8/9/2020

MINI BUSINESS PLAN

12 MONTHS GLOBAL CONCEPTS

BN 2498592
Prepared by: MICHAEL JONAH

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 12monthsglobalconcept@gmail.com
 +234 803 559 8586

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Content

1. Business Description 2. Industry Overview

1. Personal Information 1. Sector Analysis
2. Business Details 2. Sub-sector Analysis
3. SWOT Analysis
4. Leadership Structure

3. Marketing and Sales 4. Financial Analysis

1. Competition 1. Key Assumptions
2. Advertising and Sales 2. Products and Services
3. Target Market 3. Financial Projections
4. Current Financing

5. Funding Requirement 6. Viability Summary

1. Proposed Loan 1. Profitability Ratios
2. Use of Funds 2. Viability Ratios
3. Weighted Average Gross Margin
4. Enterprise Value
5. Fund Repayment Ability

7. Conclusion
1. References
2. Photographs

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Business Description

Personal Information
Name: Other Name:
MICHAEL JONAH

Gender: Email:
Male 12monthsglobalconcept@gmail.com

Contact: Government issued ID:

0803 559 8586 National Identification Number

Identification number: Address:

5641872423 AA1 FUNTAJ ROAD OPPOSITE A & SHINE BEE COMPANY
KUJE ABUJA , NIGERIA

Bank Verification Number:

22160293641

Educational qualification:

Institution name: Qualification: Course:

UNIVERSITY OF MAIDUGURI B.Agric (Honor) Animal Science

Date awarded: Certificates proof:

11/30/2010 Yes

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Business Details
Name: Business age:
12 MONTHS GLOBAL CONCEPTS 3 Years

Address:
PLOT 18A DAWAKI LAYOUT OFF KUBWA EXPRESS
WAY , ABUJA NIGERIA

Business description:
12 MONTHS GLOBAL CONCEPT is a poultry farm situated in Abuja Nigeria. Our business involves the
production of eggs using the Isa Brown point of lay birds and the rearing of broiler birds for meat chicken.
Our business is registered with the corporate affairs commission with MICHAEL JONAH as the chief
executive director.

USP: Our Products/Services

1. Will be of superior quality
2. Will offer more choice to the customers
3. Will be priced lower than the market price

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SWOT Analysis
Strengths Weaknesses

LOW OVERHEADS LOW CAPITAL BASE

EXPERIENCED WORKFORCE LOW PRODUCTION BASE

EXCELLENT CUSTOMER SERVICE LOW MARKET PENETRATION

Opportunities Threats

HIGH MARKET DEMAND HIGH MORTALITY

GAP IN LOCAL MARKET SUPPLY CRACKING OF EGGS

BAN ON IMPORTED POULTRY PRODUCTS THEFT

Leadership Structure
Details of owners of the business

# Name Shareholding in %

1 MICHAEL JONAH 65

2 UDEME JOSEPH SAMUEL 35

35.00%
35.00%
65.00%
65.00%

MI CHAE L J ONAH UDE ME J OS E PH S AMUE L

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Industry Overview

Sub-Sector Analysis - Poultry - Poultry

Five forces

Bargaining Bargaining
Power of Power of
Customers Suppliers
HIGH
5 LOW

FORCES
Industry Threat of
Rivalry Substitution
HIGH LOW
Threat of New
Entrant
HIGH

General
Poultry farming involves rearing domestic fowls including chickens, turkeys, geese and ducks particularly for

the production of meat and eggs. Poultry production is the fastest growing meat sector in Nigeria’s

agricultural sub-sectors. It constitutes a significant percent of agricultural products' contributing to the

nation's economy. The value of Nigerian poultry industry is estimated at over NGN1.2 trillion causing Nigeria

to be the top producer in Africa

Trends
The Nigerian poultry industry is the most commercialized sub-sector of Agriculture and has rapidly expanded

over the years. The industry has evolved from stack traditional methods, to integrating modern technology

into poultry production. Facilities such as hatcheries, feed mills, amongst others have been established in a

bid to encourage local production

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Demand
The poultry industry in Nigeria has been rapidly expanding in past years, with an annual demand estimated at

over USD1.3 billion. Chicken importation was banned by Nigeria in 2003, which spurred growth in domestic

poultry production. There are no restrictions around poultry – for example, no religious or ethnic restrictions –

hence its sustainable high demand. The continuous growth in demand is also supported by the diversified

uses of poultry in Nigeria

Regulatory considerations
Poultry businesses must conform to the standards stipulated by the Federal Ministry of Agriculture and Rural

Development (FMARD)

Risks
There are several risks involved with poultry farming. However, the infection and disease susceptibility of

poultries are most critical risks. Poultries are exposed to diseases such as Avian Influenza (bird flu) and

coccidiosis. This affects the health of the birds and reduces the quality its produce. Poultry farmers need to

practice good biosecurity to reduce incidents of diseases

* So u rces: Ag ricu ltu re Nig eria, 2 0 1 7 ; T h is d ay Nig eria, 2 0 1 7

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Marketing And Sales

Competition
Key competitors:

Price of the
individual’s/
Name of Name of company’s Price of Region of LGA of Diffe
Competing Competitor product/ Competitor Competitor Competitor from
# Products Product Organization service( ₦ ) product ( ₦ ) Operations Operations prod

Abuja Abuja
FRESH Federal Municipal
1 EGGS EGGS 850 900 50
FARM Capital Area
Territory Council

Abuja Abuja
Federal Municipal
2 BROILERS BROILERS JBR FARMS 1,500 2,000 500
Capital Area
Territory Council

Abuja Abuja
POULTRY POULTRY MIRAX Federal Municipal
3 1,500 1,500 0
LITTERS LITTERS POULTRY Capital Area
Territory Council

Advertising And Sales

Our Advertisment:
1. Radio
2. Television
3. Print Media
4. Billboards
5. Mobile marketing
6. Social media

Sales Strategy:
1. Direct sales and marketing by you or your employees
2. Direct online sales with delivery
3. Online sales via third-party e-commerce platforms
4. Direct sales through your own outlets
5. Indirect sales through distributors, agents, or other shops

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Target Market
Target Customers: Businesses, Individuals

All All


Gender Age Category

1,208,420,817 100%
Customer population by location Customer proportion by age group

Target Location
States: All

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Financial Analysis

Key Assumptions
Assets:

Land & Building

Purchase price ( ₦ ): 1,000,000
Year of accuistion: 2018
Lifespan (years): 30

Products And Services

Product list:

Production Production Wholesale price of Retail price of

# Product name quantity period product ( ₦ ) product ( ₦ )

Twelve per
1 EGGS 2,950 Units 850 1,100
annum

Twelve per
2 BROILERS 500 Units 1,500 2,000
annum

POULTRY Twelve per

3 500 Units 1,500 1,500
LITTERS annum

Frequency of increase in Product/Service price: Selling Price Growth Rate:

Once every two years Inflation rate

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Financial Projections
Projected profit ( ₦ ):
300,000,000

250,000,000 238,938,141
238,938,141

199,115,118
1 99,115,118
200,000,000 179,170,685
179,170,685
165,929,265
165,929,265

150,000,000 138,274,387
138,274,387
₦) ( t n uo mA

115,228,656
115,228,656

100,000,000 9 6 , 0 2 3 , 8 8 0 86,405,616
96,023,880 86,405,616
80,019,900
8 0,019,900
60,003,900
60,003,900
59,940,000
59,940,000
50,000,000

--16,680,000
1 6 , 6 8 0 , 0 0 0-20,016,000
- 2 0 , 0 1 6 , 0 0 0-24,019,200
- 2 4 , 0 1 9 , 2 0 0-28,823,040
-2 8 , 8 2 3 , 0 4 0
50,000,000 -3 4 , 5 8 7 , 6 4 8
-34,587,648
-4 1 , 5 0 5 , 1 7 8
-41,505,178
-4 9 , 8 0 6 , 2 1 3
-49,806,213
-5 9 , 7 6 7 , 4 5 6
-59,767,456

100,000,000
Year 1 Year 2 Year 3 Year 4 Year 5 y ear 6 y ear 7 7

Net R evenue Cost of r evenue Gr oss pr ofit

Projected operating expenses ( ₦ ):

6,000,000

5,484,000
5,484,000 5,484,000
5,484,000 5,484,000
5,484,000 5,484,000
5,484,000 5,484,000
5,484,000 5,484,000
5,484,000 5,484,000
5,484,000 5,484,000
5,484,000

5,000,000

4,000,000
₦) ( s es n epx E

4,680,000 4,680,000 4,680,000 4,680,000 4,680,000 4,680,000 4,680,000 4,680,000

3,000,000

2,000,000

1,000,000
120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000

600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000

0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

S alar ies Gener al and Administr ation Utility costs R ent Other s

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Financial indicators ( ₦ ):

# S t a t e me nt Ye a r 1 Ye a r 2 Ye a r 3 Ye a r 4 Ye a r 5 Ye a r 6 Ye a r 7 Ye a r 8

1 EBI TDA ( Gr oss P r ofit - Ope r a tin g Expe n se s) 37,776,000 54,519,900 66,520,680 80,921,616 98,202,739 118,940,087 143,824,904

2 DEP REC I ATI ON -3 3 , 3 3 3 -3 3 , 3 3 3 -3 3 , 3 3 3 -3 3 , 3 3 3 -3 3 , 3 3 3 -3 3 , 3 3 3 -3 3 , 3 3 3

3 EBI T 37,742,667 54,486,567 66,487,347 80,888,283 98,169,406 118,906,754 143,791,571

4 I N TERES T I N C OME / ( EXP EN S E) -6 7 5 , 0 0 0 -6 2 8 , 3 6 6 -5 3 6 , 7 0 1 -4 3 6 , 4 3 8 -3 2 6 , 7 7 0 -2 0 6 , 8 1 4 -7 5 , 6 0 5

5 N ET EA RN I N GS BEFORE TA XES 37,067,667 53,858,201 65,950,645 80,451,844 97,842,636 118,699,940 143,715,966

6 TA XES -1 1 , 1 2 0 , 3 0 0 -1 6 , 1 5 7 , 4 6 0 -1 9 , 7 8 5 , 1 9 4 -2 4 , 1 3 5 , 5 5 3 -2 9 , 3 5 2 , 7 9 1 -3 5 , 6 0 9 , 9 8 2 -4 3 , 1 1 4 , 7 9 0

7 N E T E ARN I N GS 25,947,367 37,700,741 46,165,452 56,316,291 68,489,845 83,089,958 100,601,176

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Balance Sheet ( ₦ ):
500,000,000

450,000,000 439,693,491
439,693,491

400,000,000

350,000,000 339,939,957
339,939,957

300,000,000
₦) ( s es n epx E

257,680,147
257,680,147
250,000,000

439,693,491
200,000,000 189,995,253
189,995,253

339,939,957
150,000,000 134,453,213
134,453,213
257,680,147

100,000,000 89,027,555
89,027,555
189,995,253

52,029,782
52,029,782 134,453,213
50,000,000 89,027,555
24,789,000
24,789,000

24,789,000 8,793,415 8,090,447 7,350,654 6,576,403 5,771,452 4,941,304

0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Assets E quity Liabilities

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 Cashflows Statement:

Operations ( ₦ ): Financing Activities ( ₦ ):

450,000,000 0
77,544
77,544
414,725,51
414,725,51
1,068,824
1,278,755
1,529,920
400,000,000
1,000,000
977,159
977,159
1,169,087
1,169,087
1,398,711
1,398,711
350,000,000
2,000,000

300,000,000
3,000,000
) ( s es n epx E

) ( s es n epx E
₦

₦
250,000,000
7,500,000
4,000,000
414,725,516
200,000,000

5,000,000
150,000,000

99,998,068
99,998,068 6,000,000
100,000,000
82,592,924
8 2,592,924
68,081,206
68,081,206
55,981,314
55,981,314
7,000,000
50,000,000 37,348,980
37,348,980 99,998,068
24,831,166
2 4,831,166
55,981,314
7,500,000
7,500,000
24,831,166
0 8,000,000
la

l
1

at
t
ra

ra

ra

ra

ra

ra

ra

ra

ra

ra
oT

oT
ae

ae

ae

ae
eY

eY

eY

eY

eY

eY

eY

eY

eY

eY
Y

Oper ations Financing Activities

Investing Activities ( ₦ ): Net Cash Change ( ₦ ):

0 450,000,000
0 0 0 0 0 0

404,600,51
404,600,51
400,000,000

500,000

350,000,000

1,000,000 300,000,000
) ( s es n epx E

) ( s es n epx E
₦

2,625,000 2,625,000 250,000,000

1,500,000

200,000,000 404,600,516

2,000,000 150,000,000

98,468,149
98,468,149
100,000,000
81,194,212
8 1,194,212
2,500,000 66,802,450
66,802,450
54,812,227
54,812,227
2,625,000
2,625,000 2,625,000
2,625,000 50,000,000 36,371,821
36,371,821 98,468,149
22,128,622
2 2,128,622
54,812,227
22,128,622
3,000,000 0
la

la
1

7
to

to
ra

ra

ra

ra

ra

ra

ra

ra

ra

ra

ra

ra

ra

ra
T

T
eY

eY

eY

eY

eY

eY

eY

eY

eY

eY

eY

eY

eY

eY

I nvesting Activities Net Cash Change

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Funding Requirement

Proposed Loan
Loan required: Loan duration:

₦ 7,500,000 7 Years
Purpose:

Expand an existing business

Loan start year:

2020

Loan Repayment
Repayment mode:

Monthly instalment payments

Loan moratorium:

Yes, for one year

Use of Funds
Funds Allocation

# Use % Allocation

1 Purchase machinery / equipment 75

2 Fund working capital / operations 25

New Machinery/Equipment

# Name Use of equipment No. of units Unit cost Total

1 BATTERY CAGE HOUSES THE BIRDS 15 135,000 2,025,000

2 BORE HOLE WATER SOURCE 1 500,000 500,000

3 GEEPEE TANK WATER STORAGE 2 50,000 100,000

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Viability Summary

Profitability Ratios

Ye a r 1 Ye a r 2 Ye a r 3 Ye a r 4 Ye a r 5 Ye a r 6 Ye a r 7 Ye a r 8

Gr oss P r ofit % 72.17% 74.99% 74.99% 74.99% 74.99% 74.99% 74.99% 74.99%

EBI TDA ( Gr oss P r ofit - Ope r a tin g Expe n se s) 37,776,000 54,519,900 66,520,680 80,921,616 98,202,739 118,940,087 143,824,904 173,686,685

Viability Ratios

Values Decision

Internal Rate of Return (IRR) 1.3% Good

Net Present Value (NPV) 108,748,452.88 Good

Weighted Average Gross Margin : 74.83 %

Enterprise Value : 167,977,971.20 ₦

Fund Repayment Ability

Ye a r 0 Ye a r 1 Ye a r 2 Ye a r 3 Ye a r 4 Ye a r 5 Ye a r 6 Ye a r 7

De bt S e r vic e C ove r a ge ( DS C R) 0.00 77,599.68 977,246.14 1,068,947.60 1,169,272.09 1,279,055.58 1,399,286.16 1,531,821.85

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Conclusion

References

No Full Name Contact Address

1 ENGR JOSEPH SAMUEL 08037111090 ABUJA

2 PASTOR FESTUS UZUAKPUNDU 08033113785 ABUJA

Photographs

Photograph of business owner

Photograph of business
operations

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12 MONTHS GLOBAL CONCEPTS

AA1 FUNTAJ ROAD OPPOSITE A & SHINE

BEE COMPANY KUJE ABUJA , NIGERIA

 12monthsglobalconcept@gmail.com
 +234 803 559 8586

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