Starting Pig Farming Business Plan (PDF)
If you’ve ever dreamt of venturing into the world of agriculture and are looking for a rewarding and potentially profitable endeavor, starting a pig farming business might be just the opportunity you’ve been searching for. Pig farming has steadily gained popularity as a viable agricultural venture due to its relatively low entry barriers and the ever-increasing demand for pork products worldwide. In recent years, the global consumption of pork has been on the rise, driven by changing dietary preferences and an increasing global population. This trend presents a promising market for pig farmers, making it an ideal time to explore this agricultural niche. Pig farming not only offers the potential for substantial profits but also allows you to make a meaningful contribution to the food supply chain. Additionally, pigs are known for their efficient feed-to-meat conversion rates, which can help maximize your returns on investment.
Profitability in pig farming is closely tied to the prolific reproduction rate of these animals. Typically, a sow, which is a female pig, can successfully wean off 9 healthy piglets during each birthing cycle. Considering that sows give birth twice a year, this equates to a minimum of 18 piglets annually. This impressive reproductive capacity not only ensures a steady influx of new piglets but also lays the foundation for the rapid growth and expansion of a small-scale pig farming operation. To build a profitable and sustainable pig farming business, you require sufficient knowledge of how to efficiently raise the pigs, good business management skills, and a good piggery business plan. This article will outline how to start the piggery farming business, and the pig farming business plan – PDF, Word and Excel.
You should carry out thorough market research before starting the pig farming business. This research serves as the compass guiding your decisions, ensuring that you understand the dynamics of the industry. Research potential suppliers for pig breeding stock, feed, medications, and other farming essentials. Additionally, explore distribution channels to reach your target customers effectively, whether through local markets, wholesalers, or direct-to-consumer sales. To succeed, it’s essential to know your competition intimately. Investigate existing pig farming operations in your area, identifying your rivals, their scale, and the quality of their products. Armed with this knowledge, you can strategically position your business and find opportunities for differentiation.
Part of your market research should include a deep understanding of the pricing dynamics of pork in your target market. This involves not only identifying the current price points but also discerning the factors influencing pricing fluctuations. Moreover, it’s crucial to identify your potential customers and gain insights into their buying habits, such as how frequently they order pork and the quantities they typically purchase. This knowledge will enable you to align your pricing strategy with the expectations and behaviors of your target audience, ensuring that your pig farming business can competitively meet their demands while maintaining profitability. Develop financial projections based on your market research findings. Estimate your potential revenue, expenses, and profitability to create a realistic business plan.
Selecting Land for Piggery Farming Business
To start your pig farming business, you require a large enough area for erecting the necessary pig housing and other farm buildings. When selecting the land for your piggery farm, consider the conditions of the roads – vehicles will use the roads to deliver pig feed to the piggery farm as well as deliver pigs to the market from the farm. Thus you will need to choose a location with good roads for your piggery farming business. Also consider if the land will allow you to expand your pig farming business in the future, eg is there enough space to construct additional pig sty houses? Choice of land should also take into consideration water flooding. It is detrimental for water flooding to occur where the pigs will be housed. That is why it is important to choose land that has a gentle slope. This will enable runoff thus avoiding any possibility of water flooding. You should locate your piggery farm at least 1 kilometre away from the rivers to avoid possible contamination of water from effluence. Pigs require plenty of water, thus your pig farm should be located where there is clean and reliable water supply. Your pig farming business plan should take into account the cost of purchasing or leasing the land.
Good piggery housing will make it easier to manage pigs and also reduces the mortality rate of the piglets. With the right type of pig housing, you can successfully rear 95% or more of all the live born piglets to market weight in the shortest possible time. It is advised that the piggery housing should typically be long and narrow. Its orientation should follow an east to west direction. The floor of the piggery house must be dry. The piggery housing floor can be made from cement, bricks, poles, stone slates, or wooden slates. Piggery house design must also factor in the need for sufficient shade and ventilation. Strike a healthy balance by ensuring ventilation does not cause harmful loss or gain of heat to the pigs. P igs at different stages of growth require different environments (temperatures) and different housings. Piglets require protection from very low temperatures to ensure that they grow to their maximum potential level. On the other hand, the growing and reproducing pigs must be protected against high temperatures. So you have to ensure that the piggery houses are built to protect the young and grown pigs against extreme temperature and bad weather conditions such as continuous rains and cold winds.
Piggery housings are usually demarcated into 4 separate sections. This is to cater for the 4 main stages of the pig production cycle – thus pigs at different growth stages require different housing, you can’t just house all pigs in one piggery house. These 4 stages are pregnancy, lactation, weaning, and breeding. Allow between 6 and 8 meters per pig boar (male pig) when breeding. Allow 4 to 6 meters per sow when lactating. During pregnancy, allow 1.5 meters to 2 meters per sow. During the weaning stage, allow 0.3 to 0.5 meters per piglet. These specifications will guide you in figuring out the size of your piggery housing. Materials and equipment required for the construction of pig housing structures and buildings can be bought from hardwares and other construction suppliers. Costs of constructing the pig housing should be included in the piggery business plan.
Equipment For Pig Farming Business
There are a number of activities involved in pig farming which all require specialized equipment.
- Personal Protective Clothing And Basic Handling : Rearing pigs can be messy so you will need protective clothing such as work-suits, overalls, gloves, face masks, boots, and the like. If you have a high number of pigs, a feral snare would come in handy. It helps you single out a pig when you need to separate it from the rest.
- Feeding And Drinking Equipment : You require pig feeding and drinking equipment and systems. There is an option to use manual approaches or automated ones.
- Breeding Equipment : If you are into pig breeding you must have a farrowing and a mating crate. The farrowing crate is instrumental during the lactation stage. It guards against incidents of sows accidentally killing piglets due to their heavy weights. The mating crate is to ensure sows are not hurt in any way during mating. A weighing crate is also generally needed in pig farming.
- Veterinary Equipment : There are other operations that require specialized veterinary equipment. Examples of such equipment are scalpels, blades, needles, syringes, and dressings. This mostly depends on the procedures you personally do in your pig farming. Some prefer to outsource so they might not need much or anything at all.
The pig farm business plan should include the costs of acquiring the required equipment.
Pig Breeding Options
Live Pigs : This is the easiest and most common breeding approach for many pig farmers. It can entail sourcing and introducing boars (male pigs) and sows (breeding female pigs) into your herd. Another option is to source and introduce weaners. These are young pigs that will not have yet reached full maturity. Third option is to source and introduce breeding stock chosen using segregated early weaning (SEW). This involves taking piglets from the farrowing crate at an early age and then rearing them in a different building on the farm.
Surgical Methods : The other 3 ways are surgical methods namely, hysterectomy, embryo transplant, and artificial insemination. Of these 3, artificial insemination is relatively less sophisticated and more common.
Breeding Pigs: Sows and Bows
To start your pig farming business, you require breeding stock which consists of bows (males pigs) and sows (female pigs). Boars and sows will mate and the sows will give birth to piglets. The important thing is to closely check where and how you get your breeding stock. When looking to source breeding stock you must check the history – especially regarding diseases and health status. Your supplier must be able to provide relevant documents detailing those aspects. They should also be able to direct you to veterinarians who can corroborate their documents. It should be possible to be shown reports from veterinarians on diseases and health status of the pigs. Your breeding stock supplier must also avail pig breeding records. The absence of any of such raises red flags. The growth potential of your piglets will depend on the nature and quality of the parent stock. Thus it is of great importance to buy a good pig breeding stock from reliable piggery farmers. Poor selection of breeding stock will lead to financial loss for your pig farming business plan.
You require 1 boar for every 15-20 sows. The number of soars which you buy for your pig farming business will depend on the scale of your piggery business. One sow gives birth to 9-11 piglets from one pregnancy. A sow can fall pregnant twice a year. The pregnancy of a pig lasts for 3 months, 3 weeks and 3 days (114 days). The pig farming business plan should take into consideration the cost of purchasing the breeding stock.
Pig Feed And Nutrition
The pigs must be given the correct type of feed as well as the correct amount of feed. This will ensure that the pigs reproduce efficiently, grow efficiently, utilize the feed efficiently, produce good quality pork, thus maximizing the profits of your pig farming business. If you fail to give the proper feed to pigs then you may miss the slaughter weight targets and the desired quality of the pork. This may lead to financial loss of your pig farming business. Pigs require different types and amount of feed depending on which stage of growth they are at. This implies that piglets have their own feed type, bows & sows have their own type of feed, while lactating pigs also have their own type of feed.
Pig feeds constitute the greatest component of the total production costs. That is why some pig farmers use other cheaper feeds to minimize commercial feeds. Pigs require feeds with adequate proportions of proteins, energy, vitamins, and minerals. That is why commercial stock feeds are better because they are expertly proportioned. Regardless, you can use other non-commercial stock feeds as supplementary feeds. You just need to know that pigs mainly eat grains, fruits, and vegetables. Another common feed is residue from alcohol distilling processes. Just as long grain, particularly millet is involved in the distilling process. Bear in mind that such residues are not suitable for feeding pregnant or lactating pigs. Same applies to weaners or piglets in general. Pigs should not be fed with meats, dead animals, random waste, and fish. Your pig farming business plan should take into account all the feed costs at different stage of growth of the pigs.
Health & Disease Management
Maintaining the health and well-being of your pig herd is a foundational aspect of running a successful pig farming business. It’s not only a matter of ethical responsibility but also a critical component for safeguarding your investment and securing long-term profitability. Vigilant health and disease management practices are essential in achieving these objectives.
Effective health management begins with regular monitoring of your pigs, where visual observations and health checks are conducted to identify signs of illness or any deviations from their normal behavior or physical condition. Collaboration with a veterinarian to design a vaccination program tailored to your pigs’ specific needs is crucial in preventing common pig diseases. Biosecurity measures, such as controlled farm access and strict hygiene protocols, are implemented to prevent disease introduction. Proper nutrition and hydration, as well as detailed record-keeping, further contribute to the overall health of your herd. In case of disease outbreaks, having a well-defined plan in place ensures prompt action to contain the issue and protect the rest of your animals. By prioritizing these health and disease management practices, you not only ensure the welfare of your pigs but also mitigate risks and enhance the sustainability of your pig farming venture.
The pig farming business model revolves around a strategic breeding and production cycle. Initially, you establish the business with breeding stock, which comprises boars (male pigs) and sows (female pigs). These animals play a pivotal role in the reproduction process, as they mate to produce piglets. Once the piglets are born, you assume the responsibility of feeding and raising them until they reach maturity at approximately 6 months of age. At this stage, you can prepare them for sale in the market.
One of the primary cost considerations in pig farming is feed expenses, as the quality and quantity of feed significantly impact the growth and health of your pigs. However, the revenue generated from selling the mature pigs far exceeds the input costs and operating expenses. This profit potential is a key driver of success in the industry. To maintain a steady income flow, it’s essential to structure the breeding and mating process strategically, ensuring that sows give birth at different times throughout the year. This approach helps you maintain a consistent supply of market-ready pigs, minimizing income fluctuations and maximizing the profitability of your pig farming business.
Capital for a Piggery Farming Business
Starting a pig farming business is capital intensive. The capital is required for constructing the pig housings, purchasing the breeding stock, purchasing stock feeds and other costs associated with running a pig farming business. The amount of capital you need for your pig farming business will depend on the size of your piggery farming project. Your piggery business plan should clearly outline the money required to start and operate a pig production business.
Management And Labour for a Pig Farm
The number of employees you require for your pig farming business will depend on the size of your piggery project. You will need pig keepers who will be responsible for f eeding the pigs, cleaning and disinfecting the pig housings, washing the pigs and other duties. There may also be need for finance and marketing team, depending on the size of your pig production business. Your pig farming project proposal should take into account the salary costs for all the people you are going to employ.
Knowing your customer segments can be informed by how pigs are often sold. Pigs can be sold as market pigs, young piglets, feeder pigs, breeding stock, slaughtered (whole or halve), and cuts. Besides feeder pigs and breeding stock, weight is a core determinant of price. Understanding these dynamics helps inform your value proposition. That way, your marketing will be clear and specific about what you offer. Your target markets are several and as such you should diversify your messaging to appeal specifically. One common target market is direct customers in need of pork. These can be individuals and entities (e.g. restaurants).
You also have wholesalers and retailers looking to resell e.g. supermarkets and butcheries. There is also another segment comprising of processors. Pork can be processed into a number of value-added products. Such clients often have a number of strict stipulations your pigs or pork must adhere to. Capitalize on farmers’ marketplaces (onsite or virtual). Tap into other public platforms to market your pigs such as livestock auctions. Cold email potential bulk clients such as wholesalers, retailers, and processors offering to regularly supply. Overall, put up a detailed and ever active online presence via a business website and social media accounts.
You can slaughter your pigs when they are between the ages of 4 months to 6 months. The exact age at which you slaughter your pigs depends on whether you want to sell your pigs as porkers or as baconers.
The market for pork is very huge and is ever increasing. The annual global demand of pork is 115 million metric tons. That’s a lot! You can supply pork to abattoirs, local butcher shops, retailers, hotels, supermarkets, restaurants, wholesalers and individual consumers. Pork has to be sold whilst it’s still fresh, thus you should locate your pig farm close to your market. The pig production business plan ought to include a proper marketing plan to use in your piggery business.
The export market for pork is also very huge! As you grow your pig farming business you will be able to export the pork to other countries. The largest importers of pork are Japan, Russia, Hong Kong, China, South Korea and Mexico.
Keys To Profitability
Achieving profitability in pig farming is a multifaceted endeavor that hinges on several critical factors. First and foremost, efficient breeding and reproduction practices are fundamental. Maximizing the number of healthy litters from your sows through optimized breeding programs, genetics, nutrition, and careful timing can significantly reduce breeding costs and contribute to profitability.
Nutrition and feeding play an equally pivotal role. Investing in high-quality pig feed that aligns with their specific growth needs is essential. A balanced diet not only promotes rapid growth but also minimizes feed costs. To boost profitability further, maintaining a proactive approach to disease prevention and management is vital. Robust biosecurity measures, vaccination programs, and regular health checks help prevent disease outbreaks and reduce treatment expenses.
Cost control and operational efficiency should be an ongoing focus. Vigilantly monitoring expenses related to feed, housing, labor, and other inputs while seeking opportunities to reduce waste and streamline processes can boost your bottom line. Crafting a well-thought-out marketing and sales strategy is also key, as it ensures that you sell your pigs at the right time and for the best prices. Identifying target markets, negotiating contracts, and exploring various sales channels enable you to optimize revenue. Additionally, record keeping and data analysis are indispensable tools for making informed decisions and continuously improving your pig farming operation. Staying updated on industry trends, embracing new technologies, and adapting to changing circumstances are all part of the journey toward long-term profitability in this dynamic industry.
Advantages of Pig Farming Business
Launching a pig farming business presents a host of advantages that make it an enticing venture for both seasoned and aspiring entrepreneurs. Perhaps one of the most compelling factors is the consistently high demand for pork products worldwide. Pork holds a prominent place on dinner tables globally, ensuring a steady and robust market for pig farmers. This enduring demand, coupled with the potential for growth as populations expand and economies develop, provides a level of market stability that is desirable for business sustainability.
Pigs, known for their rapid growth and prolific reproduction rates, offer another substantial advantage. These animals can produce multiple litters of piglets annually, resulting in a relatively short turnaround time for your investment. This characteristic not only accelerates your profitability but also allows for scalability, enabling pig farmers to expand their operations efficiently. Additionally, the versatility of pig farming should not be overlooked. Pig farming allows for value addition through processing and product diversification. You can explore opportunities for producing processed pork products, such as sausages, bacon, and hams, which often command higher prices in the market.
Efficiency in feed conversion is a notable strength of pig farming. Pigs convert feed into meat with remarkable efficiency, requiring relatively less feed compared to many other livestock species. This efficiency translates into lower operational costs and improved profit margins. Furthermore, pig farming can be tailored to various scales, accommodating both small family farms and large commercial operations. Geographic adaptability also enhances its accessibility, as pig farming can be successfully practiced in diverse locations. With well-established market channels and the potential for value addition through processing, pig farming provides entrepreneurs with ample opportunities for growth and profitability in the agricultural sector.
Why You Need A Pig Farming Business Plan
A well-structured business plan is instrumental in understanding the profitability of a piggery business and the myriad factors that can influence it. It provides a comprehensive financial roadmap that outlines the projected income, expenses, and potential profit margins. By meticulously detailing all the financial aspects of the operation, from initial investment to ongoing operational costs and revenue projections, a business plan allows entrepreneurs to gauge the financial viability of their venture. Moreover, it enables them to identify the key factors that can impact profitability, such as feed costs. Armed with this knowledge, pig farmers can make informed decisions, proactively address challenges, and optimize their business strategies to ensure a sustainable and profitable piggery operation.
In addition to aiding in understanding profitability and the various factors affecting it, a well-structured business plan also serves as a powerful tool for securing funding for your piggery business. Investors, lenders, and financial institutions often require a thorough business plan to assess the viability and potential return on investment of your venture. Your business plan provides them with a detailed overview of your business concept, financial projections, market analysis, and risk mitigation strategies. It instills confidence by demonstrating that you’ve thoroughly researched and planned your piggery operation, making it more likely for potential backers to commit the necessary capital. Whether you’re seeking loans, seeking equity investors, or applying for grants, a comprehensive business plan is your persuasive document that can open doors to the financial resources needed to start or expand your piggery business.
Pre-Written Pig Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the pig farming business, we encourage you to purchase our well-researched and comprehensive piggery business plan. We introduced the business plans after discovering that many were venturing into the pig production business without enough knowledge and understanding of how to run the piggery business, how to keep the pigs, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global pig farming business plan will make it easier for you to launch and run your piggery business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the pig farming business.
Uses of the Pig Production Business Plan (PDF, Word And Excel)
The pig farming business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your pig production business
- As a piggery business proposal / pig farming project proposal
- Assessing profitability of the piggery business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Piggery Business Plan (PDF, Word And Excel)
The pig farming business plan include, but not limited to:
- Marketing Strategy
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Risk Analysis
- Industry Analysis
- Market Analysis
- SWOT & PEST Analysis
- Operational Requirements (Including technical aspects of how to keep and rear the pigs, feed requirements etc)
- Operational Strategy
- Why some people in pig farming business fail, so that you can avoid their mistakes
- Ways to raise capital to start your pig farming business
The Pre-written piggery farming business plan package consist of 4 files
- Pig Farming Business Plan – PDF file (Comprehensive Version – 81 Pages)
- Pig Farming Business Plan – Editable Word File (Comprehensive Version – 81 Pages)
- Pig Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 42 pages)
- Pig Farming Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of pigs, selling price of the pigs etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Pig Farming Business Plan (PDF)
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Get the Pig Farming Business Plan (PDF, Word And Excel)
Click Buy Now below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!
If you want to purchase multiple business plans at once then click here: Business Plans Store.
The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.
Piggery Business Frequently Asked Questions
How many pigs should i start with.
The number of pigs that you should start with depends with the amount of capital that you have, your intended scale of production and the available housing facilities. You need male pigs which are known as boars, as well as female pigs which are known as sows. One male pig can service upto 20 female pigs. You can start with just 5 female pigs for a small piggery business, or 100 female pigs for a large commercial pig farming business.
Is pig farming project profitable?
A pig farming project is a very profitable business venture. Each female pig gives birth to about 10 piglets per birth, and it can give birth twice a year. That means you can get 20 piglets per year from just 1 female pig – which implies a lot of revenue from just 1 pig. However you have to manage the piggery business expenses like feed. This is why it is important for you to get a good pig farming business plan so that you understand the factors which affect the profitability of a pig farming project.
How do I start a small piggery business?
To start a small piggery business, you need the following items: boars, sows, housing, equipment, feed, water, and a ready market. You also require a good piggery business plan before you venture into this business.
What do you feed pigs daily?
Commercial pig stock feeds are the best for feeding your pigs. However to lower the feed expenses, you should also give the pigs supplementary feed like grains and vegetables. It’s important that you manage the feed expenses so that your piggery business becomes profitable. At the same time you should also provide adequate feed to the pigs so that they grow up quickly and attain good weights when slaughtered.
What is the pig farming business model?
The piggery business model involves purchasing male and female pigs which then breed to produce piglets. You then raise and feed the piglets and sell them for a profit after 5-8 months. You do this continuously throughout the year, generating profits along the way.
What is the most profitable pig breed?
The most profitable pig breeds for commercial piggery business include the Large White/Yorkshire, Landrace, Hampshire, Duroc, Poland China, Camborough, Spotted and Chester White. The Yorkshire pig breed has good carcass quality and has a good feed conversion ratio, making it one of the most profitable pig breeds.
How many months does a pig take to grow?
If you are providing adequate feed to the pigs, they will take 5-8 months for them to be ready for market. The exact number of months for the pigs to be ready for slaughter will depend on the market needs. Pigs can be sold as porkers or baconers and the categorizations depend on the weight – baconers are larger than porkers.
Is piggery business a good investment?
Piggery business is a good investment as it can generate continuous cash flow for you and can provide good return on investment. However it’s essential that you understand the financial dynamics of piggery business, the costs involved, and the expected profitability. That is why it is important for you to have a good pig production business plan.
We wish you the best in your Pig farming business! Check out our collection of business plans , and more business ideas .
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BUSINESS PLAN FOR PIG FARMING
pork meat and breeding purposes....
International Journal of Applied Research and Technology, 2014
NJAS - Wageningen Journal of Life Sciences
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[Pdf Sample] Business Plan For Pig Farming Docx
Starting a pig farming business can be a lucrative venture for those interested in agriculture and animal husbandry. However, to ensure success in this competitive industry, it is essential to have a well-defined business plan that outlines your goals, strategies, and financial projections.
In this article, we will provide you with a comprehensive guide on creating a pig farming business plan in PDF format, covering everything from market analysis to operational details.
[Pdf Sample] Pig/Pork Farming Business Plan Proposal Docx
To write a business plan , here is a breakdown of how it should be structured and what should be in each category. After this instruction, I will provide you with a sample of one I wrote for my farm , let us go:
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1. Executive Summary
2. business overview.
In this section, provide detailed information about your pig farming business , including its legal structure, location, and ownership. Discuss your long-term goals, vision, and the unique selling proposition of your farm. Explain why you have chosen pig farming as a business opportunity and outline your values and commitment to animal welfare.
3. Market Analysis
Conduct a comprehensive market analysis to identify the demand for pork products in your target market. Analyze the current trends, consumer preferences, and competition. Identify your target customers, such as local restaurants, retailers, and individual consumers. Understand their needs and preferences to tailor your products and marketing strategies accordingly.
4. Farm Infrastructure and Equipment
Describe the infrastructure and equipment required to operate a successful pig farming business . Discuss the layout of your farm, including pig pens, feeding areas, and waste management systems. Mention the necessary equipment, such as feeding troughs, water supply systems , and ventilation systems. Emphasize the importance of maintaining a clean and hygienic environment for the health and well-being of the pigs.
5. Pig Breeds and Selection
6. feeding and nutrition.
Provide detailed information on the feeding and nutrition requirements of pigs at various stages of growth. Discuss the types of feed and supplements necessary for optimal growth and development. Explain the importance of formulating balanced diets to meet the specific nutritional needs of pigs . Consider factors such as protein content, energy levels, and essential vitamins and minerals.
7. Health and Biosecurity
8. breeding and reproduction.
Explain the breeding and reproduction practices involved in pig farming. Discuss natural breeding, artificial insemination, and the management of sows during gestation and farrowing. Provide guidance on breeding cycles, mating techniques, and the selection of breeding stock to improve the genetic quality and productivity of your herd.
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9. Marketing and Sales Strategies
10. financial projections.
Present a comprehensive financial projection for your pig farming business . Include details on start-up costs, operational expenses, revenue forecasts, and profitability analysis. Discuss your pricing strategy, sales volume projections, and expected return on investment. Provide a clear timeline for reaching key financial milestones and demonstrate the viability and potential profitability of your business .
11. Risk Assessment
Business model for agrolearners.com’s pig farming business:, customer segments:.
Aspiring pig farmers seeking knowledge and resources.
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Access to expert advice and consultations from experienced pig farmers .
Interactive forums and communities for knowledge sharing and networking.
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Email marketing: Regular newsletters and updates to subscribers.
Online support: Prompt and personalized assistance through chat, email, and discussion forums.
Continuous updates: Providing regular updates on industry developments and best practices.
Consulting services: Providing personalized consultations and advisory services for a fee.
Content creation: Generating informative articles, videos, and other resources for learners.
Online learning platform: A robust and user-friendly website for course delivery.
Expertise and network: Collaborating with experienced pig farmers and industry professionals.
Partnerships: Collaborating with relevant organizations and institutions for knowledge sharing and support.
Technology providers: Partnering with online learning platforms and software providers.
Marketing and promotional costs.
Customer satisfaction and feedback ratings.
Growth in partnerships and collaborations.
By implementing this business model, Agrolearners.com aims to provide valuable education and resources to pig farming enthusiasts, foster a community of knowledge-sharing, and generate revenue through course fees, subscriptions, and consulting services.
How much land do I need to start a pig farming business?
The amount of land required to start a pig farming business depends on various factors, including the scale of operations and the farming system employed. For small-scale or backyard pig farming, a few acres of land may be sufficient to accommodate the pig pens, feeding areas, and other infrastructure.
What are the main challenges in pig farming?
Market fluctuations, price volatility, and competition can also pose challenges in terms of marketing and sales. It is important for pig farmers to stay updated on industry trends, adopt best practices, and have contingency plans in place to address these challenges effectively.
How long does it take for pigs to reach market weight?
Is pig farming a profitable business.
Pig farming has the potential to be a profitable business if managed effectively. However, profitability can vary depending on various factors such as market conditions, production costs, feed prices, and disease management. It is important for pig farmers to conduct thorough market research, develop a solid business plan , and implement efficient production practices to maximize profitability.
What are the key factors influencing pig meat prices?
Several factors influence pig meat prices. Supply and demand dynamics play a significant role, with factors such as population growth, consumer preferences, and export/import trends affecting the overall demand for pig meat. Other factors include production costs, including feed prices, labor costs, and input costs.
Disease outbreaks can also impact pig meat prices by affecting the supply of pigs and increasing production costs. Market competition, government regulations, and global trade policies can further influence pig meat prices. Keeping a close eye on these factors and their potential impact on prices is important for pig farmers to make informed decisions and effectively manage their business.
By implementing the strategies outlined in this business plan and adapting to changing market dynamics, we are poised for long-term success and growth in the pig farming sector.
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Business Plan CLEAN FARMS PIG UNIT Business Plan Providing High Quality Pork Products This business plan is intended s
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Piggery Business Plan in Nigeria
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Business Plan CLEAN FARMS PIG UNIT Business Plan Providing High Quality Pork Products This business plan is intended solely for informational purposes to assist in determining if you with a due-diligence investigation of this project. The information contained herein is believed to be reliable, but the management team makes no representations or warranties with respect to this information. The financial projections that are part of this plan represent estimates based on extensive research and on assumptions considered reasonable, but they are of course not guaranteed. The contents of this plan are confidential and are not to be reproduced with express written consent. CONTACT INFORMATION : Company: CLEAN FARMS Address: Delta State. Phone: Email: Table of Contents 1.0 Executive Summary .................................................................................................................... 2 1.1 Objectives.................................................................................................................................... 4 1.2 Mission .......................................................................................................................................... 4 1.3 Keys to Success ........................................................................................................................ 4 2.0 Company Summary ..................................................................................................................... 4 2.1 Company Ownership ............................................................................................................... 5 2.2 Company History .....................................................................Error! Bookmark not defined. Chart: Past Performance ..........................................................Error! Bookmark not defined. 4.0 Market Analysis Summary ........................................................................................................ 7 4.1 Market Segmentation ............................................................................................................. 8 Table: Market Analysis ..............................................................Error! Bookmark not defined. Chart: Market Analysis ..............................................................Error! Bookmark not defined. 4.2 Target Market Segment Strategy .....................................Error! Bookmark not defined. 4.3 Service Business Analysis ....................................................Error! Bookmark not defined. 4.3.1 Competition and Buying Patterns .............................Error! Bookmark not defined. 4.4 Sales Strategy ........................................................................................................................... 3 4.4.1 Sales Forecast...................................................................Error! Bookmark not defined. Table: Sales Forecast ............................................................Error! Bookmark not defined. Chart: Sales Monthly .............................................................Error! Bookmark not defined. Chart: Sales by Year ..............................................................Error! Bookmark not defined. 5.0 Strategy and Implementation Summary ...........................Error! Bookmark not defined. 5.1 Competitive Edge ....................................................................Error! Bookmark not defined. 5.2 Marketing Strategy .................................................................Error! Bookmark not defined. 6.0 Web Plan Summary ....................................................................Error! Bookmark not defined. 6.1 Website Marketing Strategy ................................................Error! Bookmark not defined. 6.2 Development Requirements ................................................Error! Bookmark not defined. 7.0 Management Summary .............................................................Error! Bookmark not defined. 7.1 Personnel Plan ..........................................................................Error! Bookmark not defined. Table: Personnel ..........................................................................Error! Bookmark not defined. 8.0 Financial Plan ................................................................................Error! Bookmark not defined. 8.2 Break-even Analysis ................................................................................................................ 7 Table: Break-even Analysis.....................................................Error! Bookmark not defined. Chart: Break-even Analysis ....................................................Error! Bookmark not defined. Page 1 1.0 Executive Summary CLEAN Farms is a startup pig farm that rear healthy pig and process high quality pork meat to meet the need for quality pork meat in the South-South and South-Eastern part of Nigeria. CLEAN Farms has being in business for two years now and has grown in popularity. Our business is production and sales of pork meat and meat products. Our major aim is to establish a large farm that will produce these pigs in commercial quantity and sell to my numerous customers. Clean farms seeks to feed Nigeria with healthy pork meat and export to other countries. We will ensure that we sell the highest number of pigs for pork in Delta and increase production every year in other to satisfy our customers. The most important thing in my business is hygiene and best practices in animal production. Our most important company strengths are measurement of life pigs weight, processing and packaging of pork, none of our products are exposed for contamination, and best possible hygienic measures are taken. Pigs grow very fast and pork meat is in huge demand in most countries or states where there is a minority of people practicing religions that forbid consumption of pork meat. Pig farming is lucrative and Pigs have low mortality rate compared to other animals. They are more rugged and easier to raise. They can also survive days without food or water. Pigs are also cheaper to raise compared to fishes or poultry because they can eat most foods that humans eat and even if you have to buy feed for them, their feeds are cheaper than those of other animals. If you do not have money for fancy pig feed, you can always make do with stuff you can find around you or food wastes from your kitchen. This is totally impossible with fish. The immune system of pigs is higher than other animals. As long as you give them the needed vaccines regularly, they would not fall sick. The same cannot be said for chickens which could be wiped out in one fell swoop by a disease outbreak. Pigs also generate more profit. Clean Piggery Farm Ltd's objectives are to develop a product-based company whose goal is to exceed customer's expectations, increase production efficiency by 10% a year, and lastly, and develop a sustainable Piggery business, able to survive off their cash flow. Products Currently, Cleanbusiness Piggery Farm Ltd has two main line of products. There are pigs and pork meats. Cleanbusiness Piggery Farm Ltd’s pigs and pork meat are well-processed and packaged, hygienic and of great quality. Due to high demand, most customers order the unprocessed pigs to resell or process by themselves to meet their requirements Piggery Farm Ltd’s pigs are produced to meet standard organization of Nigeria and international standard. Our pigs are hygienic, rich in protein and of high quality. The last product is the pig litter/waste. The Market Table of Contents My business is positioned to take advantage of growth trends in the industry. CleanBusiness Piggery Farm Ltd has targeted the following customer groups to sell their products to. Pig farmers, pig butchers, wholesalers, retailers, abattoirs, meat processing companies, food packaging companies, supermarket and stores are our target customers. Competitive Edge Cleanbusiness Pig Farm Ltd has two competitive edges that will help them maintain strong growth rates, increasing their market penetration. The first edge is quality. CleanBusiness Pig Farm Ltd prides themselves on the high quality pigs and pork meats. Products that do not meet our high standards of quality are rejected as imperfects. CleanBusiness Pig Farm Ltd second competitive edge is their affordability. Affordable will be the driving force behind generating income, interest and sales. Management CLEAN Farms is led by John Steve. John Steve initially got his start in growing while working at a Agric Integrated Farm. After university, John went to work at His Grace Farm. This experience is what solidified John Steve desire to continue working in an agricultural capacity. Soon after his experience at the OBJ farm he decided to enroll in Pan African University for entrepreneurship program. John Steve's entrepreneurship program provided him with requisite detail and skills to develop his own piggery farm and with the needed managerial skills. With the experience, skills, and strengths of management team and workers to be employed, we will ensure that this business grows to become a house hold name in Nigeria and a world class company. The plan is based on more than 5 years of experience in piggery business. It is highly focused and promises to follow a path of prosperity for its owners and staff. The projections contained herein are authentic and will be used as the budget for the business. Clean Business farm will show a profit within 12 months, and will increase sales and profits each year thereafter. The marketing research and tailored marketing strategy described in this business plan will result in after-tax profits of N10,700,516 in Year one and increasing to nearly N25,036,617 in after-tax profits within three years. To achieve these goals, Clean business Poultry needs funding for two different phases of expansion. We are currently seeking a total fund of 15,000,000. N10,000,000 for piggery farm and N5,000,000 for processing and packaging. This loan will enable us to acquire new land and build structure, purchase processing equipment, purchase a delivery truck, a key element of our new sales and targets to meet demands. Page 3 Table of Contents 1.1 Objectives We have identified the following objectives to pursue in the upcoming years: 1. Become a major player in the piggery industry 2. Becoming the "Best and most hygienic pig producer in the area" complying by the national standards for food and drugs. Turn in profits from the first six weeks of operations. Maintain 50% gross margin ratio. Winning the hearts and tastes of our beloved consumers and establishing a brand image of the company through heavy marketing campaigns in the first one year 3. Reach profitability within 24 months from when we receive fund. 4. Expand our customer base through direct referrals and aggressive direct sales. 5. Expand our farm to meet the growing sales market. 1.2 Mission Our mission is to meet customers’ increasing demands for a more quality piggery products by providing them with a clean, healthy and nutrients piggery products. We will offer all of our customers the direct personal attention they deserve. Our commitment to customer service and satisfaction assures us that our customers are 100% satisfied with our products and services. 1.3 Keys to Success The key factors to making this venture a success are: 1. Finance: Fund is one of the major success factors here. Without enough fund we can do much. 2. Maintaining our core-values to only provide a more healthy and quality piggery products produced by competitors 3. Expertise is very key to successfully manage the business. Owner has well over 5 years of experience 4. Maintain low operating costs. 5. Keep the supply chain to a minimum number of steps to ensure convenience for our target market. 6. Product freshness and quality. 7. Constant research of industry to keep knowledgeable of market needs. 2.0 Company Summary The company is a startup that is located in Delta State. The farm is situated in an area which is not exposed to extreme climatic conditions. Page 4 Table of Contents The company is registered with corporate affairs commission of Nigeria as CLEAN FARMS with registration number:*****. The company offers 3 different products namely live pigs, processes pigs and waste products. There is access road to the farm which will aid our marketing and delivery The team has spent, in total, hundreds of man hours in the research and study of the business and the method of rearing high quality pigs. Healthy pigs and pork meat will bring about high ROI. As a team largely composed of personnel who are experienced and educated in the field, together we form a powerful unit. 2.1 Company History The company has been hindered only by the lack of working capital it had in its initial stages of setup and operation. Sales are growing steadily, with the cost of goods sold consistently decreasing. But to make significant headway in this area, additional capital is needed to purchase stocks and processing in larger volumes, thereby reducing the costs of goods sold by 32% overall. 2.2 Company Ownership The company is 100% own by John Steve. 2.3 Location and facilities Clean Business is located in Delta. We are trading from this spot because is it a great place to reach our target market. We think the population base is large enough for our business and it has a stable economic base that promotes a healthy environment for the piggery. Also we think it is a spot that could tap a healthy workforce. We also considered pedestrian traffic and we think a large percentage of them are potential customers. We plan on having a good parking space and sufficient security in our working site to create a safe environment for the customers. The location will help us reach customers in Ogun State and other neighbouring states. In a typical pig herd, there are the males which are known as the boar, the females known as the sows and the little pigs known as the piglets or the farrows. Our facilities include a boar grow out facility and a sow grow out facility. The broilers grow out facility will be a deep litter system and the layer grow out facility will be a battery cage system. Both systems require adequate housing and feeding and drinking equipment. 2.4 Start-Up Summary This section of the plan shows projected startup costs prior to our expanding. Page 5 Table of Contents Start-up expenses for Clean Piggery Farm Ltd include initial insurance payments covering both general liability and product liability, pre-launch marketing to cover flyers, a direct mail campaign, and advertisements in local papers, the development of a website for customer interaction, and the normal legal expenses for consultation and permitting. Other current assets include office and store furniture, shelving, a computer, phone system, and tools. Long-term assets include the land, building, equipment, delivery van. We are hoping to get grant/loan of N15,00,000 from xxx and the owner, John Steve will contribute N2,500,000. From our analysis, we are looking at a total startup budget of N15, 416,000. Details are provided in the tables below. 2.4.1 Required Funds Required Start-Up Funds for a New Business or Opening Balance Sheet for an Existing Business Required Start-Up Funds Fixed Assets Farm-Land Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Amount ₦ Totals 1,600,000.00 1,500,000 3,895,000 350,000 1,500,000 500,000 20.00 7.00 7.00 5.00 5.00 5.00 Total Fixed Assets Operating Capital Pre-Opening Salaries and Wages Prepaid Insurance Premiums Inventory Legal and Accounting Fees Rent Deposits Utility Deposits Supplies Advertising and Promotions Licenses Other Initial Start-Up Costs Working Capital (Cash On Hand) Depreciation Notes years years years years years years 9,345,000 1,555,000 250,000 100,000 100,000 100,000 300,000 500,000 350,000 400,000 2,500,000 Total Operating Capital 6,155,000 ₦ Total Required Funds 15,500,000.00 Sources of Funding Owner's Equity Outside Investors Additional Loans or Debt Commercial Loan Commercial Mortgage Credit Card Debt Vehicle Loans Other Bank Debt Amount 33.33% 66.66% Totals 5,000,000 10,000,000 Loan Rate 0.00% 0.00% 0.00% 0.00% 0.00% (1,980,000) 2,480,000 - 0.00% 0.00% 0.00% 0.00% 0.00% Total Sources of Funding 99.99% ₦ 15,500,000.00 Term in Months 84.00 240.00 60.00 48.00 36.00 Monthly Payments ₦ ₦ ₦ ₦ ₦ 23,571.43 10,333.33 - ₦ 33,904.76 Page 6 Table of Contents 3.0 Product We will offer our customers quality piggery products. Our products are: i. ii. iii. Breeding and Selling of live pigs: we will breed and offer for sell matured pigs. Boars and old sows. Processed Pigs: We will process and package pigs for the local market. Waste/ litter as a by-product We will offer for sell of high quality and well-packaged products to resellers/wholesale and companies in Nigeria. Our distinctive unique selling point of providing high quality pigs and processed pork meat are well-processed and packaged that will be approved by NAFDAC and endorsed by Standard Organization of Nigeria and a product barcode at affordable price compare to our competitors quality and methods of farming and production will be sufficient enough to secure our company survival in a competitive market. We offer all of the above great products, while evaluating the desires and needs by our customers for improvement and other products. 3.1 Competitive Comparison While quality and delivery are important factors to our potential clients, price is most often the determining factor in a buying decision. Good-quality pigs and healthy pork meat that are affordable will be the most competitive and to achieve a significant market share. These factors have helped to determine the business parameters. 4.0 Market Analysis Summary Across the globe, pig farming is one of the lucrative business which has make entrepreneurs to shift towards this farming. The value of trade in pig products around the world runs into billions of dollars every year and Nigeria enjoys less than 2 percent of this action. China, with a fifth of the world’s population, is both the largest producer and net importer of pig products on the planet! Nothing beats pig farming. We are a highly technical niche player offering strong product that is in great demand. We have identified that our target market are the brokers and distributors who have established good presence and channels to get our products to final consumers. We will market our products to the following groups: pig butchers, local consumer, pig farmers, wholesalers and retailers, public markets, abattoir and meat processing companies, food processing and packaging companies Secondly, the customers Ogun, Oyo and neighbouring states will patronize us. Hotels, restaurants and distributors in Ogun, Delta and Oyo can easily locate us and buy the products. This will thereby reduce the cost of delivery. We will increase the production Page 7 Table of Contents and sales of products in its environs. This will result in increase in sales and profitability. The cost of production will be low because most of the staff will be recruited from the community. 4.1 Market Segmentation We have identified the following segments which make up our target market: Targeted Market and Customers Pig butchers in Delta State are our valued customers. These customers buy pig from farmers in the state. It is our responsibility to locate and market our products to them. Local consumer of pork in Delta State will be encouraged through proper marketing technique using our point on purchase sales outlet. These consumers buy pork in the market for consumption. Through proper marketing strategy, these customers will be encouraged to buy our products. Pig farmers in the state who need boar, piglets or sows are our targeted customers. They may want to buy a boar, piglets or in- sows (pregnant pigs) for their farms. All pig farmers in the state will be located and visited and how to sell products to them when they need them will be strategized. Wholesalers and retailers of pig in the state are our valued customers. They buy from farm and resell to the butchers and consumers. They will be searched and located and their contact kept in our record. They will be contacted when they need any product. Public markets are places where our customers may want to come and buy our product. Sellers of pork are also our targeted customers. Abattoir and meat processing companies are our targeted market. Our product will be sold to them for further processing. Food processing and packaging companies like UAC foods and other food packaging companies in the state, eateries, restaurants and hotels are also our targeted customers. These companies will be encouraged to put pork in their menu, and will be sold to customers. A very good marketing strategy will be employed. Page 8 4.2 Industry Analysis Three factors have been primarily responsible for the remarkable development of the piggery industry. The first factor has been the demands for pigs and pork meat as articles of diet. The second factor has been that piggery farming has been relatively profitable enterprise when compared with most other agriculture enterprises. The final reason is the roles being played by the piggery association of Nigerian umbrella body all piggery farmers in Nigerian. High cost of inputs, power outages, diseases, low purchasing power of consumers are the major hindrances to the rapid development of piggery industry. 4.3 Challenges Facing the Piggery Industry Piggery farming has some challenges that need to be attended to with vigor. Below are some of the common challenges that are faced by piggery farmers: Religion: Some religion forbid the consumption pig Death of Pigs: In piggery, one or many pigs usually die because of disease and unfavourable weather. Some factors such as heat and overcrowding causing that death can be controllable by seeking a veterinary doctor. 4.4 SWOT Analysis Strengths Consistent quality: We will constantly produce piggery product that is of high quality, well packaged and rich in protein. Experience: The owner is highly experience with over 5years in the industry Saleable products: We produce a high ratio of healthy(saleable) products Opportunities Customer Loyalty: Customers are looking company that produces quality piggery Growing market: The piggery market is growing and the demand is very high. Weaknesses Lack of funding: We will need up to N15m in fund to kick start fully No reputation yet: We haven’t established ourselves as a reputable firm yet compare to Obasanjo Farm, Animal Cares etc. Threats Small size farm: firms with small farm size have their production being affected due to limited space. Weather: poor weather will adversely affect yield. Diseases: Diseases is also a big threat. It can lead to high mortality rate and also reduce the quality and revenue Page 1 4.5 External Environmental Analysis Socio-cultural – Eating habits of our consumers will definitely affect our business. Also, the success of restaurants and other firms that order our products will indirectly affect our business. Technological - A good technical infrastructure would lead to better production and hence lower costs. Technology will also mean more effective business marketing. Economic – economic trends such as demand and supply will determine the sustenance and profitability of the business. Also inflation rates will affect the way we pay our employees and the price of the product. Political – this will include government policies concerning inspection by the ministry of health and organizations like NAFDAC. 4.6 Competition and Buying Patterns The buying patterns of the different customers are typically based on these variables: Price Availability Ability to deliver consistently on long-term contracts Consistency. 5.0 Operation plan/Production Summary 5.1 Production plan In our piggery farm, we are planning to increase our capacity to 2000 pigs for both pig and meat production. So adult Boar and Sow will be sold off when they are no longer able to produce effectively. 5.2 Production costs Our fixed costs include • Insurance payments covering both general liability and product liability, • Area of about 3 plots will be allocated for the farm; • Materials for office and store furniture, shelving, a computer, phone system, and tools. • Long-term assets including the refrigerator unit for the shop, window displays, a refrigerated delivery van. Raw materials used include • Boars • Sows • Water, Feed Others include the veterinary doctors, drivers and technician that we pay by the hour. Page 2 Labor in piggery farms are usually unskilled laborers who provides piggery services, guard the pigs and its products and make deliveries. Their skills differ and they are mostly temporary labor. The food technicians prepare balanced mixtures complying with the concentrate. Labor size in piggery production is usually unstable. There are two main production systems in Nigeria. That is Iron Pen and Concrete Pen. 6.0 Sales Strategy We will use direct sales strategy. We will approach members of our target markets via phone and with direct visits. We will tell them about our current products and services, and then ask them clearly what we need to do to earn their business. We will listen to their desires and individual goals. We will then mirror back to them what they have said; to be sure we understand their needs. Finally, we will create an individualized sales proposal with their specific needs (products, volumes, frequency, price, other services) included. We will present the proposal as a written agreement ready for signature by both parties to begin doing business. Details for each order will be entered into our customer database. Deliveries will be automatically scheduled through our point of sale/delivery database or base on customer’s specific requirement. Each customer price grid, conditions and all specific comments will be clearly maintained for all to review and to guarantee complete customer satisfaction. Each order will be reviewed by one of the owners prior to delivery to guarantee quality, accuracy and completeness. Terms for payment will be COD and an invoice for each shipment will be faxed or called to each customer the day prior to delivery to ensure payment is ready at the time of delivery. (This will all be part of the agreement terms.) Follow up calls will go to each customer within 24 hours of each delivery to ensure satisfaction. If for any reason there is an issue, it will be handled immediately by one of the owners directly with the customer. 6.1 Sales Forecast The sales forecast indicates that growth will be slow but steady. Growth will be slow because of the time and effort needed to develop the customers and build good customer base. The premier element to our financial plan is initiating, maintaining, and improving the factors that create, stabilize and increase our cash flow During the wet months of the year, the forecast reflects a tapering of sales as the condition might not be favorable to lay as much eggs as possible. Sales will fall during these months. There are a few risks that could have a negative impact on sales. The first is weather. Another risk that could affect sales is some sort of diseases that could unexpectedly negatively affect the pigs. We have put in place measure to curtail this and reduce mortality rate to 1-3%. Page 3 6.1.1 Table: Sales Forecast Year One Income Live Pig Pork Meat Total Income Cost of Sales Live Pig Pork Meat % 25,880,000 6,960,000 32,840,000 Year Two % 32,350,000 7,656,000 100.00% 9,705,000 2,320,000 - 40,006,000 Year Three % 40,437,500 8,421,600 100.00% 12,131,250 2,552,000 - 48,859,100 100.00% 15,164,063 2,807,200 - Total Cost of Sales 12,025,000 36.62% 14,683,250 36.70% 17,971,263 36.78% Gross Margin 20,815,000 63.38% 25,322,750 63.30% 30,887,838 63.22% 7.0 Management Summary The company's management is highly experienced and qualified, with seasoned investors. The company strives to hire qualified people who take pride in their work. The company's management philosophy is based on responsibility and mutual respect. Clean Business Piggery farm maintains an environment and structure that encourages productivity and respect for customers and fellow employees. The following subtopics outline both the management team, and its team of employees. 7.1 Organizational Structure The Organizational Structure of Clean Business Piggery Farm is planned to be a simple and traditional one. All production and manufacturing operations will report to the COO. All administrative and finance functions will report to the CFO. Both the COO and CFO will report to the CEO, who will also have the responsibility for Sales and Marketing. 7.2 Management Team John Steve: Chief Executive Officer: As the top manager, the CEO, he is responsible for the entire operations of the company. It is his responsibility to implement decisions and initiatives and to maintain the smooth operation of the company, with the assistance of the management team Mrs Steve- Chief Financial Officer: Page 4 Also reporting directly to the CEO, she is responsible for analyzing and reviewing financial data, reporting financial performance, preparing budgets and monitoring expenditures and costs. The CFO routinely checks the corporation's financial health and integrity. 7.3 Personnel Plan Clean Business is responsible to its employees, the men and women who work with the company throughout the state. At Clean Business Piggery Farm Company everyone is considered as an individual, the company respects their dignity and recognizes their merit. Employees are encouraged to have a sense of security and pride in their jobs. Additionally, employees are free to make suggestions and complaints. The company affords equal opportunity for employment, development, and advancement for those qualified Salaries and Wages Salaries and Related Expenses # Assumptions Wage Base Monthly Year One Percent Change Salaries and Wages Owner's Compensation Salaries Wages Full-Time Employees Estimated Hours Per Week Estimated Rate Per Hour Part-Time Employees Estimated Hours Per Week Estimated Rate Per Hour Independent Contractors Total Salaries and Wages Payroll Taxes and Benefits PAYE Medicare Federal Unemployment Tax (FUTA) State Unemployment Tax (SUTA) Employee Pension Programs Worker's Compensation Employee Health Insurance Other Employee Benefit Programs Total Payroll Taxes and Benefits Total Salaries and Related Expenses ₦ 2 2 10 ₦ 40.00 112.50 ₦ 20.00 70.00 5 19 2.20% 1.45% 0.80% 2.70% 10.00% 0.00% 0.50% 4.00% Year Two Year Three 3.00% 3.00% 20,000.00 80,000 240,000 960,000 247,200 988,800 254,616 1,018,464 195,000 2,340,000 2,410,200 2,482,506 30,333 364,000 374,920 386,168 325,333 3,904,000 4,021,120 4,141,754 7,157 4,717 32,533 1,627 13,013 59,048 85,888 56,608 390,400 19,520 156,160 708,576 88,465 58,306 390,400 20,106 160,845 718,121 91,119 60,055 390,400 20,709 165,670 727,953 384,381 4,612,576 4,739,241 4,869,707 8.0 Risk Assessment Financial risks • Changes in our pricing policies or that of our competitors • Fluctuation in revenue from distributors and retailers • Timing of costs related to acquisitions or payments Health risks Contagious disease and virus outbreak is very deadly; if one of the pigs should catch the disease, all of them will be affected and if it's not recognized and treated early it will lead to the death of all the Pigs which is a great loss for the business. And also some of the diseases are also contagious to human not just between the pigs which will affect the workers and also those that eat it. Disease prevalence varies from one area to the other. The problems that may trigger disease conditions are direct sunlight, poor ventilated houses and very high temperatures in and outside the piggery house. All these conditions will be avoided to the best of our abilities. Page 5 Another thing we considered during the risk assessment is the mortality of the pigs which is inevitable since we are dealing with living things. This can be managed with good management and has been calculated to range between 5-10%. Technological risks Technology is good but they also have their disadvantages. There are normally problems involved in using technology; the use of the machine and other facilities which make the work faster and easier. These machines may develop faults, making the work slow and adding more cost to the business by repairing it. The cost for electricity is also expensive and some electric problems can lead to fire outrage and burn the building causing the loss of assets and perhaps the entire business. 8.1 Contingency plans As we considered these risks we have also made contingency plans for unprecedented events or occurrences. As per the health risks, we will have plans with a veterinary doctor that will have regular checkups with the chickens while giving them the best environmental conditions. Another contingency plan we will make is insurance that will protect our assets. One of the risks we have to face mentioned earlier, the occurrence of a fire outrage will be curbed by placing fire extinguishers at strategic places. Page 6 9.0 Financial Plan 9.1 Important Assumptions This business plan was developed for Clean Business assuming the following: Steady growth from good management, barring any unforseen local or national disasters such as... An adequate loan amount to allow for initial implementation of plans. Competition and buying patterns remain similar to those used for forecasting. Existing customer base maintained. Market research is on target and current (received from different state organizations). New customers will be gained through direct sales and advertising. VAT is 5%. 9.2 Break-even Analysis Break-even is based on fixed costs of approximately… Table: Breakeve Analysis Breakeven Analysis Breakeven Analysis Annual Sales Revenue Dollars ₦ 32,840,000.00 Percent Cost of Sales 12,025,000 36.62% Gross Margin 20,815,000 63.38% Salaries and Wages 2,405,061 Fixed Operating Expenses Total Fixed Business Expenses 7,521,429 Breakeven Sales Calculation 9,926,490 100.00% 9,926,490 63.38% Breakeven Sales in Naira ₦ 15,661,106.45 Page 7 9.3 Projected Profit and Loss Outlined below and in the following table and chart, are some of the intrinsic facets of the projected profit and loss for Clean Business Cost of sales reflects our cost to manufacture the feed and purchase all other nonmanufactured products. Gross margin will continue to rise at a steady pace throughout the years forecasted. Payroll expenses currently includes income for the one owner. As forecasted, additional employees will be brought aboard as required to keep up with the growing pace of Clean Business Further details are available in our Personnel table (above). Advertising and marketing expenses (news ads, magazine ads, etc.) are projected to increase as net profits increase and positive results are accomplished as a direct result of the same marketing and advertising. All direct sales and marketing is performed by dedicated sales rep. Commissions are not paid to him as a result of a gained customer as he is one of the two major owners of the corporation. Depreciation forecasted includes normal wear and mechanical tune-ups on trucks and all equipment in the plant. Fuel costs are projected to grow as the amount of sales made that require delivery increase. This projected expense includes fuel for the trucks, generator, etc. Utilities are projected to increase year to year. The current market prices for utilities will change as the years past. Payroll taxes include social security, unemployment and workers compensation, etc. Feed dealers permit and state sales tax license is projected to be paid in one annual instalment in the month of January. Clean Business’s anticipates paying sales taxes monthly and income tax quarterly, as required by law. All website expenses are listed below, from initial development, to hosting, to account management for our e-commerce transactions. Table: Profit and Loss Page 8 Year End Summary Year One Income Live Pig Pork Meat Total Income Cost of Sales Live Pig Pork Meat % 25,880,000 6,960,000 32,840,000 Year Two % Year Three 32,350,000 7,656,000 100.00% 9,705,000 2,320,000 - 40,006,000 % 40,437,500 8,421,600 100.00% 12,131,250 2,552,000 - 48,859,100 100.00% 15,164,063 2,807,200 - Total Cost of Sales 12,025,000 36.62% 14,683,250 36.70% 17,971,263 36.78% Gross Margin 20,815,000 63.38% 25,322,750 63.30% 30,887,838 63.22% Total Salary and Wages 2,405,061 7.32% 2,471,106 6.18% 2,539,133 5.20% Fixed Business Expenses Advertising Car and Truck Expenses Bank & Merchant Fees Contract Labor Conferences & Seminars Customer Discounts and Refunds Dues and Subscriptions Miscellaneous Insurance (Liability and Property) Licenses/Fees/Permits Legal and Professional Fees Office Expenses & Supplies Postage and Delivery Rent (on business property) Rent of Vehicles and Equipment Sales & Marketing Taxes-Other Telephone and Communications Travel Utilities Total Fixed Business Expenses 1,200,000 600,000 120,000 180,000 60,000 600,000 250,000 350,000 120,000 600,000 240,000 600,000 240,000 360,000 600,000 300,000 6,420,000 19.55% 1,236,000 618,000 123,600 185,400 61,800 618,000 257,500 360,500 123,600 618,000 247,200 618,000 247,200 370,800 618,000 309,000 6,612,600 16.53% 1,273,080 636,540 127,308 190,962 63,654 636,540 265,225 371,315 127,308 636,540 254,616 636,540 254,616 381,924 636,540 318,270 6,810,978 13.94% 11,989,939 36.51% 16,239,044 40.59% 21,537,727 44.08% Operating Income (before Other Expenses) [EBITDA] Other Expenses Amortized Start-up Expenses Depreciation Interest Commercial Loan Commercial Mortgage Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Taxes 1,185,000 1,101,429 1,185,000 1,101,429 1,185,000 1,101,429 1,088,851 1,513,761 2,043,630 - Total Other Expenses 3,375,280 10.28% 3,800,190 9.50% 4,330,058 8.86% Net Income 8,614,659 26.23% 12,438,853 31.09% 17,207,668 35.22% Page 9 Table: Profit and Loss First Year Projected Income Statement - Year One Jan Income Live Pig Pork Meat Total Income Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals 920,000 97,500 1,320,000 105,000 1,320,000 118,500 1,320,000 120,000 2,000,000 135,000 2,000,000 240,000 2,000,000 562,500 2,800,000 720,000 2,800,000 810,000 2,800,000 1,005,000 2,800,000 1,200,000 3,800,000 1,846,500 25,880,000 6,960,000 - 1,017,500 1,425,000 1,438,500 1,440,000 2,135,000 2,240,000 2,562,500 3,520,000 3,610,000 3,805,000 4,000,000 5,646,500 32,840,000 Cost of Sales Live Pig Pork Meat 345,000 32,500 495,000 35,000 495,000 39,500 495,000 40,000 750,000 45,000 750,000 80,000 750,000 187,500 1,050,000 240,000 1,050,000 270,000 1,050,000 335,000 1,050,000 400,000 1,425,000 615,500 Total Cost of Sales 377,500 530,000 534,500 535,000 795,000 830,000 937,500 1,290,000 1,320,000 1,385,000 1,450,000 2,040,500 9,705,000 2,320,000 12,025,000 Gross Margin 640,000 895,000 904,000 905,000 1,340,000 1,410,000 1,625,000 2,230,000 2,290,000 2,420,000 2,550,000 3,606,000 20,815,000 Total Salary and Wages 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 2,405,061 Fixed Business Expenses Advertising Car and Truck Expenses Bank & Merchant Fees Contract Labor Conferences & Seminars Customer Discounts and Refunds Dues and Subscriptions Miscellaneous Insurance (Liability and Property) Licenses/Fees/Permits Legal and Professional Fees Office Expenses & Supplies Postage and Delivery Rent (on business property) Rent of Vehicles and Equipment Sales & Marketing Taxes-Other Telephone and Communications Travel Utilities 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 100,000 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 1,200,000 600,000 120,000 180,000 60,000 600,000 250,000 350,000 120,000 600,000 240,000 600,000 240,000 360,000 600,000 300,000 Total Fixed Business Expenses 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 6,420,000 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 1,185,000 1,101,429 190,536 190,536 190,536 3,517 194,053 51,279 241,815 58,279 248,815 79,779 270,315 140,279 330,815 146,279 336,815 159,279 349,815 172,279 362,815 277,879 468,415 1,088,851 3,375,280 (30,957) (21,957) (24,474) 362,763 425,763 619,263 1,163,763 1,217,763 1,334,763 1,451,763 2,402,163 8,614,659 Other Expenses Amortized Start-up Expenses Depreciation Interest Commercial Loan Commercial Mortgage Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Taxes Total Other Expenses Net Income (285,957) Table: Profit and Loss Second Year Page 10 Projected Income Statement - Year Two Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Income Live Pig Pork Meat 1,150,000 107,250 1,650,000 115,500 1,650,000 130,350 1,650,000 132,000 2,500,000 148,500 2,500,000 264,000 2,500,000 618,750 3,500,000 792,000 3,500,000 891,000 3,500,000 1,105,500 3,500,000 1,320,000 4,750,000 2,031,150 32,350,000 7,656,000 - Total Income 1,257,250 1,765,500 1,780,350 1,782,000 2,648,500 2,764,000 3,118,750 4,292,000 4,391,000 4,605,500 4,820,000 6,781,150 40,006,000 Cost of Sales Live Pig Pork Meat 431,250 35,750 618,750 38,500 618,750 43,450 618,750 44,000 937,500 49,500 937,500 88,000 937,500 206,250 1,312,500 264,000 1,312,500 297,000 1,312,500 368,500 1,312,500 440,000 1,781,250 677,050 Total Cost of Sales 467,000 657,250 662,200 662,750 987,000 1,025,500 1,143,750 1,576,500 1,609,500 1,681,000 1,752,500 2,458,300 12,131,250 2,552,000 14,683,250 Gross Margin 790,250 1,108,250 1,118,150 1,119,250 1,661,500 1,738,500 1,975,000 2,715,500 2,781,500 2,924,500 3,067,500 4,322,850 25,322,750 Total Salary and Wages 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 2,471,106 Fixed Business Expenses Advertising Car and Truck Expenses Bank & Merchant Fees Contract Labor Conferences & Seminars Customer Discounts and Refunds Dues and Subscriptions Miscellaneous Insurance (Liability and Property) Licenses/Fees/Permits Legal and Professional Fees Office Expenses & Supplies Postage and Delivery Rent (on business property) Rent of Vehicles and Equipment Sales & Marketing Taxes-Other Telephone and Communications Travel Utilities 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 103,000 51,500 10,300 15,450 5,150 51,500 21,458 30,042 10,300 51,500 20,600 51,500 20,600 30,900 51,500 25,750 1,236,000 618,000 123,600 185,400 61,800 618,000 257,500 360,500 123,600 618,000 247,200 618,000 247,200 370,800 618,000 309,000 Total Fixed Business Expenses 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 6,612,600 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 1,185,000 1,101,429 190,536 20,098 210,633 26,939 217,475 27,049 217,585 81,274 271,810 88,974 279,510 112,624 303,160 186,674 377,210 193,274 383,810 207,574 398,110 221,874 412,410 347,409 537,945 1,513,761 3,800,190 (157,261) 140,641 143,700 144,690 632,715 702,015 914,865 1,581,315 1,640,715 1,769,415 1,898,115 3,027,930 12,438,853 Other Expenses Amortized Start-up Expenses Depreciation Interest Commercial Loan Commercial Mortgage Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Taxes Total Other Expenses Net Income Page 11 Table: Profit and Loss Third Year Projected Income Statement - Year Three Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Income Live Pig Pork Meat 1,437,500 117,975 2,062,500 127,050 2,062,500 143,385 2,062,500 145,200 3,125,000 163,350 3,125,000 290,400 3,125,000 680,625 4,375,000 871,200 4,375,000 980,100 4,375,000 1,216,050 4,375,000 1,452,000 5,937,500 2,234,265 40,437,500 8,421,600 - Total Income 1,555,475 2,189,550 2,205,885 2,207,700 3,288,350 3,415,400 3,805,625 5,246,200 5,355,100 5,591,050 5,827,000 8,171,765 48,859,100 Cost of Sales Live Pig Pork Meat 539,063 39,325 773,438 42,350 773,438 47,795 773,438 48,400 1,171,875 54,450 1,171,875 96,800 1,171,875 226,875 1,640,625 290,400 1,640,625 326,700 1,640,625 405,350 1,640,625 484,000 2,226,563 744,755 15,164,063 2,807,200 - Total Cost of Sales 578,388 815,788 821,233 821,838 1,226,325 1,268,675 1,398,750 1,931,025 1,967,325 2,045,975 2,124,625 2,971,318 17,971,263 Gross Margin 977,088 1,373,763 1,384,653 1,385,863 2,062,025 2,146,725 2,406,875 3,315,175 3,387,775 3,545,075 3,702,375 5,200,448 30,887,838 Total Salary and Wages 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 2,539,133 Fixed Business Expenses Advertising Car and Truck Expenses Bank & Merchant Fees Contract Labor Conferences & Seminars Customer Discounts and Refunds Dues and Subscriptions Miscellaneous Insurance (Liability and Property) Licenses/Fees/Permits Legal and Professional Fees Office Expenses & Supplies Postage and Delivery Rent (on business property) Rent of Vehicles and Equipment Sales & Marketing Taxes-Other Telephone and Communications Travel Utilities 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 106,090 53,045 10,609 15,914 5,305 53,045 22,102 30,943 10,609 53,045 21,218 53,045 21,218 31,827 53,045 26,523 1,273,080 636,540 127,308 190,962 63,654 636,540 265,225 371,315 127,308 636,540 254,616 636,540 254,616 381,924 636,540 318,270 Total Fixed Business Expenses 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 6,810,978 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 98,750 91,786 1,185,000 1,101,429 10,613 201,148 50,280 240,816 51,369 241,905 51,490 242,026 119,106 309,642 127,576 318,112 153,591 344,127 244,421 434,957 251,681 442,217 267,411 457,947 283,141 473,677 432,949 623,484 2,043,630 4,330,058 353,771 363,572 364,661 973,207 1,049,437 1,283,572 2,101,042 2,166,382 2,307,952 2,449,522 3,797,787 17,207,668 Other Expenses Amortized Start-up Expenses Depreciation Interest Commercial Loan Commercial Mortgage Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Taxes Total Other Expenses Net Income (3,237) 9.4 Projected Cash Flow The cash flow projection for Clean Business shows that provisions for ongoing expenses are adequate to meet the needs of the company, as the business generates sufficient cash flow to support operations and future expansions. Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included here and in our Cash Flow table. Detailed monthly numbers are included in the Appendix. Cash Flow shows the purchase of long-term assets as follows: Page 12 N1,500,000 for a delivery truck Land N1,600,000 N3,000,000 for equipment etc Table: Cash Flow Projected Cash Flow Statement - Year One Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Beginning Cash Balance 2,500,000 2,370,673 2,496,347 2,631,020 2,766,694 3,337,367 3,864,965 4,720,639 6,181,312 7,335,648 8,986,321 10,766,995 Cash Inflows Income from Sales Accounts Receivable Total Cash Inflows 1,017,500 1,017,500 1,425,000 1,425,000 1,438,500 1,438,500 1,440,000 1,440,000 2,135,000 2,135,000 2,240,000 2,240,000 2,562,500 2,562,500 3,520,000 3,520,000 3,610,000 3,610,000 3,805,000 3,805,000 4,000,000 4,000,000 5,646,500 5,646,500 32,840,000 32,840,000 377,500 530,000 534,500 535,000 795,000 830,000 937,500 1,290,000 1,320,000 1,385,000 1,450,000 2,040,500 12,025,000 200,422 535,000 - 200,422 535,000 - 200,422 535,000 - 200,422 535,000 - 200,422 535,000 - 200,422 535,000 113,076 200,422 535,000 - 200,422 535,000 - 200,422 535,000 366,338 200,422 535,000 - 200,422 535,000 - 200,422 535,000 609,438 33,905 1,146,827 33,905 1,299,327 33,905 1,303,827 33,905 1,304,327 33,905 1,564,327 33,905 1,712,402 33,905 1,706,827 33,905 2,059,327 33,905 2,455,664 33,905 2,154,327 33,905 2,219,327 33,905 3,419,264 2,405,061 6,420,000 1,088,851 406,857 22,345,770 10,494,230 Cash Outflows Investing Activities New Fixed Assets Purchases Inventory Addition to Bal.Sheet Cost of Sales Operating Activities Salaries and Wages Fixed Business Expenses Taxes Financing Activities Loan Payments Line of Credit Interest Line of Credit Repayments Dividends Paid Total Cash Outflows Cash Flow (129,327) Operating Cash Balance Line of Credit Drawdowns Ending Cash Balance 2,370,673 2,370,673 125,673 134,673 135,673 570,673 527,598 855,673 1,460,673 1,154,336 1,650,673 1,780,673 2,227,236 2,496,347 2,631,020 2,766,694 3,337,367 3,864,965 4,720,639 6,181,312 7,335,648 8,986,321 10,766,995 12,994,230 2,496,347 2,631,020 2,766,694 3,337,367 3,864,965 4,720,639 6,181,312 7,335,648 8,986,321 10,766,995 - - 12,994,230 Table: Cash Flow Year Two Page 13 Projected Cash Flow Statement - Year Two Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Beginning Cash Balance 12,994,230 12,993,600 13,310,970 13,591,203 13,919,573 14,790,192 15,540,515 16,724,635 18,649,255 20,147,303 22,280,923 24,557,542 Cash Inflows Income from Sales Accounts Receivable Total Cash Inflows 1,257,250 1,257,250 1,765,500 1,765,500 1,780,350 1,780,350 1,782,000 1,782,000 2,648,500 2,648,500 2,764,000 2,764,000 3,118,750 3,118,750 4,292,000 4,292,000 4,391,000 4,391,000 4,605,500 4,605,500 4,820,000 4,820,000 6,781,150 6,781,150 40,006,000 40,006,000 467,000 657,250 662,200 662,750 987,000 1,025,500 1,143,750 1,576,500 1,609,500 1,681,000 1,752,500 2,458,300 14,683,250 205,926 551,050 - 205,926 551,050 - 205,926 551,050 47,037 205,926 551,050 - 205,926 551,050 - 205,926 551,050 197,297 205,926 551,050 - 205,926 551,050 - 205,926 551,050 492,572 205,926 551,050 - 205,926 551,050 - 205,926 551,050 776,857 33,905 1,257,880 33,905 1,448,130 33,905 1,500,117 33,905 1,453,630 33,905 1,777,880 33,905 2,013,677 33,905 1,934,630 33,905 2,367,380 33,905 2,892,952 33,905 2,471,880 33,905 2,543,380 33,905 4,026,037 2,471,106 6,612,600 1,513,761 406,857 25,687,575 14,318,425 Cash Outflows Investing Activities New Fixed Assets Purchases Inventory Addition to Bal. Sheet Cost of Sales Operating Activities Salaries and Wages Fixed Business Expenses Taxes Financing Activities Loan Payments Line of Credit Interest Line of Credit Repayments Dividends Paid Total Cash Outflows Cash Flow (630) Operating Cash Balance Line of Credit Drawdowns Ending Cash Balance 12,993,600 317,370 280,233 328,370 870,620 750,323 1,184,120 1,924,620 1,498,048 2,133,620 2,276,620 2,755,113 13,310,970 13,591,203 13,919,573 14,790,192 15,540,515 16,724,635 18,649,255 20,147,303 22,280,923 24,557,542 27,312,655 12,993,600 13,310,970 13,591,203 13,919,573 14,790,192 15,540,515 - - 16,724,635 18,649,255 20,147,303 22,280,923 24,557,542 - - 27,312,655 Table: Cash Flow Year Three Projected Cash Flow Statement - Year Three Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Beginning Cash Balance 27,312,655 27,476,662 28,037,344 28,496,654 29,069,436 30,318,380 31,353,852 32,947,646 35,449,741 37,374,741 40,106,735 42,996,030 Cash Inflows Income from Sales Accounts Receivable Total Cash Inflows 1,555,475 1,555,475 2,189,550 2,189,550 2,205,885 2,205,885 2,207,700 2,207,700 3,288,350 3,288,350 3,415,400 3,415,400 3,805,625 3,805,625 5,246,200 5,246,200 5,355,100 5,355,100 5,591,050 5,591,050 5,827,000 5,827,000 8,171,765 8,171,765 48,859,100 48,859,100 578,388 815,788 821,233 821,838 1,226,325 1,268,675 1,398,750 1,931,025 1,967,325 2,045,975 2,124,625 2,971,318 17,971,263 211,594 567,582 - 211,594 567,582 - 211,594 567,582 112,262 211,594 567,582 - 211,594 567,582 - 211,594 567,582 298,173 211,594 567,582 - 211,594 567,582 - 211,594 567,582 649,694 211,594 567,582 - 211,594 567,582 - 211,594 567,582 983,501 33,905 1,391,468 33,905 1,628,868 33,905 1,746,575 33,905 1,634,918 33,905 2,039,406 33,905 2,379,928 33,905 2,211,831 33,905 2,744,106 33,905 3,430,100 33,905 2,859,056 33,905 2,937,706 33,905 4,767,899 2,539,133 6,810,978 2,043,630 406,857 29,771,860 19,087,240 Cash Outflows Investing Activities New Fixed Assets Purchases Inventory Addition to Bal.Sheet Cost of Sales Operating Activities Salaries and Wages Fixed Business Expenses Taxes Financing Activities Loan Payments Line of Credit Interest Line of Credit Repayments Dividends Paid Total Cash Outflows Cash Flow Operating Cash Balance Line of Credit Drawdowns Ending Cash Balance 164,007 560,682 459,310 572,782 1,248,944 1,035,472 1,593,794 2,502,094 1,925,000 2,731,994 2,889,294 3,403,866 27,476,662 28,037,344 28,496,654 29,069,436 30,318,380 31,353,852 32,947,646 35,449,741 37,374,741 40,106,735 42,996,030 46,399,895 27,476,662 28,037,344 28,496,654 29,069,436 30,318,380 31,353,852 32,947,646 35,449,741 37,374,741 40,106,735 42,996,030 - - 46,399,895 Page 14 9.5 Projected Balance Sheet The Balance Sheet shows healthy growth of net worth, and strong financial position. The monthly estimates are included in the Appendix. The balance sheet for Clean Business is quite solid. We do not project any trouble meeting our debt obligations. Our management is strong enough and more than capable of keeping the business on track for total repayment of any obligations (loans). Our major capital asset (the property and affixed buildings) is valued at about. Our projected balance sheet is presented in the table below. Page 15 Table: Balance Sheet Year One Page 16 Balance Sheet - Year One Base Period End of Year One Assets Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Other Current 2,500,000 100,000 3,155,000 400,000 12,994,230 100,000 2,103,333 266,667 Total Current Assets 6,155,000 15,464,230 Fixed Assets Farm-Land Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Fixed Assets 1,600,000 1,500,000 3,895,000 350,000 1,500,000 500,000 9,345,000 1,600,000 1,500,000 3,895,000 350,000 1,500,000 500,000 9,345,000 Less: Accumulated Depreciation - 1,101,429 Total Assets 15,500,000 23,707,801 Liabilities and Owner's Equity Liabilities Accounts Payable Loan Payable Mortgage Payable Credit Card Debt Vehicle Loans Other Bank Debt Line of Credit Balance (1,980,000) 2,480,000 - (2,262,857) 2,356,000 - Total Liabilities Owner's Equity Common Stock Retained Earnings Dividends Dispersed Total Owner's Equity Total Liabilities and Owner's Equity 500,000 93,143 15,000,000 15,000,000 15,000,000 8,614,659 23,614,659 15,500,000 23,707,801 Statement Balances Statement Balances Page 17 Page 18 Table: Balance Sheet Year Two Page 19 Balance Sheet - Year Two End of Year One End of Year Two Assets Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Other Current 12,994,230 100,000 2,103,333 266,667 27,312,655 100,000 1,051,667 133,333 Total Current Assets 15,464,230 28,597,655 Fixed Assets Farm-Land Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Fixed Assets 1,600,000 1,500,000 3,895,000 350,000 1,500,000 500,000 9,345,000 1,600,000 1,500,000 3,895,000 350,000 1,500,000 500,000 9,345,000 Less: Accumulated Depreciation 1,101,429 2,202,857 Total Assets 23,707,801 35,739,798 Liabilities and Owner's Equity Liabilities Accounts Payable Notes Payable Mortgage Payable Credit Card Debt Vehicle Loans Other Bank Debt Line of Credit Balance (2,262,857) 2,356,000 - (2,545,714) 2,232,000 - Total Liabilities Owner's Equity Common Stock Retained Earnings Dividends Dispersed Total Owner's Equity Total Liabilities and Owner's Equity 93,143 (313,714) 15,000,000 8,614,659 23,614,659 15,000,000 21,053,513 36,053,513 23,707,801 35,739,798 Statement Balances Statement Balances Page 20 Table: Balance Sheet Year Three Page 21 Balance Sheet - Year Three End of Year Two End of Year Three Assets Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Other Current 27,312,655 100,000 1,051,667 133,333 46,399,895 100,000 (0) (0) Total Current Assets 28,597,655 46,499,895 Fixed Assets Farm-Land Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Fixed Assets 1,600,000 1,500,000 3,895,000 350,000 1,500,000 500,000 9,345,000 1,600,000 1,500,000 3,895,000 350,000 1,500,000 500,000 9,345,000 Less: Accumulated Depreciation 2,202,857 3,304,286 Total Assets 35,739,798 52,540,609 Liabilities and Owner's Equity Liabilities Accounts Payable Notes Payable Mortgage Payable Credit Card Debt Vehicle Loans Other Bank Debt Line of Credit Balance (2,545,714) 2,232,000 - (2,828,571) 2,108,000 - (313,714) (720,571) Total Liabilities Owner's Equity Common Stock Retained Earnings Dividends Dispersed Total Owner's Equity Total Liabilities and Owner's Equity 15,000,000 21,053,513 36,053,513 15,000,000 38,261,181 53,261,181 35,739,798 52,540,609 Statement Balances Statement Balances Page 22 Table: Fixed Operating Expenses Fixed Operating Expenses Fixed Operating Expenses Monthly Year One Percent Change Expenses Advertising Car and Truck Expenses Bank & Merchant Fees Contract Labor Conferences & Seminars Customer Discounts and Refunds Dues and Subscriptions Miscellaneous Insurance (Liability and Property) Licenses/Fees/Permits Legal and Professional Fees Office Expenses & Supplies Postage and Delivery Rent (on business property) Rent of Vehicles and Equipment Sales & Marketing Taxes-Other Telephone and Communications Travel Utilities Total Expenses Other Expenses Depreciation Interest Commercial Loan Commercial Mortgage Line of Credit Credit Card Debt Vehicle Loans Other Bank Debt Total Other Expenses Total Fixed Operating Expenses ₦ Year Two Year Three 3.00% 3.00% 100,000.00 50,000 10,000 15,000 5,000 50,000 20,833 29,167 10,000 50,000 20,000 50,000 20,000 30,000 50,000 25,000 1,200,000 600,000 120,000 180,000 60,000 600,000 250,000 350,000 120,000 600,000 240,000 600,000 240,000 360,000 600,000 300,000 1,236,000 618,000 123,600 185,400 61,800 618,000 257,500 360,500 123,600 618,000 247,200 618,000 247,200 370,800 618,000 309,000 1,273,080 636,540 127,308 190,962 63,654 636,540 265,225 371,315 127,308 636,540 254,616 636,540 254,616 381,924 636,540 318,270 535,000 6,420,000 6,612,600 6,810,978 91,786 1,101,429 1,101,429 1,101,429 91,786 1,101,429 1,101,429 1,101,429 626,786 7,521,429 7,714,029 7,912,407 Page 23