I.

1 SAMPLE OF BUSINESS PLAN

Sample Business Plan

Gambo Ostrich Farm

1. Introduction
1.1 Company name
The company shall be named Gambo ostrich farm P.L.C
1.2 The name and addresses of partners
1. Alemu ketema W.00 keble 00 House No 00
2. Yesuf Ahemed W.00 keble 00 House No 00
3. Kebed alemu W.00 keble 00 House No 00
1.3 Nature of business
The business involves ostrich farming. The company shall produce high quality ostrich, feathers
and meat for export purpose……………………….
1.4 Statement of financial statement
The company shall be established with a capital of Birr 1, 000, 0000,000 which will be raised
from the partners and the bank loan. The owner’s contribution shall be………. The money is
required to acquire land and equipments, to build facilities …………..
1.5 Confidentiality of the report
This document is confidential and proprietor. It may not be circulated or disclosed in whole or
part without the written permission of the partners. Plans and projections are subject to change.
2. Executive summary
Gambo ostrich farm shall be established as a private limited company in Bulbula town,
oromia with Alison office in Addis Abeba .the capital required to start the business shall be
acquired through bank loan and partners contribution.
The company shall produce high quality ………………
Gambo ostrich farm shall have a capital of birr 1, 000, 000, 0000 ……………. The company
shall mark its products available for the market as……………………….
3. Industry analysis
3.1 Futures outlook and trends
The introduction of ostrich hides as a luxury leathers has increased interest in ostrich
farming in the last few decades…………………………………………….
3.2 Analyses of competitors’
Currently there are no competitors’ in the local market. However, the company shall have
many international competitors’, as it products are sold in the international market. These
competitors come from……………………..
Strength of competitors
The major strength of our competitors are high quality products, strong business network, and
…………………
Weakness of competitors
The weakness of our competitors is high production and transportation coasts which normally
result in higher price. And also ……………………….
3.3 Market Segmentation
The market for the company’s products is divided into four major regions as follows;
1. Europe
2. U.S.A
3. Middle east
4. Asian market
4. Description of the venture
4.1 Products
The primary products of the company shall be
1. ostrich hide
2. ostrich feather
3. ostrich meat
4.2 Size of the business

The business shall be of medium size initially. However, the company shall be expand as it
requires more market share internationally. In the near future ……………………

4.3 Office equipments and personnel

The company shall require some office equipment and personnel.
Office and related equipment requirement
No Description Qty Unit price (Birr) Total price(Birr)
1 Gust chair 6 200 1,200
2 Filling cabinet 2 1,000 2,000
3 Personal 3 8,2000 24,600
computer
4 …. …………… …………… ………
… Total
Man power requirement
No Description Qty Monthly pay Annual pay

1 General 1 1,500 18,000

manager
2 Secretary 1 500 6,000

3 Accountant 1 750 9,000

4 ……….. …………….

total …………….

4.4 Background of the entrepreneur

The partners have rich experience in poultry farming which will significantly contribute to the
successful establishment and operation of the ostrich farm.
4.5 Location of the business
The ostrich farm, where the ostrich breeding and processing shall take place, shall be located in
eastern shoa, Bulbula town, 200 km away from Addis Ababa.

5. Production
5.1 Production process
Ostrich hide
The ostrich shall be sloughed and……………..
Ostrich feather
The feather collected from the ostriches shall go through the process of …………………….
5.2 Physical plant
The ostrich farm shall consist of the following facilities
1. ostrich shelter
2. slaughtering room
5.3 Equipment and machinery
The following machinery shall be required
1. slaughtering machinery
2. refrigerator
3. hide processing machine
6. Marketing plan
6.1 Pricing
The company shall use market penetration strategy to introduce its products and to easily
establish it’s in the international market. The tentative prices of the company’s products is
presented in the table below…………………
6.2 Promotion strategy
It is imperative that the company be advertised to attract the attention of customers in the
target market. Accordingly the company’s products shall be advertised through …………
7. Financial plan
 7.1 Forecasted income statement for the next five years

Y1 Y2 Y3 Y4 Y5

Revenue

Sales 4,549,200 6,823,000 9,098,000 11,373,000

Expenses

Office.exp 5,000 5,000 8,000 8,000

w/shop exp. 5,000 15,000 15,000 18,000 18,000

Custom exp. 13,000 30,000 35,000 40,000 45,000

Transport 20,000 400,000 450,000 500,000 550,000

exp.

Rent exp. 124,000 124,000 124,000 124,000 124,000

….. …… ……. …… ….

Income (…..) (……..) (……..) (……) (……….)

tax/35%

Net income (……) (…….) (…….0 (…..) (….)

7.2 Forecasted balance sheet for the next five year

Gambo ostrich farm P.L.C
Forecasted balance sheet
End of years 1-5

No Assets Y1 Y2 Y3 Y4 Y5
1 CASH 635,150 679,220 750,290 765,360 811,430
Vehicle 240,000 180,00 120,000 60,000 0
…….. …… …….. ….. ……… ….
Total asset …… …….. ……… ……. ….
No Liability
1 Bank loan 400,000 350,000 200,0000 100,000
Total liability ….. …. …… ….. ….
2 Owner’s equity
A. Alemu 300,000 ……. ………. ……. …..
B. Yesuf 100,000 …….. …….. ……. ….
C. Kebed
Total capital ………. …….. ….. ….. ….
7.3 forecasted cash flow statements for the next five years
Gambo ostrich farm P.L.C
 Forecasted cash flow statement
For the years 1-5
Y1 Y2 Y3 Y4 Y5
Cash flow ……. …… …….. …… …..
operating
activities
…… ……. …… …… …… ….
Ending

8. Organizational plan
8.1 Organizational structures

General manger

1.2 Forms of ownership

Gambo ostrich farm shall be established as a private limited company (P.L.C)
1.3 management team
1. Alemu ketema
2. Yesuf ahemed
3. ………..
4. …………………
2. Assessment of risk
8.1 Weakness of the business

Since ostrich farming is a new business for Ethiopia, their will be a shortage
of……………………………………
8.2 Effects of change
Competition
Given the increasing number of ostrich farms that join the market, it is expected that prices are
gradually decreases. However…………………………..
8.3 Contingency plan
Should the demand for the company’s products decreases, which does not require much
additional investment in……………………………………

(Adapted from: “business plan of Gambo ostrich farming “Dawit Arega,et al)