Business Plan for Chicken Village Inc. - Agriculture Finance

This report contains a business plan for a poultry farming business. Poultry farming basically deals with the process of raising domestic birds such as chickens, turkey and ducks. The report contains a whole planning for the business including its description, form of ownership, targeted customer, objectives, SWOT, financial plan and many more.

RUNNING HEAD: AGRICULTURE FINANCE
business plan
Chicken Village Inc.

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Contents
Introduction...........................................................................................................................................2
Name of Business:.................................................................................................................................2
Description of the Business...................................................................................................................2
Form of Business Ownership.................................................................................................................2
Target Customer....................................................................................................................................2
Competitive Advantage.........................................................................................................................3
Business Goals – Short term..................................................................................................................3
Business Goals – Long term..................................................................................................................3
SWOT Analysis.....................................................................................................................................4
Marketing Plan......................................................................................................................................4
Management Structure...........................................................................................................................5
Employees.............................................................................................................................................5
Compensation........................................................................................................................................6
Information Technology Resources.......................................................................................................6
Agricultural Equipment.........................................................................................................................6
Agricultural Services.............................................................................................................................6
Cost of Doing Business:........................................................................................................................6
Projected Revenue.................................................................................................................................7
Income Statement and Balance Sheet....................................................................................................7
Financing.............................................................................................................................................11
References...........................................................................................................................................12

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Introduction
This report contains a business plan for a poultry farming business. Poultry farming basically
deals with the process of raising domestic birds such as chickens, turkey and ducks. The
report contains a whole planning for the business including its description, form of
ownership, targeted customer, objectives, SWOT, financial plan and many more.
Name of Business:
The name of the business is Chicken Village Inc.
Description of the Business
The business deals with the poultry farming practices such as raising chickens, geese, and
ducks for the purpose of farming meat and eggs for food. The main business of the company
is chicken breeding as it mostly deals with raising chickens as a source of food, for both their
eggs and meat. The mission and vision of the business is to become the recognized leader in
its respective industry for income of poultry and egg. The main income of the business
derives from the sales of chicken to the various slaughterhouses and sale of meat and eggs to
the targeted customers.
Form of Business Ownership
Initially, the business will be a nonprofit organization so that it can get the full government
support. Later on, it will turn into a public company having more employees and high
turnover ratio.
Target Customer
The targeted segment for the business will be those people who are non-vegetarian and who
consumes eggs and meat on frequent and daily basis. These customers generally include
children and the young people who are more attracted towards having variety of dishes made
up of chicken and eggs. Apart from them, several slaughterhouses, chicken distributor or
farmer’s market will be the client profile for the business.

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Competitive Advantage
The main competitive advantage of the business is using high technology for the purpose of
breeding the chickens. It will result in keeping them healthy and increasing the after product
quality. Various biosecurity measures will be put in place to prevent the chickens from the
disease outbreaks. Another competitive advantage is that the prices will be reasonable so that
customers can afford them easily. Business put more focus on maintain the health and quality
of chickens and for that, in the farm animals and materials are kept away from poultry pens.
The training related to biosecurity is been provided to each and every member of the staff
(Salman, Dubois, Maria, Acker & Balen, 016).
Business Goals – Short term
 Establishing more connections with the targeted customers.
 Earning a market share of 10% within the time period of 2 or 3 years.
 Increasing the quality of products and maintaining the health of chickens and other
animals in the farm.
Business Goals – Long term
 Starting an online business by developing a website of Chicken Village Inc. in order
to get in touch with online directories. It will also make it easy for the customers to
access the business from anywhere and everywhere.
 Implementing new and improved technologies in the business for enhancing the
quality of product.
 Expanding the business in countries other than Canada within 5 years span. This
could be done by applying various marketing strategies focused on poultry merchants
and slaughter houses along with the targeted audience.

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SWOT Analysis
Strength
One of the strength of Chicken Village is that it has healthy relationships with lots of major
players in agriculture sector. The players include both supplier of poultry feeds and the
customers of eggs and meat. Also the farm has some latest commercial poultry farming tools
and equipment that help the business to raise and produce eggs in a reasonable quantity and
quality. Apart from this, chicken Village also has experienced people in its business.
Weakness
The main weakness is that it is a new business in agriculture sector established in Canada. As
a result of which, it can take more time to attract the big time customers in the industry.
Opportunities
As such the opportunities available to the business cannot be quantified but they can try their
hands on loads of households such as hotels and restaurants that served fast food. The
restaurants where eggs and meat are used on daily basis can prove to be a great opportunity
for the business.
Threat
Certain challenges which are likely to be faced by Chicken Village Inc. are the slow growth
of economy which can directly impact the consumer or household spending. Also changes in
weather, natural disasters, unfavorable government policies and arrival of a competitor are
some threats that can be faced by the business in a near future (Ahadiat and Hefzi, 2017).
Marketing Plan
The marketing plan for Chicken Village Inc. includes the promotion strategies followed by
the business. These are:

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 Business will use various selling techniques such as printed advertisements and ads
placed on Google that will help in attracting and targeting the audience.
 Another technique will be providing online services, so that the regional customers
can easily access their searches on Internet.
 Chicken Village Inc. will also create its own website that will showcase the whole
details about the business (Lassen, 2015).
Management Structure
The CEO of Chicken Village Inc. is Jeff Parker. Two directors will be giving assistant to the
managers and 40 employees will be indulged in the operational process of the business.
Kenneth Bezos and Lisa Chennault are the directors of Chicken Village Inc.
Employees
Some people will be involved in the looking after of the chickens and other animals and the
related work such as feeding them timely and taking care of them on a regular basis. Other

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people will look after the eggs and the meat produced by them ensuring that the quality and
quantity is been maintained. Some employees are engaged in value chain activities of the
business.
Compensation
Employees will get monthly salary for the services rendered by them during a fiscal year.
Owner will have a share in the profit earned by the business. Apart from salary, various
incentive plans and compensation benefit plans are also been made by the business in respect
of its employees and owner.
Information Technology Resources
The IT resources are been imported from USA. The machines used in the business are:
 Poultry Hatchery
 Poultry Feeder
 Feathering Machine
 Chicken Cutting Machine
Agricultural Equipment
 Trailed sprayer for orchards and vineyards.
 Round baler in action.
 A "backhoe loader"
Agricultural Services
The agriculture services which are required by Chicken Village Inc. are Poultry farming
services, Poultry consultancy services, and farm and egg services.
Cost of Doing Business:
Building rent: $20,000

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Land = $30,000
Equipment = $15,000
Utilities = $5,000
Salaries = $25,000
Supplies= $5,000
Marketing and Promotion = $25,000
Insurance = $5,000
Projected Revenue
The forecasted revenue for the business is $90,000 and this will be made by selling eggs and
meat and other live stocks.
Income Statement and Balance Sheet
Company Name: Chicken Village INC
INCOME STATEMENT (PROJECTED)
For the One Year Period Ended: (1st June to 30th May)
REVENUES
Livestock 0
Eggs and Meats $ 90,000.00
TOTAL REVENUE $ 90,000.00
Gross Profit 90000
EXPENSES
Advertising $
4,000.00
Benefits (employer $

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paid) 3,000.00
Chemicals $15,000.00
Depreciation expense $
4,000.00
Equipment Lease $
4,000.00
Feeds $
2,000.00
Fertilizer $
5,000.00
Insurance $
5,000.00
Interest $ -
Maintenance $15,000.00
Rent $
1,000.00
Salaries $25,000.00
Supplies $
5,000.00
Travel
Utilities $
5,000.00
Total Operating
Expenses
$ 98,000.00 $
5,000.00
NET PROFIT $ -

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8,000.00
Net Before Income
Tax
$ -8,000.00
Company Name: Chicken Village INC
Balance Sheet (1st June- 30th May, 2018)
ASSETS
Current Assets
Cash $ 15,000.00
Accounts Receivable $ 90,000.00
Inventory/supplies $ 30,000.00
Prepaid Expenses $ 20,000.00
Other Current Assets $ 50,000.00
Total Current Assets $ 205,000.00
Fixed Assets
Land and Buildings $ 30,000.00
Fixtures $ 5,000.00
Equipment $ 15,000.00
Vehicles $ 15,000.00
Other Fixed Assets $ 30,000.00
Total Fixed Assets. $ 95,000.00
Total Assets $ 300,000.00
LIABILITIES

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Current Liabilities
Accounts Payable $ 20,000.00
Short-term Loans Payable $ 15,000.00
Taxes Payable $ 15,000.00
Other Current Liabilities $ 5,000.00
Total Current Liabilities $ 55,000.00
Long-Term Liabilities
Mortgage Payable $ 10,000.00
Long-term Loans Payable $ 50,000.00
Other Long-term Liabilities $ 15,000.00
Total Long-term Liabilities $ 75,000.00
Total Liabilities $ 130,000.00
OWNERS' EQUITY
Capital Investment $ 75,000.00
Retained Earnings $ -
Total Equity $ 75,000.00
Total Liabilities and Equity $ 205,000.00
Financing
The business will raise funds by taking loan from bank amounted to $50,000 and $15,000.
The amount of $75,000 will be bring by the owner as a capital in the business. Lease
financing and hire purchase methods will be used for financing the assets.

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References
Ahadiat, N. and Hefzi, H., (2017). The Story of a Business Formation and its Failure.
Lassen, M., (2015). DESMI lifts green ship business case. World Pumps, 2015(12), pp.16-18.

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Salman, M., Dubois, M., Maria, A.D., Acker, K. and Balen, K., (2016). Construction
materials from stainless steel slags: technical aspects, environmental benefits, and
economic opportunities. Journal of Industrial Ecology, 20(4), pp.854-866