1

Business Plan of
Bina Goat Farming

Submitted to
Rastriya Banijya Bank
Lalbandi ,Saralahi

Submitted by:
Bina Goat Framing
Pan no 612669727
Proprietor
Bina Khatiwada
Lalbandi 2
Cell no 9840236262
 2

ACKNOWLEDGEMENT

I would like to express our gratitude to Mr.Anand Tuladhar for assigning us this project work.
This project has proved to be very helpful in gaining necessary information about business
strategies, policies and plan. I would also like to appreciate the time and effort of Mr. Bijay
Kaldhan, Mr. Sailesh Timilsina and Mr. Avish Kasaju who had helped me for preparing this
report and I would also want to appreciate the time and effort oflibrarian, Presidential Business
School.

Thank You
Bablu Pokhrel
 3

Table of contents
CHAPTER 1 .................................................................................................................................... 6
Introduction..................................................................................................................................... 6
1.1 Executive Summary ............................................................................................................................. 6
1.2 The name of the company .................................................................................................................. 6
CHAPTER 2 .................................................................................................................................... 7
Business Mission & Goals .............................................................................................................. 7
2.1 Business Vision and Mission ............................................................................................................... 7
2.2 Business goals ..................................................................................................................................... 7
CHAPTER 3 .................................................................................................................................... 8
Background Information ................................................................................................................. 8
3.1 Type of business ownership and share capital ................................................................................... 8
3.2 The business location .......................................................................................................................... 8
3.3 industry analysis.................................................................................................................................. 8
3.4 Entry Barriers ...................................................................................................................................... 9
CHAPTER 4 .................................................................................................................................. 10
Marketing Plan ............................................................................................................................. 10
4.1The opportunity and entry strategies ................................................................................................ 10
4.2Differentiation: .................................................................................................................................. 10
4.3Business continuity ............................................................................................................................ 10
4.4 Promotion offers ............................................................................................................................... 10
4.5 Major customers ............................................................................................................................... 10
4.6 The SWOT analysis ............................................................................................................................ 10
4.6.1 Strengths: ................................................................................................................................... 10
4.6.2 Weaknesses................................................................................................................................ 11
4.6.3 Opportunity:............................................................................................................................... 11
4.6.4 Threats ....................................................................................................................................... 11
4.7 The overall market strategy: ............................................................................................................. 11
4.8 The pricing policies strategy: ............................................................................................................ 12
4.9 Advertising and promotion programs............................................................................................... 12
CHAPTER 5 .................................................................................................................................. 13
 4

ORGANIZATION AND MANAGEMENT PLAN .......................................................................... 13

5.1 Organizational Structure & Operations ................................................................................. 13
5.2 Firm Structure organization structure .................................................................................................. 13
CHAPTER 6 .................................................................................................................................. 14
PRODUCTION PLAN .................................................................................................................. 14
6.1 Precondition production plan ............................................................................................................... 14
6.2 production and breeding plan .............................................................................................................. 14
6.3 Assumption of breeding plan Case one ................................................................................................ 14
6.4 Breading projection Case one ............................................................................................................... 15
6.5 Assumption of breeding Case two ........................................................................................................ 15
6.6 Breading projection Case Two .............................................................................................................. 15
CHAPTER 7 .................................................................................................................................. 16
FINANCIAL PLANS...................................................................................................................... 16
7.1 Startup Capital ...................................................................................................................................... 16
7.2 Fixed Cost Requirement ........................................................................................................................ 16
7.2.1 Projection of Estimated fixed cost ............................................................................................. 17
7.3 Estimated Goat Purchasing Cost ........................................................................................................... 17
7.4 Variable Cost ......................................................................................................................................... 17
7.4.1 Estimated Variable Cost ............................................................................................................. 18
7.4.2 Estimate variable cost per unit .................................................................................................. 18
7.5 Revenue ................................................................................................................................................ 18
7.5.1 Estimated Revenue in Case one ................................................................................................. 19
7.5.2 Estimated Revenue in Case Two ................................................................................................ 19
7.6 Profit and loss Statement...................................................................................................................... 19
7.6.1 Estimated Profit and loss statement in Case One ...................................................................... 20
7.6.2 Estimate Profit and loss Statement in Case Two ....................................................................... 20
7.7 Break even Analysis............................................................................................................................... 20
7.7.1 Estimated Break Even Point Per Unit ......................................................................................... 21
7.8 Loan Amortization Scheduled ............................................................................................................... 21
7.8.1 Loan Amortization Schedule ...................................................................................................... 21
7.9 Balance Sheet ........................................................................................................................................ 24
 5

7.9.1 Estimated Balance Sheet............................................................................................................ 25

7.10 Conclusion ........................................................................................................................................... 26
 6

CHAPTER 1

Introduction
1.1 Executive Summary
Bina Goat farming is a new pvt Company formed under the laws of Nepal. This document has
been prepared to provide the reader with information about our company, including business
structure, company goals, projected growth, start-up costs, an investment analysis and the
industry trends. Goat farming business is a very profitable business, and many people are making
money all over the world by starting goat farming project. However, to build a successful,
sustainable goat farming business, we require sufficient knowledge of how to efficiently raise the
goats, good management skills, and a good goat farming business plan. Goat farming is a
lucrative business, providing income for millions of people, but there are some essential things
we need to do before our venture into rearing goats for profit. Goat meat is in high demand.
People love goat meat especially in Nepal. So, we won’t have a hard time selling our goats. Goat
milk is also very nutritious and good for consumption. Goats are cheaper and easier to feed,
making you spend very little on feeding them. Bina Goat Farming will establish in lalbandi 2 ,
Sarlahi. The proposed site is 1 Bigha in Lalbandi 2.

1.2 The name of the company

The Bina Goat farming is a private company. The agricultural industry of livestock farming or better

still goat farming is a subset of is no doubt among the leading industry in most countries of the world

Because of the significant role the agriculture. The government of most countries ensures that they go all

the way to subsidize seedlings, fertilizers, and farming implements and machinery for farmers and also

encourage entrepreneurs to go into various kind of farming including goat farming.

 7

CHAPTER 2

Business Mission & Goals

2.1 Business Vision and Mission
The vision
Our Vision is to become one of the leading livestock farming brands not just in lalbandi Sarlahi ,
but also in the Nepal .
The mission
Our mission is to sell our produce (goats), by products and processed meat in commercial
quantities both locally; nationally. We want to build a livestock farming business that can
favorably compete with other leading livestock farming brands in the Nepal

2.2 Business goals

• To be the preferred provider in the industry by being the market leader in business
• To expand the business to other cities in Nepal.
• To attract and retain the largest market share offering meat industry in lalbandi up to
10%
 8

CHAPTER 3
Background Information
3.1 Type of business ownership and share capital
The company shall operate as a private limited company with a share capital of 15 lakhs NPR
being the single contribution to the business. The company owners shall run the business as a
privet limited Company.;

Start-up Funding Amount

Share capital NRS. 3,000,00

Bank Loan NRS 15, 00,000

Total NRS 1800000

3.2 The business location

The business shall be located in:
Lalbandi 2 , Sarlahi
Email: goatfarmingofbina@gmail.com
3.3 industry analysis

As the consumption of meat has been growing rapidly among the urban population, the country
has been importing processed meat, live animals and frozen meat from different countries,
especially from India and Tibet. Subsequently, Nepal’s import bill for meat and live animals has
been increasing along with the rising demand of meat. The growing number of hotels and
restaurants in urban and semi-urban areas has played a catalytic role in increasing the
consumption of meat. Though demand of meat is increasing rapidly, production has not been
able to full fill a supply of current demand.

The Ministry of Livestock Development (MoLD) has been framing a policy to substitute the
import of meat, under which the government is preparing to promote cooperatives for livestock
farming and the private sector for meat processing and market development. The government
will support the cooperatives through extension services, insurance schemes, innovate techniques
 9

for breeding and concessional loan facility to promote livestock farming. Currently, Kathmandu
Valley is the largest consumer of meat. Per capita meat consumption or per person per annum
meat consumption in Kathmandu is 16 kg, however, nutrition requirement is 17 kg per capita per
annum. Per capita consumption of meat in developed countries is around 25 kg. Share of goat
meat in total meat production is 20 per cent and it contributes 12 per cent to the total livestock
agriculture domestic product. Currently, annual demand of goats is four million and the country
imports around 500,000 to 700,000 goats every year to meet the demand

3.4 Entry Barriers

The primary barrier to the firm is controlled by two factors:

➢ Cost of land
➢ Excess of suitable breed
 10

CHAPTER 4
Marketing Plan
4.1The opportunity and entry strategies
Firm will seek to capitalize on the following reasons that typically make the business valuable:
. The meat industry has been unable to meet the demand of goat meat especially in the Dashai.
4.2Differentiation:
The company shall offer the same product that is currently in the market but will differentiate at
a later stage, and this will be achieved by;
• Offer state of technology to farming in the fodder and Shade.
• Offer 24 hour security services in farm and CCTV services.
4.3Business continuity
The infrastructure of business exists; research has proven that in Nepal today the surest business
to engage in with serenity of non failure is offering in meat industry. This investment is the least
risky in terms of failure.
4.4 Promotion offers
The firm will give an advertisement first three months over the radio Fm stations .
4.5 Major customers
Firm anticipates the following as its major customers;
• Butchers are the major customer of firms
• Individuals person and people is also the major customer of the firm
4.6 The SWOT analysis
The following is SWOT analyses of Bina Goat farming which will enable the Firm to
understand its potential against its competitors.
4.6.1 Strengths:
• Availability of shade for project development
• Access to capital for project development
• Availability of Secure Security
• The use of modern Technology
 11

4.6.2 Weaknesses
• No previous Experience
• Mortality rate is unsure
4.6.3 Opportunity:
• Increasing demand of meat
• Government will provide a subsidy
• Minimum interest rate
• Economic of Scale
4.6.4 Threats
• Security of a firm
• Disease
4.7 The overall market strategy:
In the marketing mix, the organization will be dealing with controllable variables that are key in
the satisfaction of the target market. These variables shall include:
The price: Benchmarking and pegging our prices between the highest chare and medium cost
will enable us target the market niche required.
Promotion: Sales promotion trough the local FM radio stations will be key to success of firm.
We will offer discounted rates for volume buyers those who pay in advance for a certain
minimum number of buck and doe.
Place: Place (distribution) in our case this will be the service delivery. We will offer timely,
Courteous services to all customers.
Physical location: By being on the second row behind the main street, we will market the
Strategic location for entry and exit into the town.
People: Our staff will be in uniform at all times and they will be alert to park and bring down
cars as the customers demand. We will train the staff to ensure that services offered are of high
quality which is important for our niche market.
Process: Our customers are educated and knowledgeable. This means that the use of an efficient
and effective payment system will be desirable for marketing the business.
 12

4.8 The pricing policies strategy:

A firm’s competitive Environments affect the market strategy. To come up with reasonable
prices the company will conduct a price survey. We shall carry out a survey of prices offered by
our competitors in lalbandi and other various towns to ensure that our pricing will be acceptable
to our customers.
.

4.9 Advertising and promotion programs

Advertising is a method of making customers aware of available products and services.
Bina goat farm will seek to use the most cost effective means.
 13

CHAPTER 5
ORGANIZATION AND MANAGEMENT PLAN
5.1 Organizational Structure & Operations
The management team will compromise of one manager. The day to day operations of the
company will however be done by employee. The chart below shows the flow of information and
the chain of command within an organization. Since we are in the start level, the business will
have a lean structure so that we minimize on the operational cost so that the business can break
even as soon as possible

5.2 Firm Structure organization structure

Binna Goat Farm will have a flat structure which is important for decision making. It removes
red tape and bureaucracy to make decision making faster. All Parking assistants will report to the
supervisors who will report to the manager.

Figure: 1
Proprietor

Self employee Self Employee Self Employee

The management will employ communication for TQM strategies such as adopting a flat
structure, facilitate bottom-up communication for feedback and inclusive decision making for all
staff. Further, the management will ensure all their staff attends relevant training that will
empower the employees to make informed decisions. The employees will further be empowered
to make decisions, make mistakes and to learn from them to ensure the employees are equipped
in dealing with customers. The management will encourage vertical and cross functional teams
to integrate quality service and teamwork.
 14

CHAPTER 6

PRODUCTION PLAN
6.1 Precondition production plan
Some model cases of goat farming business management have been presented in this plan.
The period of this simulation is for 5 years, and the number of initial goat is 15. The cases of
keeping the first female kid as a new goat for breeding purpose have also been presented
here. We can utilize referring among the models presented here identifying own
appropriateness.

6.2 production and breeding plan

The number of kids born is changed depending on the number of goat in farm. In addition to,
the number of kid production is also largely changed according to your decision whether the
new born female kid is kept for breeding purpose or not. If farm keeps many female kids as
goats, the number of kid production is increased, but the feeding cost and labor cost shall
also be increased at the same time. So, it is important for farm to make appropriate plan
suited to farm conditions such as the financial situation and scale of the goat shed. On the
other hand, if farmer afford to increase the she-goat, it is better to keep new female kids at

the early stage such as 1st year or 2nd year, because it would very helpful to farm to increase
the income effectively.

6.3 Assumption of breeding plan Case one

➢ Goats bread two times a year
➢ One Goats bread a two kids
➢ Probability of two kids being doe and buck is 50 %
➢ Keeping a doe and Selling a buck after 9 months of breading
➢ Total no of Goat is 15 in a initial time
➢ It took 6 months to bread after purchase a goat
➢ Doe took one year to be mature and start breeding after 1 years
➢ Mortality rate will be 5 % of total breeding
 15

6.4 Breading projection Case one

Table 1.1

Estimated Breading Projection

First Breading Second Breading
Year Breading Goat Year No of Goat
Breading kids Doe Buck Breading Kids Doe Buck
0 15 30 15 15 0.5 15 30 15 15
1 15 30 15 15 1.5 30 60 30 30
2 45 90 45 45 2.5 60 120 60 60
3 75 150 75 75 3.5 120 240 120 120
4 135 270 180 180 4.5

6.5 Assumption of breeding Case two

➢ Goats bread two times a year
➢ Goats bread only one kids in one time
➢ Probability of one kids being doe and buck is 50 %
➢ Keeping a doe and Selling a buck after 9 months of breading
➢ Doe took one year to be mature and start breeding after 1.5 years
➢ It took 9 months to bread after purchase a goat.
➢ Selling a buck after 9 months of breading

6.6 Breading projection Case Two

Table 1.2

Estimated Breading Projection

First Breading Second Breading
Year Breading Goat Year No of Goat
Breading kids Doe Buck Breading Kids Doe Buck
0 15 15 7 8 0.5 15 15 7 8
1 15 15 7 8 1.5 22 22 11 11
2 29 29 14 15 2.5 36 36 18 18
3 47 47 22 25 3.5 61 61 25 36
4 79 79 38 41
 16

CHAPTER 7

FINANCIAL PLANS
7.1 Startup Capital
Starting a goat farming business requires capital. The capital is required for constructing the goat
housings, purchasing the breeding stock, purchasing supplementary feeds and other costs
associated with running a goat farming business. The amount of capital you need for your goat
rearing business will depend on the size of your goat farming project. Goat farming business
plan should clearly outline the money required to start and operate a goat meat production
business.

An average startup estimate of Rs 18, 00,000 (Eighteen Lakhs) will be required to be able to start
up our goat farming business. This startup capital will be contributed from our investments and
bank.

We have been able to come up with Rs 300,000 sum to give our business a head start. The
remaining Rs 15, 00,000 will be borrowed as a soft loan from our bank.

Table 1.3

Estimitated Startup Cost

Particulars Amount
Equity Capital 3,00,000
loan 15,00,000
Total 18,00,000

7.2 Fixed Cost Requirement

Fixed cost is the cost that is required to operate the business in every year, but it not directly
inter-connection with production amount and sales of kids. The major fixed cost is such as
Goat shed construction cost and She-goat procurement cost that are to be needed at the
commencement of the goat farming business. According to this simulation, NPR 20000 /- is
needed to farm starts with 1 goat. It shows that fixed cost shed for 15 goats is Rs 300000
However; the fixed cost per goat will reduce when no goat will increase for the shed.
 17

7.2.1 Projection of Estimated fixed cost

Table 1.4

Estimitated fixed Cost

Particulars Unit Quantity Rate Total Amount

Wood kg 1500 45 67,500
Cement no 50 850 42,500
Brick no 5000 14 70,000
Rod quintal 5 7800 39,000
CGI sheet 2 m. no 25 1500 37,500
Nails kg 10 150 1,500
Curved hooks and nut bolts set. 50 30 1,500
Stall feeding construction no 15 2,000 30,000
Labor for shed construction no 75 1000 75,000
Miscellaneous 35,500
Sub Total 400,000

7.3 Estimated Goat Purchasing Cost

Table 1.5

Rate Per Total

Particulars Breed Quantity Weight
per kg Goat Amount
Boare 45
Goat 15 25 1,250 31,250 468750
%
Boare 65
Buck 1 40 1550 62000 62000
%
Total 530750

7.4 Variable Cost

Variable cost is changed depending on the number of goat. If the number of goat is increased,
simultaneously the variable cost is also increased. However; if the number of goat is increased,
the production of kids and income of farm and also increased accordingly. In this way, the
followings measures shall also be considered to increase the number of goats in the farm
 18

7.4.1 Estimated Variable Cost

Table 1.6

S.No Particulars Amount

1 lease of land 40,000

2 fodder and forrage plantation 10,000

3 Seeds of Grass 5,000

5 Vaccine & medicine Cost 15,000

6 insurance of goat 7,500

7 Feed cost 35,000

8 interest charge 60,000

9 Miscellaneous expenses 7,500

Total cost per year 180,000

7.4.2 Estimate variable cost per unit

Table 1.7

Variable cost per unit Total Variable cost / No of Goat

Variable cost per unit Rs 180000/15
Variable cost per unit (Year ) 12000
7.5 Revenue
Revenue is the income generated from normal business operations and includes discounts and
deductions for returned merchandise. It is the top line or gross income figure from which costs
are subtracted to determine net income. Revenue is also known as sales on the income statement.
It is vital for a startup to get positive revenue early. Revenue is money brought into a company
by its business activities.
 19

7.5.1 Estimated Revenue in Case one

Table 1.7

Projected Revenue in case one

Year
Particulars 0 year 1 year 2 year 3 year 4
No of Buck 0 15 35 50 75
Average Weight( kg ) 30 30 30 30 30
Rate per kg 1000 1000 1000 1000 1000
Revenue per Buck 30000 30000 30000 30000 30000
Total Revenue 0 450000 1050000 1500000 2250000

7.5.2 Estimated Revenue in Case Two

Table 1.8

Revenue in case two

Particulars Year 0 year 1 year 2 year 3 year 4
No of Buck 0 8 15 25 41
Average Weight( kg ) 30 30 30 30 30
Rate per kg 1000 1000 1000 1000 1000
Revenue per Buck 30000 30000 30000 30000 30000
Total Revenue 0 240000 450000 750000 1230000

7.6 Profit and loss Statement

A P&L statement often referred to as the income statement, is a financial statement that
summarizes the revenues, costs, and expenses incurred during a specific period of time,
usually a fiscal year or quarter. These records provide information about a company's ability
to generate profit by increasing revenue, reducing costs, or both.
 20

7.6.1 Estimated Profit and loss statement in Case One

Table 1.9

Profit and loss Account in case 1

Particulars Year 0 Year 1 Year 2 Year 3 Year 4
Sales 0 450000 1050000 1500000 2250000
Buck No 0 15 35 50 75
Rate per Buck 30000 30000 30000 30000
Variables cost per unit 12000 12000 12000 12000 12000
Total no of Goat 15 30 50 75 125
Total Variable Cost 180000 360000 600000 900000 1500000
Net Profit -180000 90000 450000 600000 750000

7.6.2 Estimate Profit and loss Statement in Case Two

Table 2.0

Profit and loss Account in case 2

Particulars Year 0 Year 1 Year 2 Year 3 Year 4
Sales 0 240000 450000 750000 1200000
Buck No 0 8 15 25 40
Rate per Buck 30000 30000 30000 30000
Variable cost per unit 12000 12000 12000 12000 12000
Total no of Goat 15 30 45 75 100
Total Variable Cost 180000 360000 540000 900000 1200000
Net Profit -180000 -120000 -90000 -150000 0

7.7 Break even Analysis

Break Even Analysis in economics, business, and cost accounting refers to the point in which
total cost and total revenue are equal. A breakeven point analysis is used to determine the
number of units of revenue needed to cover total costs
Break even Unit = Fixed costs / (Sales price per unit – Variable cost per unit)
 21

7.7.1 Estimated Break Even Point Per Unit

Table 2.1

Particulars Year 0 Year 1 Year 2 Year 3 Year 4

Fixed cost 400000 500000 625000 781250 976562.5
Selling price per unit 30000 30000 30000 30000 30000
Variable cost per unit 12000 12000 12000 12000 12000
Contribution Margin 18000 18000 18000 18000 18000
Breakeven point unit 22.2 27.8 34.7 43.4 54.3

7.8 Loan Amortization Scheduled

An amortized loan is a type of loan with scheduled, periodic payments that are applied to
both the loan's principal amount and the interest accrued. An amortized loan payment first
pays off the relevant interest expense for the period, after which the remainder of the
payment is put toward reducing the principal amount. Common amortized loans include auto
loans, home loans, and personal loans from a bank for small projects or debt consolidation.

7.8.1 Loan Amortization Schedule

Table 2.2

Interest
No. Monthly Payment Amount Principal Balance
1 15186.77 5000 10186.77 1489813.23
2 15186.77 4966.04 10220.73 1479592.5
3 15186.77 4931.98 10254.79 1469337.71
4 15186.77 4897.79 10288.98 1459048.73
5 15186.77 4863.5 10323.27 1448725.46
6 15186.77 4829.08 10357.69 1438367.77
7 15186.77 4794.56 10392.21 1427975.56
8 15186.77 4759.92 10426.85 1417548.71
9 15186.77 4725.16 10461.61 1407087.1
10 15186.77 4690.29 10496.48 1396590.62
11 15186.77 4655.3 10531.47 1386059.15
12 15186.77 4620.2 10566.57 1375492.58
13 15186.77 4584.98 10601.79 1364890.79
14 15186.77 4549.64 10637.13 1354253.65
15 15186.77 4514.18 10672.59 1343581.06
16 15186.77 4478.6 10708.17 1332872.9
 22

17 15186.77 4442.91 10743.86 1322129.04

18 15186.77 4407.1 10779.67 1311349.36
19 15186.77 4371.16 10815.61 1300533.76
20 15186.77 4335.11 10851.66 1289682.1
21 15186.77 4298.94 10887.83 1278794.27
22 15186.77 4262.65 10924.12 1267870.15
23 15186.77 4226.23 10960.54 1256909.61
24 15186.77 4189.7 10997.07 1245912.54
25 15186.77 4153.04 11033.73 1234878.81
26 15186.77 4116.26 11070.51 1223808.3
27 15186.77 4079.36 11107.41 1212700.89
28 15186.77 4042.34 11144.43 1201556.46
29 15186.77 4005.19 11181.58 1190374.88
30 15186.77 3967.92 11218.85 1179156.03
31 15186.77 3930.52 11256.25 1167899.78
32 15186.77 3893 11293.77 1156606.01
33 15186.77 3855.35 11331.42 1145274.59
34 15186.77 3817.58 11369.19 1133905.4
35 15186.77 3779.68 11407.09 1122498.31
36 15186.77 3741.66 11445.11 1111053.21
37 15186.77 3703.51 11483.26 1099569.95
38 15186.77 3665.23 11521.54 1088048.41
39 15186.77 3626.83 11559.94 1076488.47
40 15186.77 3588.29 11598.48 1064889.99
41 15186.77 3549.63 11637.14 1053252.86
42 15186.77 3510.84 11675.93 1041576.93
43 15186.77 3471.92 11714.85 1029862.08
44 15186.77 3432.87 11753.9 1018108.19
45 15186.77 3393.69 11793.08 1006315.11
46 15186.77 3354.38 11832.39 994482.72
47 15186.77 3314.94 11871.83 982610.9
48 15186.77 3275.37 11911.4 970699.5
49 15186.77 3235.66 11951.11 958748.39
50 15186.77 3195.83 11990.94 946757.45
51 15186.77 3155.86 12030.91 934726.54
52 15186.77 3115.76 12071.01 922655.52
53 15186.77 3075.52 12111.25 910544.27
54 15186.77 3035.15 12151.62 898392.65
55 15186.77 2994.64 12192.13 886200.52
 23

56 15186.77 2954 12232.77 873967.75

57 15186.77 2913.23 12273.54 861694.21
58 15186.77 2872.31 12314.46 849379.75
59 15186.77 2831.27 12355.5 837024.25
60 15186.77 2790.08 12396.69 824627.56
61 15186.77 2748.76 12438.01 812189.55
62 15186.77 2707.3 12479.47 799710.08
63 15186.77 2665.7 12521.07 787189.01
64 15186.77 2623.96 12562.81 774626.2
65 15186.77 2582.09 12604.68 762021.52
66 15186.77 2540.07 12646.7 749374.82
67 15186.77 2497.92 12688.85 736685.96
68 15186.77 2455.62 12731.15 723954.81
69 15186.77 2413.18 12773.59 711181.23
70 15186.77 2370.6 12816.17 698365.06
71 15186.77 2327.88 12858.89 685506.17
72 15186.77 2285.02 12901.75 672604.42
73 15186.77 2242.01 12944.76 659659.67
74 15186.77 2198.87 12987.9 646671.76
75 15186.77 2155.57 13031.2 633640.57
76 15186.77 2112.14 13074.63 620565.93
77 15186.77 2068.55 13118.22 607447.72
78 15186.77 2024.83 13161.94 594285.77
79 15186.77 1980.95 13205.82 581079.95
80 15186.77 1936.93 13249.84 567830.12
81 15186.77 1892.77 13294 554536.11
82 15186.77 1848.45 13338.32 541197.8
83 15186.77 1803.99 13382.78 527815.02
84 15186.77 1759.38 13427.39 514387.63
85 15186.77 1714.63 13472.14 500915.49
86 15186.77 1669.72 13517.05 487398.44
87 15186.77 1624.66 13562.11 473836.33
88 15186.77 1579.45 13607.32 460229.01
89 15186.77 1534.1 13652.67 446576.34
90 15186.77 1488.59 13698.18 432878.16
91 15186.77 1442.93 13743.84 419134.32
92 15186.77 1397.11 13789.66 405344.66
93 15186.77 1351.15 13835.62 391509.04
94 15186.77 1305.03 13881.74 377627.3
 24

95 15186.77 1258.76 13928.01 363699.29

96 15186.77 1212.33 13974.44 349724.85
97 15186.77 1165.75 14021.02 335703.83
98 15186.77 1119.01 14067.76 321636.07
99 15186.77 1072.12 14114.65 307521.42
100 15186.77 1025.07 14161.7 293359.72
101 15186.77 977.87 14208.9 279150.82
102 15186.77 930.5 14256.27 264894.55
103 15186.77 882.98 14303.79 250590.76
104 15186.77 835.3 14351.47 236239.29
105 15186.77 787.46 14399.31 221839.99
106 15186.77 739.47 14447.3 207392.69
107 15186.77 691.31 14495.46 192897.22
108 15186.77 642.99 14543.78 178353.44
109 15186.77 594.51 14592.26 163761.19
110 15186.77 545.87 14640.9 149120.29
111 15186.77 497.07 14689.7 134430.58
112 15186.77 448.1 14738.67 119691.92
113 15186.77 398.97 14787.8 104904.12
114 15186.77 349.68 14837.09 90067.03
115 15186.77 300.22 14886.55 75180.48
116 15186.77 250.6 14936.17 60244.31
117 15186.77 200.81 14985.96 45258.36
118 15186.77 150.86 15035.91 30222.45
119 15186.77 100.74 15086.03 15136.42
120 15186.77 50.45 15136.32 0

7.9 Balance Sheet

A balance sheet is a financial statement that reports a company's assets, liabilities and
shareholders' equity at a specific point in time, and provides a basis for computing rates of return
and evaluating its capital structure. It is a financial statement that provides a snapshot of what a
company owns and owes, as well as the amount invested by shareholders. The000 balance sheet
is used alongside other important financial statements such as the income statement and
statement of cash flows in conducting fundamental analysis or calculating financial ratios.
 25

7.9.1 Estimated Balance Sheet

Table 2.

Year 0 year 1 year 2 year 3 year 4

Laliabilities & Equties
Amount Amount Amount Amount Amount
Capital 300000 300000 300000 300000 300000
Net Profit -180000 90000 450000 600000 750000
Total Capital 120000 390000 750000 900000 1050000
Loan 1375492.6 1245913 1111053 970699.5 824627.56
Total labilaties &
Equties 1495493 1635913 1861053 1870700 1874628
Assets
Fixed Assets 400000 500000 625000 781250 976562.5
Buck 214925 572570 558316 467675 337433
Doe 598197 408978 372210 374140 281194.2
Cash 282371 154365 305527 247635 279438
Total Assets 1495493 1635913 1861053 1870700 1874628
 26

7.10 Conclusion
In general, the mortality rate in goat rearing is about the result of above analysis among
shows that profit will be secured in any cases even if mortality rate is ten %In other
words, the goat farming business is with considerable safety margin.

However, it is necessary to consider that the goat farming business becomes

deficit inevitably at the initial stage because there is no sale of kids in 1st year. Thus, at
the beginning of the business.

In this way, there may be some firm struggling with cash flow at the beginning of
the goat farming business. However, in all cases, it is expected that farmer can get profit
within 5 years. After that, the production cycle can be operated efficiently and the
business will become stable, so farmer can expect a large profit in the total 10 years of
the average service period goat. It is important to retain the production of quality goats,
decrease the mortality rate, and sell goats as breeding purpose for better income. Finally,
it is believed that the substantial goat farming will be led to commercial goat farming
gradually, increasing the capacity of goat shed.