SAMPLE POULTRY HOW TO START A CHICKEN FARM
This free poultry farming business plan template provides the necessary support and developing one is important to success in poultry business. Do you need a sample business plan for starting a poultry business?
This article sets out to provide a complete poultry farming business plan template for entrepreneurs with limited knowledge on what a detailed poultry farm business plan should look like.
Introduction to Poultry Farming Business Proposal
Because of how this document is important to the success of your poultry farm, you need to put in your very best in producing a good plan as the success of your poultry farming business starts from your plan.
Let’s jump into the details of this sample business proposal for poultry farming, shall we?
HOW TO WRITE A POULTRY FARMING BUSINESS PLAN
The importance of writing a business plan for your new or existing poultry business can never be underestimated. It will give you more clarity about your business and it can be used to attract investors or to apply for a loan or grant. Unless you have your intentions for your poultry farming business written down, you might miss an opportunity to communicate it to someone else or even to clarify things for yourself.
Whether you’re starting or expanding a poultry business, writing a business plan template will help you become clear about what you want to do and how you will be going about it. Most emerging poultry farmers will have to make use of loans or grants when starting their business. In order to access these, you will need to write a business plan and submit it to your prospective financier or grant officer.
Here are some basic topics you need to discuss in your business plan.
What is a Business Plan?
A business plan is a basic outline of what your business is all about. It must serve as an action plan and guideline for you to use on a daily basis. The essence of it is to act as a roadmap to your desired destination. Be practical when writing it and keep it realistic.
There are several key elements to be discussed in a business plan for poultry farming. They are as follows:
Your Executive Summary
Write a summary of what your poultry farm is all about. What will you be selling and why is it going to work? Your executive summary is an introduction to the rest of your business plan template on poultry production – keep it short and mention the strong points of your plan.
Your Mission Statement
It’s important to explain why you want to start this specific new business. The simple question to answer in your mission statement is “Why am I doing this?”
This section should answer the question of what you want to achieve in terms of income, turnover, profits and percentages—some achievable thing. Focus on the notion of, “This is what I want to have and how much of it”. It is important to be clear and realistic about your goals. Make them achievable and set your mind to achieving them.
Your Lift Speech
This is where you give the short answer to the question, ‘What do you do?’. Make sure this summary is in line with your mission and goals. By answering this question you will force yourself to be specific about what your business will be doing and how you will be doing it. Write it in less than 100 words.
The Financial Plan
This is the most important section of your poultry production business plan. Investors and grant officers will analyze and examine your financial info. Be specific about how much money you will need to get started, where you will spend the funds, how long it will take to start becoming profitable, how big your potential market is and what your running costs will be. The key is to show a potential investor that you will be able to make a financial success of your poultry farm and be profitable.
How are you going to sell your products and how are people going to hear about it? How will you be promoting your products? What marketing channels will you be using? What’s unique about your product? Be as creative as possible when looking at various marketing channels.
Poultry Farming Business Plan – Table of Contents
- Executive Summary
- The Business
- Financial Documents
- Supporting Documents
How to Start a Chicken Farm
Your introduction sets the tone for writing your poultry farming business plan and should clearly state the reasons why you are starting this line of agribusiness. Whenever a poultry business plan is being written, it is meant to satisfy or serve two major reasons.
First, it is to serve as a clear blueprint for your poultry business. What it means in essence is that it will continue serving as a guide to help you implement all the plans contained in this business during the duration of the broiler or chicken egg production venture.
Also, the poultry farming business plan is a basic requirement for applying for funding or loans from investors. This business plan is required to measure how sound and viable the business idea is. The contents of your poultry business plan will determine if you eventually access these loans.
Writing your business plan will require proper research and dedication. When writing your poultry business plan, you should not rush the process.
Here is a sample poultry farm project proposal to guide you when writing yours.
POULTRY PRODUCTION BUSINESS PLAN OUTLINE
As the name implies, this section summarizes the contents of your poultry farming business. This section should be concise and straightforward and should not contain ambiguous words or phrases. Investors are particularly interested in this section of the poultry farm business plan as it provides basic information that includes the legal structure of the business, the name, the reasons for applying for funding as well as on what areas of your poultry business these monies will be expended. This normally comes at the end of the plan to offer a better perspective to the reader.
There should always be supporting documents to back up claims made in the executive summary of a poultry farming business plan. These documents should be included in the supporting documents section. These would typically consist of estimates provided by suppliers, marketing results as well as purchase orders. A critical part of this section is to clearly present ways of repayment of loans and interest to the investor. This will largely determine if you win the loan request or not.
This section of the business plan covers details of your poultry business. Before getting into the details, a summary (usually one page long) should be provided here. This section of the poultry farming business plan has several sub-sections that each expand on various aspects of the business. These include;
- The Legal Structure
Selecting a suitable legal structure for your poultry business is necessary. Thus you need to provide reasons why you chose a particular legal structure. This should be backed by documentations relating to any of the chosen business structures in the supporting documents section of a sample business plan for poultry farm. Any structure you choose should have a defined profit sharing method as well as clear responsibilities relating to financial losses relating to you (in terms of sole proprietorship) or between partners (under partnership agreements).
Change is constant in poultry business, therefore you may decide to change your legal structure in future. If you have such plans for your poultry farm business, it should have a timeline as well as provide reasons for such changes.
- Business Description
You will need to clearly give details about your chicken farm and provide reasons why you established the poultry business, how much is need to fully run the business, where the farm will be located, your target market, as well as any other relevant information regarding your poultry farming business. A poultry egg farming business plan will be described differently from a broiler production plan.
- Your Products and Services
In this case, these are your birds and any other related services you may choose to offer. It is necessary to have a defined source of supply for your chicks. If you will be starting a hatchery for your birds, you should state it. If not, you should have more than one supplier for you chicks as well as other required equipment for your poultry. Will your poultry business be providing additional services like consultancy services or any other? If yes, clearly state them. You should also make mention of any services you plan to introduce much later during the business.
Your choice of location for your poultry farming business should be clearly stated. Accompanying documents such as a lease agreement should be attached to the supporting documents section. You have to state if the location is ideal for poultry farming and if there is space enough for expansion plans in future.
- Choosing your Workforce
Starting a poultry farming requires that you have a clear on selecting your workers. You should state certain qualities you would be looking out for, as well as providing a job description for every employee. This also comes along with a wage bill. How much will you be paying your employees? Are there any benefits? If there are plans for increasing the number of your workforce, this should be stated as well.
- Your Management Team
This is critical to the success of your poultry business as it consists of everyone who will be involved in running the business especially marketing and managing poultry diseases. Details of all those involved in running the farming business especially those at the management level should be given. Their qualifications should also be stated as well as their capabilities and how these benefit the business should be given. This is applicable to any agribusiness structure selected.
- Your Preferred Record Keeping Methods
How well you manage this aspect of your poultry farming business will determine to a large extent how successful you become and whether you get are able to get access to loans. You should decide if your book keeping will be handled internally or externally. If you have an accountant for this role within your layer or broiler poultry farm, it should also be stated.
This subsection has to do with every detail regarding applying for an insurance covering for your egg or breeder poultry farm. It is necessary to state the areas covered by insurance in your business. There are several types of insurance which are applicable to a variety of agriculture related businesses. You need to state the type of insurance covering available for your business.
The level of security you provide can save your poultry farming business from any losses that may arise due to carelessness from employees or outright dishonesty. This has proven to be a major problem for the failure of similar businesses. There are certain vital information for your poultry business which are meant for management level staff only. Allowing these to fall into the wrong hands can be quite dangerous. Hence these information will need to be properly managed, and if disposed, should be done properly.
The marketing plan is very vital to the success of the business. Here you need to have a target market for your poultry business. The central focus of the marketing plan should include knowing those who are in need of your poultry products, if there are services to be added to your poultry farming business, who are these services targeted at? Also, how will these people find out information about your products and services? The marketing section has other subsections which include;
- Target Market
To identify your target market, you need to conduct a research of the poultry market. Your findings should be provided here as well as the demographic spread of your customers. When identifying your target market, you should be able to obtain believable and reasonable projections on the size of your target market. The steps used in reaching your conclusions should be included.
There are several types of competition in the poultry industry. This consists of both direct and indirect competition. Direct competition involves other poultry businesses offering similar products as yours to the same target market. Although indirect competition offers the same poultry products and services as yours, it has a different target market from yours. Analyzing each of these types of competition is necessary for proper market entry.
- Distribution Methods
Having an effective distribution chain is important to how profitable a poultry business is. You need to be able to state how your poultry products will be transported or delivered to your clients. There are several channels for distribution. You may either decide to sell these directly to clients or have distributors who do so on behalf of the business. Distribution will include transportation costs which you will need to determine who takes up these costs. This requires an efficient system where you need to supply these products at the right time and ensure your customers do not need to experience a break or delay in supply.
This sub-section under marketing requires the right message to be passed to your target market. Before choosing your methods of advertising, you need to study the market to analyze current advertisement methods through which you will need to choose only the most effective which would be best for your poultry farming business.
- Pricing Structure
Before starting your poultry farming business, you should be able to determine the highest cost a customer is willing to pay for your poultry products and services. This depends on the value of your services. This should be extended to what is provided by your competitors as well as the generally acceptable product quality. This requires you to be able to adjust your pricing to fit perfectly between the lowest price that allows for profitability as well as the highest price customers are willing to pay. By eventually striking a balance, you will have set an acceptable pricing structure for your poultry business.
- Product Packaging and Design
This is essential for poultry egg and meat business growth and attracting customer patronage. Your poultry products should be packaged in such a way that improves its value. One of the easiest ways to attract patronage is proper packaging. This will ensure you don’t have to spend too much time convincing the customer has the product quality will speak for itself.
- Proper Timing of Market Entry
A critical factor to take into consideration when starting a poultry farming business is to choose or wait for the proper time to launch. This requires having an understanding of customer behaviour. To gain knowledge on this, you will need to study or research the general customer behaviour of the poultry market.
Marketing has a lot to do with location. However this may or may not apply for a poultry business. The location selected should be such that supports this type of poultry business. Hence you may want to search around for similar businesses as well as knowing how they have fared and if they are being run well.
- Market Trends
This in a way is similar to proper timing for market entry as you will need to have a good understanding of market dynamics in poultry farming. Certain times may be more profitable than others. You need to factor this into your marketing plan as well as developing effective strategies to surmount any challenges that may arise.
There are several financial records which are needed to prepare a sample business plan on poultry farming. These documents would normally consist of actual as well as estimated financial statements. The financial documents section should consist of the following;
- A Complete Summary of Financial Needs
This enables you to have a clear understanding of all financial requirements for your poultry farm. Also if you are applying for loans from investors, this subsection enables them scan through your needs in order to disclose exactly how much is required for setting up a poultry farm. This explains why the loans are being applied and what these monies will be spent on.
- Uses of Funds Statement
When writing a uses of funds statement, it is necessary to commit yourself to doing a good job. You should be able to have a comprehensive list of necessities the loans will be spent on. There should be a supporting data to back up your claims as well.
- Having a Budget/Cash Flow Statement
The reason for having a sample poultry farm budget in place is to enable your business strike a balance between capital inflows as well as outflows. But how will you know how much a new poultry business makes? In this situation, you will have to work with estimates or projections. A cash flow statement will have to consider how much cash is expected, when it is expected to be received, the percentage of such money to be used for expenses as well as when cash is needed to be spent on payment of debts and bills.
- Having a three-year Income Projection
A three year income projection is mostly used by farming businesses to provide an income an deductible expenses projection. The lender’s requirement may have to be sought in preparing this projection as such a lender may prefer a shorter time-frame-say monthly, rather than a yearly interval.
This section handles everything to do with records that are relevant to a sample business plan for poultry farm. These supporting documents provide proof/backup for any claims made in the other sections of your business plan. Therefore regarding equipment that will be required for your poultry farm, the investor will have to be presented with available lease contracts or purchasing agreements entered into with suppliers among several other similar proofs.
Wherever supporting documents are listed within a business plan for poultry farming, this is where they would be attached. Hence it will be necessary that you have comprehensive list of these documents arranged in such a way that the reader or investor is able to easily compare to verify the claims made. So what are these documents you need to include anyway? These consist of the following;
- Personal Resumes
Based on the business structure you choose for your poultry farming business, you will have to present resumes that the management staff. For instance if you are running a sole proprietorship business, you need to attach your resume to the supporting documents section of your business plan. The same applies for partnerships. The resumes of each partner will need to be attached. The procedure for corporations follows the same process.
The contents of your resume are expected to include your educational background which should include the list of schools attended as well as dates area of specialization, and degrees earned. It is important that personal skills should be included in the resume. The most common of these includes organizational skills among several. Your work history should include your previous employers as well as time spent in your previous organizations. Relevant professional affiliations and honours should also be included in the resume.
- Personal Financial Statements
This is needed to have a net-worth estimation. It includes details such as your personal assets as well as liabilities, credit worthiness/ratings. All assets as well as liabilities should be carefully listed as well. The personal financial statement includes basics such as the credit reports that that looks into your personal as well as business credit ratings. In order to obtain a credit rating, you can request this from your bank as well as any institutions you’ve had previous significant financial dealings with either in the present or in the past.
- Legal Documentation
These documents are of utmost importance to the success of a poultry farm. Setting up a poultry farm will involve several legal documentations such as insurance covers, the legal structure of the poultry farming business, that is the articles of incorporation, partnership agreements entered into as well as those of properties.
- Miscellaneous Documentation
Miscellaneous documentations have to do with the inclusion of any other relevant documents apart from those stated above. Other documents may include maps, as well as other records relating to your purchase or choice of a particular location. It is necessary to note that not all of these documents will accompany all copies of your business plan (you are required to have several copies). Only the most relevant of these documents should be included in these copies.
While you may not need to attach every document in all copies of your poultry business plan, it is important to have these ready at all times as the investor will likely request for more perspective and understanding.
Wrapping it All Up
After having included all the above steps in your business plan, you carefully go through the plan to correct any mistakes, especially those which have to do with numbers. This document should have a cover. In most cases, spiral binding is used. The length of your poultry business plan matters. As earlier advised, you should be as clear as possible and should drop any form of ambiguity in your explanations. The lender or investor should be able to get the message without having to sift through tons of papers.
Download Poultry Farming Business Plan Template for 2400 Layers Production
Ideally, the pages of your poultry farming business plan should fall within the range of 30 to 40 pages max. Although your plan should be as simple as possible, it should be presentable, neat and orderly. It should also have a table of contents where the reader will be able to jump to an area of interest to gain better knowledge of what is contained. Having no table of contents will be similar to navigating through a thick forest without a map or compass.
While it is alright to approach several lenders, you have to know that not all of these will approve of your business. You may have to approach multiple lenders due to this fact. The number of copies to be printed will depend on the number of lenders you plan on approaching. You should try as much as possible to do a good job at writing your plan as this will form the first impression about your poultry business. The better you write your poultry business plan, the higher the chances of getting the funding required.
I hope you find this sample business plan for poultry production useful to developing one for your big and small farming businesses.
SAMPLE PRODUCTION POULTRY BUSINESS PLAN TEMPLATE TO SET UP A CHICKEN FARM
- Executive Summary
- Business Overview
- Vision Statement
- Mission Statement
- Marketing Strategy
- Business Requirements
- Cash Flow Analysis
Poultry farming business is a business that has to do with the production of eggs through raising of poultry birds. Poultry business is one broad industry that has many sectors and subsectors under it. The areas in poultry business that investors can tap into are: rearing of birds, hatchery business, egg selling, production and distribution of drugs, vaccines, supplements, poultry feeds, and equipment.
The business will be focusing on egg production so as to avoid overcrowding of ideas with limited resources for the main time. Meaning that in the future, Goody Poultry Farm might decide to bring in more ideas.
It is expected that in the first year of production, the farm should be able to produce about 60 crates of egg daily and generate more than 1 million as revenue. Spent layers should be sold at the end of a year of laying and the money should be used in getting replacement birds.
The business has decided to collaborate with experts and investors because the business basically involves bringing together all available industrial facilities which a single business might not be able to provide.
The most popular form of poultry farming business is egg production because egg consumption cuts across all nations. Poultry farming production comes in various forms; we have the parent stock breeder meat, quail production, turkey production, egg production, turkey, ostrich, duck, geese and so many other forms of farming.
Because of these various forms, it is advisable to focus on one aspect and then add other aspects with time. This is one industry with great potential.
The main things that serve as hindrances in this industry are: high interest rate, lack of electricity, absence of credit, high cost of products and so on. Presently, the demand for eggs, broiler meat and chicks remain very high.
The vision statement of Goody Poultry Farm is to ensure the production of good and nutritious eggs, create employment opportunities and create wealth for investors.
The mission of this farming business is to build an efficient mechanized poultry farm that is rewarding at the same time. We are looking at a successful poultry farm that is highly developed and maintained.
Goody Poultry farm will as a marketing strategy employ a marketer at full capacity, the marketer will be employed to sell the eggs produced in the farm from one egg depot to another. Through this marketing activity, many clientele base will be created.
To make the marketing easier and more efficient, we will allocate date for all our customers so each customer will have a day when they will be supplied eggs either by picking up the eggs or have it delivered to them at a price.
Also, adverts will be placed on several online media which will also serve as a form of marketing.
The egg production business will be needing several equipment and tools for the smooth management of the business and they include:
- A shop in town will be needed to serve as the ware house and egg depot, this helps in reducing the number of people who goes to the farm which in turn reduces the risk of break of security and bio-security.
- Semi-automatic battery cages of good quality will be purchased and installed for the birds.
- Other major equipment needed for the business are: feed (grower mash and layer mash), point of lay, different medications and vaccinations.
CASH FLOW ANALYSIS
The market has been surveyed to determine the cash flow level of the industry. This helps in knowing if the poultry business is worthwhile or not. Analysis has shown that positive net cash balances are realized at the end of the second year the chicken farm started and this indicates profitability in the industry.
Also, no reasonable profit is visible in the first year of the business as a result of the huge investment cost but thereafter, the poultry farm will record reasonable profits.
Please share this sample poultry business plan with others, thanks.