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So you’ve decided to start a poultry farming business in Nigeria, good for you. The question is how important is a business plan for poultry farming? The fact that you’re reading this right now means that you understand how important a business plan is for your business to succeed. While you may want to quickly hire someone to do it for you, which is usually quite expensive, there’s nothing like taking your time to write one by yourself.
This is because no one knows what you want for your business better than you. Even more, this would help you save costs by reducing your expenses. You might be skeptical about writing a business plan all by yourself because you know next to nothing about all the processes involved.
Well, fortunately for you, this blog post is meant to guide you every step of the way. With the right guidelines and in-depth research into the business, you should have a fail-proof and detailed business plan for your poultry farming business in Nigeria. Consequently, helping you start and run a successful poultry business.
Poultry Farming Business Overview
Before discovering how to prepare a solid business plan for poultry farming, there are some nitty-gritty details you need to understand about the poultry business and business generally.
Hence, let’s discover what these are.
First, you need to understand what your business idea is all about.
So, what is poultry farming? Poultry farming involves raising domestic birds such as chicken, turkeys, ducks, and the rest for commercial or subsistence purposes. Poultry farming becomes a business when you raise these birds for commercial purposes.
Since you’re thinking of creating a business plan, it’s clear that you’re raising the birds for commercial purposes.
It’s no news that poultry farming is one of Nigeria’s most lucrative and evergreen business ideas. This is due to its large and ever-growing market size because many poultry products (meat and eggs) are consumed by thousands of Nigeria, with Nigeria being one of the largest producers of eggs (poultry products) in the whole of Africa.
No doubt you can successfully run a poultry farming business in Nigeria and make profits as long as you go about it the right way.
Secondly, you need to do proper research on your business idea.
Before you set out to start any business, you need to do some research about the business. It’s not enough to have a business idea. You also need to validate that business idea if you want to stand a better chance of succeeding in that business.
Hence, for your poultry farming business idea, what are the possibilities of the business succeeding in Nigeria? Can you say that the business idea is viable?
To discover all these details about your business idea, you need to do a feasibility study of your business idea.
Feasibility studies is all about determining the viability or profitability of a business. It involves carrying out in-depth research and analysis into all aspects of the business industry you intend to start. Both the feasibility studies and business plans are essential for the success of your poultry business.
Furthermore, after carrying out a feasibility study of your poultry farming business idea and established that it’s a profitable venture, only then can you proceed to write a business plan.
Here are some of the reasons why you should carry out a feasibility study for your business;
- It’s necessary for understanding all aspects of the business, such as the financial, physical, technical, and human resources requirements for your business.
- It would help you identify potential risks and challenges associated with your business venture.
- Feasibility studies will help you decide if a business is worth your efforts after considering some of the factors above and more.
- It would help you to determine your business goals and objectives.
- Overall, a feasibility study will help you come up with a solid plan for your business.
Now that you know some of the reasons you should do a feasibility study for your poultry farm business in Nigeria go ahead and do one for your business.
After in-depth research into the poultry farming business industry, here’s a breakdown of the essential elements your feasibility study should include;
- An Executive summary of the business: this is a brief description of every aspect of the business.
- Technological requirements and considerations: This should explain the business’s technological needs, if you have and if not, how you plan to get it, and the costs involved.
- Insights on the Market place for the business
- Marketing strategies
- Required human resources for the business
- Expected timelines for business operations and activities
- Capital or financial requirements
- Overall findings, verdict, recommendations, and plans of actions
Another thing you need to consider before writing a business plan for your poultry farming business is to decide your focus area.
The poultry farming business industry is large. It involves a lot from rearing the poultry birds to egg production, feed production, and more. Hence, you need to be specific about what your business focus area will be. That is if you’ll be focusing on one or all aspects of the business.
If you’re focusing on all aspects of the business, you also need to decide what you’ll be starting with and at what stage you’ll implement the other aspects of the business.
Similarly, if your focus will be on the rearing of the poultry birds, for example, chickens, you need to decide what bread of birds you’ll be rearing. There are different breeds of birds such as broilers, layers, etc.
Each breed has its advantages, downsides, and maintenance cost. Hence, based on what your research reveals and what you want for your business, decide on which will be best for you.
Lastly, other factors you need to consider before writing your poultry farm business plan include;
- Poultry farm business location (Urban or rural area)
- Capital sources: Personal funding, SME, loans, grants, or investors funding
- Sole proprietorship or Partnerships
Overall, these are vital factors that can help you decide what you want for your business; hence the need for you to consider them before starting your poultry farming business plan.
After observing the following steps above, you’re now ready to craft a business plan for your poultry farming business idea.
Now, let’s discover the necessary steps to writing a good business plan.
Business Plan For Poultry Farming In Nigeria
First, what is a business plan?
A business plan is a blueprint for how you intend to run your business. It covers many aspects such as business goals, vision, and mission statement, guiding principles, target market analysis, business operation analysis, marketing strategies, etc.
It contains everything about the business, from the conception of the business idea, your plan of action, and the execution of those plans. There are two reasons why you would write a business plan. The first reason is what we’ve discussed above.
The other reason is to secure investment funding. In this case, your business plan will not just serve as a blueprint specifying how you want to run the business. Rather, it also has to convince the potential investors that your business will be worth their investments.
Hence, your business plan for poultry farming has to be backed by facts, data, and statistics that prove the profitability of the business.
Given this, here’s what an ideal business plan should look like.
Components of the Business Plan For Poultry Farming in Nigeria
- Executive summary: An overall summary of the entire business plan. This is the first page of your business plan. It is usually written last after every aspect of the business has been covered in the business plan. However, some people chose to write it first. Choose whichever way works for you best.
- Business Mission Statement: This covers the specific goals you want to achieve with your poultry farming business. The mission statement should be tailored towards solving an existing problem in the poultry farming industry and how your business will be the answer to that problem by meeting your target customers’ specific needs.
- Business Vision: This covers the kind of poultry farm business and working environment you aim to establish and the beliefs that gave birth to that vision.
- Objectives of the business: This is what you aim to achieve in the business on a short and long-term basis.
- Core Values & Guiding Principles: These are the beliefs and ethics that will guide all business activities and relationships with your customers.
- Keys to success/Business strategies: These are specific activities and strategies that would be implemented to ensure the business’ success.
- Products and services description: This should describe the products and services you’ll be offering once the business is established.
- Cost of Operation/Financing: This covers the cost of running the business and how you plan to get the required financing. It should also cover investors’ equity if you’re seeking investment funding.
- Company Location/Facilities and Equipment: Here, you’ll state where the business will be located as well as the required facilities and equipment.
- Potential risks and Mitigation Strategies: This should cover potential risks associated with the business and your strategies for mitigating those risks.
- Target Market Analysis: This will contain details on the size of your target market, their buying power, and their demographic details.
- Sales and Marketing Strategies and Implementation process: This section should capture how you intend to make sales in the business through proven and tested marketing strategies.
- Management, staffing, and operations/Chain of leadership: This should capture details about the workforce of the business as well as the order of management or chain of command.
- Conclusion: A recap of everything captured in the business plan.
Conclusion on The Business Plan For Poultry Farming in Nigeria
On a final note, it’s important to state that a business plan is different from a business proposal as many people tend to confuse these two documents to mean the same thing. While a business plan is a detailed document describing a business and its strategic plans for operating a business proposal is written solely for sales purposes.
A business proposal is a document describing the unique products and services of a business to a potential client convincing the client how the business’s products and services will add value to them.
An example of this is a document written to a restaurant owner, telling him or her of the quality of your poultry products and how you’re offering them at a reasonable price range.
Now you have the necessary information you need to draft a solid business plan for your poultry farming business in Nigeria. Good luck to you as you start your poultry farm business.