SIMUYU GENERAL DEALERS LTD

BUSINESS PROPOSAL FOR BROILER

PRODUCTION

LIVINGSTONE

JUNE 2023
1.0 EXECUTIVE SUMMARY

Farm will be a registered startup company that will specialize in

rearing broiler chickens in Livingstone District. This business will be
crowned by Mr. Simeon Muyuni who is also the director. All the
management functions such as planning, organizing, controlling,
coordinating, directing and general leadership will be done by him.
Therefore, key inputs from stakeholders such as customers and
employees will be utilized in the company’s decision making process.

Livingstone has been strategically chosen as the right place to start

this profitable business due to among other things, huge market
prospects, near proximity to key suppliers and good infrastructure
such as roads, communication and electricity. Livingstone has been
chosen as we are targeting tourists facilities.

Market research has revealed that the demand for chicken meat has
been on the upswing. This is partly due to huge population, and partly
due to the fact that chicken is a cheaper source of protein for most
Zambians. However, this demand does not correspond with the
supply. This has on several occasion left customers on the
disadvantage side. As a result customers are left with little choice but
to buy poor quality, underweight and expensive chicken from most
chicken farmers. This is especially so to retail buyers who for example
want to buy for home consumption. We realized this need and we
want to come in and fill this gap so that our valued customers are
supplied with fresh large chickens that meet Zambia Bureau of
standards and Zambia, competition and consumer protection
commission yardsticks.

All things being equal this project is going to cost about K170,000
and K70,000 has been locally mobilized and K100,000 is what
is being sourced externally. This figure factors all the expenses
involved for the successful operationalization of the project. These
funds will be injected by the owner. The costs involve cost of
purchases (chicks, feeds, vaccines,) labour, fixed assets, overhead,
 communication, transport and distribution, marketing and other hidden
costs plus a provision for contingency.

We will run the business in a cost effective manner. All costs will be
kept to the minimal but at the same time paying particular attention to
qualify and customer’s value for money in mind. All things being equal
We project to be commissioned by September 2022.

2.0 VISION

To become Zambia’s premier provider of top quality chicken meat with

a presence in all the districts in Southern Province.

3.0 MISSION STATEMENT

To provide the most cost effective, quality efficient and transparent

products/services, paying great attention to every detail of every job
regardless of size. We want to be among the top ten chicken meat
suppliers in Zambia within our fifth anniversary.

4.0 CORE VALUE

 Integrity
 Professionalism
 Excellence
 Commitment
 Honesty
 Customer care
 Ethical
 Responsible

5.0 GOALS

 To secure a reputation of high quality products and services backed

by a high calibre of management
 To have unparalleled commitment to customer care/service
 To complete and deliver all our jobs on time and within the budget
  To build a solid foundation of both quality products and prices
regardless of size of budget involved

6.0 OBJECTIVES

Our Farm will put a number of objectives to serve as performance

yardsticks. These objectives will be smart in nature

S Specific
M Measurable
A Attainable
R Realistic
T Time bound

Any possible deviations for set targets will be re-examined and

remedial measures immediately put in place.

6.1 SHORT TERM OBJECTIVES

 Creation of three(3) direct jobs at inception of the project

 To make annual sales of K432,200 by September 2024
 Realizing an annual net profit of K113,244 by September
2024

6.2 LONG TERM OBJECTIVES

 To cast our nets wider and consider supplying our chickens to

Democratic Republic of Congo border by 2024
 We consider starting making our own feeds by 2024
 To raise funds for capital projects e.g building of more chicken
houses and other fixed assets that promote growth for the
business
 Creation of five (5) direct jobs by September 2023
7.0 BUSINESS OWNERSHIP

This company is owned by Mr. Simeon Muyuni. It is a registered legal

entity under the patent and company registration Authority (PACRA)
under certificate of Registration Number 120180002388 dated
21/03/2018 He is the Director and will provide leadership and strategic
management to see the company grow to another level.

Qualified employees will be hired and this will ensure good

management for the poultry farm. Although Mr. Simeon Muyuni will be
making key business decisions, planning, directing, controlling,
coordinating and other management functions, she will listen to
employees and customer feedback (both positive and negative) in
order to improve the way the business will be run. We will do what
the customer wants, not want we want. The objective is to ensure a
first customer, both individual and corporate, comes back for future
purchases. This is key for a young business like ours. Repeat
customers also bring referral customers.

8.0 BUSINESS DESCRIPTION

Business Name : Simuyu General Dealers Limited

Business Address : DNC131 OFF Botswana Road, Dambwa North
Business Director : Mr. Simeon Muyuni
Business Phone No/Email : [email protected] 0977835905
Business Bank : IndoZambia Bank Livingstone
Business Account : 0102030000554
TPIN Number : 1009215640

9.0 ECONOMIC BENEFITS

Our birth as a company will bring a number of benefits to the economy

of Zambia. The following will be some of the trickle down economic
benefits
 Job creation
  Creation of business to suppliers of day old chicks and feeds
 Tax contribution to the Republic of Zambia
 Contribution to the Gross Domestic Product (GDP)
 Creation of hunger for other entrepreneurs to jump into the band
wagon and emulate us

10.0 KEYS TO SUCCESS

 Offering our valued customers affordable, high quality products at

slightly reduced prices compared to our competitors
 Engaging our customers on a one on one basis and setting their
feedback – both positive and negative so that we improve in certain
areas. The key is to have a smiling customer
 A good sales and marketing strategy will be put in place

11.0 BUSINESS LOCATION

We will be located in Livingstone district. This is a strategic location

and is near the market for our product. It is about 15 minutes’ drive
from Central Business District (CBD) of Livingstone town. The place is
near suppliers of crucial materials such as day old chicks, feed,
vaccines and other consumables. It has access to water and a good
road and communication networks.

Our location will give us a competitive advantage and leverage .

12.0 PRODUCTS

We will be involved in the raising and supply of quality large chickens

for meat for the population of the Livingstone city and surrounding
areas. Our products will be of unmatched quality but affordable to
customers. Further, we intend to keep a steady and consistent supply
of chickens throughout the year.

12.1 COMPETITIVE COMPARISON

  We will offer quality products unmatched to any
rival/competitor. This will be punctuated by a good customer
care.
 We will use simple marketing techniques that reduce costs
but help achieve maximum results
 We will use simple marketing techniques that reduce costs
but help achieve maximum results
 Our products will meet and exceed our customer expectations

13.0 MARKET ANALYSIS SUMMARY

The economy of Zambia has been steadily improving with a number of

people affording most basic essentials. And food is one such basic
though on the bottom of the pyramid. The demand for chicken’s meat
is high and we do not expect it to plummet any time soon as it is in
fact increasing every day. This will make us to have a positive growth
prospect as a chicken supplier in the targeted area of Livingstone.

To meet this demand for chicken meat, we are poised and have the
capacity to fill in the gap and supply at a profit.

Further, we bring to the industry affordable good quality and large

chickens that will weigh impressive weights and fully matured at the
recommended six (6) weeks. We will strategically tap in this massive
demand so as to increase our market base.

13.1 MARKET SEGMENTATION

The market is segmented into two: the corporate and

individuals and we are targeting both. However, we have a
higher bias on corporate clients as we will be keeping a large
number of chickens and on a consistent basis.

13.2 MARKET TREND

The food industry is constantly sprouting and leaving many rigid

companies / farmers sluggish. One of the major trends to adapt
 is technological advancement and maintaining quality delivery
services to our valued customer. We will make it easier for our
customers to place orders online and deliver to them, depending
on the size of consignment within the radius of Lusaka Province.
This will be done at a small carriage out fee.

13.3 PRICING STRATEGY

Pricing being one of the four Ps in the marketing mix is very

crucial in any business success and growth and we are no
exception.

Our prices will depend on what is obtainable on the market.

However, to quickly penetrate the market, we will strategically
sell our products at slightly reduced prices.

We intend, all things being equal, to sell our chickens at k95

each. As indicated earlier, depending on market forces and cost
of consumables the price is likely to change either upwards or
down wars, with the latter being very unlikely.

14.0 SALES AND MARKETING STRATEGIES

To remain buoyant in a competitive environment, our Farm will put a

number of sales and marketing strategies from its bag.

Some of such strategies includes:-

 Directly involving potential client’s especially corporate clients

through word of mouth on the availability of our products.
 Leveraging on the internet through various platforms e.g facebook,
whatsapp, twitter etc so as to reach a high volume of potential
clients. In the modern world technology must be harnessed by any
business. A number of people own cellular phones and have access
to the internet at a very low cost.
 Offer delivery services to bulky buyers
 Distribution of flyers and catalogues in strategic places e.g big
restaurants that may need our consistent suppliers of products
  Engage on promotional campaign especially to our loyal bulk buyers
 Introduce our business by sending introductory letters to both
residential areas and corporate clients such as restaurants/eateries,
lodges, hospitals, boarding school etc.
 Listing on yellow pages/directories for our prospective customers to
reach us easily

15.0 MANAGEMENT AND HUMAN RESOURCES

15.1 Management

For effective and efficient running as well as growth of our

business, a good management system will be put in place. The
Director will perform all management functions of planning,
organising, controlling, directing, coordinating, leadership and
decision making for the enterprise. We will also ensure a team
of hardworking qualified employees are in place as poultry
farming require competent hands. These will be paid
competitive salaries as a way of motivating them. A motivated
employee is more congruent (putting company interest first
before self) and is likely to grow with the company. This also
reduces cases of pilferage.

15.2 HUMAN RESOURCES

Being the most valuable assets not only at our Farm but also in
any firm, humans play a key role

At the inception throughout to the end of year one, we will hire

three (3) employees to manage daily farm routines. These will
be people who have knowledge about poultry farming.
 FARM MANAGER

Duties and Responsibilities

 Planning on farm requirements in terms of feed requirements

and inventory for the same
 Monitoring chicken health and taking necessary action in an
efficient expeditious and cost effective manner
 Planning in the right measurements for feeds, vaccines in
relation to the quality of birds at a particular time
 Advising the Director on the best breeds, feeds and best
suppliers
 Ensuring that chickens are placed in the right spaces
depending on their age. Chickens need enough space and
proper ventilation as well as lighting
 Any other duties as assigned by the Director

 GENERAL WORKERS

Duties and Responsibilities

 Feeding the chickens on a daily basis as well as

administration of vaccines as recommended by the Farm
Manager
 Lifting feeds from the storage room to the chicken house
 Collecting and bringing to the farm, feed, day old chicks,
vaccines and other items
 Cleaning the chicken houses as advised by Farm manager.
Our chicken houses well be kept spotlessly clean to avoid
possible disease outbreaks
 Restricting unauthorized entry into the chicken house
 Providing security at the farm to prevent predators and
pilferage. A dog will also be kept to supplement security
 Any other duties as assigned

However, we believe the span of control can be ignored

depending on the nature of objective we intend to achieve.
 This means in certain cases, the farm Manager can also
perform the General Workers duties. The objective is to get
the results at the right time

Further, the General Worker can also report directly to the

Director

EMOLUMENTS / MONTH

DESIGNATION QTY QUALIFICATION SALARY TOTAL

(K) (K)
Farm Manager 01
Certificate in 5,000 5,000
Animal Production
General Worker 02 Grade 12 School 1500 3,000
Certificate
TOTAL WAGE BURDEN PER MONTH 8,000

16.0 RISK SENSITIVITY

Poultry, like any other business is susceptible to a number of potential

risks that can hit the business. Some of such potential risks include:-

 The risk of disease outbreaks such as New Castle Disease (NCD)

Gumburo and Cocidiosis
 The risk of price wars by big producers who may reduce prices to
unreasonable levels
 External economic downturns that can affect customer buying
power
 New technological threats
 High unstable cost of feeds
 Natural calamities
 Importation of cheap chickens from outside the country by chain
stores such as Pick n Pay, Shoprite etc

However, we are not afraid of taking the business risks as the

potential reward outweighs such risks. Further, we will ensure we
vaccinate our birds on a timely basis by our qualified Human
Resources. Another relief is that the Government has put a
restriction (trade embargo) on the amount of birds to be imported.
Infant Government has completely banned such importations.
 Lastly, people love fresh local chicken as opposed to old frozen
chicken. Fresh chicken direct from the farm is tastier.

17.0 COMPETITOR /SWOT ANALYSIS

Within the proposed location of Livingstone are a number of

competitors. Therefore, we will not be operating in a vacuum.

To remain competitive and grow the business we will carry out a

SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis.
A SWOT analysis is a business, appraisal system of analyzing how a
business is doing in relation to its environment. Environment in this
context is the competitions. SW (Strengths and Weaknesses) are
internal factors that affect a business e.g a good location or lack of a
good marketing strategy respectively.

OT (Opportunities and Threats) are external factors e.g a continuous

demand for products and economic meltdown respectively. A threat
could also be price wars or aggressive competition.

Other macro environmental factors to consider includes:-

P Political
E Environmental
S Social / Cultural Norms
T Technology
E Economical
L Legal Issues
17.1 SWOT ANALYSIS FOR IVANJI FARM

STRENGTHS WEAKNESSES
 Good location  New in the business
 Quality affordable products  Cant lower prices
further
 Good marketing and sales  No repeat customers
prowess yet

OPPORTUNITY THREATS
 Continuous demand for  Possible economic
chickens from Heartland and down turn that may
lodges affect customer
buying power
 Room and enough capacity  Expensive feeds
to increase/grow our whose prices aren’t
production stable

17.2 SWOT ANALYSIS FOR ONE COMPETITOR – NAME WITH

HELD FOR CONFIDENTIALITY

STRENGTHS WEAKNESSES
 Well established  Poor location
 Has the capacity / qualified  Poor customer care
staff
  Produces small
expensive chickens

OPPORTUNITY THREATS
 Continuous demand for  Lacks the technology
chicken meat and uses old systems
 High cost of feed
 Though we have competitors none will equal to our quality
customer care and flexibility. Further, most of our competitors
are on a smaller scale and lack the consistency.

18.0 OPERATING / PRODUCTION PLAN

We intend to start with a batch of 1,000 day old chicks supplied from reliable
companies such as Hybrid as these have a lower death rate.
We anticipate, all things being equal, to keep a consistent cycle of up to eight
(8) in a year with each cycle lasting for six (6) weeks. Our sales and
marketing strategy will enable us to quickly dispose of our products and
order new stock.

18.1 COST OF PURCHASES/BATCH

ITEM QTY COST/ITEM TOTAL (K)

Day Old Chicks 1,000 15 15,000
Feed 70bags x 50Kg 485 33,950
Vaccines 4500 4,500
Saw Dust 10 bags 50 500
TOTAL 54,450.00

3.5 x 1,000 chicks = 70bags

50Kg

We will give a provision of 2% death rate for the chicks, so we will compute
980 chickens at market time per batch i.e 2% x1,000 less 20

18.2 COST OF FIXED ASSETS

18.2.1 EQUIPMENT

ITEM QTY COST/ITEM TOTAL (K)

Feeders (5Kg) 25 120 3,000
Drinkers (5 Litres) 25 120 3,000
Infrared Lights 5 110 550
Back up Brazier 4 50 200
Feather Plucker 1 4500 4,500
Wire 10 75/metre 750
TOTAL COST OF EQUIPMENT 12,000
 18.2.2 CHICKEN HOUSE
K120,000 will be used for the construction of the poultry unit
and K40,000 of materials already purchased only K80,000 will
be required.

18.3 DEPRECIATION ON FIXED ASSETS / ANNUM

ITEM COST DEPRECIATION COST OF NET BOOK
RATE DEPRECIATION VALUE
Equipment 12,000 20% 2400 9,600
Chicken 120,000 5% 6,000 114,000
House
47,958 8,400 123,600

depreciation is calculated using straight line method and the total per year is
K8,400

18.4 OVERHEAD COSTS / MONTH

ITEM ESTIMATED COST (K)

Electricity 1500
Transport 5000
Communication 500
Market Cost 1000
Other 1200
TOTAL 9,200

However, in Financial Statements we will factor transport and

electricity cost for 8 (8 cycles) so, the annual cost overhead is K78,
000. This means transport and electricity cost is multiplied by 8,
while communication and marketing costs are multiplied by twelve
(12) months.

18.5 PROJECTED SALES

 Per Batch –980 x k95= K93, 100

 Per Annum (8 Batches) = K744,800
18.6 PROJECTED COST OF PURCHASES

 Per Batch = K54,450

 Per Annum (8 Batches) = K435,600

18.7 TOTAL PROJECT COST

ITEM ESTIMATED COST

(K)
FIXED ASSET REQUIREMENTS:
Chicken House 80,000
Equipment 12,000

INITIAL WORKING CAPITAL

REQUIREMENTS:
Purchases 54,450
Salaries – 1st two Months 8,000
Overhead Costs – 1st Month 9,200
TOTAL PROJECT COST 163,650
Add 5% Contingency 8,182.50
TOTAL ROUNDED OFF FUNDS NEEDED TO 171,832.50
COMMISSION THE PROJECT

The required funds could be less than the figure as we have factored
unforeseen incidentals by adding contingency of 5%.
19.0 FINANCIAL PROJECTIONS

19.1 FARM

INCOME STATEMENT FOR THE YEAR ENDING SEPT, 2024

K
SALES 744,800
Less cost of goods sold

Purchases 54,450
(54,450)
GROSS PROFIT 690,350

LESS EXPENSES
Salaries 8000
Overheads 9200
Depreciation 8400
(25,600)
NET PROFIT BEFORE TAX 664,750
TAX (238,336)
NET PROFIT AFTER TAX 426,414
%

The business is viable and will make annual Net Profit of 426,414
which is 32% of total sales. The business will be able to pay all its
financial obligations on time and still remain operational.

Each cycle of 8 will give a Net Profit of 53,301.75 which is a

comfortable margin. In year two and other years more profits will be
reaped because little in capital expenditure will be involved. We
anticipate increasing production by 30% in 2024. This will enable us
to invest excess profits in capital expansion projects such as
construction of more chicken houses.
20.0 STRATEGY AND IMPLEMENTATION SUMMARY

20.1 Emphasize customer service

We will differentiate ourselves with CUSTOMER SERVICE! We will establish
our business as a clear and viable alternative for our target market, from the
scores of competitors known for "do-it yourself," "no we don't offer that
product," and "no delivery available."

Customer service is paramount in our business and our business plan. The
management team will accomplish this goal by training employees and by
providing encouragement.

The new management team of Simuyu General Dealers believes that an

employee who is happy at work will enjoy working. It is always easier to
please customers with staff that cares, a facility that is clean and equipment
that is kept in proper working order.

Simuyu General Dealers will also work toward establishing community

involvement programs that will demonstrate how the business
can contribute to a better quality of community life. Community project
groups such as the Council, Schools, churches, and other groups will be
welcomed for tours of the facilities and will be shown how the facility can be
used to help raise funds for their needs.

20.2 Build a relationship-oriented business

Build long-term relationships with customers, not single-visit deals. Become
their "feed dealer of choice." Teach them the value of the relationship.

20.3 Focus on target markets

We need to focus our offerings on specific population groups as the key
market segment we should own. We definitely want to be able to sell to
smart, quality conscious customers.

20.4 Competitive Edge

Simuyu General Dealers has one of the most sought-after competitive edges
in the industry. We have our own individual feed mill that can produce any
animal feed requested. All we need is a few ingredients and some time to
make our specialty custom feeds.
Our custom mill was built and wired with a 3-phase electrical system
(industrial strength) and the best equipment on the market today. Other
feed stores dream of having access to their own mill; this is where you make
most of your money. Instead of having to be the middle man and purchase a
large inventory of generic feeds, we custom-blend and produce our own feed
to keep the costs down. When we can produce and market feed that costs us
nearly 80% less than it costs to purchase a generic feed, we can keep our
shelf prices lower than our competitors.

Let's face it, lower prices + higher quality feed = money in the bank.

From the very first day Simuyu General Dealers was open for business in
2007, the owners never advertised. They let the word get around (word-of-
mouth advertising). This has obviously worked in their favor, as they are
operating a profitable business, as is reflected in net profit increases
annually.

In the future we, the new owners of Simuyu General Dealers will market our
products to new customers in various strategic ways. This will aid in bringing
in more customers...and will also aid in spreading the word that we are
expanding our business. Most of the existing customers come from within a
30 mile radius of the store. Through delivery, we can offer our products and
services to anyone willing to pay for it.

Our next competitive edge is that we will be running our delivery truck on a
daily basis (once we implement delivery and obtain the necessary business).
Most of our other competitors do not deliver or only deliver within a short
distance from their location. Again, we will serve our customers with a
higher quality feed, high level of professional service, and be willing to take
it to their door.

Our strongest competitive edge is that we are family owned and operated
and that our knowledge of the feed industry runs deep. With the resources
available, the energy we can contribute at our young age, the raw talent for
business and deep understanding of customer service, the potential to grow
this already exciting business is tremendous.
20.5 Marketing Strategy

Mac -Hope will implement the following Marketing Strategies upon the
business transfer in the following order:

1. Direct Marketing: we will personally market (sell face to face) our

products to various feed stores, stables, boarding facilities, farms,
clubs and race tracks.
2. Customer Referral: we will provide customer incentives for direct
referrals, in the form of price discounts.
3. Website Marketing: we will implement our web plan and review the
outcome to determine the efficiency it has on our customer base.
4. Event Marketing: we will visit area livestock events (within 50KM
miles) to hand out flyers, business cards, and product catalogs, and to
meet potential customers face to face.

Through marketing our products in these ways, we project that Simuyu

General Dealers will almost double its business within the first 2 years of
new ownership.

21.0 CONCLUSION

This business is viable and profitable. We will continue to keep

running costs to the minimal and embrace the principle of continuously
improving the way we will be running the business.

All things being equal, our profit margins are healthy at 32% of total
sales revenue. This gives us more impetus to invest part of the profits
in constructing another chicken house so as to increase production
capacity to atleast 1,500 per cycle by2023. This is our long term
strategy.

Nothing will stop us from taking the business risk of investing our
money in this business because all such risks are well calculated. This
is a bankable project because people will always eat and the demand
is continuous.