UNIVERSITY FOR DEVELOPMENT STUDIES

(WA CAMPUS)
SCHOOL OF BUSINESS AND LAW

(BA INTEGRATED BUSINESS STUDIES)

FACULTY: SCHOOL OF BUSINESS AND LAW
DEPARTMENT: MANAGEMENT AND ADMINISTRATION
COURSE TITLE: FUNDAMENTALS OF ENTERPRENEURSHIP
COURSE CODE: IBS 112
ID NUMBER: IBS/0088/16
SIGNATURE:……………
DATE:…………………..

ASSIGNMENT
DEVELOP A BUSINESS PLAN
 BUSINESS PLAN
FOR
MARCH, 2016-2021
DAMTSE AND SONS POULTRY FARM LIMITED
PRODUCE AND SELL FRESH MEAT AND EGGS
PREPARED BY
DAMTSE AND SONS
LOCATED AT SAWLA OPPOSITE THE PRIMARY SCHOOL
UPPER WEST REGION

E-MAIL ADDRESS
Holytemple50@outlook.com
Holytemple50@gamil.com
Stephendamtse50@gmail.com

TELEPHONE
+233249894167
EXECUTIVE SUMMARY
The business plan is written by management of Damtse and Sons poultry farm limited registered
business on the establishment of poultry farm that will focus on egg and meat production to serve
schools, hotels, and roadside vendors in the Upper West region in the years to come.
The business will require an initial capital of GHc 225.000 to buy the required resources as
stated in the budget to enable it commence on February, 2016 of which 60% will be provided by
the owners. From the Damtse and Sons field survey it was discovered that there is a supply gay
of about 55% market demand even in Sawla municipality alone.
This made the supply of eggs and meat not fully satisfied to the existing business hence make
people to order it from cape coast and other places at a higher price. The business will be located
at opposite the primary school at Sawla-Upper West. Also current government policy of poultry
import reduction, and the introduction of EDAIF fund to support poultry business makes it more
attractive.
For the start 1000 chicks will be acquired and crate of eggs will be sold at GHc 10 which
contains 36 eggs as compared to the normal package of 30 eggs per crate GHc 14. The business
will use advertisement, sale promotion, and personal selling techniques to create awareness of
product.
From our projection the business will be able to make profit of GHc 310.000 and expected to
increase 25% every year as indicated in our five years projection.
From the projection the business will be able to pay its initial capital in the first year of operation
and will create direct employment for at least 30 people in its first year of operation and expected
to increase in the following years as the company expands.
Investors are assured of at least 40% returns of the total capital employed as shown in the return
on capital employed ratio. The management team is made up of competent, experience and
qualified people with tertiary certificate.
BUSINESS DESCRIPTION
Background
Poultry consumption in Ghana has continued to increase and post forecast Ghana’s total poultry
consumption for MY 2011 at approximately 115000MT, up from 108000MT in MY 2010.
Poultry production in Ghana in 2010 accounted for nearly 90% of consumption while poultry
production accounted for only 10%. The estimated per capital consumption of poultry products
in Ghana is increasing from3.5kg in 2003 to 4kg in 2013 (MOFA 013fact sheet). From a field
survey conducted by the group, we discovered that the demand for is not fully satisfied though
they are already existing poultry farms operating in the Ashanti region but most of the eggs are
provided by organization outside the region. According to the Sawla municipal director of
agriculture the average demand for eggs in Wa alone is 1000 crate a day of which the existing
businesses can only supply 500 crates, it is as a result of this vacuum of supply gap off eggs
discovered from the survey that may the group to come into partner to produce eggs to fill the
gap current and future demand.
The business to be established is a poultry farm that will concentrate on the production of eggs
because of the fund required to commence the business so it will commence as a small business
having the population of Ashanti region as its target market. The business is an entirely new
business to be start from the scratch. The firm will be located at Sawla opposite primary school.
VISION
“To become a highly recognized producer of eggs production in the Ashanti region, a major
performing company of choice in the poultry business in Upper West Region”.
MISSION
 Commitment to high ethical standards
 Remaining a low cost provider with a focus on quality
 Empowering people to contribute to and benefit from success
 Delivering unmatched customer service and promoting strategic alliances
 Discovering new opportunities to add value to our core business
 Discharge our social responsibilities to staff and the community in a proactive manner
OBJECTIVES
Long-term
To satisfy the wants of our target customers in the Upper West region whiles getting at least 60%
of capital employed as profit by 2021.
Short-term
 Achieve sales in year one of GHc 675,000 excluding VAT and a net profit(before tax) of
310,000
 Successfully launch the company in February, 2016
 Get at least 40% of market demand in the Ashanti region
 Extend our business to the nearby regions
 At least break even in our first operation
 Reach the point of sustainable profitability.
 Enjoy work whiles making good living
Damtse and sons poultry farm limited aims at supplying eggs and meat below the average market
price to our target customers thus, schools (boarding), roadside vendors, hotels, and tertiary
students at Ashanti region. The management term will make up of Mr. Richard Entsie, Mr. Ekow
Mfantse, Mr. Obrenpong Damptey, and Mrs. Jennifer Entsie as operation manager, technical
manager, finance officer and marketing manager respectively.
Business environment analysis (present status)
The business consist of the internal and external environment (thus environment are factors or
forces which has the potential to influence and be influenced the organization either negatively
or positively) of which management have detail them was done on the company, customer
market, suppliers, marketing intermediaries, competitors, and the public’s thus the internal
whiles as external analysis was based on the PESTL. Findings from both the micro and macro
environmental analysis are summarized below;
STRENGTHS
 Commitment of staff
 Have highly qualified professional term
 Strategic located business
 Competent sales representatives
WEAKNESS
 Insufficient funds
 Inadequate equipment facilities example vehicle
OPPORTUNITIES
 Availability of demand as demand excess supply
 Availability of financial institutions in the municipal
 Government policy on reduction in poultry importation
THREATS
 Free entry
 Inflation currently at 18%
 Poor rains predicted this year by metrological service of Ghana
PORTFOLIO ANALYSIS
The product of Damtse and Son’s namely fresh meat and eggs will be analyze using Boston
Consulting Group (BCG) Matrix show below;
ANALYSIS OF MARKET AND COMPETITOR
The business segment it target market base on the activities they engage in into the following;
school, hotelier, caterers, roadside vendors, staff of booth private and public institutions. The
business will first for it two years supply school, hotelier, caterers for they all use eggs in its
operation.
The side of the target market can be explain using the table below
Target market Number Average Quantity demands/weeks
Secondary school, boarding 40 40 crates per school
Hoteliers 30 10 crates per hotelier
Roadside vendors 20 5 crates per vendor
Tertiary 8 with target student of 6000 1 crates/5student/month
Total 810 crate per week

There is no much competition in the industry as the existing business are not able to meet the
demand, also giving the strength of our product in providing a forty eight package crate of eggs
at below market price compared to the forty package crate of eggs provided by the competitor.
MARKETING/COMMUNICATION STRATEGIES, SALES PLANS AND PROJECTIONS
The business will use both direct and indirect distribution channel to make it product available to
its target customers. Direct distribution will be made by the company to customers not more than
20km any from the company’s operation center with delivery is being made in every morning
between the hours of 7am to 10am with the exception of Sunday. Whiles indirect channels will
be used to supply our product more than 20km away from the company location involving only
the producer-retailer-target customers.
Below are the sales projection of the business
Target market Number Average Quantity demands/weeks
Secondary school, boarding 40 40 crates per school
Hoteliers 30 10 crates per hotelier
Roadside vendors 20 5 crates per vendor
Tertiary 8 with target student of 6000 1 crates/5student/month
Total 810 crate per week
The company aim at selling at least 800 crates of eggs every week.
OPERATIONAL/ MANUFACTURING PLANS
The typical production cycle lasts about 17month (12 weeks) and involves three distinct phases
as follows;
Phase 1. Small chicks; the phase last from 0-2 months during which small chicks are kept in
facility separated from laying birds.
Phase 2. Growers; this phase last about 3months from the twentieth week of age.
Phase 3. Layers; growers are transfer from their growers house to the layers house when they are
18 weeks old to prepare for the laying cycle.
Phase 4. Collection of eggs; eggs will be collected frequently to prevent layers from brooding it
or trying to eat them and also to prevent the eggs from becoming damaged or dirty.
Below are the major cost elements to be incurred by the business.
Items Total cost (GHc)
Layers 100,000
Equipment 15,000
Labor 36,000
Vaccination 13,000
Housing 15,000
Feeds 16,000
Total projected cost 225,000

TECHNOLOGY, RESEARCH AND DEVELOPMENT

The company will design marketing website which will display its product, enables customers to
place order and make payment through the use of ATMs cards and any electronic system we fine
convenient. Think about the potential here; the teens and the aged are all now on social media
buying things online because they think is now a convenient way to purchase something.
Our next focus will be how layers will lay more eggs than the average to increase production
profit.
MANGEMENT TEAM
Damtse and Sons poultry farm limited will be made up off four managerial team members
namely, the general manager responsible for all the activities of the firm thus providing the
essential resources for effective operation of the business, developing strategic business plan,
and seeing to the work of the sales/marketing department, technical department and also take
administration role. The technical department is responsible for caring the birds to produce
quality eggs and the finance department is responsible for financial records of the day to day
business activities. Damtse and Sons farms is a partnership with Mr. Richard Entsie having 30%,
Mr. Obrenpong Damptey having 25%, Mr. Ekow Mfantse having 35% and Mrs. Jennifer Entsie
having 10%. If a partner cannot perform his duties as expected a person stated in the partnership
deed as next of kin can replace him/her.
 Below is a summary of the management team, qualification and experiences
Name Position Experience Qualification
Mr. Richard Entsie General manager Formal chief administrator Management studies UDS.
for Ghana rubber estate ltd Diploma in integrated business
2000-2007 studies
Mr. Ekow Mfantse Technical manager Formal layers manager at BSC in Animal Science, KNUST
Foso farms
Mr. Obrenpong Sales/Marketing Sales manager at SKD farms BA in marketing, University of
Damptey Ghana
Mrs. Jennifer Entsie Finance manager Financial manager at Talent BA in accounting with finance,
microfinance UDS

FUNDIANG REQUIREMENT AND PROPOSALS

The initial capital of this business is GHc 225,000(working capital) based on the analysis it was
stated that the business owners will pay 60% of the initial capital.
Below are the projected statement of the business;
Projected income statements of the business for the first year
ITEMS AMOUNT(GHc) AMOUNT(GHc)
Sales 325,000
Less return inwards 2,000 323,000
Less cost of sale
Unit to be produce 294,840
Less closing stock 1,890 292,950
Gross profit 30,050
Less expenses
Wages 7,000
Operating expenses 4,000
Selling and distribution 8,400
Bank charges 600 (20,000)
net profit 10,050

Projected financial position

Items Amount (GHc) Amount (GHc)
Non-current assets
Buildings 13654
Equipment 67453 81107
Current assets
Stock 1890
Debtors 53943
Bank 8110
 Cash 90300=154243
Less current liabilities
Creditors 300
Net current assets 153943
Total assets 235050
Capital 225000
Net profit 10050
Total capital 235050

Five years projected declaration

Year 1 Year 2 Year 3 Year 4 Year 5
Sales 323000 374680 426360 478040 529720
Cost of sales (292950) (336982.5) (380835) (415989) (451143)
Gross profit 32050 37697.5 45525 62051 78577
Operating (20000) (22000) (24200) (26136) (28227)
expenses
Net profit 10050 15697.5 21325 35915 50350

Damtse and Sons poultry farms limited expect to increase sales by 16% every year for the first
five years, cost of sales to increase by 15% for the first two years and 12% for the three years by
employing the most effective and efficient production methods and resources.
Profitability ratio
Returns on capital employed=net profit before interest, tax and capital employed
Year 1=100% (10050/235050) =65%
IMPLEMENTATION AND CONTROL
Goals (1)
Officially commence the business in February, 2016
Activities Individuals Timescale(2016) Monitoring and evolution
responsibilities
Setting up committee Three members from 1st April to 5th April
General managers /finance
top to middle level manager
th th
Submitting of budget and The same as the 12 April to 16 April The same as the above
approval above
Implementation budget The same as the 20th April to 23rd The same as the above
above April
Goals (2)
 Expand our business to the nearby regions
 At least break even in our first year operations
 To be unique business among our competitors
 To be the best poultry business in the country.
Contingency Plan
 Insure all of our assets
 Keep at least 20% of cash reserve for unexpected increase in resources
 Keep at least three month stock of all necessary input and two weeks stock of eggs for
constants supply
 Hire a van for the fast distribution of our product.
CONCLUSION
Looking at the above analysis, it reveals that the eggs and meat production project is viable since
profit is projected to increase every year whiles reducing cost of sales and operating expenses.
Moreover, the analysis shows that 65% of the total capital employed will be the returns as profit
and that this business shows that the business is viable and should be supported by any investors.
REFERENCES;
 Acme Consulting Firm, business plan pro sample, 1990-2002 USA
 Glenville Garden Service Business Plan,2008-2009, Glenville Avenue, Wexford, UK
 WWW.Bplans.Com/ Sample_Business_Plans.php. (free business plans samples/ Bplans)
 WWW.Enterpreneurmag.Co.Za/ …Business-Plans. (business plan-step-by-step planning
templates)