BUSINESS PLAN

November 2023

PRIMROSE M
ATTORNEYS

Managing Director: Zethembile Primrose Sithole

cell: 079 619 5441 EMAIL: [email protected]
TABLE OF CONTENTS

1. Executive summary
- Business Overview
- Own Contribution
- Required intervention

2. Relevant legal experience

3. Marketing Strategy
- Competitor Analysis – SWOT
- Marketing Plan

4. Organogram & Human Resource Plan

5. Conclusion
6.
7.

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1. EXECUTIVE SUMMARY

BUSINESS OVERVIEW

We are a passionate and dedicated niche law firm, committed to focusing our
abilities on our clients’ interests. We combine high standards of professionalism with
an understanding of the law in order to offer a highly personalised service to our
clients

Our fields of expertise / services offered include:

 Wills & Trusts;
 Deceased Estates
 Bail Applications
 Civil / Criminal Litigation;
 RAF;
 Ante-nuptial contracts & Post-nuptial contracts;
 Drafting of commercial contracts (Employment contracts, Lease agreements,
Partnership agreements, Sale of movable/immovable property, Sale of
Business)
 and a wide range of general legal services

COMPANY PROFILE

Name of company: Primrose M Attorneys

Year to commence practice: FEBRUARY / MARCH 2024
Company Shareholding: Zethembile Primrose Sithole (Managing Director)
100% Black Female Youth
Level 1 BBBEE company

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OWN CONTRIBUTION:

Primrose M Attorneys plans on bringing the following movable assets to further add
value to operations:

Asset Quantity
Office desks 2

Office chairs 3

Printer (small) 1

Landline 2

Desktop 2

File Cabinet 2

FURTHER REQUIRED CONTRIBUTION:

Primrose M Attorneys will require the intervention of the following further movable
assets to add value to operations:

Asset Quantity
Printer

WIFI

Stationery

Signage

Letter head, business cards

& email signature

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2. RELEVANT LEGAL EXPERIENCE

ZETHEMBILE PRIMROSE SITHOLE

Managing Director

EDUCATIONAL HISTORY
Qualifications:

Secondary Qualification:

Institution: St Dominic’s Academy Newcastle

Year: 2009
Qualification r: Matric certificate (IEB)

Tertiary Qualification:

Institution: University of Witwatersrand

Year: 2017
Qualification: LLB (Honours)

Institution: School for Legal Practice (LSSA) – Practical Legal Training

(PLT)
Year: 2018
Qualification: Certificate of Attendance

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EMPLOYMENT HISTORY
__________________________________________________________________________________

Company : Parther & Pather Attorneys Inc.

Industry : Legal

Period of employment : May 2019 – Oct 2019

Position : Candidate Attorney

Responsibilities :  Legal document drafting

 Client consultation
 Briefing Counsel
 Preparation of court trial documents
 Court attendance (observation)
 Legal business development

Reason for Leaving : Relocation

Company : MHS Attorneys Inc.

Industry : Legal

Period of employment : August 2021 – February 2023

Position : Candidate Attorney

Responsibilities :  Legal document drafting

 Client consultation
 Briefing Counsel
 Preparation of court trial documents
 Court attendance (observation)
 Legal business development

Reason for Leaving : Completion of practical vocational training contract.

3. MARKETING STRATEGY
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COMPETITOR ANALYSIS
The law firm will be based in the area of Ulundi, KZN, the area of which has the
following existing law firms:

1. N.T Sibiya Attorneys

2. Sandile Khumalo Attorneys
3. Phiri Incorporated Attorneys
4. Motha & Associates
5. Thungo Attorneys
6. Cordelia Mculu Attorneys

Based on the competitor firms identified above, the below SWOT analysis has been
formulated:
STRENGTHS:
- The market for law firms in the area is not yet saturated. Although 6 have
been identified, only 2 of the listed firms exercise dominance over the
market.
- Black female youth owned
- Locality of our proposed gives our firm a market advantage for both
working class & walk-in clients. It further makes creates an advantage for
office firm awareness to the public.
- Entry into the market by new law firms is not easy / desirable by aspiring
competitors due to the financial implications of getting a law firm
successfully off the ground.
WEAKNESSES:
- Lack of practice experience as a newly admitted legal practitioner and firm.
- Lack of existing client base.
OPPORTUNITIES:
- Marketing advantage / Business development. Most of the firms listed are
not adequately known to the public, only one of the firms has exercised
effective aggressive marketing. This gives our firm, regardless of it being
new, an opportunity to still effectively capture the market
- Professional service delivery. Research has revealed that even the 2 firms
noted as popularly known to the market, accountability and professional
service delivery to clients is still highly lacking within the area.
- Expanding service & client base into other areas within the province
THREATS:
- Outside competition. Firms from outside the area of business also
compete for business, particularly with Tender jobs.
- New entrants into the market. There is always the threat of new law firms
into the market.
MARKETING PLAN

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1. Community outreach initiatives

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4. ORGANOGRAM & HUMAN RESOURCE PLAN

The allocation and opportunity to lease this farm will facilitate creation of 10 new jobs
according to the production strategy rollout.

Under the leadership of the Directors, there will be a Farm Manager, Feedlot
Supervisor, who will be allocated general workers to run the whole operation of the
project. The organogram will be structured as follows:

DIRECTORS/
GENERAL
General
MANAGERS

Gen

FEEDLOT
FARM MANAGER
SUPERVISOR

4 GENERAL 4 GENERAL
LABOURERS LABOURERS

Duties:

General  Develop general management of the farm

managers:  investigate ways to improve profitability, and analyse markets for
business opportunities,

 Develop and maintain various supply chain plans and strategies.

Farm manager/  Reports to the directors/General Managers
Supervisor:  Looks after the daily routine of the farm operations, supervision
and administration of activities on farm estates

Labourers:  Maintain the quality of farms, crops, and livestock by operating

machinery and doing physical labour under the supervision of
farmers, ranchers, and other agricultural managers.

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9.FINANCIAL PLAN

Sales and Statics

ENTERPRISE: MHOLI AGRICULTURE & MARKETING SERVICES

PRODUCTION YEAR: 2023
BREEDING CAPACITY: 800
PRICE/ QUANTIT TOTAL VALUE PER
ESTIMATED INCOME UNIT UNIT (R) Y FEEDLOT (R)
Gross Income
Sale of finished animals Kg 0.00 0.00 0.00
Sale of weaners Kg 36.00 240,000.00 8,640,000.00
Total Income (A) 8,640,000.00

PRICE/ QUANTIT TOTAL VALUE PER

ESTIMATED COSTS UNIT UNIT (R) Y FEEDLOT (R)
DIRECTLY ALLOCABLE COSTS
Purchase of supplementary feed Head 2,953.00 624.00 1,842,672.00
Feed Ton 3,000.00 576.00 1,728,000.00
Veterinary Costs Head 100.00 1,200.00 120,000.00
TOTAL ALLOCABLE COSTS (B+C) 3,690,672.00

GROSS MARGIN [A- (B+C)] 4,949,328.00

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Financial Projections
Income Statement
INCOME STATEMENT
2023 2024 2025 2026 2027
ITEMS Value (R) Value (R) Value (R) Value (R) Value (R)
GROSS INCOME
Sale of finished animals
Sale of weaners 8,640,000.00 8,640,000.00 8,640,000.00 8,640,000.00 8,640,000.00
Total Gross Income 8,640,000.00 8,640,000.00 8,640,000.00 8,640,000.00 8,640,000.00
LESS: ALLOCABLE COST
Purchase of supplementry feed 1,842,672.00 1,934,805.60 1,963,827.68 1,993,285.10 2,023,184.38

Veterinary Costs 120,000.00 126,000.00 127,890.00 129,808.35 131,755.48

Total Allocable Costs 1,962,672.00 2,060,805.60 2,091,717.68 2,123,093.45 2,154,939.85

Gross Margin 6,677,328.00 6,579,194.40 6,548,282.32 6,516,906.55 6,485,060.15

LESS: OVERHEAD COST
Labourers 580,800.00 609,840.00 640,332.00 672,348.60 705,966.03
Management 360,000.00 378,000.00 396,900.00 416,745.00 437,582.25
Electricity 36,000.00 37,800.00 39,690.00 41,674.50 43,758.23
Fuel and maintenance 24,000.00 25,200.00 26,460.00 27,783.00 29,172.15
Transportation 24,000.00 25,200.00 26,460.00 27,783.00 29,172.15
Office Expenses 6,000.00 6,300.00 6,615.00 6,945.75 7,293.04
Bank Charges 6,000.00 6,300.00 6,615.00 6,945.75 7,293.04
Other Costs 51,840.00 54,432.00 57,153.60 60,011.28 63,011.84
Total Overhead Cost 1,088,640.00 1,143,072.00 1,200,225.60 1,260,236.88 1,323,248.72

NET FARM INCOME 5,588,688.00 5,436,122.40 5,348,056.72 5,256,669.67 5,161,811.43

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 Cash Flow Projections

PERIOD: YEAR 1
CASH FLOW BUDGET
ITEMS MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9 MONTH 10 MONTH 11 MONTH 12 Total
Opening Balance 0.00 -254,276.00 -508,552.00 -762,828.00 -1,017,104.00 -1,271,380.00 -1,525,656.00 -1,779,932.00 -2,034,208.00 -2,288,484.00 -1,822,760.00 -1,357,036.00 -14,622,216.00
Cash Inflow
Weaner sales 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 720,000.00 720,000.00 720,000.00 2,160,000.00

Total Cash Inflow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 720,000.00 720,000.00 720,000.00 2,160,000.00
Cash Outflow
Purchase of supplementry feed 153,556.00 153,556.00 153,556.00 153,556.00 153,556.00 153,556.00 153,556.00 153,556.00 153,556.00 153,556.00 153,556.00 153,556.00 1,842,672.00
Veterinary Costs 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 120,000.00
Management 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 360,000.00
Labourers 48,400.00 48,400.00 48,400.00 48,400.00 48,400.00 48,400.00 48,400.00 48,400.00 48,400.00 48,400.00 48,400.00 48,400.00 580,800.00
Electricity 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 36,000.00
Fuel and maintenance 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00
Transportation 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00
Office Expenses 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00
Bank Charges 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00
Other Costs 4,320.00 4,320.00 4,320.00 4,320.00 4,320.00 4,320.00 4,320.00 4,320.00 4,320.00 4,320.00 4,320.00 4,320.00 51,840.00
Total Cash Outflow 254,276.00 254,276.00 254,276.00 254,276.00 254,276.00 254,276.00 254,276.00 254,276.00 254,276.00 254,276.00 254,276.00 254,276.00 3,051,312.00
Surplus/Deficit -254,276.00 -254,276.00 -254,276.00 -254,276.00 -254,276.00 -254,276.00 -254,276.00 -254,276.00 -254,276.00 465,724.00 465,724.00 465,724.00 -891,312.00
Closing Balance -254,276.00 -508,552.00 -762,828.00 -1,017,104.00 -1,271,380.00 -1,525,656.00 -1,779,932.00 -2,034,208.00 -2,288,484.00 -1,822,760.00 -1,357,036.00 -891,312.00 -15,513,528.00

PERIOD: YEAR 2
CASH FLOW BUDGET
ITEMS MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9 MONTH 10 MONTH 11 MONTH 12
Opening Balance -891,312.00 -396,301.80 98,708.40 593,718.60 1,088,728.80 1,583,739.00 2,078,749.20 2,573,759.40 3,068,769.60 3,563,779.80 4,058,790.00 4,553,800.20
Cash Inflow

Sale of weaners 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00
Total Cash Inflow 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00
Cash Outflow
Purchase of supplementry feed161,233.80 161,233.80 161,233.80 161,233.80 161,233.80 161,233.80 161,233.80 161,233.80 161,233.80 161,233.80 161,233.80 161,233.80
Management
Labourers 50,820.00 50,820.00 50,820.00 50,820.00 50,820.00 50,820.00 50,820.00 50,820.00 50,820.00 50,820.00 50,820.00 50,820.00
Electricity 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00
Fuel and maintenance 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00
Transportation 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00 2,100.00
Office Expenses 525.00 525.00 525.00 525.00 525.00 525.00 525.00 525.00 525.00 525.00 525.00 525.00
Bank Charges 525.00 525.00 525.00 525.00 525.00 525.00 525.00 525.00 525.00 525.00 525.00 525.00
Other Costs 4,536.00 4,536.00 4,536.00 4,536.00 4,536.00 4,536.00 4,536.00 4,536.00 4,536.00 4,536.00 4,536.00 4,536.00
Total Cash Outflow 224,989.80 224,989.80 224,989.80 224,989.80 224,989.80 224,989.80 224,989.80 224,989.80 224,989.80 224,989.80 224,989.80 224,989.80
Surplus/Deficit 495,010.20 495,010.20 495,010.20 495,010.20 495,010.20 495,010.20 495,010.20 495,010.20 495,010.20 495,010.20 495,010.20 495,010.20
Closing Balance -396,301.80 98,708.40 593,718.60 1,088,728.80 1,583,739.00 2,078,749.20 2,573,759.40 3,068,769.60 3,563,779.80 4,058,790.00 4,553,800.20 5,048,810.40

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10.RISK ASSESSMENT AND MITIGATION PLAN

Legislative Framework

The Animal Health Act, 2002

The Animal Health Act, 2002 (Act No. 7 of 2002) was promulgated to provide for
measures to:
 Promote animal health and to control animal diseases,
 Assign executive authority regarding certain provisions of this Act to provinces
 Regulate the import and export of animals,
 Establish animal health schemes and
 Provide for matters connected therewith.
The legislation has relevance to the operation of abattoirs with specific reference to
the identification and disposal of diseased animals that are presented for slaughter.

The National Water Act, 1998 and the Environment Conservation Act, 1989
The National Water Act, 1998 (Act 36 of 1998) defines waste to include any solid
material or material that is suspended, dissolved or transported in water (including
sediment) and which is spilled or deposited on land or into a water resource in such
volume, composition or manner as to cause, or to be reasonably likely to cause, the
water source to be polluted.
The Environment Conservation Act, 1989 (Act 73 of 1989) defines waste as any
matter, whether gaseous, liquid or solid or any combination thereof, which is from
time to time designated by the Minister by notice in the Gazette as any undesirable
or superfluous byproduct, emission, residue or remainder of any process or activity.
Abattoir waste can therefore be defined as waste or wastewater originating from an
abattoir which could consist of the pollutants such as animal waste, blood, fat, animal
trimmings, paunch content and urine.
Abattoir waste could therefore be regulated through either the Environment
Conservation Act, 1989 or the National Water Act, 1998. Water quality protection in
terms of the National Water Act could be achieved via:

13
  Water-use licenses (section 21 (f) for discharges – excepting into sewage
reticulation and 21 (g) for disposal on land),
 Directives in terms of section 19 for preventing and remedying pollution and
section 20 to control emergency incidence involving the spilling of a harmful
substance that could detrimentally affect a water resource.

Animal Health Management

Through health management practice, the project will minimize disease and deaths
to be lower than 2%. Metabolic disorder be could a problem because the projects
uses concentrates as the main feed. Correct feeding will be practiced in order to
prevent such a disorder. Prior to arrival at the feedlot, resistance and immunity
against problem conditions will be maximized through inoculation and vaccination.
The following extra disease prevention measures will be taken depending on the
level of extra risk incurred:

Disease prevention through preconditioning

Prior transportation to feedlot, the farmers shall ensure that the steers are vaccinated
against Bovine Viral Diarrhoea, Infectious Bovine rhinotracheitis (IBR), Bovine
Syncitial Virus and parainfluenza virus (P13), Botulism and Black Quarter.

Disease prevention by buying right calves

Weaning and transportation normally cause stress that can lead to delay in feed
intake. The project should ensure that it acquires steers from the source of known
health status with a supporting health certificate from the veterinarians

Disease prevention through processing

This implies the use of vaccines, among other procedures, to prevent diseases once
animals are in the feedlots. The vaccines that would be used to prevent respiratory
disease includes BVD live strain vaccine like Bovishield 4 or Pyramid 4, Black
quarter, Botulism, Clostridial, and anthrax. In preventing respiratory disease which
are common from autumn to winter such as Pasteurella haemolytica, vaccines like
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Pastvac are recommended. Ectoparacidal preparation should be administered to
calves on arrival to prevent tick borne disease (Heart water, Gall sickness and Red
water) during the feeding period.

Disease prevention by ration management

During the first few days, calves may eat very little in the feedlot, roughage will be
provided ad lib at the adaptation phase and at the finishing phase this should be
reduced to the minimum of 8%. The ration during the adaptation phase, which lasts
up to 2 weeks, should be fortified with vitamin A and E, Se,Cu,Zn and Mn to ensure
sufficient intake of these nutrients. Feed bunk will be constantly filled with ration feed
to prevent steers to stand without feed for longer than an hour which causes
digestive disturbances. Antibiotics (monensin, tylosin) will be included in starter and
finisher rations as a measure to control occurrence of acidosis and bloat.

Disease prevention by environmental control

A conducive environment will be maintained in the pens to minimize stress to the

animals. The following measures will be enforced:

 Pen population control: correct population density should be maintained at all

times
 Dust control: correct population density ensures effective wetting of sanding
surface by steers urine. Too few steers in a pen leads to dusty conditions that
may predispose to a higher incidence of respiratory disease in winter.
 Mud control; Loose, dry material will be removed from the pen surface as
often as possible especially prior to the rainy season, care should be taken
not to disturb the interface layer and exposing the sub soil which may contain
small stones, predisposing calves to foot rot during and shortly after a wet
spell.
 Fly control; Minimizing or eliminating feed wasted as well as collecting manure
into large mounts, will keep fly populations at a minimum. Biting flies may play
a role in the transmission of Anaplasmosis.

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Production Risk Mitigation
Production Risks

Production risks relate to the possibility that yield or output levels will be lower than
projected. Major sources of production risks arise from disease outbreak, adverse
weather conditions that result to increases in feed prices.

Strategies to manage production risks include:

 Following recommended production practices.

 Expand production
 Purchase of insurance coverage to stabilize income during times of loss.
 Adoption risk mitigating practices.
 Maintain equipment and keep facilities in good working condition.

Marketing Risks

Marketing risks relate to the possibility that you will lose the market for your products
or that the price received will be less than expected. Lower sales and prices due to
increased numbers of competing growers or changing consumer preferences are
common sources of marketing risk. Marketing risks can also arise from loss of
market access due to a wholesale buyer or processor relocating or closing, or if a
product fails to meet market standards or packaging requirements.

Strategies to manage marketing risks include:

 Develop a marketing plan with realistic sales forecasts and target prices.
 Form or join a marketing cooperative to enhance prices and guarantee a
market.
 Increase direct marketing efforts to capture a higher price.
 Market through multiple channels or outlets to reduce reliance on a single
market.
 Enter into sales or price contracts with buyers.
 Conduct essential market research - understand your customers’ needs and
preferences.

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Financial Risks

Financial risks relate to not having sufficient cash to meet expected obligations,
generating lower than expected profits, and losing equity in the farm. Sources of
financial risk commonly result from production and marketing risks described earlier.
In addition, financial risks may also be caused by increased input costs, higher
interest rates, excessive borrowing, higher cash demand for family needs, lack of
adequate cash or credit reserves, and unfavourable changes in exchange rates.

Strategies to manage financial risks include:

 Develop a strategic business plan.

 Monitor financial ratios and enterprise benchmarks.
 Control key farm expenses - consider other suppliers and alternative inputs.
 Conduct a trend analysis to assess change in farm profits and owner’s equity
over time.
 Communicate and renegotiate agreements with suppliers
 Consider leasing and rental options rather than purchasing machinery,
equipment.
 Evaluate the possibility of expanding or contracting different enterprises.
 Control or defer unnecessary family and household expenditures.

Legal and Environmental Risks

In part, legal risks relate to fulfilling business agreements and contracts. Failure to
meet these agreements often carry a high cost. Another major source of legal risk is
tort liability - causing injury to another person or property due to negligence.

Lastly, legal risk is closely related to environmental liability and concerns about water
quality, erosion and pesticide use. Strategies to manage legal risks will include:

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  Review business insurance policies and carry sufficient liability
coverage.
 Choose a different business legal structure - a sole proprietorship is
not always best.
 Understand business contracts and agreements - ask questions if
you are unsure.
 Develop good relationships with neighbours and address their
concerns.
 Use good agricultural practices to limit environmental risk.

Human Resource Management Risks

Human resource risks pertain to risks associated with individuals and their
relationships to each other: These relationships include those with family members,
as well as farm employees and customers. Key sources of human resource risk arise
from one of the “three D’s” — divorce, death, or disability. The impact of any of these
events can be devastating to a farm. Human resource risks also include the negative
impacts arising from a lack of people management skills and poor communications.

Strategies to manage human resource risks:

 develop and practice good “people skills” with family members, as well as
employees.
 Provide adequate training for employees - formalized programs may help your
safety record and improve performance.
 Communicate with employees
 Recognize and reward good performance.
 Review wills, trusts, and powers of attorney.
 Initiate business succession planning.
 Consider health and life insurance needs.

Managing risk starts with identifying the most crucial risks you face; understanding
the potential impacts and likelihood of undesirable outcomes; and, identifying and
taking possible steps to mitigate.

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11.CONCLUSION

Mholi Agriculture & Marketing Services would greatly benefit from the opportunity to
lease farm WITKLIP situated in the Babanango area. The company has shown great
strides in the upkeep and maintenance of the farm during the current holder’s term
as caretaker.

It would be a huge opportunity for the company to continue to demonstrate its

capabilities on a long-term basis, by being afforded an opportunity to officially lease
the farm.

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