What is a business plan?
A business plan is a document that summarizes the operational and financial objectives of a business and contains the detailed plans and budgets showing how the objectives are to be realized.
Your business plan should consist of five main areas:
Your strategic focus (your niche, or core business)
The marketing plan
The operations plan
The staffing plan.
The financial plan
The marketing plan content:
Questions to ask:
sales forecast – How much will I sell? For example: how much will I sell my chickens for?
A client profile – Who will buy my product? For example: Who is going to buy from my poultry farm?
A competitor profile-Who are my direct competitors, what substitutes are there in the market? For example: If I am planning to sell to my community, where are they currently buying chickens from?
A product profile – What is the core product and what are the extra features? For example: Are you selling one day old chicks to other poultry farmers or are you selling fully grown chickens to the community?
A distribution strategy – Is location important, will I deliver? For example: If I will be selling chickens to a local abattoir, do I have transport to take the chickens from my farm to the buyer?
A pricing strategy – what will people be prepared to pay? How much can I expect to sell at that price? Will this cover my direct costs plus overheads? For example: If I sell one chicken for R79.00, will this amount cover my expenses and also ensure that I get profit?
A promotional strategy – how will I create awareness of and demand for my product? For example: How will I market my poultry farm to the local abattoirs and my community?
The Operational plan content:
What are the implements, equipment that the farm needs in order to produce the product that we are farming? For example: If I am starting a poultry farm to grow broiler chickens, how many feeders do I need per coop?
What vaccines or pesticides or herbicides the farm needs per month? For example: How many vaccine shots do I need for per coop?
Will there be any variation in demand and how will this affect production? For example: When do my community buy a lot chicken? Which month will have a high demand for chickens?
Who are my suppliers? For example: where will I source day old chicks for my poultry farm?
What kind of facility do I need and where should it be located? For example: What kind of structure do I need for my broiler chickens?
How can I ensure quality and cost control? For example: How do I ensure that all my broiler chickens are of the same size and are free from diseases?
What will my workflow processes and schedules look like? For example: What will be my day to day on my poultry farm?
What will my stock control system look like? For example: How am I going to keep track of the broiler chicks that I have on my farm? How will I ensure that I always have stock to sell?
Next time we will be talking about what to write on your staffing plan and financial plan.