1.

0 EXECUTIVE SUMMARY

Kaswanta Limited will be a registered startup company that will

specialize in rearing broiler chickens in Luanshya District. This business
will be crowned by Mrs. Hellen Chikunji who is also the director? All the
management functions such as planning, organizing, controlling,
coordinating, directing and general leadership will be done by her. A
Kaizen (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.

Luanshya has been strategically chosen as the right place to start this
profitable business due to among other things, huge market prospects,
near proximity to key suppliers and good infrastructure such as roads,
communication and electricity. Luanshya has been chosen as we are
targeting Luanshya market.

Market research has revealed that the demand for chicken meat has
been on the upswing. This is partly due to huge population, and partly
due to the fact that chicken is a cheaper source of protein for most
Zambians. However, this demand does not correspond with the supply.
This has on several occasion left customers on the disadvantage side. As
a result, customers are left with little choice but to buy poor quality,
underweight and expensive chicken from most chicken farmers. This is
especially so to retail buyers who for example want to buy for home
consumption. We realized this need and we want to come in and fill this
gap so that our valued customers are supplied with fresh large chickens
that meet Zambia Bureau of standards and Zambia, competition and
consumer protection commission yardsticks.

All things being equal this project is going to cost about K90,836 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 (chicks, feeds, vaccines,)
labour, fixed assets, overhead, communication, transport and
distribution, marketing and other hidden costs plus a provision for
contingency.

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 We will run the business 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
We project to be commissioned by November 2022.

2.0 VISION

To become Zambia’s premier provider of top-quality chicken meat with a

presence in all the ten (10) Provinces in Zambia.

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. We want to be among the top ten chicken meat
suppliers in Zambia within our fifth anniversary.

4.0 CORE VALUE

 Integrity
 Professionalism
 Excellence
 Commitment
 Honesty
 Customer care
 Ethical
 Responsible

5.0 GOALS

 To secure a reputation of high-quality products and services backed

by a high calibre 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

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6.0 OBJECTIVES

Our Farm 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.

6.1 SHORT TERM OBJECTIVES

 Creation of three (3) direct jobs at inception of the project

 To make annual sales of K432, 200 by April 2023
 Realizing an annual net profit of K113, 244 by April 2023

6.2 LONG TERM OBJECTIVES

 To cast our nets wider and consider supplying our chickens to

Democratic Republic of Congo border by 2023
 We consider starting making our own feeds by 2024
 To raise funds for capital projects e.g. building of more chicken
houses and other fixed assets that promote growth for the
business
 Creation of five (5) direct jobs by December 2022

7.0 BUSINESS OWNERSHIP

This farm is owned by Mrs. Hellen Chikunji. It is a registered legal entity

under the patent and company registration Authority (PACRA) under
certificate of Registration Number _________________________dated
_______________20 He is the Director and will provide leadership and
strategic management to see the company grow to another level.

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 Qualified employees will be hired and this will ensure good management
for the poultry farm. Although Mrs. Chikunji will be making key business
decisions, planning, directing, controlling, coordinating and other
management functions, she 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
business like ours. Repeat customers also bring referral customers.

8.0 BUSINESS DESCRIPTION

Business Name : Kaswanta Limited

Business Address : Luanshya
Business Director : Mrs. Hellen Chikunji
Business Phone No/Email : 0972007962
Business Bank :
Business Legal Document :
TPIN Number :

9.0 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
 Creation of business to suppliers of day-old chicks and feeds
 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

10.0 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
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  A good sales and marketing strategy will be put in place

11.0 BUSINESS LOCATION

We will be located in Chongwe district. This is a strategic location and is

near the market for our product. It is about _________ minutes’ drive
from Central Business District (CBD) of Chongwe town. The place is near
suppliers of crucial materials such as day-old chicks, feed, vaccines and
other consumables. It has access to water and a good road and
communication networks.

Our location will give us a competitive advantage and leverage.

12.0 PRODUCTS

We will be involved in the raising and supply of quality large chickens for
meat for the population of the Chongwe, Lusaka city and surrounding
areas. Our products will be of unmatched quality but affordable to
customers. Further, we intend to keep a steady and consistent supply of
chickens throughout the year.

12.1 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

13.0 MARKET ANALYSIS SUMMARY

The economy of Zambia has been steadily improving with a number of

people affording most basic essentials. And food is one such basic
though on the bottom of the pyramid. The demand for chicken’s meat is
high and we do not expect it to plummet any time soon as it is in fact

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increasing every day. This will make us to have a positive growth
prospect as a chicken supplier in the targeted area of Chongwe.

To meet this demand for chicken meat, we are poised and have the
capacity to fill in the gap and supply at a profit.

Further, we bring to the industry affordable good quality and large

chickens that will weigh impressive weights and fully matured at the
recommended six (6) weeks. We will strategically tap in this massive
demand so as to increase our market base.

13.1 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.

13.2 MARKET TREND

The food industry is constantly sprouting and leaving many rigid

companies / farmers 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 Lusaka Province.
This will be done at a small carriage out fee.

13.3 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.

We intend, all things being equal, to sell our chickens at K100

each. As indicated earlier, depending on market forces and cost of
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 consumables the price is likely to change either upwards or down
wars, with the latter being very unlikely.

14.0 SALES AND MARKETING STRATEGIES

To remain buoyant in a competitive environment, our Farm 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 e.g. 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 e.g. big
restaurants that may need our consistent suppliers of products
 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

15.0 MANAGEMENT AND HUMAN RESOURCES

15.1 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

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 congruent (putting company interest first before self) and is likely
to grow with the company. This also reduces cases of pilferage.

15.2 HUMAN RESOURCES

Being the most valuable assets not only at our Farm 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.

 FARM MANAGER

Duties and Responsibilities

 Planning on farm requirements in terms of feed requirements

and inventory for the same
 Monitoring chicken health and taking necessary action in an
efficient expeditious and cost-effective manner
 Planning in the right measurements for feeds, vaccines in
relation to the quality of birds at a particular time
 Advising the Director on the best breeds, feeds and best
suppliers
 Ensuring that chickens are placed in the right spaces depending
on their age. Chickens need enough space and proper
ventilation as well as lighting
 Any other duties as assigned by the Director

 GENERAL WORKERS

Duties and Responsibilities

 Feeding the chickens on a daily basis as well as administration

of vaccines as recommended by the Farm Manager
 Lifting feeds from the storage room to the chicken house
 Collecting and bringing to the farm, feed, day old chicks,
vaccines and other items

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  Cleaning the chicken houses as advised by Farm manager. Our
chicken houses well be kept spotlessly clean to avoid possible
disease outbreaks
 Restricting unauthorized entry into the chicken house
 Providing security at the farm to prevent predators and
pilferage. A dog will also be kept to supplement security
 Any other duties as assigned

However, we believe the span of control can be ignored

depending on the nature of objective we intend to achieve. This
means in certain cases; the farm Manager can also perform the
General Workers duties. The objective is to get the results at
the right time

Further, the General Worker can also report directly to the

Director

EMOLUMENTS / MONTH

DESIGNATION QTY QUALIFICATION SALARY TOTAL

(K) (K)
Farm Manager 01
Certificate in 1,000 1,000
Animal Production
General Worker 02 Grade 12 School 650 1,300
Certificate
TOTAL WAGE BURDEN PER MONTH 2,300

16.0 RISK SENSITIVITY

Poultry, 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 disease outbreaks such as New Castle Disease (NCD)

Gumburo and Cocidiosis
 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
 High unstable cost of feeds
 Natural calamities

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  Importation of cheap chickens from outside the country by chain
stores such as Pick n Pay, Shoprite etc.

However, we are not afraid of taking the business risks as the

potential reward outweighs such risks. Further, we will ensure we
vaccinate our birds on a timely basis by our qualified Human
Resources. Another relief is that the Government has put a restriction
(trade embargo) on the amount of birds to be imported. Infant
Government has completely banned such importations.

Lastly, people love fresh local chicken as opposed to old frozen

chicken. Fresh chicken direct from the farm is tastier.

17.0 COMPETITOR /SWOT ANALYSIS

Within the proposed location of Lusaka 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

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17.1 SWOT ANALYSIS FOR IVANJI FARM

STRENGTHS WEAKNESSES
 Good location  New in the business
 Quality affordable products  Can’t lower prices
further
 Good marketing and sales  No repeat customers
prowess yet

OPPORTUNITY THREATS
 Continuous demand for  Possible economic
chickens down turn that may
affect customer
buying power
 Room and enough capacity  Expensive feeds
to increase/grow our whose prices aren’t
production stable

17.2 SWOT ANALYSIS FOR ONE COMPETITOR – NAME WITH

HELD FOR CONFIDENTIALITY

STRENGTHS WEAKNESSES
 Well established  Poor location
 Has the capacity / qualified  Poor customer care
staff
  Produces small
expensive chickens

OPPORTUNITY THREATS
 Continuous demand for  Lacks the technology
chicken meat and uses old systems
 High cost of feed

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.

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18.0 OPERATING / PRODUCTION PLAN

We intend to start with a batch of 500-day old chicks supplied from reliable
companies such as Hybrid as these have a lower death rate.
We anticipate, all things being equal, to keep a consistent cycle of up to eight
(8) in a year with each cycle lasting for six (6) weeks. Our sales and marketing
strategy will enable us to quickly dispose of our products and order new stock.

18.1 COST OF PURCHASES/BATCH

ITEM QTY COST/ITEM TOTAL (K)

Day Old Chicks 500 16.00 8,000.00
Feed 35bags x 50Kg 550.00 19, 250.00
Vaccines 1,500.00 1,500.00
Saw Dust 10 bags 40.00 400.00
TOTAL 29, 150.00

3.5 x 500 chicks = 35bags

50Kg

We will give a provision of 2% death rate for the chicks, so we will compute 480
chickens at market time per batch i.e. 2% x 500 less 20

18.2 COST OF FIXED ASSETS

18.2.1 EQUIPMENT

ITEM QTY COST/ITEM TOTAL (K)

Feeders (5Kg) 25 80 2,000
Drinkers (5 Litres) 25 80 2,000
Infrared Lights 5 58 290
Back up Brazier 4 30 120
Feather Plucker 1 3,100 3,100
Wire 10 45/metre 450
TOTAL COST OF EQUIPMENT 7,960.00

18.2.2 CHICKEN HOUSE

K40, 000 this is already in place

18.3 DEPRECIATION ON FIXED ASSETS / ANNUM

ITEM COST DEPRECIATIO COST OF NET BOOK
N RATE DEPRECIATION VALUE
Equipment 7, 960 20% 1, 590 6, 368.00
Chicken House 40,000 5% 2, 000 38, 000.00
47, 958 3, 44, 368.00
590

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depreciation is calculated using straight line method and the total per year is
K3, 590

18.4 OVERHEAD COSTS / MONTH

ITEM ESTIMATED COST (K)

Electricity 500.00
Transport 650.00
Communication 250.00
Market Cost 350.00
Other 200.00
TOTAL 1, 950.00

However, in Financial Statements we will factor transport and electricity

cost for 8 (8 cycles) so, the annual cost overhead is K18,800.00. This
means transport and electricity cost is multiplied by 8, while
communication and marketing costs are multiplied by twelve (12)
months.

18.5 PROJECTED SALES

 Per Batch –500 x K16= K8, 000.00

 Per Annum (8 Batches) = K64, 000.00

18.6 PROJECTED COST OF PURCHASES

 Per Batch = K32, 000.00

 Per Annum (8 Batches) = K256, 000.00

18.7 TOTAL PROJECT COST

ITEM ESTIMATED COST

(K)
FIXED ASSET REQUIREMENTS:
Chicken House 40, 000.00
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 Equipment 7, 960.00

INITIAL WORKING CAPITAL

REQUIREMENTS:
Purchases 32, 000.00
Salaries – 1st two Months 4, 600.00
Overhead Costs – 1st Month 1, 950.00
TOTAL PROJECT COST 86, 510.00
Add 5% Contingency 4, 325.50
TOTAL ROUNDED OFF FUNDS NEEDED TO 90, 836.00
COMMISSION THE PROJECT

The required funds could be less than the figure as we have factored
unforeseen incidentals by adding contingency of 5%. Further the cost of
the chicken house will be excluded from total project cost as the
structure is already in place. This means this project will only cost
K90, 836.00 less K40,000.00 which is K50,836.00

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19.0 FINANCIAL PROJECTIONS

19.1 FARM

INCOME STATEMENT FOR THE YEAR ENDING APRIL, 2023

K
SALES 432,200
Less cost of goods sold

Purchases 256,000
(256,000)
GROSS PROFIT 176,200

LESS EXPENSES
Salaries 27,600
Overheads 18,800
Depreciation 3,590
(49,990)
NET PROFIT BEFORE TAX 126,210
TAX (12,966)
NET PROFIT AFTER TAX 113,244 32%

The business is viable and will make annual Net Profit of K113,244
which is 32% of total sales. The business will be able to pay all its
financial obligations on time and still remain operational.

Each cycle of 8 will give a Net Profit of K14,155.5 which is a comfortable

margin. In year two and other years more profits will be reaped because
little in capital expenditure will be involved. We anticipate increasing
production by 30% in 2021. This will enable us to invest excess profits
in capital expansion projects such as construction of more chicken
houses.

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20.0 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 are healthy at 32% of total
sales revenue. This gives us more impetus to invest part of the profits in
constructing another chicken house so as to increase production capacity
to at least 1,500 per cycle by 2023. 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 eat and the demand is
continuous.

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