Business Plan: Organic Chicken - Agriculture Finance FINA-6018

This project report presents a comprehensive business plan for an organic chicken farm, outlining the business description, competitive advantages, short-term and long-term goals, and a SWOT analysis. The marketing plan details online and offline promotion strategies. The report also covers the management structure, employee compensation, IT resources, and necessary agricultural equipment and services. A detailed cost analysis projects revenue and includes an income statement and balance sheet, demonstrating financial feasibility. The plan proposes financing through equity, internal sources, and debentures, concluding that the business is viable with strong marketing, financial, technological, and legal prospects. Desklib offers similar solved assignments and past papers for students.

Running Head: Agriculture finance
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Project Report: Agriculture Business

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Contents
Description of business.....................................................................................................3
Competitive advantages....................................................................................................3
Long term and short term business goals.........................................................................3
SWOT analysis.................................................................................................................3
Marketing plan..................................................................................................................4
Employees.........................................................................................................................4
Compensation...................................................................................................................4
IT resources......................................................................................................................4
Agriculture equipment and services.................................................................................4
Cost of doing business......................................................................................................5
Projected revenue..............................................................................................................5
Income statement and balance sheet.................................................................................5
Financing..........................................................................................................................8
Conclusion........................................................................................................................8
References.........................................................................................................................9

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Description of business:
The name of the business is Organic chicken; it is a sole proprietorship business. The
target customers of the company are local public and the hotels who would buy the products
on daily basis. The main products of the company would be chicken and dairy products.
Competitive advantages:
The main competitive advantages of the company is its organic and quality products,
the comapny sells the fresh chicken and the chicken is cut by the company after medical
checkups.
Long term and short term business goals:
The main short term goals of the company are as follows:
1. Grab more market share
2. Enhance the market base of the company
3. Set a image of the business into customer’s mind
The main long term goals of the company are as follows
1. Enhance the revenues of the company
2. Diversify the products of the company
3. Enter into the international market
SWOT analysis:
The SWOT analysis briefs about internal and external environment of the company.
SWOT analysis of organic chicken is as follows:
Strength:
1. Organic food
2. Quality products
3. Manufacturing and retailing
Weakness:
1. Small business unit
2. New venture
Opportunity: Threats:

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1. New market
2. New products
1. Technological issues
2. Competition level
3. Government threats
(Daniel & Mittal, 2010)
Marketing plan:
The business would be promoted both online and in offline way. The company would
use the media and the newspapers, hoardings and bill boards to promote the products and the
services of the company as well as digital marketing would also be used to promote the
products at online platform (Miller & Jones, 2010).
Management structure:
The business would be managed by following proper organization chart. Every
department manager would be responsible for the work of the department and the products
and services would be sold by the company through online portal and offline stores.
Employees:
For the business, it is required to hire both the employees and labour. Employees
would be hired to do operational work and manage the online operating system, manage the
retail stores, evaluating the marketing and financial performance of the company etc whereas
the labour employs would be hired to manage the farm activities and work in the factory
(Erxiang, 2008).
Compensation:
The company would keep an online system to pay the amount to its employees and
the labour. The amount would be credited in their account on a specified date and the
employees would be able to ask for advance money as well on some specific terms.
IT resources:
For running the business in agriculture industry to retailing the chicken and other
dairy products, it is required for the business to sell the products online and do digital
marketing. The company is also required to maintain the live stock on the basis of online

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system (Yusuf, 2010). A track system should also be there in the farm so that the stock could
be managed properly. The compensation would also be paid online.
Agriculture equipment and services:
For the organic chicken, the main equipments are the chicken cutting machine,
chicken father cleaning machine, killing and de-feathering machine, skinning and marinating
machine etc. On the other hand, it is also required for the company to maintain a farm house
where the live stock would be kept.
In the business, the main activities of the company would include retailing of chicken
and other dairy products. The company would manufacture and maintain the live stock at
their farm and then would sell it in the market. The main services of the company would
include the home delivery. The main prospects of the company would be offering the best
quality products to their customers.
Cost of doing business:
The cost of business has been evaluated to recognize that whether the project would
be beneficial for the company or not. On the basis of feasibility study and market study, it has
been found that the total cost of the business would be $ 4630 which includes various
expenses such as Advertising, Depreciation expense, Equipment Lease, Feeds, Salaries,
Supplies, Travel, Utilities etc.
The study briefs that the cost of doing business of some important items are as
follows:
Purchase on rent - building 200
Purchase on rent - land 150
Purchase on rent -
equipment 140
Utilities 200
Salaries 350
Supplies 800
Marketing and promotion 300
Insurance 130
Total 2270
Projected revenue:

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The feasibility of the business plan and the projected income statement of the
company expresses that the company would be able to generate the net profit of 3370 after all
the deduction and the expenses of the company. It expresses that the position of the business
would be great and investment into the business would offer huge profits to the investors
(Lonie, 2010).
Income statement and balance sheet:
The projected income statement and balance sheet of Organic Chicken is as follows:
Organic Chicken
INCOME STATEMENT (PROJECTED)
For the One Year Period Ended: Dec 2018
REVENUES
Livestock 5000
Crops 3000
TOTAL REVENUE
Gross Profit 8000
EXPENSES
Advertising 300
Benefits (employer paid) 200
Chemicals 500
Depreciation expense 180
Equipment Lease 500
Feeds 120
Fertilizer 180
Insurance 130
Interest 80
Maintenance 400
Rent 490
Salaries 350
Supplies 800
Travel 500
Utilities 200
Total Operating Expenses 4630
NET PROFIT
Net Before Income Tax 3370

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The income statement of the company briefs that company would be able to generate
the net profit of 3370 after all the deduction and the expenses of the company.
The balance sheet of the company is as follows:
Organic Chicken:
Balance Sheet Dec, 2018
ASSETS
Current Assets
Cash 5000
Accounts Receivable 800
Inventory/supplies 1500
Prepaid Expenses 900
Other Current Assets 1800
Total Current Assets 10000
Fixed Assets
Land and Buildings 1000
Fixtures 890
Equipment 550
Vehicles 1500
Other Fixed Assets 900
Total Fixed Assets. 4840
Total Assets 14840
LIABILITIES
Current Liabilities
Accounts Payable 2500
Short-term Loans
Payable
1500
Taxes Payable 800
Other Current
Liabilities
500
Total Current
Liabilities
5300
Long-Term Liabilities
Mortgage Payable
Long-term Loans
Payable
1500
Other Long-term
Liabilities
900
Total Long-term
Liabilities
2400
Total Liabilities 7700

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OWNERS' EQUITY
Capital Investment 5000
Retained Earnings 2140
Total Equity 7140
Total Liabilities and
Equity
14840
It expresses that the total worth of the company is $ 14,840 in which $ 7700 is the
total liability of the company and rest $ 7140 is the total equity of the company, the projected
income statement and balance sheet of the company briefs about the better performance and
the position of the company (Kloeppinger-Todd & Sharma, 2010).
Financing:
It is required for a business to generate the funds from internal and external sources to
run a business. In case of organic chicken, the company could generate the funds from equity,
internal sources and the debentures. According to the projections the company could generate
$ 1500 from long term debt. On the other hand, $ 2140 could be raised by the company
through internal sources and $ 5000 could be generated by the company through venture
capital and equity crow funds.
Conclusion:
To conclude, the agriculture business plan would be quite successful. The marketing
feasibility, financing feasibility, technological feasibility, legal prospects etc of the company
are quite better and explains that the business would be quite successful for the company.

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References:
Daniel, S., & Mittal, A. (2010). (Mis) investment in agriculture: The role of the International
Finance Corporation in global land grabs. Oakland Institute.
Erxiang, D. (2008). 1, Wu Haotian 1, Zhao Hong 2, Li Ni 3 (1. School of Software and
Microelectronics, Peking University, Beijing 102600; 2. Ministry of Agriculture
Finance and Accounting Service Center Beijing 100045; 3. Xi'an University of
Architecture and Technology, Xi'an, Shaanxi 710055); On the Share-Cropping
Educational Financial System Theory [J]. Reformation & Strategy, 11.
Kloeppinger-Todd, R., & Sharma, M. (2010). Innovations in rural and agriculture
finance (Vol. 18). Intl Food Policy Res Inst.
Lonie, S. (2010). M-PESA: Finding new ways to serve the unbanked in Kenya. Innovations
in Rural and Agriculture Finance, ed. Renate Kloepping-Todd and Manohar Sharma.
Brief, 8.
Miller, C., & Jones, L. (2010). Agricultural value chain finance: Tools and lessons. Food and
Agriculture Organization of the United Nations and Practical Action Pub..
Yusuf, K. K. (2010, May). Insurance Options in Risk Management in Agriculture Finance.
In Being the full text of paper presented on the occasion of the AFRACA Conference in
Abuja.