.
• Locate sources of information and resources needed for the business.
• Obtain feedback on the progress towards enterprise established.
• An action plan co-ordinates efficient use of resources for the business.
• An action plan is used in implementation of planned activities.
• An action plan specifies how workers’ responsibilities and tasks are traced
and allocated.
• An action plan helps to monitor and evaluate work progress.
• It helps to discover business challenges and how to solve them. 

Summary on the steps in preparing a Business plan

 Business plan preparation is a step by step process which requires the
Entrepreneur to thoroughly follow and check through a number of steps that
are critical. These steps include the following;
• Select a business opportunity like service, trading or manufacturing business.
• Conduct a market survey to assess the business opportunity in terms of
feasibility and viability.
• Gather the necessary relevant data like cost of machinery and equipment,
environmental protection regulations and selling requirements, etc.
• Draft a business plan.
• Discuss the draft business plan with knowledgeable or experienced personnel
in a similar business.

 • Finalize the plan and prepare an action plan for implementation of the
business. 

1. Suppose you have a dream to start a small business after your studies.
Describe that small business you wish to start.
2. Suppose you want to open a restaurant in your home area,
a) Set the mission and vision statement of that restaurant
b) Set any three objectives of your business

4.3 Preparation of a business plan

A SAMPLE OF A BUSINESS PLAN

EXECUTIVE SUMMARY

This is a poultry Project specifically designed for eggs production. It is planned
to start with 2015 layer birds. The Total project cost for the poultry project alone
shall be 1, 456,041 Frw broken down as; 12,600 Frw for construction, 1,400,000
Frw for purchase of the chicks, 43,441 Frw for poultry feeds, vaccines and drugs
and other poultry accessories for 18 months. For capacity building, water and
electric installation, administrative costs and labor cost for 18 months. It is
assumed that only 80% production shall be realized, which means 1,620 trays
of eggs shall be realized per month for 12 months on average. The primary
customers for the eggs shall be prominent egg traders within and around Kigali
City. The minor customers shall be the egg venders who usually boil 10 to 15
trays of eggs and vend it at pubs, market places and streets. The reason for the
target market is that egg production in Rubirizi and Nyacyonga cannot meet
market demands.

To increase the sustainability of XYZ Poultry enabling it to continuously support
its mission, helping to improve the social economic welfare and vulnerability of
the Youths in Ndera Sector, Gasabo District. In order to realize the above results,
the following main activities must be implemented:
i. Contract the services of a builder to construct a chicken house
ii. Select and train youths, especially those out of school, to support the
project
iii. Procure and rear chickens to lay eggs to be sold for consumption
iv. Continuously monitor and evaluate activities to ensure objectives are met.
If these activities are implemented, it will create a great impact in the lives of the
project beneficiaries. In the first place, the project will create employment for
at least 30 youngsters currently not employed in any productive venture. This
employment will give them an alternative way to generate income and thereby
decreasing their risk of transmitting and contracting HIV/STDs especially girls.
In the second place, it will provide XYZ Poultry a secure source of funding for
its program activities, allowing it to continuously sustain 20% of its current
activities
In spite of these goals, XYZ Poultry lacks the financial resources necessary to
realize this project. The project seeks 1, 050,000 Frw to aid in the start-up of this
income generating project.

2. INTRODUCTION

Project Profile
XYZ Poultry is a project not affiliated/related to any religious, political, or social
grouping, but born out of the need to work with teenage youth(s). It seeks to
facilitate the youths to initiate and create income generating projects, and as we
all as creating development initiatives to employ them. It was started by AKEZA
R. Elsie & MUNEZERO D. Purity in February 2018 to respond to the needs of
Youths who were destitute because of the various socio-economic reasons. 

3. PROBLEM STATEMENT / PROJECT LOCATION

The problem at hand is that in many cases the project finds itself in financial
needs particularly in addressing the physical, material and educational needs
of the youth despite the fact that the project has a land (3 hectares), with
water storage facilities. These locally available resources could be turned
into a viable income generating project. In addition, some of the youth out of
school are unemployed in productive venture so as to support themselves.
This has not only put the project at a high risk of relying on donor funds to
meet its basic needs, but also it will put some of the youth especially girls at
an extremely high risk for contracting HIV and other STDs.

Against this background, we consultatively came up with the poultry project
as income generating project as supplementary sources of income to XYZ
Poultry. Furthermore, the project seeks to provide income generation projects
for the youth, giving them an alternate way to support themselves and their
dependents.

4. VISION

To be a passionate people extending God’s grace and hope in every community.
The XYZ Poultry aims at becoming a reference of quality in food for future
generations, working as a team in a socially responsible manner and using all
our resources to respond correctly to the new demands raised by the market.
Our work is focused on the constant development of new products and
services, including all the processes that lead us to achieve an end product
with functional capacity and a high nutritional standard, without incurring any
extra expense for consumers.

Our aim is to continue to consolidate our market positioning through the
growth of our customer portfolio, offering customized service and anticipating
their demands. Continuous research, the development of new lines of work
and new product presentations will allow us to improve our competitiveness
and continue to be a company of reference in terms of quality and food
safety.  We intend to optimize our business results by promoting teamwork
and professionalism, and upholding our social commitment to the ongoing
development of our products and services in a sustainable manner, and with
greater guarantees for the end user.

5. MISSION STATEMENT/GOAL:

Its mission is to promote an environment in which the youths are cared for,
supported, bodily, mentally, socially, morally, spiritually and with an emphasis
on education, nutrition and social support to facilitate a meaningful life.

We will provide quality products for human consumption, certified in
accordance with the strictest quality and food safety standards. Our
commitment to continual development and innovation has allowed us
to maintain a high competitive level and satisfy the needs of our final
consumers. We strive to ensure that our customers grow with us in a
setting of ongoing improvement, through joint efforts and by establishing
bidirectional communications between them and our staff. We exert a
proactive attitude, seeking the consolidation and recognition of our business
project and maintaining our commitment to the sustainable development of
our environment and a respect for nature.

6. VALUES

For sustainability, XYZ Poultry has adopted a series of values and undertakings
which are shown in its day-to-day operations, and are defined through the
following aspects:

7. OBJECTIVES

General Objective
To increase the sustainability of XYZ Poultry to continuously support its
mission, promoting educational and health programs within the youths.

Specific Objectives

i. To establish a business, raising and selling chicken and eggs (poultry
products) and use its profits to help support the activities of XYZ Poultry
ii. To improve the economic welfare of the youths employing them to run
and support the “poultry farming project”.
iii. To train the youths who have no opportunities to continue for secondary
education in business and management so that they may successfully
support their needs.

8. ACTIVITIES

• Procure materials for constructing a permanent poultry house
with favorable conditions for raising chickens and eggs
• Contract builders to build a structure (poultry house) for raising
chicken and eggs
• Contract the services needed for the installation of electricity
• Contract the services needed to install a water system
• Procure 2,000 chicks and the necessary food and supplies needed
to support them
• Recruit and hire the agriculture extension officer to provide
veterinary services to layer birds and to support the needs of the
project
• Train selected the Youth, with the help of partner projects, in
business, management and poultry farming
• Monitor and evaluate the activities of the poultry farm and its
overall impact to its target group and XYZ Poultry as a project,
reviewing the management of the project and the sale of poultry
products

9. JUSTIFICATION OF THE PROJECT:

The project is a three-fold strategy, in that it seeks to create a viable income
generation project for XYZ Poultry, giving it an alternate way to support its
daily activities and to improve the welfare of the Youth. The project will
produce poultry products for sale and the proceeds will not only assist the
project to meet the basic necessities of life for the youths such as medical
care and scholastic materials, but also reduce the financial costs the project
spends on buying these products for daily consumption. And it has been
proved that poultry products are a cheap source of the protein which is vital
in maintaining the immune system of HIV positive persons for as long as
possible. This will be a great help to some of our youths who are living with
HIV aids. 

Second, the project seeks to create employment opportunities to some of the
youth so that they cater for themselves and to some extent their dependents.
With respect to multiplier effect, the activities of this project will be scaled up
by non-members. Or the project will be a model for future income generation
projects within the community and will be replicated by both XYZ Poultry and
other indigenous Non-Government Project too in other localities.

11. PROJECT EXPECTED RESULTS

a) In the first year, the project will have 2,000 laying hens that will produce
eggs for sale. At the end of the first year, the project will earn 25,480
Frw from the sale of eggs to be used to assist in the costs of sustaining
the project
b) At the end of the second year, the project will earn 30,579,500 Frw from
the sale of eggs, enabling it to sustain itself and realize a profit
c) At the end of each hen’s egg-producing life, each hen will be put the
market. Profits realized from this will be reinvested into the project, as
a part of ensuring its sustainability and assisting project in running of its
daily activities.
d) The project will create employment for at least 30 youth who are currently
not employed in meaningful activities. This employment will give them
an alternative way to generate income, decreasing their dependency
on hand-outs, and thereby decreasing their risk of transmitting and
contracting HIV/STDs.
e) The project will provide the youth with practical skills in poultry keeping,
business, marketing, and management. These skills can be used in
future jobs or income generation activities of their own accord.
f) After the first year, the project will reduce the Project (XYZ Poultry)
dependence on donor funding, enabling it to sustain 50% of its current
activities after.
g) The project will be a model for future income generation projects within
the community and will be replicated by AKEZA R. Elsie & MUNEZERO
D. Purity in other localities.

12. MANAGEMENT AND IMPLEMENTATION OF THE PROJECT

Project capacity

The project has the capacity to run the proposed project effectively. In the
first place, it has some experience in poultry keeping for about 1.5 years,
and it can collaborate with the District agricultural officer to conduct more
training to its staff so that they gain more skills and knowledge on how to rear
chicken on a large scale. The project has a perennial source of water where it
can obtain water during dry spell. It has its pick-up vehicle which will be

used to access its products to markets in Ndera Sector, Kigali City, and other
busy commercial centers like “Quartier Commercial, Quartier Matheus” and
in modern Hotels. 

Institutional framework and linkages

In the first place, XYZ Poultry will partner with the Department of Agriculture
in Rwanda Agricultural Board (RAB) which has expatriates in agriculture and
animal husbandry. The project will partner with poultry projects in Rubirizi in
Kanombe Sector, Kicukiro District which are also involved in poultry farming
activities. The project will draw on the experiences of these people to help
in the training and development of this project as it progresses. These
relationships will help to ensure this project is successful.

Implementation

The project will be executed by the AKEZA. R. Elsie & MUNEZERO D. Purity.
However, it will set up a separate project committee which will be responsible
for the day to day coordination and implementation of the project activities.
It will also be responsible for planning, supervising, monitoring and reviewing
all project activities.

Implementation of the project activities will call for close collaboration with
a wide range of partners such as potential buyers of poultry products, sellers
of animal feeds, agricultural District department, Rwanda Agricultural Board
(RAB) and the project funders.

This will enhance the opportunities for the realization of the broad goals and
objectives of this project.

Monitoring and evaluation

General Monitoring and evaluation will be an on-going activity throughout
the project life. Monitoring will be routinely done through meetings monthly
reports, check lists, surprise visits and support supervision visits. These
reports shall indicate the constraints and challenges in the implementations
and necessary adjustments that had been taken. Progress evaluation will
be done through use of monthly quarterly reports, steering committee
meetings, annual report, registry records, work plans indicating planned
and accomplished activities, functional accountability for project resources
including equipment, facilities, assets and activities.

Progress monitoring and evaluation will help the project team to assess the
extent to which implementation is meeting the set objectives. This will enable
the project team to revisit the objectives and priorities and to find ways and
means of improving the performance and better resource used.

Financial Management of the project

Finances accruing to this project will be entered into the proper books of
accounts when received. A special Account in the name of the project
will be opened to cater for only project funds. To ensure effective control,
management and monitoring of project funds, no single signatory will be
allowed to access project funds, and the signatories of this account will be
three. Under the consent of the three and approval of the committee funds
will be withdrawn from the bank and utilized for the intended purpose.

Books of accounts will be audited regularly through external auditors. After
auditing the project accounts, the auditors will submit an audit report, which
will satisfy the donors and the stakeholders that correct and proper books of
accounts have been be maintained.

There will be the project committee which exercises budgetary control over
project finances. This will be exercised through the comparison of expenses
estimated in the budget with actual expenses incurred during the period.

Project Profit Projection

It is assumed that only 80% production shall be realized, which means 374
trays of eggs shall be realized per week for 12 months. That is to say 54 trays
X 30 days X 12 Months = 19.440 trays of eggs in one year. A tray of eggs goes
at 1540 Frw. This means gross revenue of 29,937,600 Frw shall be realized
from the sale of eggs.

The off layers at the end of production shall be sold at 2800 Frw each, raising
additional revenue 5600 Frw. This implies that total gross revenue of 35537.6
Frw shall be realized at the end of the production cycle in 18 months, and this
implies a net profit of 12417.3 Frw shall be made at the end of 18 Months.

Project sustainability

In the initial stage, the project will be sustained by the founder’s and a loan
funds. However, in the long run the project will finance itself. Part of the
funds will be used to execute the project while another percentage will be
re-invested in the poultry business to expand the project, hence increasing
sales and profits.

Through a capacity building workshops, the project staff will be empowered
with skills in treatment of layers and have appropriate knowledge on feeds. 

13. THE POULTRY BUDGET

14. CONCLUSION

Now poultry business is a very popular business in Rwanda and in Gasabo
District in particular. This business does not require huge capital and
it requires small amount of investment needed to start it. Although the
business has many existing competitors in the market, but more still, we have
a high chance to succeed because the existing competitors can`t fulfill the
customers demand. They are also failing to meet the customers need in the
perspective of service care. So, we believe that choosing this business is our
right decision.

Suppose your friend wants to start a business of selling eggs, prepare for him
a business plan which he will present to Umurenge Sacco-Kabeza in order to
borrow money.

Prepare the business description and marketing plan sections of a business
plan for business activity of your choice.

1. In your opinion, explain the meaning of business plan.
2. After your studies you have a dream to start a small business and
you have just started writing your business plan. Explain how Rwanda
Revenue Authority can use that business plan.
3. You have just established a mushroom growing business in your home
area. You intend to launch your business to create community awareness,
4. Prepare your launch program for the above-mentioned business.
5. Describe three challenges that a new enterprise might face.
6. A business that fails to plan will plan to fail, Discuss.
7. Explain the term “marketing mix” as used in business planning