CHIKTREVORS GENERAL TRADING

Business Plan

JANUARY 1, 2023
MUMBWA, CENTRAL PROVINCE ZAMBIA
+260 977 335 158 | chikambasaj@gmail.com
 Table of Contents
EXECUTIVE SUMMARY .......................................................................................................................... 1
BUSINESS DESCRIPTION ......................................................................................................................... 1
Vision Statement ....................................................................................................................................... 1
Mission Statement..................................................................................................................................... 1
Goals ......................................................................................................................................................... 2
Values ....................................................................................................................................................... 2
PROBLEM STATEMENT ........................................................................................................................... 3
OUR INNOVATIVE SOLUTION ............................................................................................................... 3
OUR PRODUCTS & SERVICES ................................................................................................................ 4
MARKET PLANNING ................................................................................................................................ 5
Market Overview ...................................................................................................................................... 5
Target Market............................................................................................................................................ 5
Corporate Brand ........................................................................................................................................ 5
Marketing Strategy.................................................................................................................................... 5
STANDARD OPERATION PROCEDURE ................................................................................................ 9
DIGITAL PREPAREDNESS ..................................................................................................................... 10
RISK MANAGEMENT AND MITIGATION ........................................................................................... 14
BOARD AND MANAGEMENT STRUCTURE ....................................................................................... 15
INVESTMENT PLAN................................................................................................................................ 16
Financial Forecasts.................................................................................................................................. 17

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 EXECUTIVE SUMMARY
Chiktrevors General Trading is a private business located in Mumbwa district Central Province of
Zambia providing Agro inputs and chemicals to local smallholder farmers. The business was
registered in 2022 as way of formalizing its operations, in order to serve its target market.

BUSINESS DESCRIPTION
Chiktrevors General Trading is a one-stop-shop for all farming needs in Mumbwa. With a focus
on providing the highest quality agro inputs and chemicals, the business seeks to improve crop
yields and help farmers achieve their goals. Our offerings are carefully selected based on industry
standards, ensuring that our customers receive the best products available. We intend to hire a team
of experienced agronomists to provide expert advice and guidance on all aspects of crop
production, from soil preparation to post-harvest management.

In addition to our products and services, we are committed to educating and empowering farmers.
We provide agronomy information through various platforms, including workshops, seminars, and
one-on-one consultations. Our goal is to help farmers make informed decisions about their crops
and increase their profitability.

We believe that the success of our business is directly tied to the success of our customers, and we
are dedicated to helping farmers achieve their goals. With our commitment to quality and expertise,
we are confident that we can help you take your agro business to the next level.

Vision Statement
Our vision is to empower farmers locally by providing innovative and sustainable agro inputs and
chemicals, enhancing crop productivity and profitability while preserving the environment for
future generations.

Mission Statement
Our mission is to consistently deliver high-quality agro inputs and chemicals that meet the
evolving needs of farmers and improve their yield and sustainability. We strive to do this through
continuous innovation, ethical business practices, and a commitment to environmental
responsibility.

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Goals
1. To provide high-quality agro inputs and chemicals to farmers.

2. To offer expert agronomy advice and support to help farmers maximize crop yields and
profitability.

3. To educate and empower farmers through the provision of agronomy information and
resources.

4. To expand our product and service offerings to meet the evolving needs of farmers.

5. To establish strong partnerships with suppliers and farmers to create a sustainable agro
ecosystem.

Values
1. Expertise: Offering knowledgeable agronomy advice and support to help farmers make
informed decisions.

2. Empowerment: Educating and empowering farmers through access to information and

resources.

3. Innovation: Continuously improving and adapting to meet the changing needs of farmers
and the industry.

4. Partnership: Building strong, long-lasting partnerships with farmers, suppliers, and

stakeholders.

5. Sustainability: Promoting environmentally-friendly practices and contributing to a

sustainable agro ecosystem.

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 PROBLEM STATEMENT
Despite the crucial role that agriculture plays in supporting food security and economic
development, many farmers face a range of challenges in their day-to-day operations. From
inadequate access to high-quality agro inputs and chemicals to limited access to expert agronomy
advice and information, these obstacles can greatly impact the productivity and profitability of
farms. Additionally, many farmers lack the resources and knowledge necessary to adopt
environmentally-friendly practices and contribute to a sustainable agro ecosystem.

As a result, there is a growing need for an agro business that can provide a comprehensive solution
to these challenges. By offering high-quality agro inputs, expert agronomy support, and access to
information and resources, this business can help farmers overcome these challenges and achieve
their goals. Through a focus on quality, expertise, empowerment, and sustainability, we aim to
make a positive impact on the lives of farmers and the broader agricultural industry.

OUR INNOVATIVE SOLUTION

Our agro business offers a comprehensive and innovative solution to the challenges faced by
farmers in Mumbwa. By providing access to high-quality agro inputs and chemicals, expert
agronomy support, and relevant information and resources, we aim to improve the productivity
and profitability of farms in the region.

One key innovation we offer is our tailored agronomy advice and support. Our team of experienced
agronomists will work with farmers to assess their specific needs and provide customized
recommendations to improve crop yields and profitability. This approach ensures that farmers
receive practical and effective advice that is relevant to their specific circumstances.

In addition, we provide access to the latest agronomy information and resources, including
workshops, seminars, and online resources. This allows farmers to stay up-to-date with the latest
developments in the industry and make informed decisions about their crops.

We are also committed to promoting sustainable practices in agriculture. This includes promoting
the use of environmentally-friendly agro inputs and chemicals, as well as providing information
and resources to support sustainable farming practices.

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 OUR PRODUCTS & SERVICES
We offer access to consumable and capital inputs to both smallholder and commercial farmers;

High-quality agro inputs and chemicals: We provide affordable agro inputs and chemicals such as
pesticides, fertilizers, soil conditioners, and quality seeds.

Expert agronomy support, and relevant information and resources: We offer expert support to
smallholder farmers through educative programs and services accessed for free and at low cost.

Farming Equipment: We intend to support smallholder farmers by utilizing technology and use of
machines to streamline their cultivation and harvest operations. The entity will procure tractors,
plows, and nylon nets for setting of greenhouses netting.

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 MARKET PLANNING
Market Overview
Zambia is primarily an agricultural-based economy, with agriculture accounting for a large share
of the country's GDP. The main crops grown in Zambia include maize, soybeans, cotton,
sugarcane, wheat, and tobacco. Livestock farming is also an important part of the agricultural
sector, with the majority of farmers keeping cattle, chickens, and pigs. Agricultural exports,
including fresh fruits, vegetables, and cut flowers, are an important source of foreign exchange.
Despite the significance of the agricultural sector, small-scale farmers face numerous challenges,
including limited access to credit, market information, and modern technologies. The government
has made efforts to support the sector through various initiatives and policies, including promoting
private sector investment, improving infrastructure, and providing access to financial services.
Despite these efforts, the sector remains underdeveloped and faces numerous challenges, including
drought, pests and diseases, and limited access to inputs and markets.

Target Market
Our target market comprises rural-based smallholder farmers situated in primary target market
which is Mumbwa district and the secondary markets include Lusaka and Chibombo farming
areas. These markets have been chosen based on their high numbers of smallholder farmers
struggling with farming inputs and methodology on accessing broad markets. These are
agricultural areas with great potential to produce more output to enhance the food security in the
country. Livelihoods in these areas can also be improved by encouraging high production which
in turn increases job creation.

Corporate Brand
Chiktrevors General Trading represents a brand built on the attainment of zero hunger and reduced
poverty levels in Mumbwa, Lusaka and Chibombo districts for a better Zambia.

Marketing Strategy
Marketing execution makes an important aspect of the growth and sustainability of our business,
and it is in our best interest to ensure that it is conducted in the best way possible. We have therefore
centred our marketing on the 7Ps of marketing ensuring optimum results with the expected growth
in both the social and economic impact.

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The P’s in our strategy include;

 Product: The convenience we provide to the smallholder farmers we work with.

 Place: The ease of access that comes with doing business with us.

 Price: The cost of acquiring our products and services.

 Promotion: Our communication with customers within our target market.

 Process: The systems put in place to meet the customer needs.

 People: The people involved in having the services delivered to the customers.

 Physical evidence: The actual or evidence of the services we provide.

Product

We offer a wide range of products and services to smallholder farmers in our designated target
markets seeking to increase their output by using the best farming practices. Our products and
services offer the best quality products smallholder farmers can acquire without further financial
stress.

Price

We offer the lowest-competitive prices for our products and services with a focus on serving large
communities to improve their livelihoods. The prices are set following economic and local market
trends for a competitive rate to encourage smallholder farmers who cannot access financing from
credit providers. Most of these comprise youths and women.

Promotion

Consistency is the art of our marketing execution strategy. The entity prioritizes the use of online
marketing and social media marketing to reach a broad audience. We also encourage the use of a
mix of both traditional marketing and digital marketing by promoting digital awareness. To
increase sales for our products and services, the enterprise intends to capitalize on the use of social
media platforms like Facebook, LinkedIn and Twitter as these platforms have a large number of
the target market age group. Apart from social media, the institution uses other platforms such as

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TV and radio stations, events and other communication platforms. We also utilize telemarketing
as most of the audience in our target market have little or no access to the internet.

People

Our people are the most important asset we have to sell our brand. Excellent customer service not
only converts to sales but can increases our customer base by referrals. We acquire these referrals
from smallholder farmers who enjoy using our products and services. It is important to us that
everyone who represents Chiktrevors General Trading by interacting with clients is fully trained
with an intimate knowledge of our services and how it will improve the lives of our clients.

Process

We make use of an efficient and effective system to manage our customers and deliver their
products to their expectation. The smallholder farmers are grouped into cooperatives in order for
them to access some of the farming input and training we offer.

Physical Evidence

We strive for excellence by being consistent providers of quality farming input and support
services that improves the socioeconomic status of our clients.

Competitor Analysis

Competitor Products Offered Strengths Weaknesses

Crop Pro Stocks good brand Limited

Agrochemicals and seeds
Zambia agrochemicals operational areas

Zambian Crop & Agrochemicals, foliar

Offers a wide range High priced
Veterinary Care fertilizers, sprayers and
of services products
Ltd indoor residual sprays

Simmer
Limited product
Enterprises Agricultural lime Strong brand
offers
Limited

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Unique Selling Points

 Target market: We will compete favorably because of the strategic pricing method adopted
by ensuring more farmers are reached out to.

 Social Impact: As a technology oriented company we are socioeconomic oriented. At least

many jobs will be directly created and many more outsourced.

 Pricing: our services are priced lower than our major competitors.

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 STANDARD OPERATION PROCEDURE
Farmer registration: Every farmer will be registered either as an individual or a cooperative (most
preferred) to derive their basic data and create a profile for them on our customer management
system. The profile includes contact information which is used to send marketing campaigns.

Buyer registration: As part of the market linking, buyers will be registered with us to ensure the
farming output from our targeted smallholder farmers have established buyers. The buyer profile
will help the organization ease the process of establishing sustainable markets as this is one of the
major goals of the organization’s existence.

Sales procedure: The sales procedure starts by receiving the purchase order from a registered
individual farmer or a cooperative, the purchase order is reviewed and the required products or
services are prepared in accordance with the needs and the market trends for the farmers. The
farmers then agree with our sales agents the payment plan and period. The farmer then makes an
initial payment using the bank or mobile money transfer for the payable amount and the system
will automatically match the payment with the relating invoice during the daily bank reconciliation
to complete the transaction.

Sales Agent Hiring Procedure: The hiring procedure starts by advertising for the sales role in a
specific area on our social media platforms and on other job advertising platforms like LinkedIn.
A recruitment team will then be dedicated to assess and pick the best talent for the role. These are
individuals who understand the various aspects of a certain target market and able to communicate
in a language understood by the local farmers.

Payroll procedure: Our payroll is prepared at the end of every month on our accounting system.
The payroll includes basic pay for each staff and the necessary statutory deductions, the payroll
sheet is extracted from the system in excel and uploaded on the internet banking platform to initiate
a bulk payment to respective tutor accounts.

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 DIGITAL PREPAREDNESS
Chiktrevors General Trading Limited strongly believes in utilizing digital platforms to improve
efficiency in delivering quality products and services. This is the reason why we operate a hybrid
workplace comprising both a virtual workplace and physical location that allows our team and
clients to conduct business transactions from anywhere and effectively integrates our operations
with our key stakeholders to facilitate efficiency. Our operations are undertaken through a business
management system called EaseOnTrack.

Accounting system

Our finances are managed through a web-based accounting system called EaseOnTrack.

Purchases: All our purchases are made through EaseOnTrack by raising a purchase order.

Sales: All our sales are recorded on EaseOnTrack by raising an invoice

Fixed Assets Management: We maintain an up-to-date fixed assets register on EaseOnTrack.

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Bank Reconciliation: our bank account has been integrated with EaseOnTrack to undertake
automatic bank reconciliations on a daily basis.

Payroll: Our payroll is prepared and managed on EaseOnTrack, before extracting an excel
template from the system which is uploaded on internet banking to facilitate a bulk payment to
employees.

Budgeting & Forecasting: Our budgets and financial forecasts are undertaken on EaseOnTrack.

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Financial Reports: Our periodic financial reports are automatically prepared on EaseOnTrack.

Internet Banking: all our transactions are undertaken via internet banking.

Internet banking platform Mobile money platform

Information Management System: our information is kept on a web-based information

management system.

Statutory Compliance Platforms

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Below are the digital platforms we make use of to ensure compliance with statutory obligations.

Tax Payments Pension Payments Health Insurance payments

Digital marketing

Below are some of the platforms we use to market our products and services.

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 RISK MANAGEMENT AND MITIGATION
A company like ours offering products and services in the agricultural sector tends to face many
risks ranging from Market risk, supply chain risk, regulatory risk and competition risks. In order
to mitigate each of the following risks, the company management must be able to identify such
risks, assess and mitigate them before they are experienced. Below is a breakdown of the
mitigation for each of the given risk.

No. Risk Mitigation

1 Market Risk Diversification of product/service offerings
and customer base to reduce risk.
2 Supply Chain Risk Strengthening of the supply chain through
the development of strategic partnerships
and establishing backup supplies.
3 Regulatory Risk Regular monitoring of regulatory
developments and proactive engagement
with regulators to address any concerns.
4 Competition Risk Investment in research and development to
improve product quality and
competitiveness.
Implementation of risk management systems to identify, assess, and mitigate risks.

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 BOARD AND MANAGEMENT STRUCTURE
Board of Directors:

 Chairperson: Responsible for leading the board and ensuring that it operates effectively.
Also acts as a spokesperson for the company when necessary.

 Managing Director: Responsible for the day-to-day operations of the company, including
sales, marketing, and finance.

 Non-Executive Directors: Experienced individuals who provide advice and guidance to the
board based on their expertise in relevant areas, such as agriculture, finance, or marketing.

Management Team:

 General Manager: Reports to the Managing Director and oversees the overall operations of
the company.

 Sales Manager: Responsible for the company's sales strategy and execution.

 Marketing Manager: Responsible for the company's marketing strategy and execution.

 Finance Manager: Responsible for the company's financial planning, reporting, and
analysis.

 Operations Manager: Responsible for the day-to-day management of the company's

operations, including supply chain management, inventory management, and logistics.

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 INVESTMENT PLAN
The entity seeks to invest in the acquisition of farming equipment and machinery that will be used
for hiring to the target market. The other investments will go into the acquisition of farming input
as stock to be sold to the farmers. The investment of K’000 as broken down in the table below;

ITEM QUANTITY COST TOTAL

Tafe Tractor 1 350,000.00 350,000.00

Truck n trailer 1 1,203,620.00 1,203,620.00

Working capital (for acquiring animal drawn

ploughs, animal drawn rippers, Napsack sprayers, 1 446,380.00 446,380.00
Bella Sprayers, & Fertilizers)

Total 2,000,000.00

The attainment of the above listed resources will enable the continued operation and expansion of
Chiktrevors General Trading, resulting into a profitable social venture.

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Financial Forecasts
The entity projects an annual growth in revenues of about 15% for the next five years. The forecasts
may be affected by the circumstance or events in the business environment as highlighted in the
risk identification and mitigation section of this business plan.

Pro forma Income

Statement Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 2,240,000.00 2,576,000.00 2,962,400.00 3,406,760.00 3,917,774.00

Cost of sales 1,600,000.00 1,792,000.00 2,007,040.00 2,247,884.80 2,517,630.98

Gross profit 640,000.00 784,000.00 955,360.00 1,158,875.20 1,400,143.02

Personnel costs 146,400.00 153,720.00 161,406.00 169,476.30 177,950.12

Marketing & Sales 44,800.00 51,520.00 59,248.00 68,135.20 78,355.48

Administrative Expenses 15,680.00 18,032.00 20,736.80 23,847.32 27,424.42

Other operating cost 22,400.00 25,760.00 29,624.00 34,067.60 39,177.74

Depreciation - - - - -

Total Expenses 229,280.00 249,032.00 271,014.80 295,526.42 322,907.75

PBT 410,720.00 534,968.00 684,345.20 863,348.78 1,077,235.27

Income tax 123,216.00 160,490.40 205,303.56 259,004.63 323,170.58

PAT 287,504.00 374,477.60 479,041.64 604,344.15 754,064.69

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