BUSINESS PLAN FOR BULLS FARMING

1)  CERTIFICATE NR…. 01/NEXIT/BA/AIDEV.LTD/22/ 168

2) BATCH NR: A

3) BUSINESS SECTOR AGRICULTURE

4) BUSINESS SUBSECTOR… ANIMAL HUSBANDRY

5) Name of Entrepreneur
i) Surname…. IBRAHIM

ii) Other names AMINU ADAMINDA

6) BVN…….. 22351449554

7) Phone numbers…… 08030715762

8) Personal e-mail…… [email protected]

9) Gender…. MALE

10) State of Origin… NASARAWA STATE

11) State of business Location….. BAUCHI STATE

12) Training Institution.: A.I Development Services Ltd

13) Age Range:- 18-35 Above 35 37

14) State of Residence BAUCHI STATE

15) Start-Up/Existing EXISTING

16) Loan Tenure… 36

17) Loan Total 3,025,000

18) EQUIPMENT (70% TOTAL LOAN) 2,125,000

19) WORKING CAPITAL(30% TOTAL LOAN) 900,000

20) Years of Operation.. 3

21) Training Type..Entrepreneurship

22) Geopolitical Zone..North East

23) Business Ownership Type..Sole Proprietorship

24) Business e-mail… [email protected]

25) Business Phone number… 08030715762

26) Business Name… NDA GLOBAL SERVICES & CO.

1.0 GENERAL INFORMATION

1.1 NAME OF BUSINESS :
NDA GLOBAL SERVICES & CO.

1.2 BUSINESS DESCRIPTION:………….. is essentially engaged in buying and fattening of CATTLE.These are meant for local markets,
butchers, restaurants, hotels and individuals.
1.2 BUSINESS DESCRIPTION:………….. is essentially engaged in buying and fattening of CATTLE.These are meant for local markets,
butchers, restaurants, hotels and individuals.

1.3 PROFILE OF ENTREPRENEUR(S): The entrepreneur has been involved in Bulls breeding such as this one.He has acquired relevant
knowledge and skills through this NPOWER EXIT Entrepreneurship training conducted by A.I Development Services Ltd.

1.4 SUMMARY OF LOAN REQUIRED

S/NR ITEM AMOUNT REMARKS
1 EQUIPMENT 2,125,000

2 WORKING CAPITAL 900,000

LOAN TOTAL 3,025,000

3 GRACE PERIOD 3 Moratorium
4 REPAYMENT PERIOD 33 Actual Repyt mths
5 LOAN TENOR 36 Total period
Principal Repyt/Mth 91,667 Loan/Repyt Period
Interest rate 5% 151,250.00 5% of Loan
Interest /Mth 36 4,201.39 From Mth 1
Bank charges 4% 121,000.00 Deductable at Source
Ending cash balance 34,383,460.05 After Repayment
5.0 FINANCIAL PLAN
5.1 Project Cost Plan
S/NR DESCRIPTION QTY RATE AMOUNT BANK LOAN EQUITY
1.0 ASSETS
1.1 Secured Fenced Land 1 650,000 650,000
1.2 Shed 1 250,000 250,000
1.3 Water points/tube well 1 200,000 200,000
1.4 0
1.5 0
Total Assets 1,100,000 1,100,000

2.0 Pre-Operational Expenses

2.1 Trade Reg. 1 0 0.00
2.2 Rents of Premises 1 150,000 150,000.00
2.3 Premises Renovation 1 250,000 250,000.00
2.4 Npower Exit Training 1 6,000 6,000.00
2.5 CAC Reg. 1 17,500 17,500.00
2.6 0.00
2.7 0.00
Total Pre operational expenses 423,500
3.0 EQUIPMENT
3.1 Feeders 16 15,000.00 240,000.00
3.2 Drinkers 12 10,000.00 120,000.00
3.3 Sheds 1 60,000.00 60,000.00
3.4 Generator Set 1 180,000.00 180,000.00
3.5 Bulls 6 250,000 1,500,000.00
3.6 Wheel Barrow 1 25,000 25,000.00
3.7 0.00
Total Equipment 2,125,000 2,125,000 70%

4.0 WORKING CAPITAL

4.1 Feeds 24 15000 360,000
4.3 Vaccines & medicines 6 60000 360,000
4.3 Over Head 12 7,500.00 90,000
4.4 Labour 3 30,000.00 90,000
4.5 0
4.6 0
Total Working Capital 900,000 900,000 30%

5.0 TOTAL START-UP/EXPANSION COST 3,648,500

6.0 TOTAL EQUITY (ITEMS 1 & 2) 1,523,500
7.0 TOTAL LOAN REQUIRDS(Items 3+4) 3,025,000
2.0 ORGANISATIONAL AND MANAGEMENT PLAN
2.1 Organisational Structure Models
S/NR Model 1 Model 2 Model 3 Remarks(
1 OWNER OWNER OWNER Model 3 is the most
2 MANAGER OWNER-MGR OWNER-MGR- suitable for this
WORKER business
3 WORKERS WORKERS
WORKERS

2.2 Strengths,Weaknesses,Opportunities and Threats

(SWOT ANALYSIS)
S/NR Items Descriptions Remarks
1 Strengths Adequate capital & customer base
2 Weaknesses Highly competitive market
3 Opportunities Daily demand
4 Threats Irratic sources of materials
5 Risks

2.3 Risks and Mitigations

S/NR Risks Mitigations Remarks
1 Theft and banditry Provision of secured pens and grazing areas
2 Irratic source of feedAlternative sources of feeds
3 Low Purchasing Expanding market horizon
4 power
Competition Provision of high quality and healthy Bulls
5 Pricing Affordable and competative prices
3.0 PRODUCTION PLAN:This section is for those going into production
processes
3.1 Production Processes:
The production processe involves the following stages:- a) Purchase of healthy Bulls b) purchase of
equipment c) construction of sheds and vaccination d) fattening e) Packaging and sales

3.2 Fixed Assets (Building and Machinery)

S/Nr Description Cost
1 Secured Fenced Land 1 NR 650,000 650,000.00
2 Shed 1 NR 250,000 250,000.00
2 Water points/tube well 1 NR 200,000 200,000.00

###
Total

3.3 Pre-Operational Cost

S/NR ITEM QTY RATE AMOUNT REMARKS

1 Trade Reg. 1 0 0.00
2 Rents of Premises 1 150,000 150,000.00
3 Land prepration 1 250,000 250,000.00
4 Npower Exit training expenses 1 6,000 6,000.00
5 CAC Reg. 1 17,500 17,500.00
Total 423,500.00
3.4. Maintenance Procdure: Regular vaccination

3.5 Raw Materials Required for Initial and Subsequent Production Cycles
S/NR ITEM QTY UNIT RATE AMOUNT
1 Feeds 16 Nr 15,000 240,000.00
2 Drinkers 12 Nr 10,000 120,000.00
3 Vaccines Freezer 1 Nr 60,000 60,000.00
4 Generator Set 1 Nr 180,000 180,000.00
5 Bulls 6 Nr 250,000 1,500,000.00
Total 2,100,000.00
3.6 Sources Of Raw Materials
S/NR ITEM Location QTY Remarks
1 Bulls BAUCHI ST 16
2 Feeds 0 12
3

3.7 Direct and Indirect Labour

S/NR ITEM Location QTY Remarks

1 Mgt 1
2 Direct 2
3 Indirect 1

3.8 Cost of Labour per Operational Cycle in Months

S/NR ITEM No Time Rate Amount

1 Magt 1 3 15,000 45,000
Direct
2 Labour 2 3 10,000 60,000
Indirect
3 labour 1 1 10,000 10,000
 total 115,000
UNIT COST FOR 3MONTHS 7,187.50
3.9 Availabilty of Labour

S/NR ITEM Seasonal All Year Remark

1 Mgt X
Direct
2
Labour X
3 Indirect
labour X

3.10 Worker Motivation

S/NR Item MOTIVATION 1 MOTIVATION 2 MOTIVATION 3

1 Mgt Prompt Salaries Bonuses Equity
2 Direct Labour Prompt Salaries Bonuses
3 Indirect labour Prompt Salaries Bonuses
3.11 Expected Overheads per Operational Cycle( in Months)
S/NR Item Time Qty Unit Rate Amount
1 Electricity 3 10 kwh 250 7,500.00
2 Water 3 140 ltres 25 10,500.00
3 Transport 2 1 item 7000 14,000.00
4 Fuel 3 10 ltres 165 4,950.00
5 ICT 3 1 item 1000 3,000.00
Total 39,950.00
UNIT COST FOR 3MONTHS 2,496.88

6 UNIT COST(bull) FOR FOR 1 PRODUCTION CYCLE 214,684.38

7 UNIT COST(dung) FOR FOR 1 PRODUCTION CYCLE 1,500.00

8 TOTAL DUNG PRODUCTION

a) EACH BULL CAN PRODUCE 50KG BAGS DUNGS 3
b) DUNG PRODUCTION PER MONTH 1
c) TOTAL NUMBER OF BULLS 16
TOTAL 48
4.0 MARKETING PLAN
4.1 MARKETING AREA AND TARGET CUSTOMERS
S/NR Products Area Target Customer Expectd Mkt Share
1 Bulls Restaurant/ Individuals 1%
2 Dung Farmers 1%
3

4.2 Demand Pattern for Products

S/NR Products Area Low Medium High Remarks
1 Bulls BAUCHI STATE X
2 Dung 0 X

4.3 Products,Production Costs and Proposed Selling Price

S/NR Products Unit Prod Cost Overhead +Profit Selling Price Remarks(Optional)
1 Bulls 214,684.38 20.00% 257,621.25
2 Dung per 50kg bag 1,500.00 15.00% 1,725.00
3

4.4 Expected Production Output Per Cycle of 3 months @ 5% steady increase

S/NR Products M1-M3 % INCRE. M4-M6 % INCRE. M7-M9
1 Bulls 16 0% 17 5% 18
2 Dung of 25kg per bag 48 50 53
1a Sales for Bulls 4,121,940.00 4,328,037.00 4,544,438.85
2a Sales for Dung 82,800.00 86,940.00 91,287.00
M10-M12 % INCRE. M13-M15 % INCRE. M16-M18
1 Bulls 19 5% 19 5% 20
2 Dung of 25kg per bag 56 58 61
1a Sales for Bulls 4,771,660.79 5,010,243.83 5,260,756.02
2a Sales for Dung 95,851.35 100,643.92 105,676.11
M19-M21 M22-M24
1 Bulls 21 5% 23 5%
2 Dung of 25kg per bag 64 68
1a Sales for Bulls 5,523,793.82 5,799,983.52
2a Sales for Dung 110,959.92 116,507.91
% INCRE. % INCRE.
1 Bulls 0 5% 0 5% 0
2 Dung of 25kg per bag 0 0 0
1a Sales for Bulls
2a Sales for Dung

4.5 Sales & Promotional Strategies

S/NR Strategy Bulls Dung Remarks
1 Radio
X
Adverts
2 TV
Adverts
3 Social
X
Media
Outdoor
4 displays
5 Fliers
6 Door to
door sales
7 Free
Discounts X X
8 Delivery X
emarks(Optional)

% INCRE.
5%
5%

% INCRE.
5%

5%
5%

% INCRE.
5%
5.2 Monthly Sales and Cost Plan

S/Nr ITEMS MTH I MTH 2 MTH 3 MTH 4 MTH 5 MTH 6 MTH 7 MTH 8 MTH 9 MTH 10 MTH 11 MTH 12
1.0 Sales
1.1 Bulls 0.00 0.00 4,121,940.00 0.00 0.00 4,328,037.00 0.00 0.00 4,544,438.85 0.00 0.00 4,771,660.79
1.2 Dung 27,600.00 27,600.00 27,600.00 28,980.00 28,980.00 28,980.00 30,429.00 30,429.00 30,429.00 31,950.45 31,950.45 31,950.45
1.3
1.4
Total Sales 27,600.00 27,600.00 4,149,540.00 28,980.00 28,980.00 4,357,017.00 30,429.00 30,429.00 4,574,867.85 31,950.45 31,950.45 4,803,611.24
2.0 EXPENSES
2.1 Staff Salaries 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33
2.2 Operational Cost 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00
2.3 Loan Repayment 0.00 0.00 0.00 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67
2.4 Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.5 Loan Interest 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39
2.6 Bank Charges 121,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,633,534.72 12,534.72 12,534.72 1,604,201.39 104,201.39 104,201.39 1,604,201.39 104,201.39 104,201.39 1,604,201.39 104,201.39 104,201.39
3.0 Gross Profit(1-2) -1,605,934.72 15,065.28 4,137,005.28 -1,575,221.39 -75,221.39 4,252,815.61 -1,573,772.39 -73,772.39 4,470,666.46 -1,572,250.94 -72,250.94 4,699,409.85
4.0 PIT/CIT 2% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.0 Net Profit -1,605,934.72 15,065.28 4,137,005.28 -1,575,221.39 -75,221.39 4,252,815.61 -1,573,772.39 -73,772.39 4,470,666.46 -1,572,250.94 -72,250.94 4,699,409.85

S/Nr ITEMS MTH 13 MTH 14 MTH 15 MTH 16 MTH 17 MTH 18 MTH 19 MTH 20 MTH 21 MTH 22 MTH 23 MTH 24
1.0 Sales
1.1 Bulls 0.00 0.00 5,010,243.83 0.00 0.00 5,260,756.02 0.00 0.00 5,523,793.82 0.00 0.00 5,799,983.52
1.2 Dung 33,547.97 33,547.97 33,547.97 35,225.37 35,225.37 35,225.37 36,986.64 36,986.64 36,986.64 38,835.97 38,835.97 38,835.97
1.3
1.4
Total Sales 33,547.97 33,547.97 5,043,791.80 35,225.37 35,225.37 5,295,981.39 36,986.64 36,986.64 5,560,780.46 38,835.97 38,835.97 5,838,819.49
2.0 EXPENSES
2.1 Staff Salaries 38,333.33 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
2.2 Operational Cost 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00
2.3 Loan Repayment 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67
2.4 Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.5 Loan Interest 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39
2.6 Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,604,201.39 115,868.06 115,868.06 1,615,868.06 115,868.06 115,868.06 1,615,868.06 115,868.06 115,868.06 1,615,868.06 115,868.06 115,868.06
3.0 Gross Profit(1-2) -1,570,653.42 -82,320.08 4,927,923.75 -1,580,642.68 -80,642.68 5,180,113.34 -1,578,881.42 -78,881.42 5,444,912.41 -1,577,032.08 -77,032.08 5,722,951.43
4.0 PIT/CIT 2% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.0 Net Profit -1,570,653.42 -82,320.08 4,927,923.75 -1,580,642.68 -80,642.68 5,180,113.34 -1,578,881.42 -78,881.42 5,444,912.41 -1,577,032.08 -77,032.08 5,722,951.43
5.3 Projected Monthly Cash Flow Statements
S/Nr ITEMS MTH 1 MTH 2 MTH 3 MTH 4 MTH 5 MTH 6 MTH 7 MTH 8 MTH 9 MTH 10 MTH 11 MTH 12
1.0 Beginning Cash Bal. 0.00 2,942,565.28 7,079,570.56 11,124,909.17 9,549,687.78 9,474,466.39 13,727,282.00 12,153,509.61 12,079,737.22 16,550,403.68 14,978,152.74 14,905,901.81
2.0 Cash Receipts
2.1 Sales 27,600.00 4,149,540.00 4,149,540.00 28,980.00 28,980.00 4,357,017.00 30,429.00 30,429.00 4,574,867.85 31,950.45 31,950.45 4,803,611.24
2.2 Equity 1,523,500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.3 Expected Loan 3,025,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Receipts 4,576,100.00 7,092,105.28 11,229,110.56 11,153,889.17 9,578,667.78 13,831,483.39 13,757,711.00 12,183,938.61 16,654,605.07 16,582,354.13 15,010,103.19 19,709,513.05
3.0 EXPENSES
3.1 Staff Salaries 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33
3.2 Operational Cost 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00
3.3 Loan Repayment 0.00 0.00 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67
3.4 Loan Interest 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39
3.5 Bank Charges 121,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.6 Other Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,633,534.72 12,534.72 104,201.39 1,604,201.39 104,201.39 104,201.39 1,604,201.39 104,201.39 104,201.39 1,604,201.39 104,201.39 104,201.39
4.0
Cash surplus/Deficit 2,942,565.28 7,079,570.56 11,124,909.17 9,549,687.78 9,474,466.39 13,727,282.00 12,153,509.61 12,079,737.22 16,550,403.68 14,978,152.74 14,905,901.81 19,605,311.66
4.0 Ending Cash Bal 2,942,565.28 7,079,570.56 11,124,909.17 9,549,687.78 9,474,466.39 13,727,282.00 12,153,509.61 12,079,737.22 16,550,403.68 14,978,152.74 14,905,901.81 19,605,311.66

S/Nr ITEMS MTH 13 MTH 14 MTH 15 MTH 16 MTH 17 MTH 18 MTH 19 MTH 20 MTH 21 MTH 22 MTH 23 MTH 24
1.0Beginning Cash Bal. 19,605,311.66 18,034,658.24 17,964,004.83 22,903,595.24 21,334,619.22 21,265,643.21 26,457,423.21 24,890,208.46 24,822,993.71 30,279,572.79 28,714,207.37 28,648,841.96
2.0Cash Receipts
2.1Sales 33,547.97 33,547.97 5,043,791.80 35,225.37 35,225.37 5,295,981.39 36,986.64 36,986.64 5,560,780.46 38,835.97 38,835.97 5,838,819.49
2.2Equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.3Expected Loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Receipts 19,638,859.63 18,068,206.22 23,007,796.63 22,938,820.61 21,369,844.60 26,561,624.60 26,494,409.85 24,927,195.10 30,383,774.18 30,318,408.76 28,753,043.34 34,487,661.44
3.0 EXPENSES
3.1 Staff Salaries 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33
3.2 Operational Cost 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00 1,470,000.00 -30,000.00 -30,000.00
3.3 Loan Repayment 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67
3.4 Loan Interest 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39 4,201.39
3.5 Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.6 Other Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,604,201.39 104,201.39 104,201.39 1,604,201.39 104,201.39 104,201.39 1,604,201.39 104,201.39 104,201.39 1,604,201.39 104,201.39 104,201.39
4.0
Cash surplus/Deficit 18,034,658.24 17,964,004.83 22,903,595.24 21,334,619.22 21,265,643.21 26,457,423.21 24,890,208.46 24,822,993.71 30,279,572.79 28,714,207.37 28,648,841.96 34,383,460.05
4.0 Ending Cash Bal 18,034,658.24 17,964,004.83 22,903,595.24 21,334,619.22 21,265,643.21 26,457,423.21 24,890,208.46 24,822,993.71 30,279,572.79 28,714,207.37 28,648,841.96 34,383,460.05