Business plan

BARE POULTRY FARMING

SOMALILAND, BORAMA
Streat Near-Sh.Ali
063-4519867

Suhayb Osman abdi

May 8,

1
 TABLE OF CONTENTS

EXECUTIVE SUMMARY.......................................................................................................................3
BACKGROUND AND HISTORY...........................................................................................................4
DESCRIPTION OF PRODUCT..............................................................................................................4
MARKET DESCRIPTION.......................................................................................................................6
COMPETITION........................................................................................................................................6
MARKETING STRATEGY.....................................................................................................................7
MANUFACTURING PLANS...................................................................................................................8
FINANCIAL PROJECTIONS.................................................................................................................8
Income statement......................................................................................................................................................9
Cash flow statement...............................................................................................................................................12
Balance Sheet..........................................................................................................................................................13
Financial Ratios......................................................................................................................................................14
APPENDICES.........................................................................................................................................15
APPENDIX A..........................................................................................................................................................15
Manufacturing plan process..................................................................................................................................15
APPENDIX B..........................................................................................................................................................15
Map of Borama.......................................................................................................................................................15

2
 EXECUTIVE SUMMARY

This firm Owned by SUHAYB OSMAN ABDI. It opened in 2024, when he saw an opportunity
to capitalize on the growing demand for poultry products in the region. Since then, the company
has grown to become one of the largest poultry producers in of chicken meat. the country, with
an annual production capacity of over 100,000 kg
Somaliland is a country with a growing population and a high demand for poultry production.
The poultry industry in Somaliland is still largely underdeveloped, there is a significant
opportunity for a new poultry firm to enter the market and meet the growing demand for poultry
products in the country.
Website and social media: We will create social media pages on popular platforms like
Facebook and Twitter to reach a large audience. We will develop a website that provides
information about our company, products, and services We use engaging content, images, and
videos to showcase our products and engage with our customers.
Events and Promotions: We will participate in local events and sponsor promotions to raise
awareness of our brand and products. For example, we may sponsor a cooking competition
featuring our poultry products.
Financial analysis show that the company will have both a positive cash flow and profit in the
first year. The expected return on equity in the first year is 54.6%

3
 BACKGROUND AND HISTORY

The firm whose founded 2024 that owned by SUHAYB OSMAN ABDI, when he saw an
opportunity to capitalize on the growing demand for poultry products in the region. Since then,
the company has grown to become one of the largest poultry producers in of chicken meat. the
country, with an annual production capacity of over 100,000 kg
2024 – Jan- BARE Poultry is founded by a group of local poultry farmers who pooled their
resources to purchase a small farm and start their own poultry business. The firm initially
focused on producing eggs, but later shifted its focus to chicken meat production as demand for
poultry products increased.
2024-march - BARE Poultry invests heavily in new technology and infrastructure to improve
production efficiency and increase capacity. This includes the introduction of automated feeders
and waterers, as well as the construction of new chicken coops and processing facilities.
2024-april – BARE Poultry expands its product line to include value-added chicken products,
such as chicken meats. The firm also invests in marketing and branding efforts to promote its
products to a wider audience.
Over the years, BARE Poultry has earned a reputation for producing high-quality, locally
sourced chicken meat, and has built strong relationships with its customers and suppliers. The
firm's success can be attributed to its focus on innovation, quality, and customer service, as well
as its commitment to sustainability and responsible farming practices.

DESCRIPTION OF PRODUCT

A new poultry firm may differentiate itself by producing organic or free-range poultry products,
or by using innovative processing techniques or flavors. They may also focus on meeting
specific dietary requirements, such as producing halal or kosher products.
I need to provide quality product of my firm in Borama district. We will collect chicken from
different producer and different countries near to Somaliland especially Ethiopia. Chicken will
be distributed to restaurant, super shop, hotel, community center, and bakery and catering houses
around Borama district. The sufficient supply to the customer is one of our most important
purposes. We want to supply extend area of Borama district with affordable price that need the
people who live Borama.

4
 I. Quality Assurance: Our poultry products are raised in a controlled and hygienic
environment, adhering to stringent quality standards. We prioritize the health and welfare
of our chickens, ensuring they are free from antibiotics and growth hormones.
II. Pricing: the price of our product despite our cost of production will maintain a favorable
and simple price to both customers/consumers and the business organization itself. The
product is wholesale in 6 leg and full chicken that price 3$ and 4$ then discount 2.5$and
3.5$
III. Breed Selection: We carefully select chicken breeds known for their meat.
quality, taste, and suitability for local market preferences. This ensures that our customers
receive flavorful and tender chicken meat that meets their expectations.
IV. Packaging and Safety: Our poultry products are carefully packaged to maintain
freshness and ensure safety during transportation and storage. We utilize packaging
materials that adhere to food safety standards, preserving the quality and integrity of the
meat.
V. Responsiveness to Customer Needs: We actively seek feedback from our customers and
continuously strive to improve our products and services. We value customer satisfaction
and aim to meet their evolving needs by adapting to market trends and preferences.

5
 MARKET DESCRIPTION

Somaliland is a country with a growing population and a high demand for poultry production.
The poultry industry in Somaliland is still largely underdeveloped, there is a significant
opportunity for a new poultry firm to enter the market and meet the growing demand for poultry
products in the country.
The new poultry firm could focus on producing and supplying high-quality chicken meat, poultry
products to consumers, restaurants, and supermarkets. The firm could differentiate itself from the
competition by implementing modern farming practices, using high-quality feed, and ensuring
the health and welfare of the birds.
The target market for the poultry firm could be both urban and rural consumers, as poultry
products are consumed across the country. In addition, the firm could target hotels, restaurants,
and supermarkets that are looking for a reliable and consistent supplier of poultry products. To
successfully enter the Somali market, the poultry firm will need to overcome challenges such as
inadequate infrastructure, inconsistent electricity supply, and a lack of trained labor. However,
with the right strategy and investment, the firm could tap into the growing demand for poultry
products in the country and establish itself as a leading player in the market.

COMPETITION
Strengths
 Price: this poultry firm to make discount 70%
The price of in the market is expensive, but from my company is reasonable, so
the meat from our company is cheap and everyone can but it.
 High Demand: There is a high demand for poultry products in Somaliland,
as it is a staple food in many cultures and cuisines.
 The company`s meat supply is fresh, while other company take a long time to
come to that country which cause problems.

Weakness
 The company does not have many vehicles that work for company,because we
need my goods to reach all of Somaliland
 There are other companies ahead of me, so it is difficult to get many cusamers
since my company is new.

6
 MARKETING STRATEGY

1. social media: We will create social media pages on popular platforms like Facebook and
Twitter to reach a large audience. We will use engaging content, images, and videos to showcase
our products and engage with our customers.

2. Website: We will develop a website that provides information about our company, products,
and services. The website will be optimized for search engines to improve our visibility in online
searches.

3. Direct Marketing: We will send promotional materials to targeted audiences, such as

hotels, restaurants, and supermarkets, to generate interest and awareness of our products.
4. Events and Promotions: We will participate in local events and sponsor promotions to
raise awareness of our brand and products. For example, we may sponsor a cooking competition
featuring our poultry products.
The proposed business will be in the farming Industry which is fast growing. This fast growth
has been attributed to the increased need for chicks and feeds at affordable price in the market
coupled with the trendy nature of the target market.
The market plan include.

➢We use new processing options which can differentiate our product from the products of
others.

➢We ensure quality product with affordable price.

➢We always search for new quality factors related to our products that customers wish to see in
the product.

➢Provide hygienic and nutritious feeding that may help to attain distinguishable quality factors
like color and test of meat.
The Poultry shall employ a Marketer at full capacity. He would be employed to sell the chicken
from one chicken deport to another/ through the marketing activities, many clienteles base shall
be created. These customers will be allocated dates. They either pick up the chicken from the
farm on their dates or have it delivered with the farm van at a price. All customers shall only be
given allocation with a confirmation of a bank payment. To expand the clientele base, advert will
be placed on different fora online.

7
 MANUFACTURING PLANS

1.Production goals: My poultry firm aims to produce 10,000 kg of chicken meat per week for
distribution to local supermarkets and restaurants. The target market is consumers who value
high-quality, locally sourced meat.
2. Production process: The production process will involve raising chickens from day-old chicks
to market weight, processing the chickens, and packaging the meat for distribution. The process
will be divided into three stages: brooding, growing, and processing.
3. Equipment needs: The equipment needed for the brooding stage will include brooders, feeders,
waterers, and heating lamps. For the growing stage, the firm will need chicken coops, feeders,
and waterers. The processing equipment will include a slaughtering machine, defeathering
machine, evisceration equipment, and packaging equipment.
4. Facility layout: The poultry farm will be divided into three sections: the brooding area, the
growing area, and the processing plant. The brooding and growing areas will be located
outdoors, while the processing plant will be a fully enclosed facility. The layout will be designed
to ensure smooth and efficient flow of materials and personnel, and to meet all necessary safety
and sanitation requirements.
5. Staffing plan: The firm will employ 20 full-time employees, including farm workers,
processing plant workers, and administrative staff. The staff will be trained in all aspects of
chicken production and processing and will be paid competitive wages and benefits.
6. Production schedule: The production schedule will be based on a 12-week cycle, with each
cycle starting with the arrival of day-old chicks. The schedule will take into account seasonal
variations in demand and production capacity and will be adjusted as necessary to ensure optimal
production efficiency.
7. Quality control measures: The firm will implement rigorous quality control measures to ensure
that all chicken meat meets the highest standards of safety and quality. These measures will
include regular inspections of equipment, testing of feed and water, monitoring of animal health,
and regular testing of the meat for bacteria and other contaminants.

FINANCIAL PROJECTIONS

The following pages include multiyear projections for income, cash flow, balance statement, as
well as estimated financial ratios. These projections are for the Whipped Dream division of

8
Fancy’s Foods LLC only. Historical financial information on Fancy’s Foods restaurants is
available upon request.

BARE POULTRY FIRM

INCOME STATEMENT
January 2024 – December 2024

Net Sales $6,100,934

Less: Cost of Goods Sold $4,650,134
Gross Income $1,450,800
Operating Expenses
Labor $300,000
Utilities $25,000
Water production 100,000
Sales Promotion $75,000
Delivery and Transportation $60,000
Machine&Gas $98,000
Total Expenses $658,000
Net Income Before Taxes $792,800
Less: Income Taxes $(200,000)
Net Income After Taxes
$592,800
Assumptions:

9,000-unit sold in hotel 6,000-unit sold in houses

15,000-unit sold in restaurant 15000 unit sold in the meat market

5,000 unit sold in other countries.
Sales estimates based on 5% market share for prepared in each market.
2 Cost of goods sold includes chicken leg, full chicken
3 salary I will give by the owners/managers in the first year. Half of profits will be re-invested for new
market entry and increased production.
1 Net sale based on price of $2.5 per unit

9
 BARE POULTRY FIRM
Income statement
January 2025-dec 2025

Net Sales $6,900,000

Less: Cost of Goods Sold $5,030,000
Gross Income $1,870,000
Operating Expenses
Labor $320,500
Utilities $30,000
Machine & Gas $100,000
Sales Promotion $80,000
Delivery and Transportation $65,000
Water production $130,000
Total Expenses $725,500

Net Income Before Taxes $1,144,500

Less: Income Taxes $220,500
Net Income After Taxes
$924,500

Assumptions:
Net sales based on price of $2.5 per unit
10,000 tone sold in hotel 8,000-unit sold in houses
16,000-unit t sold in restaurant 15,000 unit sold in the meat market
7,000-unit sold in other countries
Sales estimates based on 5% market share for prepared whipped topping in each market
2 Cost of goods sold includes in, chicken leg, full chicken , expenses for canned product.
3 salary I will give by the owners/managers in the first year. Half of profits will be re-invested for new
market entry and increased production.

10
 BARE POULTRY FIRM
Income statement
January 2026- December

Net sales $7,580,000

Less: Cost of Goods Sold $5,500,000
Gross Income $2,080,000
Operating Expenses
Labor $300,000
Utilities $35,000
Water production $180,000
Sales Promotion $90,000
Delivery and Transportation $80,000
Total Expenses $735,000
Net Income Before Taxes $1,345,000
Less: Income Taxes $300,000
Net Income After Taxes
$1,045,000
Assumptions:
1 Net sales based on price of 2.5 per unit
11000-unit sold in hotels 3,000 -unit tone sold in houses
16,000 -unit sold in restaurant 15,000 unit sold in the meat market
5,000-unit tone sold in other countries

Sales estimates based on 10%sales increase from previous year.

2 Cost of goods sold includes chicken leg, full chicken, expenses for canned product.
3 Salary will be drawn by the owners/managers.

11
 BARE POULTRY FIRM
CASH FLOW STATEMENT
January 2024- December 2024

January February March April May June July August September October November December TOTAL

Revenues $478k $478k $478k $478k $478k $ 530k $530k $530k $530k $530k $530k $530,934
$6,100,934

Expenses

Cost of Goods Sold $322k $321k $321k $322k $321k $324k $320k $480k $480k $480k $480k $480,134 $4,650,134
Labor $100k $100k $100k $100k $100k $100k $100k $150,160 $150,160 $150,160 $150,160 $150,160 $1,450,800
Utilities 20k $20k $20k $20k $20k $20k $20k $32k $32k $32k $32k $32k $300,000

Water production $0.8k $0.8k $0.8k $0.8k $0.8k $0.8k $0.8k $3.15k $3.15k $3.15k $3.k $3.15k $ 25000

Sales Promotion $0.5k $0.5k $3k $8k $0.5k $1k $0.5k $3.15k $3k $3.15k $3k $3k $ 75,000

Delivery and Transportation $6k $9k $5k $7k $8k $10k $4k $3k $4k $2k $12k $ 10k $ 60,000

Machine &Gas $8k $7k $5k $10k $11k $5k $7k $6k $10k $5k $10k $11k $98,000

Total Cash Flow $ 20.7 $ 19.7 $23.2 $ 20.1 $0 $22 $13,5 $33.0 $ 33.1 $33.6 $34 $44 $ 33 $442,000

12
 BARE BOULTRY FIRM
BALANCE SHEET
December 31 - 2024

Current Assets
Cash $750,00
Accounts Receivable $700,000
Inventory $990,000
Pre-Paid Expenses $99,000
Total Current Assets $2,539,000

Fixed Assets
Building $1,200,00
Equipment $850,00
Gross Fixed Assets $2,050,000
Less Accumulated Depreciation $400,00
Net Fixed Assets $2,049,600
Total Assets $4,588,600

LIABILITIES AND OWNERS’ EQUITY

Liabilities
Current Liabilities
Accounts Payable $530,000
Accrued Payables $500,000
Total Current Liabilities $1,030,000

Long Term Liabilities

Mortgage Payable $205,000
Total Liabilities $1,235,000
Owner's Equity $2,810,000
Total Liabilities and Owner's Equity $4,045,000

13
 BARE POULTRY FIRM
FINANCIAL RATIOS
December-31, 2024

Return on Equity = Net Profit before Taxes = $792800 = 54.6%

Net Equity $2,810,000

Current Ratio = Current Assets = $2,535,000 = 2.46

Current Liabilities $1,030,000

Quick Ratio = Current Assets – Inventory = $1,549,000 = 1.504

Current Liabilities $1,030,000

Debt to Equity = Total Liabilities = $1,235,000 = 0.44

Net equity $2,810,000

14
 APPENDICES
APPENDIX A
MANUFACTURING PLAN PROCESS

APPENDIX B
MAP OF BORAMA

15
16