BUSINESS PROPOSAL PLAN

TIMBER PROCESSING

OCTOMBER 1, 2023
SIKUNGOLWA GENEAL DEALERS
LOCATED IN;CHOMA DISTRICT
Table of Content
EXECUTIVE SUMMARY .................................................................................................................................. 1
OBJECTIVES ................................................................................................................................................... 2
COMPANY OWNERSHIP ................................................................................................................................ 3
COMPANY DESCRIPTION ............................................................................................................................... 4
ECONOMIC BENEFITS .................................................................................................................................... 5
COMPANY LOCATION.................................................................................................................................... 6
MARKET ANALYSIS…………………………………………………………………………………………….…………………………….………7

MARKET SEGMENTATION……………………….……………………………………………………………………….………………………8

MARKET TREND…………………………………………………………………………………………………………………….…………………9

PRICING STRATERGY…………….……………………………………………………………………………………………………………….10

SALES AND MARKETING STRATEGIES ..……………………………………………………………………………………11

MANAGEMENT AND HUMAN RESOURCES ……..………………………………………………………………………12
RISK SENSITIVITY …………………………………………….……………………………………………………….……………..13
COMPETITOR / SWOT ANALYSIS…………………………….……………………………………………………………….14
OPERATING / PRODUCTION PLAN ………………………………………………………………………………………….15
COST PURCHASES / BATCH…………………………………………………………..…………………………………………16
TOTAL PROJECT COST……………………………………………………………..………………………………………………17
FINANCIAL PROJECTIONS……………………………………………………….……………………………………………….18
SOURCES OF INCOME………………………………………………………….……………………………………………….…19
GENERATING FUNDS……………………………………………….……………………………………………………………..20
SUSTAINABILITY AND EXPANSIONS STRATEGIES………….…………………………………………………….……21
CONCLUSION……………………………………………………………………….………………………………………………….22
EXECUTIVE SUMMARY

Sikungolwa Geneal Dealers will be a registered startup company that will specialize in timber
harvesting and processing in Choma district. We have done a detailed market research and
feasibility studies and we were able to secure hundred hectares of land to start our timber
business. Our project is going to be a standard commercial , so will be involved in cutting,
skidding, on-site processing, and loading of trees or logs onto trucks or skeleton cars. We are set
to service a wide range of clientele in and around Choma district on a commercial level, we will
export timber. We are in the commercial timber processing line of business because we want to
leverage on the vast opportunities available in timber processing industry to contribute to the
economy of our country Zambia. The main reason for venturing into timer processing industry is
to leverage on the wide range of opportunities available in the timber processing industry, add on
to the growth of the Zambian economy, and help ensure raw materials production for other
industries and above all make profits. The company plans on being one of the well equipped and
well positioned so that it can be one of the leading timber processing business in Zambia.

Sikungolwa General Dealers

Our client’s best interest will always come first, and everything we do will be guided by our
values and professional ethics. We will ensure that we hold ourselves accountable to the highest
standards by meeting our client’s needs precisely and completely.

We will ensure that we hold ourselves accountable to the highest standards by meeting our
customers ‘needs precisely and completely. We will cultivate a working environment that
provides a human, sustainable approach to earning a living, and living in our world, for our
partners, employees and for our customers. We are well positioned to become one of the leading
commercial timber processing in Zambia.
This company will be crowned by Mr.Lishomwa Imasiku who is also the director. All the
management functions such as planning, organizing, controlling, coordinating, directing and
general leadership will be done by him.(continuous improvement) principle and Total quality
Management will be a key factor for the success of the company. Therefore, key inputs from
stakeholders such as customers and employees will be utilized in the company’s decision making
process.
Location
Choma district has been strategically chosen as the right place to start this company due to
among other things, huge market prospects, near proximity to key suppliers and good
infrastructure such as roads, communication and electricity.
All things being equal this project is going to cost about K379,015.This figure factors all the
expenses involved for the successful operationalization of the project. These funds will be
injected by the owner. The costs involve cost of purchases, labour, fixed assets, overhead,
communication, transport and distribution, marketing and other hidden costs plus a provision for
contingency.
We will run the company in a cost effective manner. All costs will be kept to the minimal but at
the same time paying particular attention to qualify and customer’s value for money in mind. All
things being equal.

2.0 VISION
To become one of the leading brand in the timber harvesting industry production countrywide in
timber processing industry.
3.0 MISSION STATEMENT
To provide the most cost effective, quality efficient and transparent products/services, paying
great attention to every detail of every job regardless of size.

CORE VALUE
Integrity
Professionalism
Excellence
Commitment
 Honesty
Customer care
Ethical
Responsible

4.0 GOALS
To secure a reputation of high quality products and services backed by a high caliber
of management
To have unparalleled commitment to customer care/service
To complete and deliver all our jobs on time and within the budget
To build a solid foundation of both quality products and prices regardless of size of
budget involved

5.0 OBJECTIVES
Our company will put a number of objectives to serve as performance yardsticks. These
objectives will be smart in nature

S Specific
M Measurable
A Attainable
R Realistic
T Time bound
Any possible deviations for set targets will be re-examined and remedial measures immediately
put in place.

5.1 SHORT TERM OBJECTIVES

Creation of direct jobs at inception of the project
To make annual sales of K630,000 by septembe,2024
Realizing an annual net profit of K113,244 september,2024
 5.2 LONG TERM OBJECTIVES
To train and empower the youths and women and in timer processing
industry
To source funding from other NGOs with smaller interest
To work with government in all related programs.
To make linkages with other international organization doing smaller
activities

6.0 COMPANY OWNERSHIP

This company is owned by Mr. Lishomwa Imasiku. It is a registered legal entity under the patent
and company registration Authority (PACRA) under certificate of Registration
Number;320110183156. Mr. Lishomwa Imasiku he is the Director and will provide leadership
and strategic management to see the company grow to another level.
Qualified employees will be hired and this will ensure good management for the company.
Although Mr. Lishomwa Imasiku will be making key business decisions, planning, directing,
controlling, coordinating and other management functions, he will listen to employees and
customer feedback (both positive and negative) in order to improve the way the business will be
run. We will do what the customer wants, not want we want. The objective is to ensure a first
customer, both individual and corporate, comes back for future purchases. This is key for a
young company like ours. Repeat customers also bring referral customers.

7.0 COMPANY DESCRIPTION

Company Name ; Sikungolwa Geneal Dealers

Company Address : Choma district
Company Director : Mr. Lishomwa Imasiku
Company Phone No/Email :
TPIN Number : 1003936144
8.0 ECONOMIC BENEFITS
Our birth as a company will bring a number of benefits to the economy of Zambia. The
following will be some of the trickle down economic benefits
Job creation
Tax contribution to the Republic of Zambia
Contribution to the Gross Domestic Product (GDP)
Creation of hunger for other entrepreneurs to jump into the band wagon and emulate
us
9.0 KEYS TO SUCCESS

Offering our valued customers affordable, high quality products at slightly

reduced prices compared to our competitors
Engaging our customers on a one on one basis and setting their feedback – both
positive and negative so that we improve in certain areas. The key is to have a
smiling customer
A good sales and marketing strategy will be put in place

10.0 COMPANY LOCATION

We will be located in Choma district. This is a strategic location and is near the market for our
product. It has access to water and a good road and communication networks. Our location will
give us a competitive advantage and leverage .

11.0 PRODUCTS
We will be involved in cutting, skidding, on-site processing, and loading of trees or logs onto
trucks. Our products will be of unmatched quality but affordable to customers. Further, we
intend to help vulnerables by empowering them in our communities.
 11.1 COMPETITIVE COMPARISON

We will offer quality products unmatched to any rival/competitor. This will be

punctuated by a good customer care.
We will use simple marketing techniques that reduce costs but help achieve
maximum results
We will use simple marketing techniques that reduce costs but help achieve
maximum results
Our products will meet and exceed our customer expectations

12.0 WHY US?

Why would customers consider buying our products instead of buying from our competitors?
Our keys to success and why we believe we will win customers are as follows:
 We will produce good quality timber and sell at affordable prices. Further, we will reduce
prices slightly so as to carter for all our customer pockets.
 Customer feedback and concerns will be taken serious in our business. Any complaints and
compliments will be used as key information in future decisions. We will produce what
customers want and in a flexible manner. The customer is the reason why we will exist.
 We will devise a unique sales and marketing strategy

12.0 MARKET ANALYSIS SUMMARY

The economy of Zambia has been steadily improving with a number of people affording most
basic essentials. The demand for timber is high and we do not expect it to plummet any time
soon as it is in fact increasing every day. This will make us to have a positive growth prospect as
a timber supplier in the targeted area of Choma.
To meet this demand for timber , we are poised and have the capacity to fill in the gap and
supply at a profit. We will strategically tap in this massive demand so as to increase our market
base.
 12.1 MARKET SEGMENTATION
The market is segmented into two: the corporate and individuals and we are targeting both.
However, we have a higher bias on corporate clients as we will be keeping a large number of
chickens and on a consistent basis.

12.2 MARKET TREND

The food industry is constantly sprouting and leaving many rigid companies / timber industry
sluggish. One of the major trends to adapt is technological advancement and maintaining quality
delivery services to our valued customer. We will make it easier for our customers to place
orders online and deliver to them, depending on the size of consignment within the radius of
Southern Province. This will be done at a small carriage out fee.

12.3 PRICING STRATEGY

Pricing being one of the four Ps in the marketing mix is very crucial in any business success and
growth and we are no exception. Our prices will depend on what is obtainable on the market.
However, to quickly penetrate the market, we will strategically sell our products at slightly
reduced prices.
13.0 SALES AND MARKETING STRATEGIES
To remain buoyant in a competitive environment, our company will put a number of sales and
marketing strategies from its bag. Some of such strategies includes:-
Directly involving potential client’s especially corporate clients through word of mouth on
the availability of our products.
Leveraging on the internet through various platforms for example Facebook, whatsapp,
twitter etc so as to reach a high volume of potential clients. In the modern world
technology must be harnessed by any business. A number of people own cellular phones
and have access to the internet at a very low cost.
Offer delivery services to bulky buyers
Distribution of flyers and catalogues in strategic places
Engage on promotional campaign especially to our loyal bulk buyers
 Introduce our business by sending introductory letters to both residential areas and
corporate clients such as restaurants/eateries, lodges, hospitals, boarding school etc.
Listing on yellow pages/directories for our prospective customers to reach us easily.

14.0 MANAGEMENT AND HUMAN RESOURCES

14.1 Management
For effective and efficient running as well as growth of our business, a good management system
will be put in place. The Director will perform all management functions of planning,
organizing, controlling, directing, coordinating, leadership and decision making for the
enterprise. We will also ensure a team of hardworking qualified employees are in place as
poultry farming require competent hands. These will be paid competitive salaries as a way of
motivating them. A motivated employee is more congruent (putting company interest first
before self) and is likely to grow with the company. This also reduces cases of pilferage.

14.2 HUMAN RESOURCES

Being the most valuable assets not only at our timber processing industry but also in any firm,
humans play a key role. At the inception throughout to the end of year one, we will hire three (3)
employees to manage daily farm routines. These will be people who have knowledge about
poultry farming.

MANAGER
Duties and Responsibilities
Planning on the requirements and inventory for the same
Monitoring timber health and taking necessary action in an efficient expeditious and cost
effective manner
Any other duties as assigned by the Director

CHIEF EXECUTIVE OFFICER

Duties and Responsibilities
Increases management’s effectiveness by recruiting, selecting, orienting, training,
coaching, counseling, and disciplining managers; communicating values, strategies, and
 objectives; assigning accountabilities; planning, monitoring, and appraising job results;
developing incentives; developing a climate for offering information and opinions
Creates, communicates, and implements the organization’s vision, mission, and overall
direction for example. leading the development and implementation of the overall
organization’s strategy.
Responsible for fixing prices and signing business deals
Accountable for providing direction for the business
Responsible for signing checks and documents on behalf of the company

EMOLUMENTS / MONTH

DESIGNATION QTY QUALIFICATION SALARY TOTAL

(K) (K)
Manager 01 Certificate in 1500 1500
agriculture
General Worker 02 Grade 12 School 850 850
Certificate
TOTAL WAGE BURDEN PER MONTH 2,350

15.0 RISK SENSITIVITY

Farming, like any other business is susceptible to a number of potential risks that can hit the
business. Some of such potential risks include:-

The risk of price wars by big producers who may reduce prices to unreasonable levels
External economic downturns that can affect customer buying power
New technological threats
Natural calamities
Importation of cheap timber from outside the country
16.0 COMPETITOR /SWOT ANALYSIS
Within the proposed location of Choma are a number of competitors. Therefore, we will not be
operating in a vacuum. To remain competitive and grow the business we will carry out a SWOT
(Strengths, Weaknesses, Opportunities and Threats) analysis. A SWOT analysis is a business,
appraisal system of analyzing how a business is doing in relation to its environment.
Environment in this context is the competitions. SW (Strengths and Weaknesses) are internal
factors that affect a business e.g a good location or lack of a good marketing strategy
respectively. OT (Opportunities and Threats) are external factors e.g a continuous demand for
products and economic meltdown respectively. A threat could also be price wars or aggressive
competition. Other macro environmental factors to consider includes:-

P Political
E Environmental
S Social / Cultural Norms
T Technology
E Economical
L Legal Issues

17.1 SWOT ANALYSIS FOR IVANJI FARM

STRENGTHS WEAKNESSES
 Good location  New in the business
 Quality affordable products  Cant lower prices further
 Good marketing and sales  No repeat customers yet
prowess

OPPORTUNITY THREATS
 Continuous demand for timber  Possible economic down
turn that may affect
 customer buying power
 Room and enough capacity to
increase/grow our production

17.2 SWOT ANALYSIS FOR ONE COMPETITOR – NAME WITH HELD FOR
CONFIDENTIALITY

STRENGTHS WEAKNESSES
 Well established  Poor location
 Has the capacity / qualified staff  Poor customer care
  Produces poor and
expensive timber

OPPORTUNITY THREATS
 Continuous demand for timber  Lacks the technology and
uses old systems

Though we have competitors none will equal to our quality customer care and flexibility.
Further, most of our competitors are on a smaller scale and lack the consistency.

17.0 OPERATING

FINANCIAL STATEMENT

Cash Flow Statement

Year 0 Year 1 Year 2

ZMK ZMK ZMK
Cash Inflows `
Loans/Invesment Capital 9,000 15,000 -
Sales (Chickens) 10,000 5,200 24,680
Total cash inflows 19,000 20,200 24,680

Cash Outflows
Fixed assests
Equipment 10,479

Cost of Sales
Timbers 15,000 20,000 35,000
Expendintures
Interest on loans 1,860 1,619
Communication (Telephone & 4,00 5,00 4,00
Utilities Electricity 1,000 1,000 2,000
General Office Supplies 3,000 2,000
Bank Charges 1,00
Salaries and wages 8,000 10,000 5,000
Total cash outflows 19,879 23,360 16,319

Cash Flow Summary

Total inflows 6,000 8,000 6,000
Total outflows 7,000 7,355 8,929
Net cash flow 3,000 5,645 4,071
Balance b/f - 10,000 3,645
Balance c/f 16,000 15,645 22,645

Profit and Loss Statement

REVENUE
Sales 10,000 11,000 15,680 16,297
Cost of sales 6,000 8,000 8,720 10,233
Gross profit 4,000 3,000 6,960 6,064
GP Margins % 37% 36% 33% 30%

Expenditures
General and selling expenses 9,000 3,700 7,605 4,900
Depreciation charge - 1,160 4,085 4,085
Interest on loans 6,708 4,070 5,552
Total expenditures 9,000 5,569 6,760 6,538
Net profit/(Loss) before tax 8,000 9,430 3,199 8,525
Taxation charge 2,800 8,300 6,919 6,983
Net profit/(Loss) after tax 10,000 13,028 16,436 19,275

Balance Sheet

Year 0 Year 1 Year 2

ASSETS:
Non Current assets
Property, plant and equipmen 3,000 11,272 8,024

3,000 11,272 8,024

Current assets
Accounts receiveables - -
Bank and cash balances 9,000 3,645 7,716
7,000 3,645 7,716
 Total assets 12,000 14,917 15,740

EQUITY AND LIABILITIES

Share capital and reserves
Share capital 8,000 6,000 6,000
Capital Reserves - - -
General reserves 5,000 3,028 4,464
10,000 3,028 6,464
Long term Liabilities
Long term loans 7,105 6,579
Total long term financing - 7,105 6,579

Current liabilities
Creditors and accruals - - -
Tax payable/deffered tax 9,000 8,084 11,697
total current liabilities 2,000 9,784 11,697

Total equity and liabilites 12,000 14,917 15,740

23.0 GENERATING FUNDS

In order for this business to become a reality we will need financing. Finance is the most
important factor when it comes to starting a business such as commercial farming. The start- up
capital of a business is very costly but then becomes cheap when everything stabilizes, but it is a
task that an entrepreneur must go through. The company will get startup capital from the loan
and it also intends to get partly from the company.

23.2 SUSTAIANABILITY AND EXPANSION STRATEGIES

The success of the business lies on the loyal customers and the capacity of the employees. One of
the goals of starting business is to build a business that will survive off its own cash flow without
the need for injecting finance from external sources once the business is officially running. We
know that one of the ways of gaining approval and winning customers over is to sell our timbers
a little bit cheaper than what is obtainable in the market and we are well prepared to survive on
lower profit margin for a while.

23.3 CONCLUSION
This business is viable and profitable. We will continue to keep running costs to the minimal
and embrace the principle of continuously improving the way we will be running the business.
All things being equal, our profit margins at 32% of total sales revenue. This gives us more
impetus to invest part of the profits in investing in another project so as to increase production.
This is our long term strategy. Nothing will stop us from taking the business risk of investing our
money in this business because all such risks are well calculated. This is a bankable project
because people will always buy and the demand is continuous.