UNIT 6: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 TTC 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.
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?
6.1 Definition and Importance of the business plan
Activity 6.1
1. Using your previous knowledge obtained in O’level
about business plan, explain the meaning of a business plan.
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.
6.1.1 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.
6.1.2 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?
Application activity 6.2
1. As a student teacher who has 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.
6.2 Elements of a business plan
Activity 6.2
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,
• 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)Types 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. Eg: 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. Eg: To increase the market share by 13% by the end of 2021 -
Vision statement : About how you envision the future of the company,
eg: 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- STRENGHT 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.
• -W- WEAKNESS OF THE BUSINESS: These are aspects within the business that limit
its capacity and its competitiveness. E.g.: Small market share.
- Inexperienced staff.
- Insufficient capital.
- Poor product image.
- Outdated production equipment.
- Poor financial management.
- Inappropriate 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? What is your price?
What promotion strategies are you planning to use? Etc.
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.
Format of an action plan
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.
Application activity 6.2
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 restaurantb. Set any three objectives of your business
6.3. Preparation of a business plan
A SAMPLE OF A BUSINESS PLAN
A POUTLY PROJECT PROPOSAL REQUESTING FOR FUND
Sub mitted By:
AKEZA R. Elsie
And
MUNEZERO D. Purity
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY..........................................................................................................................
2. INTRODUCTION............................................................................................................................................
3. PROBLEM STATEMENT / PROJECT LOCATION............................................................
4. VISION....................................................................................................................................................................
5. MISSION STATEMENT/GOAL...........................................................................................................
6. VALUES.................................................................................................................................................................
7. OBJECTIVES....................................................................................................................................................
8. ACTIVITIES.........................................................................................................................................................
9. JUSTIFICATION OF THE PROJECT.............................................................................................
10. TIMELINE FOR IMPLEMENTATION OF ACTIVITIES FOR 2014-2015...............
11. PROJECT EXPECTED RESULTS....................................................................................................
12. MANAGEMENT AND IMPLEMENTATION OF THE PROJECT..............................
13. THE POULTRY BUDGET........................................................................................................................
14. CONCLUSION.................................................................................................................................................
1. 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:
- Customer focus - Teamwork
- Commitment to achieving results - Sustainability
- Interest in people - Corporate Social Responsibility
- Quality and Food Safety - Uprightness
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
viii) 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.
9. 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
10. 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. TIMELINE FOR IMPLEMENTATION OF ACTIVITIES FOR 2014- 2015
12. 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 ensuringits 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 handouts,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 jobsor 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 projectswithin the community and will be replicated by AKEZA R. Elsie & MUNEZERO D. Purity in other localities.
13. 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 arge 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 67the 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, monitoringand 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 realizationof 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 andto 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 booksof 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 andproper 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 budgetwith 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 Frwshall 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 withskills in treatment of layers and have appropriate knowledge on feeds.
14. THE POULTRY BUDGET
15. 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.
Application activity 6.3
1. Suppose your friend wants to start a business of selling eggs,
prepare for him a business plan which he will present to Umurenge Sacco-Kabezain order to borrow money.
Skills Lab
Prepare the business description and marketing plan sections of a business plan
for business activity of your choice.End of unit assessment
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.
Prepare your launch program for the above-mentioned business.
4. Describe three challenges that a new enterprise might face.
5. A business that fails to plan will plan to fail. Discuss.
6. Explain the term “marketing mix” as used in business planning.Bibliography
Akazi Kanoze Youth Livelihood project, Akazi Kanoze Youth livelihood project,
Education Development Centre *EDC (USAID (2012).
Assimwe Hebert (2009) .Ordinary Level Entrepreneurship, Mk Publishers Ltd., Kampala.
Board, R. E. (2019). Entrepreneurship Student’s Book for Senior Five. Kigali: REB.
Board, R. E. (2019). Entrepreneurship,Student’s Book for Senior Five. Kigali: Rwanda Education Board.
BPP Professional Education (2005/2006) Marketing Fundamentals, Clm, UK.
Cardinal, R. (2015, June 23). HuffPost’s Must Reads Newslwtter.
Retrieved November 2019, 2019, from 5 Steps to Building an Effective Team: https://www. huffpost.com/author/shapingchangeworldwide-251
David H. Holt (2002). Entrepreneurship New venture creation, 6th edition. James Machison
Dianna (2006) .Teams: Teamwork and Teambuilding, Prentice Hall,New York
Fapohunda, T. (203). Towards Effective Team Building in the Workplace, p2-4.
Five Ways to Effectively Onboard New Employees. (2019, September 10).
Retrieved November 28, 2019, from Leadership: https://www.leadstrat.com/
J. Chris Leach and Roland W. Melcher Thompson (2006).
Entrepreneurial Finance, 3rd edition. South Western College Publishing.
J. Chris Leach and Roland W. Melcher Thompson (2006).Entrepreneurial Finance,
3rd edition. South Western College Publishing.
Linda Bison, Dearborn (2005).Agriculture in a modern economy, 1st Edition. Trade Publishing.Wikipedia. (2019, November 26). Team building. Retrieved November 29, 2019, from Wikipedia: https://en.wikipedia.org/wiki/