A

BUSINESS PLAN

FOR
RABBIT FARM

IN EBONYI STATE

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 TABLE OF CONTENTS

Cover Page....................................................................................................................1

Table of Contents.........................................................................................................2

Chapter One

1.0 Executive Summary..........................................................................................4

1.1 Marketing plan..................................................................................................4
1.2 Organizational plan..........................................................................................5
1.3 Production and operation plan........................................................................5
1.4 Financial plan ...................................................................................................5
Chapter Two

2.0 business description .........................................................................................6

2.1 Business name ..................................................................................................6

2.2 Business location and address .........................................................................6

2.3 form of business opportunity...........................................................................6

2.4 Type and nature of business.............................................................................6

2.5 input procurement ……………………………………………………………………………… 7

2.5 Products and services ......................................................................................7

2.6 Justification of business opportunity...............................................................7

2.7 Entry and growth strategy ...............................................................................8

Chapter Three

3.0 Marketing plan..................................................................................................9

3.1 Potential customers .........................................................................................9

3.2 Market share and size ......................................................................................9

3.3 Competition.......................................................................................................10

3.4 Pricing strategy…………………………………………………………………………………….10

3.5 Sales strategy and tactics ………………………………………………………………………10

3.6 Advertising and promotion strategies …………………………………………………….10

3.7 Distribution strategy ……………………………………………………………………………11

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Chapter Four

4.0 Organizational and management plan.............................................................12

4.1 Business management and quality...................................................................12

4.2 Personnel number and staff.............................................................................12

4.3 Recruitment, training and promotion..............................................................13

4.4 Remuneration and incentives..........................................................................13

4.5 Support services................................................................................................14

Chapter Five

5.0 Production and operation plan........................................................................16

5.1 Production, facilities and capacity...................................................................16

5.2 Production strategies........................................................................................17

5.3 Production procedure.......................................................................................17

5.4 Government registration .................................................................................17

Chapter Six

6.0 Financial plans..................................................................................................19

6.2 Summary of total projected cost......................................................................19

6.3 Cost estimate for rabbit farming business ………………….………………..……………….20

6.4 Summary of total cost ………………………………………………………………………………23

6.5 Cost flow analysis …………………………………………………………………………………….23

6.6 profit and loss account ……………………………………………………………………………. 25

Chapter seven

7.0 Benefits and justification ………………………………………………………………………….. 26

7.1 benefits …………………………………………………………………………………………………… 26

7.2 Justification ……………………………………………………………………………………………. 26

Chapter eight

8.0 conclusion …………………………………………………………………………………………….. 27

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 CHAPTER ONE

1.0 EXECUTIVE SUMMARY

This study relates to the mass production, rearing and sales of rabbits. The project which will

be introduced and managed by Mr. Bob Ogbonnia Ekuma will be located at Federal

Polytechnic Road, Afikpo Ebonyi state of Nigeria. Rabbits from the farm will be reared and

sold in different sizes which will be made available to the markets for both household,

industrial and commercial purposes, the company targets to satisfy both the local and

international market as time goes. Funding the project will be done through individual

savings, family support and lending institutions.

The importance of food can never be overemphasized, meat protein is a food component

needed by human beings to replenish the wearing down of body tissues as well as the up

building of cells occasioned by growth and sustenance of the body systems. With the current

population increase in the nation, there is therefore need to increase the food production in the

nation. Also is the need to diversify the nation’s economy into agricultural production for

which the country has a comparative advantage over other sectors. This project is to aid in

combating the decrease in food security in nation.

1.1 MARKET PLANS:

The business is designed to serve different kinds of customers, theses includes farmers who

buy rabbits for rearing, butcher men who buy rabbits in wholesale and sale in retail in the

market; restaurants, bush bars, hotels etc. who buy rabbits for bush meat.

We have various marketing tactics, first is to connect with all stakeholders in the rabbit

farming business through the various social media platforms like WhatsApp, Facebook,

twitter and Instagram, we will provide discount to those who are buying in bulk to retain their
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patronage especially those who buy in very large quantities for exportation to other countries,

we will also involve in print and electronic media marketing.

1.2 ORGANISATIONAL PLAN:

The management system of the company will involves the initiator of the project as the head

while other competent professionals who have some roles to play in the growth and

advancement of the business will also be involved in the day to day running of the business.

1.3 PRODUCT AND OPERATIONAL PLAN:

The farm will surely requires various equipment and materials to ensure its day to day

survival, this equipment will surely ensure that the customers of the company will be satisfied

after its business with the company.

1.4 FINANCIAL PLAN:

We have an estimated capital to start up the business with within a given period of time.

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 CHAPTER TWO

2.0 BUSINESS DESCRIPTION

2.1 BUSINESS NAME

The owner of the business will be Mr. Bob Ogbonnia Ekuma and the company name shall be

Bobek farms, he is an experienced agriculturist with years of experience. It’s out of his

passion for excellence in the agriculture business that this business has been born.

2.2 BUSINESS LOCATION AND ADDRESS:

The business will be located At Federal Polytechnic Road Afikpo Ebonyi State, Nigeria.

Some plots of land that will be enough to accommodate the project has been mapped out for

the project, the location was selected because of availabilities of the needed infrastructures

like building, transport, water supply, etc.

2.3 FORM OF BUSINESS OPPORTUNITY

The business will take the form of sole proprietorship, this will help the owner take quick

decisions, enjoy profits and have a free flow of business activities. He will also be able to

maintain his business secrets with absolute confidence.

2.4 TYPE AND NATURE OF BUSINESS

Our major focus is wholesale production and supply, the business which is a farming business

will focus on brooding, rearing and sales of rabbits (colonies and bush meat) for rearing,

consumption and industrial purposes.

Apart from the first set of rabbits comprising of 2 males and 8 females, others will be sourced

from the farm, this gives us an edge over others.

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2.5 INPUT PROCUREMENT

All the inputs required are readily available and will be procured locally through a consultant

in rabbit farming business, Mr. chinomso franklin ibeh. Some of the farms where the rabbits

will be procured includes:

 Aspire multi con limited, 4/30 presidential road by onuato junction, asata, Enugu state.

 Ononam Farms, pipeline road, Eke Obinagu, Emene, Enugu state.

Most of their feeds like grass, pumpkin, fruits, and cassava e.t.c will be cultivated in the farm,

while other feeds that can’t be cultivated in the farm will be procured from within the major

local markets in the area of location as all feeds can be sourced locally.

2.6 PRODUCTS AND SERVICES

The business offers varieties of rabbits for both consumption and commercial purposes.

2.7 JUSTIFICATION OF BUSINESS OPPORTUNITY

The need for rabbit bush meat is in very high demand due to high demand for low cholesterol

meats to meet up the protein need of human beings, the population of the country is growing

at a very rapid rate hence the need to also increase the production of meats to match up with

the growing demand since protein is an essential source of food needed for the survival of

mankind.

2.8 ENTRY AND GROWTH STRATEGY:

To ensure the business starts well, there will be massive awareness through the social, print

and electronic media, the aim is to thoroughly occupy the market and ensure the business gets

expanded in no distance time.

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 CHAPTER THREE

3.0 MARKETING PLAN

The business will target primarily people within Nigeria and beyond the borders of Nigeria. It

will also target exporters who export these raw materials outside the country for industrial

purposes.

3.1 POTENTIAL CUSTOMERS

The business aims at satisfying both individuals, retailers and wholesalers who buy in both

small and large quantities.

3.2 MARKET SHARE AND SIZE

Taking cognizance of the fact that there are already existing competitors, the business hope to

be able to capture about 30% of the market share within the same year of which we hope to

increase to 60% within the next 5 years.

The business hope to achieve this feet through constant improvement and rebranding of our

tactics and strategies.

3.3 COMPETITION:

Competition is one of the greatest Challenges facing every new business, there are some

already existing larger farms within the proposed city who will sure pose a threat to the

business

The business hopes to capitalize on offering different species of rabbits both processed and

raw, offering after sale services and making customer satisfaction its watchword.
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3.4 PRICING STRATEGY

The rate at which the business will grow, retain customers and maximize profit is largely

dependent on this factor.

The business will adopt LOW COST STRATEGY to enable it penetrate the market properly,

other pricing policies like PENETRATION PRICING will be adopted too.

The business can achieve these pricing policies because of its low cost of production since it

already has a land and will be getting its feeding materials for both the rabbits from within the

environment.

3.5 SALES STRATEGIES AND TACTICS

Personal, one-on-one and direct sales strategy will be deployed from the onset, this is to

ensure aggressive sales and creating personal relationships between the customers and the

company, it will also help the company manage and monitor the patronage and complaints of

its customers for immediate attention.

Freebies like end of the year party, free lunch, commissions will be extended to salesmen and

staff to motivate them to work harder.

3.6 ADVERTISING AND PROMOTION STRATEGY

Different advertising and promotion strategies must be developed and adopted to create

proper awareness of the business.

The advert methods includes social media platforms where its activities will be uploaded to

keep in touch with its customers and also attract new customers too. It will also paste posters
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and share handbills to gain customers within the neighborhood, as the business grows, it will

start electronic media adverts.

Also there will be sales promotion strategies like road show, gifts etc.

3.7 DISTRIBUTION STRATEGY

The business will engage contract sale representatives within the communities that will work

to distribute these products to different local government areas by engaging potential

customers thereby making the supply closer the people, then there will also be sales personnel

at the farm to attend to customers who visit the farm for the products.

The manager will also liaise with Nigeria Export Promotion council to ensure that free flow

of the products outside the country

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 CHAPTER FOUR

4.0 ORGANISATION AND MANAGEMENT PLAN

The proper arrangement of activities in business in order to attain its goals and objectives is

termed as organization.

4.1 BUSINESS MANAGER AND QUALIFICATIONS

The owner of the business, is saddled with the responsibility to make final decisions on how

to pursue the business goals and objectives. Also is policy and strategies formulation aimed at

achieving the business goals, aimed at raising the profit bar of the organization.

Also saddled on the founder is the responsibilities to plan, control and co-ordinate all the

activities and sales promotion, also to engage experts where necessary, including to hire and

fire employees, also to coordinate them to produce maximum result.

Below the founder, there will be farm attendants and contract sales representatives.

4.2 PERSONEL NUMBER AND STAFF

The business will have a farm attendant, it hopes to increase the number as the business

grows.

The farm attendant will ensure that the farm is always neat and in order, he is to ensure the

farm and its environment is hygienic for both the animals and the employees to exist. He will

also see to the day to day feeding of the animals, he is also to serve as security man for the

farm till it grows to the size that will require the service of external security outfits.
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4.3 RECRUITMENT, TRAINING AND PROMOTION

The business will use oral and written interviews as its process for recruiting new employees.

The recruitment process will be unbiased and will ensure the best hands are hired for the job,

the successful employees will also go through internal on the job training to keep them at par

with the working systems of the business.

Promotions and rewards will be based only on merit and exceptional performance. Good acts

like hard work, discipline, honesty, effectiveness, efficiency and competency towards

assigned tasks will surely be rewarded.

4.4 RENUMERATION AND INCENTIVE

To ensure commitment of the employees to the goals and objectives of the organization, the

business will ensure salaries are paid at the end of the month without allowing it to delay to

the next month.

A deep sense of belonging will also be developed in the minds of the employees by getting

them involved in the daily decision making of the business, employees will be given bonuses

during special seasons especially at the end of the year. Complains from the employees will

also be handled with utmost respect and attention.

SALARY STRUCTURE FOR ALL THE STAFF OF THE COMPANY

TITLE SALARY TOTAL PER ANNUN

General Manager #40,000 #480,000

Farm attendant #25,000 #300,000

TOTAL #75,000 #780,000

4.5 SUPPORT SERVICES

The business surely needs banking support, hence an account will be opened in a leading

commercial bank, the bank will also oversee loan services whenever the business requires
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such for expansion, the business will also seek for financial advice from them whenever its

required.

Legal services is also essential since the business will be dealing with various and calibers of
persons. A reputable legal firm will be contacted for such services. Other services may
include power, water, waste management etc.

CHAPTER FIVE

5.0 PRODUCTION AND OPERATIONAL PLAN

Every business needs to attain its organizational plans for it to be termed successful, therefore

having a clear knowledge of the various facilities and its needed quantities are very much

necessary to ensure those organizational goals are achieved.

5.1 PRODUCTION FACILITIES AND CAPACITIES

A two room hutch apartment will be constructed, one hutch room will be used to house the

rabbit’s cages while one room will be used as a store for the feeds and office, working tools

and other items that may need to be kept in the store.

Construction of rabbits cages are about the most essential facilities needed since that’s where

the rabbits will be reared. Since the land is owned by the business owner, a well-planned and

durable concrete houses will be constructed for the rearing of the rabbits.

Also is mobile cages that will be used to move the rabbits into and out of the farm especially.

A water tank will also be needed for water storage, with an underground borehole, while a

pumping machine will also be acquired to pump water to the storage tanks, others include

wheel barrows, plastic bowls, head pans, and cell phone.

These equipment will be acquired immediately the business starts to ensure that free flow of

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business is not hampered.

5.2 PRODUCTION STRATEGIES

Since the farm is designed to produce and supply to the markets different ages of rabbits, it’s

pertinent that the management must ensure the stock level is maintained all seasons to ensure

they remain ever competitive in the market.

The farm needs to employ relevant assets and materials to achieve this business strategies and

tactics, such assets and materials are listed below:

Assets needed includes farming tools like shovels, machetes; also rain boots, weighing

balance, etc. Materials required per time will include supplementary feeds like P.k.c, soya

bean, corn, e.t.c. Meanwhile, preliminary expenses may include the following: business

premises fee, health and safety fee, sinking of borehole, planting of regular foods like grass,

pumpkin, fruits, cassava e.t.c; construction of rabbits cages and stores.

5.3 PRODUCTION PROCESS

The production process for rabbits involves:

(a) Brooding of the kids till four months

(b) Sorting the colonies for breeding

(c) Reproduction of rabbits

(d) Sale of bush meats

(e) Advertising, sale and marketing

5.4 GOVERNMENT REGULATION

Firstly the business will require to be registered with the corporate affairs commission (CAC),

then get registered with the local government and development authorities. It will also get

registered with the ministry of health and environment for sanitation and health inspection.

The business will also ensure steady payments of its taxes to ensure the business doesn’t get
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interrupted.

CHAPTER SIX

6.0 FINANCIAL PLAN

Finances is the strength of the entrepreneur in making his business dreams a reality, it

represents the entrepreneur’s best estimate of future operations in quantitative terms i.e. it

shows the amount of figures for us within a specific period of time.

6.1 SUMMARY OF TOTAL PROJECT COST

ITEM LOAN APPLICANT TOTAL

Investment expenses #1,710,000 #475,000 #2,185,000

Operating expenses #90,000 #25,000 #115,000

Total #1,800,000 #500,000 #2,300,000

The total project cost shows that the value of the project at full implementation will cost the

sum of #2,300,000 (Two million three hundred thousand naira only).

This includes the one million eight hundred thousand naira only the promoter is seeking from

the lending institution as well as the sum of five hundred thousand naira already acquired.

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 6.1 COST ESTIMATE FOR RABBIT FARMING BUSINESS

ITEMS AMOUNT

Purchase of ten rabbits of two males and 8 females #160,000

Construction of concrete cages with iron gates #200,000

Deworming drugs and other medications #50,000

Purchase of portable delivery cages (2 pieces @ 2000 #4,000

each)

Feeding (supplementary feed like P.K.C, soya bean, #200,000

e.t.c

Construction of concrete drinkers (5 pieces @ #1500 #7,500

each)

TOTAL #621,000

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 6.2 FEES AND OTHER ADDITIONAL EXPENSES

ITEMS AMOUNT

Construction of 2 room hutch house for housing the #300,000

rabbit and store

Sinking of borehole #200,000

Pumping machine #50,000

Registrations and license #50,000

Storage tank #80,000

Other business taxes #20,000

Sanitation fee #20,000

Wheel barrows #10,000

Weighing machine, pans, shovels, machetes and other #10,000

working tools

Advertisement and sale promotions #30,000

Miscellaneous expenses #100,000

TOTAL #880,000

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 6.4 SUMMARY OF TOTAL ESTIMATED COSTS

ITEMS AMOUNT

Estimated Salaries and wages #780,000

Estimated cost for rabbit farming #621,000

Estimated cost for fees and additional #880,000

expenses

GRAND TOTAL #2,281,000

6.5 CASH FLOW ANALYSIS

ITEMS YEAR ONE YEAR TWO

INFLOW:

Rabbit sales #3,200,000 #3,200,000

Bushmeat sales - -

Promoter’s investment #475,000 -

Re-investment - #930,000

SUB TOTAL #3,675,000 #4,130,000

OUTFLOW:

Investment expenses #1,710,000 -

Operating expenses #90,000 #90,000

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Less debt service (int) #45,000 #45,000

Less debt service (prin) #900,000 #900,000

TOTAL OUTFLOW #2,745,000 #1,035,000

NET CASH BALANCE #930,000 #3,095,000

6.6 PROFIT AND LOSS ACCOUNT

ITEMS YEAR 1 YEAR 2

Sales: rabbit #3,200,000 #3,200,000

Bush meat - -

SUB TOTAL: #3,200,000 #3,200,000

Expenses i.e. operating exp. #90,000 #90,000

Gross profit before tax #3,110,000 #3,110,000

Less depreciation #300,000 #300,000

Less tax 5% #155,500 #155,500

Net profit #2,654,500 #2,654,500

APPENDIX:

 Rabbit sales of #3,200,000 came from an assumption that the four females will farrow

twice in a year, each is expected to farrow at least 10 rabbit which will be sold at

#20,000 each as colonies, the outcome of this will result to estimated #3,200,000.

 Operating expenses of #90,000 is the interest servicing of the loan

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  Debt service interest of #45,000 is the servicing of the #90,000 interest divided into the

2 years repayment period

 Debt service of principal of #900,000 is the repayment of the #1,800,000 loan

CHAPTER SEVEN

7.0 BENEFITS AND JUSTIFICATION

7.1 BENEFITS

 The project will provide employment to a worker, thereby helping to reduce

unemployment

 The project will support the efforts aimed at food security

 The project will help to conserve foreign exchange by reducing importation of food

 The project will increase the income and well-being of the promoter

7.2 JUSTIFICATION

The project posts positive net cash balances for the period projected. The profitability and

viability indicators shown are pointers to the fact that the project promises to be a venture that

is worthwhile.

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 CHAPTER EIGHT

8.0 CONCLUSION

This project analysis has considered all the factors necessary for a progressive rabbit farming

project.

The country’s population has been growing, yet food production has not been matching this

growth and consequent demands. The project is viable and profitable.

8.1 RECOMMENDATION

It is our considered opinion that this project has high potentials, we therefore encourage the

project promoter to go ahead with their vision and interest in implementing the project.

We equally encourage any financial institution that may be approached for funding to lend

her support by financing the project.

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