Department Of MBA in Business Administration

st nd
1 Year 2 Semester
Course Name: - Entrepreneurship and Enterprise Development
Course Code:-MBA652
Assignment One (01):- Business Plan

By
Tesfaye Ejeta
Id. No. MAO/10285/13

Submitted To: - Dr. Buzuye

April 03/22
Addis Ababa

1
Business Idea: - Poultry Farming

Business Name:-TABES Poultry Farm

Owners’ Name:-

1. Tesfaye Ejeta

2. Abebe Ejeta

3. Bayisa Ejeta

4. Ephrem Ejeta

5. Shiferaw Ejeta

E-mail:- faye.yad@gmail.com

Phone: - +251913140164

Addis Ababa

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 Contents
1. Executive Summary...........................................................................................................................1
2. Description of TABES Poultry Farm...............................................................................................2
2.1. Vision of TABES Poultry Farm..................................................................................................2
2.2. Mission of TABES Poultry Farm................................................................................................2
2.3. Objective of the founders:...........................................................................................................2
2.4. Values And Principles of TABES Poultry Farm.......................................................................2
3. List of Product to be produced..........................................................................................................3
3.1. Equipment and Appliances Required the Business with their costs........................................3
1.1. Assets Involved with its estimated costs.....................................................................................4
1.1. Costs of products..........................................................................................................................5
4) Market Consideration........................................................................................................................5
2.1. Market Risk..................................................................................................................................6
1.1. Strength.........................................................................................................................................6
4.3. Weaknesses...................................................................................................................................6
4.4. Opportunity..................................................................................................................................7
4.5. Threats..........................................................................................................................................7
5. Marketing Plan...................................................................................................................................7
5.1. Marketing Promotion Plan..........................................................................................................8
5.1.1. Product..................................................................................................................................8
5.1.2. Promotion.............................................................................................................................8
5.1.3. Pricing...................................................................................................................................9
5.1.4. Packaging..............................................................................................................................9
6. Management And Organization........................................................................................................9
1.1. Responsibilities...........................................................................................................................10
1.1.1. Poultry farm manager/CEO..............................................................................................10
1.1.2. Assistant farm manager.....................................................................................................10
1.1.3. Poultry stock man..............................................................................................................11
1.1.4. Finance manager................................................................................................................11
1.1.5. Sales manager.....................................................................................................................11
1.1.6. Production manager;.........................................................................................................11
1.1.7. Part-time workers/cleaners...............................................................................................12
6.1. Skills and Experience of the Management Team....................................................................12

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 6.2. Technical Specifications and Experiences................................................................................12
6.2.1. Employing Specialized Employees....................................................................................12
6.2.2. Checking the Poultry’s Health Statues and Condition properly and timely................13
2.2.3. Proper Supply of Vaccine and Medicine..........................................................................13
7. Financial and Economic Plan............................................................................................................14
7.1. Sources of Capital.......................................................................................................................14
7.2. Financial forecast 5000 poultry.................................................................................................14
7.2. Equipment and Assets Management........................................................................................16
7.3. Key Financial Management Controls.......................................................................................16
7.3.1. Bookkeeping and Financial Administration....................................................................16
7.3.2. Importance of Bookkeeping and Financial Administration...........................................16
1. Financial Risk.............................................................................................................................17
2. Human Resource Risk...............................................................................................................17
3. Event Risk or Risk of Disease Outbreaks................................................................................17
5.5. Risk Management and Control.................................................................................................17
c. Financial Risk and Control and Management.........................................................................18
8. Conclusion...........................................................................................................................................19

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1. Executive Summary
Poultry farming in Ethiopia is probably one of the most profitable in the world especially when it
is set up and managed properly. This aspect of livestock farming present one of the finest
opportunity for us as entrepreneurs to make good money in our country within the shortest
period of time possible due to the quick maturity of chickens. Also the important fact I consider
in this business is that food is basic human need and a necessity for human life. In Ethiopia we
have over 115 million people which you will probably find 18.4 million consumers in the
country who buy poultry product on daily basis. Even though some poultry farms exists in Addis
Ababa, poultry product are imported from other parts of the country. This increases the cost of
sales and transportation. Sometimes they find it difficult to meet the consumer’s need.
Considering all these factors, this makes my idea viable and feasible. In the same vain, the
multifaceted business (poultry production and sell) prepare plans, strategies and financial
estimation that shielded the activities of the business from any risk or threat. The business is set
to involve the capital investment of about Birr.29, 591,420.00 including the assets, expenditure
and other expenses involved in running the business and also the reserve capital.

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2. Description of TABES Poultry Farm
The name of our Business will be known TABES Poultry Farm. We creates the names of our
projects by taking the first letter from the name of the founders. TABES is a firm formed by a
family members. This enterprise is designed to produce poultry products; chicken, eggs and the
byproduct that is uses as fertilizers for farmers. The project shall be located in N/S/L/S/C
Woreda 14, local place Qersa Billa. The place has good access roads, Water, vegetables and
found in the center of the sub-city the project considered as the residence of customers. The
project will be starts at the end of years 2022G.C.

2.1. Vision of TABES Poultry Farm

The vision of the project is to be a women and youth empowerment community project that is
renowned for promoting a healthy well balanced eating within the society.

2.2. Mission of TABES Poultry Farm

To contribute towards promoting good health and vitality as well as empowering women and
youth and ultimately adding value to the lives of all the stakeholders of the project

2.3. Objective of the TABES Poultry Farm

The major objective of the founders is reducing poverty, malnutrition and unemployment
problem of our country. Besides, we want to provide quality product to customer and maintain
the supply sufficiently

2.4. Values And Principles of TABES Poultry Farm

Values and principles shall guide the actions of the members of the project and form the very
essence of the culture of the project. They include:

 Respect and value for stakeholders as well as establishing long term value laden
relationships in order to realize mutual growth based upon mutual trust

 The fostering of a corporate culture that enhances individual creativity, innovation and
teamwork

 Integrity, honesty and understanding that success depends upon unswerving adherence to
the standards and principles of the project

 The creation of value for clients by valuing their opinions and ensuring quality poultry
products

 Productivity in terms of being results driven and materializing value added achievements
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  Being efficiency in operations and other areas of the business

 Working together in harmony as a team and cultivating a team spirit oriented business
culture

 Customer centric: this is a core value for the project as it strives to understand the needs
and preferences of its customers and superseding their expectations.

3. List of Product to be produced

First Segment Products
At the first level the business will start by products that include;
a. Eggs
b. Breeding incubated chicken.
After 18 months of commencement, the business will extend its wing to engage in things like;

a. Eggs
b. Chickens
c. Packaging and marketing of a manure as a fertilizer
3.1. Equipment and Appliances Required the Business with their costs
Sr.No Equipment name Quantity Unit Price Total price

1 Chicken feed 150g*5000*12 Birr.0.03 Birr.270,000

2 medicine 1440 Birr.12 Birr17,280

3 Feeder 150 Birr.300 Birr.45,000

4 Drinker 150 Birr. 300 Birr.45,000

5 Plastic Egg tray 200 Birr.100 Birr.20,000

6 Lighting system - - Birr.200,000

7 Wheelbarrows 20 Birr.320 Birr.6,400

8 Incubator 1 Birr.80,000 Birr.80,000

9 Manure Cleaning 10 Birr.2500 Birr.25,000

10 Cleaning tools 100 Birr.300 Birr.30,000

Grand Total Birr.738,680

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 1.1. Assets Involved with its estimated costs
Sr.No. Asset name Quantity Unit Price Total price

1 Chicken 5000 Birr.300 Birr.1,500,000

2 Land 40m*40m Birr.10,000 Birr.8,000,000

Fencing materials Birr.2,171,000

 Fencing (RHS) (100*100*4mm) 160pcs Birr.10,000 Birr.1,600,000

 Cement 20 quintal Birr.1,200 Birr.24,000

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 G28 Corrugated Galvanized Iron Sheet 250 Birr.1,300 Birr.325,000
2
 Gravel (02) 1160m Birr.1,200 Birr.192,000

 Nails 100kg Birr.300 Birr.30,000

5 Truck 1 Birr.5,000,000 Birr.5,000,000

6 Minibus 1 Birr.2,000,000 Birr.2,000,000

Poultry house 1 Birr.1,089,500

 RHS 100*100*4mm 20 Birr.10,000 Birr.200,000

 G28 Corrugated Galvanized Iron Sheet 75 Birr.1,300 Birr.97,500

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Cement 100quintal Birr.1,200 Birr.120,000
2
Gravel 160m Birr.1,2000 Birr192,000

Ceramic 40*40*9mm 800 Birr.600 Birr.480,000

Store Birr.331,600

RHS 100*100*4mm 16 Birr.10000 Birr.160,000

8 G28 Corrugated Galvanized Iron Sheet 84 Birr.1,300 Birr.109,200

Cement 20quintal Birr.1,200 Birr.24,000

2
Gravel 02 32m Birr.1,200 Birr.38,400

9 Marketing office 1(Rental) Birr.60,000 Birr.720,000

10 Office building Birr.1,558,400

Reinforcement Bar 12mm 10000kg Birr.120 Birr.1,200,000

Hollow Cement Block (HCB): 20cm thick 500 Birr.200 Birr.100,000

G28 Corrugated Galvanized Iron Sheet 100 Birr.1300 Birr.130,000

Cement 100quintal Birr.1200 Birr.120,000

2
Gravel 02 32m Birr.1200 Birr.38,400

11 Employee salary+ retirement 8 Birr.13220 Birr.1,269,120

12 Contract employee salary 4 Birr.4,440 Birr.213,120

For contractor and loading Birr.5,000,000

Grand Total Birr.28,852,740

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 1.1. Costs of products
Sr.No. Items Unit cost Profit margin Total price Selling price

1 Egg Birr.5.30 Birr.1.50 Birr.6.80 Birr.8.00

2 Chicken Birr.80.00 Birr.16.00 Birr.96.00 Birr.110.40

3 Cull hen Birr.184.80 Birr.70.00 Birr.254.80 Birr.293.02

4 Manure Birr.50.00 Birr.70.00 Birr.120.00 Birr.120.00

5 Layer hen Birr.190.00 Birr.100.00 Birr.290.00 Birr.330.50

4) Market Consideration
Any production industry, whether it is a small or large scale finally fed-up with the market.
Market is a medium that allows the buyers and sellers to interact in order to facilitate exchange,
is the target point of any producer. TABES poultry farming is not an exception. Some factors I
take into consideration in regard to where I intend to sell the products. The proximity of market,
in relation to other factors of production was put in place. The following are factors I consider in
relation to the market of my products. Thus;

i. The location of the business: the business main unit will be located in Woreda 14,
that’s at the center of the sub city. The location significantly makes the business near
its first target market.
ii. Current and potential demand: the residents of Addis Ababa are in high demand of
poultry product especially eggs. In addition the existing restaurants, student center,
tea and bread vendors and drinking joints are also demanding and consuming our
products. Furthermore, the rapid increase population migration the city is a gift that
will support the future development of the business.
iii. Societal characteristics or culture: the religions, the beliefs, the norms and all ethical
phenomena of the immediate community, secondary community and the tertiary
community do not prohibit or exempt people from eating poultry products, rather it
even encourage-our products to be consumed by all and sundry.

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 2.1. Market Risk
There is a potential market risk in terms of competition from well-established poultry farms and
suppliers around the city. TABES poultry will have to compete for market share with these
established businesses. To mitigate this, the business will focus on a specific market segment and
strive to understand the customers better than the competitors.

1.1. Strength

 The shared values of the project members with particular reference to teamwork,
commitment and perseverance

 The strong participative and democratic style of leadership demonstrated by the members of
the project

 Produce high-quality eggs enriched with protein

 Relatively good infrastructure systems

 Eggs and chicken are not seasonal products and can be eaten at any time of the year

 In this area, the poultry business hasn’t been over-exploited

 Poultry are environmentally friendly

4.3. Weaknesses

 The lack of advanced financial management skills

 The lack of a comprehensive understanding of the strategic planning framework

 Lack of trained human resource in the field of poultry farming and livestock disease
prevention and control

 The lack of a comprehensive marketing strategy and plan

 Capital intensive. Starting a poultry business requires a large capital funding.

 Outbreak of disease can ruin entire business in a go

 The smell can be quite disturbing

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 4.4. Opportunity

 Expansion into large scale production of byproducts(fertilizer)

A large and successful poultry will ensure food security

4.5. Threats

 Compliant from the neighbor on Suffocations of manure

 The threat from well-established competitors

 The threat from rising electricity costs.

 Indirect competition from distant emerging commercial and subsistence farmers and
other small players in the industry

 The threat from suppliers – in the case of feed, there is a threat of rising feed costs

 The threat from substitutes or alternative protein rich food

5. Marketing Plan

The poultry farms average client will be:-

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  Hotels

 Restaurants

 Super markets

 Mini markets

 Farmers market

 Chicken distributor are in the business’ focus audience.

5.1. Marketing Promotion Plan

The marketing efforts will focus on identifying and understanding the ever changing needs and
preferences of the customers in order to satisfy them. The marketing mix will drive the customer
value proposition of the project. The following is an account on the product, promotion; place
and packaging that will be applied to the selected market segment.

5.1.1. Product
The main products of the project shall be the eggs produced by the layer birds. The project will
strive to improve the quality of the eggs produced and sold by providing the right nutrition and
environment condition for the layers. Other products to be sold by the project will include the
manure resulting from chicken droppings. Manure is a desirable fertilizer that is highly sought-
after by farmers and it can replace the CH4N2O. Additionally, the project will sell layers (cull
hens) that become unproductive (around 70 -110 weeks). Cull hens are considered to be a
delicacy for most consumers and as such, the business will be in position to sell these at lucrative
prices.

5.1.2. Promotion
TABES Poultry farm will use a combination of push and pull strategies to create awareness for
the business and appraise leads and sales. Communication will essentially be directed to small
and medium sized entities such as lodges, bed and breakfasts and lodges. The target consumers
will ideally pull the product through the distribution channel forcing the wholesalers and retailers
to stock the products of the project. The marketing efforts of the business will be designed such
that they create attention, interest, desire and ultimately cause the target audience to take action

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by purchasing the products of the business. The project will make use of the marketing and
distribution officer so as to ensure that the promotion efforts are well executed. The marketing
officer will also assist the business in establishing a brand for the business. Branding will also
assist in terms of positioning or creating a picture in the minds of the consumers about the
project and the products it provides.

5.1.3. Pricing
The business will make use of accounting and costing systems to determine the unit cost of the
eggs. This way of pricing is justified as the business needs to sell at a price higher than the cost
per unit and essentially cover other related costs and expenses. It will be important for the
project to monitor the costs such as feed, vaccines, labour and other direct cost as these can be 60
– 70% of the cost of goods sold. TABES will also monitor the prices of its competitors so as to
promote competitiveness.

5.1.4. Packaging
The egg products of the project will be packaged in paper egg trays and neatly sealed with a
protective plastic covering. The plastic covering will bear the name of the project or brand name
as well as a catchy phrase.

6. Management And Organization

Management team is a team of individuals at highest level of organization management who
have the day- to- day responsibilities of managing an industry, company or cooperation. These
poultry farm management teams are individuals who are responsible for day- to- day running of
the farm which include monitoring the welfare of feeding them and ensuring they are in good
health.

The key management team are as follows;

1) Poultry farm manager (CEO)

2) Assistant farm manager
3) Poultry stock man
4) Finance manager
5) sales manager
6) Production manager

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 7) Part timer workers/cleaners.

1.1. Responsibilities

1.1.1. Poultry farm manager/CEO

The farm manager is responsible for planning, organizing and managing the activities of the
farm.

Duties;

 Planning finance and production to maintain farm process against budgets and
parameters.
 Planning activities for trainee staff, mentoring and monitoring them.

1.1.2. Assistant farm manager

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The assistant farm manager will responsible for the management of the poultry farm. This will
means responsibility for health, welfare and the performance of the poultry unit.

1.1.3. Poultry stock man

Stock man is responsible for supporting the husbandry of the farm’s birds. This will include
insuring they are fed, watered and locked after feeding in other to meet health and welfare
requirement as well as growth targets for birds bred for meat, or egg production for layers.

It is the duty of stock man to ensure the health status of the chickens in other to enhance a good a
product.

1.1.4. Finance manager

The Finance manage the key account head office, on farm and steering communities were
required. He develops and implements sales and marketing plans and meet sales target, handle
negotiation at higher level with head office and technical nutritionist. The account manager
identifies and develops business opportunities in existing channel patents, increase sales in a
manner consistent with company policy and goals.

1.1.5. Sales manager

Sales managers manage and assign territory of product line to maximize sales revenue and meet
cooperate objectives, review sales progress, and develop specific plans activities to ensure
revenue growth.

Some duties of the sales manager include

 He is in charge of calling customers.

 Maintenance and extension of sales territory.
 Increasing sales line, image, and building and developing product knowledge.
1.1.6. Production manager;

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The production manager is responsible for managing the production, operating to ensure that the
achievement of production target within the specialized quality, environmental standard and
budget.

 It is his duty to manage the production team.

 Adherence to plan.
 Adherence to site and business protocols.

1.1.7.Part-time workers/cleaners
Part-time workers are workers who work time to time not regularly. They also take part in cleaning to
ensure that the farm is clean and to prevent and check farm products from contacting diseases.

6.1. Skills and Experience of the Management Team

The management team will be individuals of high skills due to undergoing training on how to handle the
business, to ensure the progress of the business by minimizing cost and maximizing profit. They will be
also individuals, who have experience because they may have been engaged in the business several time
before they have experience of how to run the business and prevent the farm from uncontrollable factor
which may do harm and affect the progress of the business.

6.2. Technical Specifications and Experiences

Poultry farming industry is covered by hazards; risk and disease outbreak which if not handled properly
brings dangers and threats to not only the laborers in the industry but to the whole community. With the
high growing danger of bird flu epidemic condition, all over the world and global concern about food
related diseases of humans, it is a must to establish a decent poultry farm that will be free from any
intimidation to health.

So, Tehi poultry farm has designed some pre-causative strategies that will serve as a shield that prevents
or set the farm under the reliable protection against any threat of public health. The key points
competently planned are as follows;

 Employing specialized skilled employees

 Good management
 Checking The poultry health status properly and timely
 Proper supply of vaccines and medicines

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 6.2.1.Employing Specialized Employees
The labor force of any business, industry/organization has a great impact on the operations of that very
business and it is one of the factors that occur within the organization internal controllable factors.

This great poultry farming industry and business organization has set a plan in which specialized and
skilled managers and other workers will be employed.

One of them is Mr. Ayele Abebe who is a degree holder and studied Veterinary medicine in Ambo
University. Mr. Ayele is planned to be head of management team.

Other employees and their specialization details are outlined below;

1) Mr.Mokonin Abebe-------degree in Accounting and Finance

2) Ms. Emabet Mengistu ---degree in Biology and Accounting and Finance
3) Mr. Asrat Mokonin----degree in agricultural science (domestic livestock)
4) Ms. Ayinalem Mammuye -------------------------Degree in Marketing
5) Mr. Damisew Taye---------------------------------Degree in management
Each of the above including Mr. Ayele has 2-8 years of cognitive working experience. And they all
agreed and accept our invitation to and pledge to work faithfully and excellently. Mr. Ayele can be able to
manage or lead the management team to manage the farm well. Because he possessed the skills,
knowledge and the working experience of 8 years.

6.2.2. Checking the Poultry’s Health Statues and Condition properly and timely
The management team will be inspecting the health status of the poultry at all times since good
health of the birds means more profit and fewer losses.

2.2.3. Proper Supply of Vaccine and Medicine

Vaccine is a preventive medicine which stimulates the feathers and other body parts of an animal
(bird specifically) which can promote the immune and resistance system to protect against a
particular disease or parasite. In this business, lives vaccine –usually given in the drinking water.
By aerosol spray or injection and inactivated vaccines-usually giving by uninterruptable given to
the chickens by the specialized workers in charge. Other antibiotics or synthetic chemicals are
given in water or feed. Medicines will be administered accordingly if it happens to be an
outbreak of disease. The order of the vaccines and medicines will be in anticipation to be
catastrophe. Moreover, the medicines to be ordered must come with detailed manufacturers
instruction and how to use them. Extensive test will be performed to make sure that no harmful

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residues’ of the medicine remain in the poultry meat or eggs-Mel-maximum residue limit must
be calculated in order to guarantee the withdrawal period for each product. In the slaughter
house, the inspectors will examine all chickens intended for human consumption for evidence of
disease or injury.

7. Financial and Economic Plan

7.1. Sources of Capital
The business will source its capital through;

i. Bank loan; The loan from the Oromia Cooperative Bank will be 50% of the capital
which is about Birr.14,795,710.00

ii. Contribution from partners; since the business is a group entrepreneurship oriented
business; the partners will contribute about 10% each which is around Birr .3,000,000

iii. The investment starts returning on investment after two years of production as shown
on cash flow table blow.

7.2. Financial forecast 5000 poultry

Let say from 5000 layers 4500 layers can lay the eggs daily =4500 eggs per day and
assuming that there is no price change over the considered years;

th st nd rd th th th th
No. Revenue 0 year 1 year 2 year 3 year 4 year 5 year 6 year 7 year

1 Egg sales 0.00 6,240,000 7,860,000 9,480,000 11,720,000 12,960,000 19,200,000 19,200,000

2 Chicken sales 0.00 33,000 165,000 165,000 132,000 165,000 165,000 165,000

3 Manure sales 0.00 0.00 6,000 12,000 18,000 24,000 24,000 24,000

4 Cull hen 0.00 0.00 7,325.50 14,651 21,976.50 29,302 29,302 29,302

5 Layer 0.00 0.00 49,575 99,150 148,725 198,300 198,300 198,300

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Total sales 0.00 6,273,000 8,087,900.50 9,773,801 13,073,701.50 13,376,602 19,616,602 19,616,602

th st nd rd th th th th
No. Investment 0 year 1 year 2 year 3 year 4 year 5 year 6 year 7 year

1 Poultry 0.00 0.00 0.00 0.00 0.00 0.00 0.00

house 1,089,500

2 Land 8,000,000 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Building 1,890,000 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 Fence 2,171,000 0.00 0.00 0.00 0.00 0.00 0.00 0.00

5 Office rental 0.00 720,0000 720,0000 720,0000 720,0000 720,0000 720,0000 720,0000

6 Equipment 451,400 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Car 0.00 7,000,000 0.00 0.00 0.00 0.00 0.00 0.00

purchase

8 Hen 0.00 1,500,000 0.00 0.00 0.00 0.00 0.00 0.00

purchase

Total investment 13,601,900 9,220,000 720,0000 720,0000 720,0000 720,0000 720,000 720,00

No. Operation cost 0th year 1st year 2nd year 3rd year 4th year 5th year

1 Medicine cost 0.00 17,280 17,280 17,280 17,280 17,280 17,280 17,280

2 Wages 0.00 6,482,240 6,482,240 6,482,240 6,482,240 6,482,240 6,482,240 6,482,240

3 Feed cost 0.00 270,000 270,000 270,000 270,000 270,000 270,000 270,000

4 Loan payment 0.00 4,508,565.48 4,508,565.48 4,508,565.48 4,508,565.48 4,508,565.48 4,508,565.48 4,508,565.48

5 Utility expense 0.00 500,000 500,000 500,000 500,000 500,000 500,000 500,000

6 Overhead cost 0.00 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total Costs 0.00 12,778,085.48 12,778,085.48 12,778,085.48 12,778,085.48 12,778,085.48 12,778,085.48 12,778,085.48

Grand total cost 13,601,900 21,998,085.48 12,778,085.48 12,778,085.48 12,778,085.48 12,778,085.48 12,778,085.48 12,778,085.48

Profit/loss (13,601,900) (15,725,085.48) (4,690,184.98) (3,004,284.48) 295,616.02 598,516.52

15
 7.3. Financial summaries of TABES Poultry Farm S.C

7.3.1. Balance sheet

th st nd rd th th th th
Assets 0 year 1 year 2 year 3 year 4 year 5 year 6 year 7 year

Cash 15,989,520 764,394.52 (4,146,790.46) (7371074.90) (7,295,459.27) (6,916,942.75)

Equipment 451,400 451,400 451,400 451,400 451,400 451,400 451,400 451,400

House& land 13,150,500 13,150,500 13,150,500 13,150,500 13,150,500 13,150,500 13,150,500 13,150,500

property - 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000

Total 29,591,420 22,866,294.52 17,955,109.54 14,730,825.10 14,806,440.75 15,184,958.32

Liabilities

A/P 14,795,710 12,790,256.76 10,392,500.43 7,525,699.39 4,098,099.61.89 0.54 0.00 0.00

O/E

Revenue - (4,719,672.24) (7,233,100.89) (7,590584.33) (4,087,368.89) 389274.78

Common 14,795,710 14,795,710 14,795,710 14,795,710 14,795,710 14,795,710 14,795,710 14,795,710

stock

Total 25,591,410 22,866,294.52 17,955,109.54 14,730825.06 15,184958.32

7.2. Equipment and Assets Management

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In order to minimize the risk of damaging and vandalizing the organization owned assets, skills
workers are employed and the following measures will be taking;

1. Washing the equipment and other tools regularly especially after use.

2. Storing them in a shady and dry place.

3. Immediate repairing of the spoiled and shaping them worn ones.

7.3. Key Financial Management Controls

7.3.1. Bookkeeping and Financial Administration
In terms of the bookkeeping and financial administration needs of Tehi poultry farm, the
business needs to keep and maintain bookkeeping and financial administration records as noted
below:

 Records of all sales made

 A record of all the purchases and expenses of the business

 Invoices for all the business purchases and expenses

 Details of any amounts that are taken for personal use by the project owners

 Copies of the bank statement

7.3.2. Importance of Bookkeeping and Financial Administration

The importance of a bookkeeping and financial administration system cannot be overstated. The
key importance of bookkeeping and financial administration is to extract accurate data and
information for the preparation of useful financial statements such as the statement of financial
position, statement of financial performance and cash flow statement, to mention a few
principle ones. a key important reason is the fact that bookkeeping and financial administration
ensures that the managing members have control over the project and that they can assess the
profitability and cash flow situation of the business. Ultimately the managing members shall be
in a position to make decisions on the basis of the reports resulting from bookkeeping and
financial administration.

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 7.4. Risks Analysis
Discussed below are the key risks and issues likely to face TABES poultry farm. An account on
the possible mitigation efforts is also given.

1. Financial Risk
In terms of the financial risk, the inflation may be affect the business and this may cause the
lagging of return on investments

2. Human Resource Risk

The project will require skilled, knowledgeable and competent staff in significant areas such as
business management, financial management, costing, entrepreneurship and technical aspects
relating to raising layers and egg production management. It will be important for the owners,
management and employees to be well trained. Moreover, a loss of key personnel is likely to
affect the business adversely. To mitigate this risk, the business will promote and cultivate a
culture of sharing knowledge and skills amongst the members and employees.

3. Event Risk or Risk of Disease Outbreaks

There is a risk of outbreak of diseases that could adversely affect the products of the project.
When poultry is kept intensively, the risk of disease is very high for the mere reason that the
birds are too close to each other. If proper vaccination programmes are not followed the business
could suffer major financial losses. It is important that a proper vaccination programme is
followed. The vaccination will minimize the threat of diseases. Personnel will ensure that the
birds are monitored for diseases and that the chicken housing are kept clean and secure from
other event risks.

5.5. Risk Management and Control

Poultry farming is surrounded by risks all over which affect both small and large scale operators.
Along this line, we have foreseen, forecast and predict some possibly occurring risk that our
business and or industry may face and we carefully provide matching solutions to the risks and
dangers. The risks might include:

 Personal risks.
 Production risk.
 Financial risk.

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 a. Personal Risks and Control and Management
Personal risks arise from events affecting the personal lives of the farmer and or his partners
which may in turn affect the operation of the business.
In this instance we predict some personal risks (catastrophic events) such as fire, flood or death.
It can also include variation of goals and objectives between the high desk and the low desk.
 In the first instance of fire, flood and death the business organization has planned to
register all its works to the insurance services, in order to minimize or even obliterate
some risks that might be faced in that regard.
 Establishing a common understanding of the business goals among the partners.
b. Production Risk and Control and Management
Many factor from outside of the business environment and from inside are likely to put the
industry and the whole of its productions in risk. Poultry farming has sensitive risks to weather
conditions that are in the farming environment e.g. sunlight, rainfall, humidity, temperature and
others can include insects’ diseases and pests.
 We intend to grow disease resistant varieties of poultry that can absorb and sustain the
shock of infections
 We intend to use preventive means of insect and predators control such as nets to protect
the chickens.
c. Financial Risk and Control and Management
Most risk that are related to finance result from inadequate cash flow to meet obligations which
may in turn cause shut-down of the business. It may be caused by high or mortgage payments
and assets or as a result of personal or production problems.

In order not to fall in trap of financial risk, TABES Poultry Farm plan the following ways:
 Diversification of the business: we planned to engage in different niche of poultry
farming so as to escape the misfortune. When someone have two niche involve, when one
collapsed 50% of the business fail, but if you have ten niche involved and one happen to
have problem, it will be only 10% that will be affected.
 Acquiring tools and equipment of simple cost: due to expensiveness of some equipment,
the business will center on hiring, renting or even with neighboring farms (if exist)
 Nevertheless, we planned not to tie our capital on equipment that will have a low of
usage.
 We plan not to buy things until when the need arise.
 Saving in the bank: since keeping money at home or in business place is so risky we plan
to equipped our business with banking (e-banking in particular). So also, the profit earned
will be saved in the bank where, the interest will be an add-up benefit to our activities.

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 8. Conclusion
From the above business plan it is clear that poultry farming is viable and feasible in Addis
Ababa and it is also beneficial at large in Ethiopia. TABES poultry farm is a family business
formed by Ejeta’s families who contribute equal amount of money including land. We
considered all related risks and their control mechanisms in order to avoid or minimize the risks
occurred during operation. We have deeply analyzed and considered our weakness side, strength,
treat and opportunities in this business area. The investment starts pay backing after four years of
successive operations. We assumed the maximum interest rate of 18% and the government tax is
also included in figure listed in above tables. Generally by assuming all the described treats and
opportunities and by paying bank loans in the first three years of operations; our plan clearly
shows that poultry farming is profitable. The goal of the firm is to have sales amount of birr.
th
12,960,000 at the end of the 5 years of operation.

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