Farmers Agrovet
FARMERS AGROVET Ukulima Bora
P.O BOX 1 ELDORET
TEL: 0700111451
PAPER NAME: BUSINESS PLAN
PRSESENTED TO: KTTC
COURSE: DIPLOMA IN TECHNICAL TEACHER EDUCATION
PRESENTED BY: GROUP TWO MEMBERS
ADMISSION NO:
SUPERVISOR: DR. FLORENCE MBITI
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DECLARATION
We declare that this business plan is our original work presented to Kenya technical teachers
college in the award of advanced diploma in technical teacher education
Name: GROUP 2 - CSCS
NAME ADM NO SIGN DATE
Supervisor
Name:
Sign…………………..
Date;…………………
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DEDICATION
We dedicate this business plan to our family members , friends and trainers for the support ,
encouragement, and inspiration.
Also our regards goes all the group members and class members for their contribution,
dedications towards this business plan and their financial support. We also thank our
Entrepreneurship trainer in specific for her good thoughts and good training on the same.
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ACKNOWLEDGEMENT
I sincerely wish to pass my gratitude to my supervisor for her tireless constructive suggestions to
coming up of this entrepreneur education.
I also extend the gratitude to my beloved parents Mr. and Mrs. Rutofor their moral and financial
support during this period further more I would not forget my dear sisters and friends for their
support
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EXECUTIVE SUMMARY
BUSINESS DESCRIPTION
The kind of business will be a sole proprietorship offering goods and services that promote
agricultural works through farming and livestock keeping.
MARKETING PLAN
This chapter aims at making maximum profit as possible. Targeted customers are individuals,
cooperates and companies. Advertisement will be done by use of sign boards and leaflets placed
at various places especially on outskirts of the town. Market trends and pricing strategies will
depend on production cost, competitors' price and market demand.
ORGANIZATION AND MANAGEMENT PLAN
This chapter describes the organization design of the business. Duties will be broken into
components so that each employee will specialize in the job which he/she has knowledge about it
and delegate to employee by the manager. Salaries and wages will be given to each employee on
monthly basis. Incentives will be provided to motivate the employees. The business will ensure
full compliance with government rules and regulations by obtaining all the necessary licenses
and permits before it commence.
OPERATIONAL/ PRODUCTION PLAN
This chapter describes the products facilities and operation of the business and how it will be
conducted. These include materials required, labour required and production expense.
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FINANCIAL PLAN
The total investment in the business will be Ksh 1,000,000
The finance will be used for settling the following
Renting a workshop within the centre
Equipment and products purchase
License
Salaries and wages
Marketing cost
Other operational cost
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TABLE OF CONTENTS
DECLARATION.........................................................................................................................................i
DEDICATION............................................................................................................................................ii
ACKNOWLEDGEMENT..........................................................................................................................iii
EXECUTIVE SUMMARY........................................................................................................................iv
BUSINESS DESCRIPTION......................................................................................................................iv
ORGANIZATION AND MANAGEMENT PLAN...................................................................................iv
OPERATIONAL/ PRODUCTION PLAN.................................................................................................iv
FINANCIAL PLAN....................................................................................................................................v
CHAPTER ONE..........................................................................................................................................1
1.1BUSINESS NAME
………………………………………………………………………………………………………………
………………..1
1.2 BUSINESS LOCATION AND ADRESS .............................................................................................2
1.3 FORM OF BUSINESS OWNERSHIP..................................................................................................4
1.4 TYPE AND NATURE OF THE BUSINESS.......................................................................................4
1.5PRODUCTS AND SERVICES..............................................................................................................4
1.6 JUSIFICATION OF BUSINESS OPPORTUNITY...............................................................................5
1.7INDUSTRY............................................................................................................................................6
1.8BUSINESS GOALS...............................................................................................................................6
1.9ENTRY AND GROWTH STRATEGY.................................................................................................7
CHAPTER TWO.........................................................................................................................................8
2.1MARKETING OBJECTIVES ..............................................................................................................8
2.2 CUSTOMERS –TARGET ANALYSIS ...............................................................................................8
2.3MARKET SHARE ANALYSIS ............................................................................................................9
2.4 COMPETITION..................................................................................................................................10
2.2.1 SIZE OF COMPETITION................................................................................................................13
2.2.2 OVERALL STRENGHTS AN WEAKNESS OF POTENTIAL COMPETITION..........................13
2.5 PRODUCT AND SERVICES DEVELOPMENT STRATEGY.........................................................13
2.4.1 PROMOTION..................................................................................................................................14
2.7.2 MEANS OF TRANSPORT..............................................................................................................16
2.7.3 ANTICIPATED PROBLEMS IN DISTRIBUTION........................................................................17
2.7.4 HOW TO ANTICIPATE PROBLEMS WILL BE SOLVED...........................................................17
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CHAPTER THREE...................................................................................................................................18
3.1 PEOPLE OBJECTIVES......................................................................................................................18
3.2MANAGEMENT AND CAPACITY..................................................................................................18
3.3 STAFFING..........................................................................................................................................19
3.4 PEOPLE SYTEM ..............................................................................................................................23
3.5LEGAL ASPECT ................................................................................................................................23
3.6 PROFFESSIONAL / EXTERNAL SERVICE....................................................................................24
CHAPTER FOUR.....................................................................................................................................25
4.1 OPERATIONAL OBJECTIVES.........................................................................................................25
4. 2FACILITIES AND CAPACITY..........................................................................................................25
4.3 OPERATION /PRODUCTION STRATEGY......................................................................................26
4.4 OPERATION /PRODUCTION PROCESS........................................................................................27
4.5 REGULATION AFFECTING OPERATIONS...................................................................................29
5.2PRE OPERATIONAL EXPENSES......................................................................................................31
5.4 PROFORMA CASH FLOW STATEMENT.......................................................................................33
5.5 PROFIT AND LOSS INCOME ASSUMPTION ...............................................................................34
5.6 BALANCE SHEET.............................................................................................................................35
PRO FORMA BALANCE SHEET FOR 1st -3rd YEAR FOR FARMERS AGROVET ...........................37
5.8 DESIRED FINANCING ....................................................................................................................39
5.9 PROPOSED CAPITALIZATION ......................................................................................................39
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CHAPTER ONE
BUSINESS DESCRIPTION
1.1 BUSINESS NAME
The business will operate under the name FARMERS AGROVET which will be a sole
proprietorship
The business will deal with sale of all animal feeds, drugs and farm chemicals.
a) BUSINESS LOGO
The business will operate under the following logo.
Farmers Agrovet
B) BUSINESS MOTO
FARMERS AGROVET will be operating under the “Ukulima Bora”
“UKULIMA BORA”
A) VISION
Ensuring quality products at affordable cost.
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1.2 BUSINESS LOCATION AND ADDRESS
a) LOCATION
FARMERS AGROVET will be located at ELDORET town in UASIN – GISHU County it will
be located opposite QuickMatt along Uganda road near Huduma Centre.
FARMERS AGROVET will operate under the address
FARMERS AGROVET
P. O Box 1 Eldoret
Cellphone: 0700111451
e-mail:[email protected]
The proprietor ought to start the business in January 2022. The business will be located at
Eldoret town at central point of the town is also the central point of farmers in Uasin – gishu
county. The aim of the business is to attract customers around the county due to lack of capital
and skills at the rural areas the dwellers and the surrounding will automatically need the products
and services of the new business. The business is located where it is accessible due to good roads
around the town in which they are leading to other towns which are far and expensive to travel
and buy goods.
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The business was attributed after considered factors like-security. The resident has 24 hours
security from administration police who are operating at the town.
Filling KCB Building Quick Matt Posta Offices
UGANDA ROAD
Stage Petrol station
Farmers Agrovet
Infrastructure
The place has electricity and the street is clear and perfect condition
Amenities
The business is situated at the town and the buildings are so attractive and well designated.
Labour
As at ELDORET town is a learning institution thus will recruit qualified personnel who will
work at the business.
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1.3 FORM OF BUSINESS OWNERSHIP
The business will be a sole proprietorship the main reason will be due to job security Decision
making will be effective.
Provision of self-employment all the profit will go to the owner Suggestion will depend upon
competition.
The business will start with a capital of Ksh. 1000,000 shillings the owner will have to borrow
some of the money from the bank relatives and friends and the rest will be personal savings
This is the table of capital breakdown.
The business in future is planned to extend and supply feeds drugs and chemicals to different
part of the country.
DESCRIPTION AMOUNT OF MONEY
Friends and relatives 100000
Own savings 300000
Bank loan 600000
Total 1,000,000
1.4 TYPE AND NATURE OF THE BUSINESS
The business will operate under the name Farmers Agrovet which will be a sole proprietorship.
The name of the business is derived from the clients name which is the word FARMER which is
popular at ELDORET town the business will deal with the selling of varieties of goods like
chemicals drugs accaricide dewormers farm products like maize seeds beans fertilizer chemical
for controlling weeds and all kind of products are used in the farm and farm tools.
1.5PRODUCTS AND SERVICES
a) Overall product and services offered
The business will deal with the selling of varieties of goods and services like chemicals drugs
accaricide dewormers bull ring rubber ring shearing shear farm products like maize seeds beans
fertilizer chemical for controlling weeds and all kind of products are used in the farm.
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b) 1st major product and services
The business will be selling animal drugs like dewormers vaccines and milking sulphur and also
dealing with chemicals like insecticides fungicides and other chemicals that are present at the
market currently.
2nd major product and services
The business also will be selling farm products that are used at to produce goods which are used
as food and also kind of seeds vegetables seeds onions fruits and other varieties of crops the
business will be selling fertilizers in different kinds including these of care and nutritional value
in crops.
3rd major product and services
The businesses will also sell animal feeds and poultry pesticides and parasites all this products
will be of quality and customers will benefit from the products that will be sold at affordable
price and found at the central point
The business will be offering after sell for customers and also awarded in times of promotion
1.6 JUSIFICATION OF BUSINESS OPPORTUNITY
a) SWOT ANALYSIS
Training
After training farmers around to acquire skills and knowledge this will help to promote
development in the area
Education
As the business keeps on expanding the plans of the business give local people chances of
learning how to do oral deworming and vaccination and also how to use farm chemicals and how
to apply and at what time of the day they are suppose to apply The business will also meet the
higher demand of town population who require the service offered at the business
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Employment
The reason for corning up with the business is because it will create employment to the youth
around hence improving their living standards.
Competition
Since competition is inevitable the business will try its best to offer product and services better
than its competitors
The sponsor of the business hopes that return investment will be viable thus giving positive
results the business will provide transport and communication which is accessible
1.7 INDUSTRY
FARMERS AGROVET will deal with selling of animals drugs farm inputs fertilizers seeds and
all kinds of farm and animals products which will be categorized under learning company the
services will be provided mainly from a specific company which supplies high quality products
in the town the company is also had after sell services along the town and outside the town
The company is large enough that is able to supply more products it has a large number of
employees and uses current technology the basic capita of the company is around five million
shillings
1.8 BUSINESS GOALS
SHORT TERM GOALS
i) Through introduction of new products to the market which shall be able to sell and
provide services well and acceptance by the customers
ii) Through promotion of its products and services
iii) The business target is to more an extra 15% profit at the end of every four months
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LONG TERM GOALS
To have branches in all parts of the country
To come up with agriculture training centre to offer help to farmers and to produce professionals
To be a distributer to other agro vets country wide.
1.9ENTRY AND GROWTH STRATEGY
Entry
The business should first acquire license and permits at Ksh. 10,000 from the local authority. An
advertisement fee of Ksh.30, 000 and should advertise in the area through newspapers, posters
local radio station and television on when and to be opened and where the business is located.
The business will offer high quality products at a reasonable price which are cheaper compared
to other competitors who charge high price this will in turn attract many customers. The business
logo is unique and services offered are unique and their respective charges this would help to
utilize the project business and will show the direction of the business Growth strategy.
Uasin Gishu county has got its major economic activity as agriculture and three quarters of its
residents are farmers who are our potential client thereby giving us a direct customer base.
The business will be opportunistic because it will be selling and has advantage due to location as
its located where the economic activity of the residents is farming.
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