BUSINESS PROJECT

BRIAN COMMERCIAL TREE FARM

P. O. BOX 398, BWERA

KASESE UGANDA

Email: briancommercialtreefarm@ymail.com
Website: www. briancommercialtreefarm.org.ug

BY

MUHINDO BRIAN

BABA/U/14A/D/0194

MAY 2015

i
BUSINESS ADDRESS

BRIAN COMMERCIAL TREE FARM

P. O. BOX 398, BWERA

KASESE - UGANDA

Email: briancommercialtreefarm@ymail.com

Website: www. briancommercialtreefarm.org.ug

FOUNDER

MUHINDO BRIAN

P.O. BOX 9779 BWERA,

KASESE - UGANDA

TEL: +25670563667

Email: brianmuhindo@.outlook.com

ii
Table of Contents
1.0 EXECUTIVE SUMMARY...........................................................................................................................1

1.0 MISSION AND OBJECTIVES.....................................................................................................................3

1.1 Vision.....................................................................................................................................................3

To be a number one producer of first class tree products in Kasese and the country wide at whole....3

1.2 Mission..................................................................................................................................................3

Brian Commercial Tree Farm is dedicated to providing a wide variety of plants and trees in an
aesthetic setting. Customer service is extremely important..................................................................3

1.2 Objectives..............................................................................................................................................3

1.3 Keys to Success......................................................................................................................................3

2.0 INDUSTRIAL ANALYSIS...........................................................................................................................4

2.1 Overview...............................................................................................................................................4

2.2 Start-up Summary..................................................................................................................................4

The farm start-up requirements come to UGX. 20, 000,000 which includes the first month's rent of
the land for our nursery. The regular rental fee is 100,000/= a month. The start-up costs will be
financed entirely by Mr. Muhindo Brian ............................................................................................4

Start-up Requirements......................................................................................................................5

2.3 Company Ownership.............................................................................................................................5

2.4 Products................................................................................................................................................5

2.5 SWOT Analysis.......................................................................................................................................6

2.5.1 Strengths of the Company..................................................................................................................6

2.5.2 Weaknesses........................................................................................................................................6

2.5.3 Opportunities.....................................................................................................................................6

2.5.4 Threats................................................................................................................................................6

3.0 COMPANY OVERVIEW...........................................................................................................................7

3.1 Overview...............................................................................................................................................7

3.2 Company Locations and Facilities..........................................................................................................7

iii
 Brian Commercial Tree Farm will be located on the outskirts of outskirts of Bwera in Kasese district
bordering Congo at 100Acres of land. The farm Will focus on providing quality seedlings bedding,
hanging, and vegetable plants, along with a variety of potted trees , timber and saw dust...................7

3.3 Current status........................................................................................................................................7

3.4 Legal form..............................................................................................................................................7

3.5 Office and requirements........................................................................................................................7

3.6 Products and Services............................................................................................................................8

4.0 MARKET ANALYSIS SUMMARY...............................................................................................................8

4.1 Market Segmentation............................................................................................................................8

4.3 Market Analysis.....................................................................................................................................9

4.4 Target Market Segment Strategy...........................................................................................................9

4.5 Competition and Buying Patterns........................................................................................................10

4.6 Strategy and Implementation Summary..............................................................................................11

4.6.1 Sales Strategy...................................................................................................................................11

4.6.2 Sales Forecast...................................................................................................................................11

4.7 Marketing Strategy..............................................................................................................................12

4.8 Competitive Edge.................................................................................................................................12

5.0 MANAGEMENT SUMMARY..................................................................................................................13

5.1 Personnel Plan.....................................................................................................................................13

6.0 FINANCIAL PLAN..................................................................................................................................14

6.1 Projected Profit and Loss.....................................................................................................................14

6.3 Projected Cash Flow............................................................................................................................15

Pro Forma Cash Flow.....................................................................................................................15

6.3 Projected Balance Sheet......................................................................................................................16

Pro Forma Balance Sheet................................................................................................................16

iv
1.0 EXECUTIVE SUMMARY

Brian Commercial Tree Farm is dedicated to providing a quality choice for people looking for
plant and garden supplies, as well as serving contractors who need a reliable source of products.
The farm will offer a wide variety of plants, trees, vegetable plants, along with a selection of
garden supplies. Most of the plants we sell will be grown in our tree plantation

With a convenient location Brian Commercial Tree Farm intends to successfully market to the
residential customer, as well as contractors and renters as will set up a saw mill and engage in pit
sawing as a way of backward integration. Brian Commercial Tree Farm Ltd intends to expand its
operations and increase its market share to 70% by differentiating its products and diversifying
its services.

The company will start by mobilizing funds necessary for it to get moving. An estimate made
by our consultants reveals that the company will require Shs. 20, 000,000/= of which Mr. Brian
will rise 12,000,000/= in total to get started and complete phase I. The company will negotiate
for a loan of 8,000,000/= from centenary at an interest rate of 15% per annum to be paid in 5
years period in equal installments

The farm will offer to sell the products of own timber to be planed surfaced and carved into
various designs, saw dust, tree seedlings of bedding plants, shrubs, trees, and vegetable plants
along with many garden accessories such as fountains, stepping stones, garden tools, fertilizers,
and potting soils. .

The personnel plan contains two full-time employees and two part-time employees in addition to
Brian. The two full-time employees will be paid 35,000/= per month to begin with and the two
part-time employees will make 200,000 a month. Employees will help customers and care for
plants as part of their jobs.

Brian Commercial Tree Farm will have one of the most extensive and affordable plant and
flower selections in Bwera constituency, and a very knowledgeable staff ready to provide
unparalleled customer service. Contractors looking for a reliable nursery and timber will find

1
Brian Commercial Tree Farm supportive and easy to work with. The ease and convenience of
our location is a very big plus.

Besides conserving the environment, Brian Commercial Tree Farm like other organizations will
contribute to the economical standards of the citizens of Uganda in terms of provision of
employment to the capable citizens of the country thus improving the standard of living of the
people, Tax fee to the government and these will contribute to the development of the country
economically.

Despite the fact that company has estimated a rapid growth in the health services, the strength
and weakness cannot be ignored. This looks at the strength, weaknesses, Opportunities, and
Threat which are discussed in later section of this plan.

2
1.0 MISSION AND OBJECTIVES

1.1 Vision

To be a number one producer of first class tree products in Kasese and the country wide at
whole.

1.2 Mission

Brian Commercial Tree Farm is dedicated to providing a wide variety of plants and trees in an
aesthetic setting. Customer service is extremely important. 

1.2 Objectives

 Maintain an average gross margin at or above 30%.

 Generate an average of 50,000,000 of sales each year.

1.3 Keys to Success

 Sell products of the highest quality with excellent customer service and support.
 Retain customers to generate repeat purchases and make referrals.
 Continue to expand daily sales by adding to the variety of plants we sell.
 Communicate with our customers through creative advertising.

3
2.0 INDUSTRIAL ANALYSIS

2.1 Overview

The tree farm business is highly competitive, and it is important to maintain a high level of
customer service, offer quality products, and give the consumer a wide variety of choices when
shopping for plants and trees. The approach will be to offer a diverse selection of plants, trees,
and garden supplies. Exceptional customer service will be important in meeting the needs of our
target markets. Healthy plants will be a top priority, and we will display the plants artistically.
Plants are a commodity that will always have a market as people consider them to be very
important to have around their residences. There are four other nurseries around the greater Lane
County area, and we will have to provide top quality service to be succeeded.

Brian Commercial Tree Farm is the dream of Mr. Brian, and has been a project in the making for
five years. With an opening date of April of this year, Brian is seeing the dream of operating a
tree plantation to fruition, Located on the outskirts of Bwera in Kasese district bordering Congo
at 100Acres of land. Will focus on providing quality seedlings bedding, hanging, and vegetable
plants, along with a variety of potted trees, timber and saw dust. Our aim is to serve both
residential customers and landscaping contractors.

2.2 Start-up Summary

The farm start-up requirements come to UGX. 20, 000,000 which includes the first month's rent
of the land for our nursery. The regular rental fee is 100,000/= a month. The start-up costs will
be financed entirely by Mr. Muhindo Brian .

4
Start-up Requirements

Start-up Expenses (UGX.000)

Legal 500
Brochures 150
Insurance 500
Rent 1,200
Expensed Equipment 3,800
Total Start-up Expenses 6,150
Start-up Assets
Cash Required 2,000
Start-up Inventory 2,650
Other Current Assets 0
Long-term Assets 2,000
Total Assets 6,650
Total Requirements 12,800

2.3 Company Ownership

Mr. Muhindo Brian is the owners and operators of Brian tree plantation. He has worked in the
forestry industry for over two years (with 2 years managing at the National forestry Authority).

2.4 Products

The company will offer to sell the products of own timber to be planed surfaced and carved into
various designs, saw dust, tree seedlings of bedding plants, shrubs, trees, and vegetable plants
along with many garden accessories such as fountains, stepping stones, garden tools, fertilizers,
and potting soils.

5
2.5 SWOT Analysis

The main purpose of SWOT analysis will be to identify strategies that match the company’s
resources and compatibilities to the demands of the environment in which the company operate.

2.5.1 Strengths of the Company

 Strategic Location
 Introduction of new and innovative products and services
 Efficient and effective management who are customer focused.
 Marketing expertise
 Economies of scale

2.5.2 Weaknesses

 Inadequate Financial resources to support promotion/advertisement activities

 Poor market Leadership
 Limited equipment capacity

2.5.3 Opportunities

 Good supplier relationships

 Fast market growth
 Accessibility to cheap products from the suppliers of the company

2.5.4 Threats

 Adverse Government and economic conditions like heavy price fluctuation.

 Existence of price wars with competitor
 Unfavourable climatical conditions

6
3.0 COMPANY OVERVIEW

3.1 Overview

Brian Commercial Tree Farm is private company planning to carry its services depending on the
needs and choice of its clients. The company will carry out its operation in line with National
Environment Management Authority (NEMA) standards that are provided by the industry and in
accordance with the policies and regulations provided.

3.2 Company Locations and Facilities

Brian Commercial Tree Farm will be located on the outskirts of outskirts of Bwera in Kasese
district bordering Congo at 100Acres of land. The farm Will focus on providing quality seedlings
bedding, hanging, and vegetable plants, along with a variety of potted trees , timber and saw
dust.

3.3 Current status

Brian Commercial Tree Farm is not a new business to exist among businesses of this nature
around the country. It will operate under laws governing the environmental and industrial sectors
in Uganda

3.4 Legal form

The company will a private ownership and it will follow all the procedures to be registered and
getting license to be operating in the sector.

3.5 Office and requirements

The head office of this company will be leased for the first 10 years and office requirements will
be bought to fit the standards of the business venture.

7
3.6 Products and Services

The company will offer to sell the products of own timber to be planed surfaced and carved into
various designs, saw dust, tree seedlings of bedding plants, shrubs, trees, and vegetable plants
along with many garden accessories such as fountains, stepping stones, garden tools, fertilizers,
and potting soils. The farm will deal in variety of tree species like mahogany, muvole,
eucalyptus

4.0 MARKET ANALYSIS SUMMARY

The company target market strategy is based on becoming an attractive choice for homeowners
and landscape contractors in the country. The target markets we are going to pursue are the
residential consumers looking for a wide variety of plants and trees to beautify their residences.
Landscape contractors will be attracted by competitive prices and a diverse inventory. People
will want to shop at our location because of the superior customer service we will provide. Brian
Tree Company would like to see a five to ten percent increase in customers annually.

4.1 Market Segmentation

The profile of our customer consists of the following geographic and demographic information:

Geographic

 Our immediate geographic market is the Kibiha area with a population of 300,000
people.
 A 100 mile geographic area would want our services, as we become a well known tree
farm
 The total target market is estimated at 500,000 customers.

Demographics

 Male and Female.

 Married and Single.
 Combined annual income in excess of 50, 000.

8
  Age range of 25 to 80 years, with a median age of 40.
 Own their own houses or townhouses valued at over 150,000.
 Most work out of the home by choice in a variety of work environments.

4.3 Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR
Residential, 5% 50,000 52,500 55,125 57,881 60,775 5.00%
Homeowners
Commercial 7% 100 107 114 122 131 6.98%
Contractors
Renters 5% 30,000 31,500 33,075 34,729 36,465 5.00%
Total 5.00% 80,100 84,107 88,314 92,732 97,371 5.00%

4.4 Target Market Segment Strategy

Our target market is based on becoming a resource for people looking to buy flowers, trees, and
garden supplies. Our marketing strategy centers around superior performance in the following
areas.

 Customer service
 Large selection and fair pricing
 Quality products

The target markets are separated into three segments; "Residential, Homeowners," "Commercial
Contractors," and "Renters". The primary marketing opportunity is selling to these accessible
target market segments that focus on the beautification of peoples' homes and places of business.

Residential, Homeowners–the company would like to be an attractive choice for homeowners

purchasing plants and garden supplies. With our large and varied selection of plants, trees, and
garden supplies it is our aim to give individual attention to every customer and to serve their

9
planting needs. The residential sector has a wide range of income levels, but on average the
annual household income of our customers is 500,000.

Commercial Contractors Commercial contractors are important the company customers. A

consistent inventory, and providing the large quantities contractors need, is important. With
prompt and affordable service, contractors will know that they can count on us to meet their
needs in a professional manner. Most of the contracting businesses we will service have
annual revenue of at least 500,000 to over 1000,000.

Renters -- People who do not own their own homes but need flowers and plants to beautify their
living spaces make up an important segment of our target market. Many rentals and even
apartment complexes have spaces that renters can use to plant gardens. Household income for
this group would be in the range of 200,000 to 500,000.

4.5 Competition and Buying Patterns

Current local competition includes the following:

 Lone Pine Nursery -- Locally owned, and selling a limited variety of plants, shrubs, trees,
and garden products to the general public. This nursery is seasonal focusing on spring and
summer flowers. They have a very pleasant facility in which to shop, but prices are a little
more on average than Brian with not a very good selection of trees and shrubs.
 McKenzie Nursery -- Locally owned, offers a limited selection of plants and shrubs with the
main emphasis on providing fresh produce in the summer months. Seasonal "U-pick"
strawberries, blueberries, and apples are available on the property. Their prices are
competitive but the location is not convenient for a lot of people, as it is 25 miles out of
town.
 Green Thumb Nursery -- Locally owned, offering a variety of plants and trees, as well as, a
large selection of garden supplies. Green Thumb most closely matches what we have to offer
when talking about plants and shrubs, but they do not have a large enough inventory to
service some of the large contractors in the area.

10
Brian Commercial Tree Farm will provide competitive pricing for its products, and will
guarantee to match competitors' prices, but exceptional customer service and product knowledge
will make us stand out to our target markets. The size of our inventory and the variety of choices
our customers will have when choosing flowers, trees, and shrubs will make Brian Commercial
Tree Farm an attractive choice. Our location is very convenient, only 5 minutes outside the city
limits.

4.6 Strategy and Implementation Summary

Our strategy will be based on serving our customers with expert service and product knowledge.

Also:

 The farm is building its marketing plan to reach homeowners, renters, and contractors.
 The farm focuses on satisfying the needs of our customers.
 The farm focus on providing quality plants at affordable prices.

4.6.1 Sales Strategy

The primary sales strategy includes these factors:

 Exceptional customer service

 Exceptional product knowledge
 Large and varied inventory
 Convenient location.

4.6.2 Sales Forecast

The sales forecast is broken down into two main revenue streams: the general public, and
contractors. The sales forecast for the upcoming year is based on a modest growth rate for sales.
Being a start-up business we are projecting a growth rate of 20%, hoping our advertising will
bring in new customers daily.

11
Sales Forecast

Year 1 Year 2 Year 3

(Ugx.000) (Ugx.000) (Ugx.000)
Sales
General Public 135,000 162,000 194,400
Contractors 181,000 217,200 260,640
Total Sales 316,000 379,200 455,040
Direct Cost of Sales Year 1 Year 2 Year 3
Flowers, Trees, Shrubs 94,800 113,760 136,512
Garden Supplies 63,200 75,840 91,008
Subtotal Direct Cost of Sales (158,000) (189,600) (227,520)
Gross profits 158000 189,600 227,520

4.7 Marketing Strategy

The marketing strategy is based on becoming an option for contractors and the general public to
fill their plant and shrubbery needs. Our marketing strategy is based on superior performance in
the following areas:

 Customer service
 Knowledgeable staff
 Affordable prices
 Great location.

4.8 Competitive Edge

Brian Commercial Tree Farm will have one of the most extensive and affordable plant and
flower selections in the greater Eugene/Springfield area, and a very knowledgeable staff ready
to provide unparalleled customer service. Contractors looking for a reliable nursery will find
Brian Commercial Tree Farm very supportive and easy to work with. The ease and convenience
of our location is a very big plus.

12
5.0 MANAGEMENT SUMMARY

Mr. Brian will oversee and manage all aspects of operation at Brian tree plantation. He will be
responsible for the ordering of garden supplies and tree stock as well as the maintenance of the
greenhouses. Wilson will be responsible for overseeing staff and working with contractors as
well as doing some of the ordering of merchandise.

5.1 Personnel Plan

The personnel plan contains two full-time employees and two part-time employees in addition to
Brian. As he draw 3,500,000 per month. The two full-time employees will be paid 200,000 per
month to begin with and the two part-time employees will make 100,000 a month. Employees
will help customers and care for plants as part of their jobs.

13
6.0 FINANCIAL PLAN

6.1 Projected Profit and Loss

Pro Forma Profit and Loss

Year 1 (Ugx.000) Year 2 Year 3
(Ugx.000) (Ugx.000)
Sales 316,000 379,200 455,040
Direct Cost of Sales 158,000 189,600 227,520
Other Costs of Goods 0 0 0
Total Cost of Sales 158,000 189,600 227,520
Gross Margin 158,000 189,600 227,520
Gross Margin % 50.00% 50.00% 50.00%
Expenses
Payroll 136,000 157,000 169,000
Sales and Marketing and Other 6,000 5,000 5,000
Expenses
Depreciation 0 0 0
Rent 12,000 0 0
Utilities 3,600 4,000 4,000
Insurance 600 700 800
Payroll Taxes 20,400 23,550 25,350
Total Operating Expenses 178,600 190,250 204,150
Profit Before Interest and (20,600) (650) 23,370
Taxes
EBITDA (20,600) (650) 23,370
Interest Expense 0 0 0
Taxes Incurred 0 0 5,940
Net Profit (20,600) (650) 17,430

14
6.3 Projected Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
(UGX.000) (UGX.000) (UGX.000)
Cash Received
Cash from Operations
Cash Sales 79,000 94,800 113,760
Cash from Receivables 217,825 280,565 336,678
Subtotal Cash from Operations 296,825 375,365 450,438
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0 0 0
New Long-term Liabilities 0 0 0
Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 5,000 0 0
Subtotal Cash Received 301,825 375,365 450,438
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending 136,000 157,000 169,000
Bill Payments 171,632 215,464 266,541
Subtotal Spent on Operations 307,632 372,464 435,541
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out 0 0 0
Purchase Long-term Assets 0 0 0
Dividends 0 0 0
Subtotal Cash Spent 307,632 372,464 435,541
Net Cash Flow (5,807) 2,901 14,897
Cash Balance 14,19300 17,09400 31,99100

15
6.3 Projected Balance Sheet

Pro Forma Balance Sheet

Year 1 (Ugx.000) Year 2 (Ugx.000) Year 3 (Ugx.000)

Assets
Current Assets
Cash 14,193 17,094 31,991
Accounts Receivable 19,175 23,010 27,612
Inventory 7,150 8,580 10,296
Other Current Assets 0 0 0
Total Current Assets 40,518 48,684 69,899
Long-term Assets
Long-term Assets 12,000 12,000 12,000
Accumulated Depreciation 0 0 0
Total Long-term Assets 12,000 12,000 12,000
Total Assets 52,518 60,684 81,899
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable 9,618 18,434 22,219
Other Current Liabilities 0 0 0
Subtotal Current Liabilities 9,618 18,434 22,219
Long-term Liabilities 0 0 0
Total Liabilities 9,618 18,434 22,219
Paid-in Capital 105,000 105,000 105,000
Retained Earnings (41,500) (62,100) (62,750)
Earnings (20,600) (650) 17,430
Total Capital 42,900 42,250 59,680
Total Liabilities and 52,518 60,684 81,899
16
Capital
Net Worth 42,900 42,250 59,680

17