LETTER OF TRANSMITTAL

August 1, 2015
Md. Bokhtiar Hasan
Course Instructor,
Department of Finance and Banking.
Islamic University, Kushtia.
Subject: Submission of Business plan on Poultry Farm.

Dear Sir,
With due respect, we would like to inform you that, we have already made
a business plan. It is a great pleasure for us to have the opportunity to submit the
business plan on Entrepreneurship Development of BBA program. During the preparation
of this plan, we have tried to give our best efforts to make it a comprehensive one. From
different analysis we came to know much information related to our selected topic.
We shall be highly glad if you kindly receive this report and provide your
valuable judgment. We would like to place for your evaluation & recommendation.

Sincerely Yours,
Group- D

Name of group members

Roll No

Name

1021031
1021032
1021033
1021034
1021035
1021036
1021037
1021038
1021039
1021040

MD Khairul Alam
Khondakar Habibur
Md. Monirul Isalm
Belayet Hossen
Jamil Hossain
Shimul Sardar
Abu Sayed
Md.Shariful Islam
SM Nahidul Islam
Md. Touhidul Islam

Preface
2

Now a day without a proper business plan a business cannot be run successfully. But in
Bangladesh most of the cases business man does not do that. We are happy to publish a
business plan. As it is our first experience but we have tried to do something comprehensive
for the society. However to start up a new business is researchable, costly and timely matter
which has not adjustable.
But with a single time and assess on some research we have to publish business plan. Its
name is Poultry Firm. Although this types of business familiar to our country but they are
not organizely operated. However we hope this business plan will give a good response to
entrepreneurs who want to do this successfully. Thanks Allah for completing this plan.

SM Nahidul Islam on behalf of the group - D

Table of Contents

Title
Page No.
Introduction
Origin of the report
Background of the report
Objective of the report
Sources of data collection

Executive summery
Project selection
Macro screening
Micro screening
Starting state

Background
Poultry farm objectives
Location and premises
Contact information
Business strategy and mission
Realities and prospectus of poultry farm
Challenges facing the poultry industry

6-7
6
6
6
7
8
9-11
9
10
11
12-13
12
12
12
12
13
13

14
14
14
14
15
15
15
15
16-19
16
16
17
17
17
18
19

Product and services

Product description
Service description
Research and development work

Production summery
Production plan
Production costs
Production systems

Market analysis summery

Market segmentation
Target market segment strategy
Extension of market
Competition
Business competitive edge
Market strategy
Web strategy

Sales strategy

Human resources
Management team background
Duties and responsibilities of management team
Payment of salaries and benefits to the management
team
Personnel

Financial planning

19
20-21
20
20
21
21

23-25

Estimated amount and sources of funds

Loan repayment schedule
Poultry farm start up costs
Projected income statement
Cash flow analysis

INTRODUCTION
Origin of the report:

23
23
23
24
25

The report titled Poultry Farm, oriented from the partial fulfillment of the course
Entrepreneurship Development conducted by Group-D, to have a practical knowledge about
the real world and how the business today forms and how to prepare an attractive business
plan.
Background of the report:
Poultry farm is very familiar business now a days and it is very hard to create a different
identity for a new poultry farm is a formidable task. Now there are so many poultry farms in
the industry but to create its own reputation (goodwill), will be very difficult. Here in this
report we are trying to show how to prepare a good business plan which can be worked as a
guideline and can help to acquire financing in this competitive market. As we well know to
become a successful company in this competitive market one has to have very good
marketing strategies to satisfy their customers and to sustain in the business.
Objective of the report:
Primary objective of the report is to meet the requirement of the course Entrepreneurship
Development. Our secondary objectives are as follows:

To identify the current market situation and previous trend in this sector.
To know about the ingredients that will make a business plan attractive.
To compare the business plan with the real world possibilities.
To provide an example of good business plan.

Sources and methods of data collection:

The data collection method of this study was consisted of both secondary and primary
sources.
6

Data sources:
a) Primary data:
Personal interview technique was the primary tool used for collecting information. The
primary data also included interviews with some poultry farm owners to understand the ins
and outs of a poultry farm.
b) Secondary data:
We have collected our secondary data from Bangladesh Bureau of statistics, website and also
from third parties (newspaper, journals, etc) reviews.
The scope of the report:
This report deals with the factors related to make the report a realistic one which can be used
for acquiring finance and can guide the business for its future activities. It can also be
effective for making the venture a profitable one and will provide a higher rate of return. The
scope of the report is very clear. It will only used for creating a successful project.

EXECUTIVE SUMMARY
This report is consisting a plan of poultry farm begins with the project selection process
describing how the idea of the project actually came to the concern of the entrepreneurs. This
7

process includes macro screening of five different projects and rating of those projects
different macro variables are used for those purpose. After that micro screenings has been
done by narrow down the number of two most likely projects and again rating them.
After the introductory page, the next part of the plan is background. This part consists of the
overall focuses on the entire report, i.e. what have we done step by step for business plan.
After the background, the next step is product & services. The main activities have been
started front this stage. Here we have described the main product and services of our
business what we want to produce.
The next part is the production summery where the brief description of the entire production
plant depicts. Here, the production plan has been described clearly. Moreover, a layout of the
production plant has shown there.
After then, the next part is market analysis summary. This part consists about our product
market, its sizes and where we are going to do business. It also describes about competitors.
Here, marketing strategy has also been described. It also involves the marketing plan that
involves the overall marketing mix advertisement and the mode of advertisement.
In the organizational plan part, the organizational structure of the business is included. The
number of partners, their respective responsibilities in the management of the firm is also
stated here. The background of the partners is also included in this part.
The next part is the internal environmental analysis where SWOT (stands for strength,
weakness, opportunities and threats) has been analyzed. Then in the external environmental
analysis part socio-cultural, Technological, Economic and Political factors has been
analyzed.
At last the financial plan part, different financial statements (projected) are added. These
statements will help to identify the financing needed for the business total production, total
sales and cash flows statement for the project. There is a pan of consisting the source of
capital; and the application of capital. Since there is debt financing so a repayment schedule
is included. Income statement will help to find out the solvency and profitability of business.

PROJECT SELECTION
Evaluation of Project Ideas

Macro screening
Initially three project ideas was evaluated by the entrepreneurs based on some majors macro
criteria such as population, economic etc macro variable and the result was as follows
summarized
Macro variable
Project
name
farm

Population
4

Technology
3

Political
4

Social and
cultural
3

Legal Natural Econo- Total Rank

mic
3
3
3
23
3rd

Poultry
Farm
Fast
Food

33

1st

25

2nd

After evaluation it was found that the macro variables were most favorable to the poultry
farm project.

o Weights
5 = Excellent
4 = Very much satisfactory
3 = Satisfactory
2 = Good
1 = Unsatisfactory

MICRO SCREENING
After macro screening of the above three projects the entrepreneurs narrow down the options
between two projects which are:

Projec
t
Name

Market
Deman
d

Availability
of
Raw
material
s

Techn Availa
-ology bility
of
Capita
l

Profitability

Risk

Total

Rank

Availa
bility
of
Skille
d
worke
r
4

Farm

28

2nd

Poultr
y
Farm

35

1st

Weights
Good = 4
Better = 5
Profiability

Bellow 15%= 4
Above 15%= 5

Risk
Above 10%= 4
Bellow 10%=5

STARTING STATE
Selecting best alternative business plan:
10

Finally the process of formation of the business plan is begun in the stage. This part is
basically important because we need stated objective determine goals here. It is hard to start
is any work. Many suitable decisions are taking in this stage. such as location, types of
business ownership etc. which are important factor?
At last we are able to select one firm, the alternative business plan. The selected business
plan proposed name is Poultry Farm in this chapter we have described the reason of
selecting the business.

BACKGROUND

11

The name of our venture is XYZ poultry farm. It is a partnership firm and the numbers of
partners are five.
Poultry farm Objectives
XYZ poultry will measure its success by its ability to achieve the following objectives:
Becoming the "Best and most hygienic poultry producer in the area" complying by
the national standards for food and drugs.
Turn in profits from the first six months of operations.
Maintain 50% gross margin ratio.
Winning the hearts and tastes of our beloved consumers and establishing a brand
image of the company through heavy marketing campaigns in the first one year.
Location and premises
The farm is situated at the Sheikhpara near the Islamic University, Kushtia. The location is
very suitable as most of the materials are available here and product can be distributed very
easily. We think the population base is large enough for our business and it has a stable
economic base that promotes a healthy environment for the poultry. Also we think it is a spot
that could tap a healthy workforce. We also considered pedestrian traffic and we think a large
percentage of them are potential customers. We plan on having a good parking space and
sufficient security in our working site to create a safe environment for the customers.
Contact Information
We can be contacted through our email address, xyzpoultry@yahoo.com. We also have a
website hosted by Google at https://sites.google.com/a/aun.edu.ng/www-xyzpoultrycom/blog/homewhere we can reach our customers and see their complaints, feedback and
recommendations. The website will also be a forum for customers to familiarize themselves
with the poultry. All these and the phone numbers of the management team will be
distributed in flyers and in the means we market our business as our contact information.
Business strategy and Mission:
The new strategy is to cover most of the locality of Kushtia and Jhenaidah city by
providing better services.
The mission is to provide customers with quality, fresh, and valuable products at a
reasonable price.

12

Realities and prospectus of poultry farm

The poultry industry has developed in Bangladesh. The poultry sector is playing a vital role
in reduction of poverty, malnutrition and unemployment problems of the country. In just
about two decades, the industry has been exponential growth. It was in 1995 that the poultry
industry started in an organised manner in Bangladesh. Investment in the sector stands at
about Taka 200 billion. Its growth rate is about 20 per cent. About five million people are
involved, directly and indirectly, with the industry, and approximately 50 per cent of them
are women. A large section of the marginalised rural people earns their living through this
industry.
Of the 18.6 per cent of the GDP, which comes from the agricultural sector, one-third is from
the poultry industry. Credit certainly goes to the private sector entrepreneurs in this sector.
Challenges facing the poultry industry: Poultry farming has some challenges that need to
be attended to with vigor. Below are some of the common challenges that are faced by
poultry farmers:
Death of chickens: In poultry, one or many chickens usually die because of their
fragile nature and the weather they are living in. Some factors such as heat and overcrowding
causing that death can be controllable.
Diseases: Pneumonia and other minor diseases are among problems faced by poultry
farmers, but this problem can be solved by seeking a veterinary doctor.

PRODUCTS AND SERVICES

13

Product description
We offer chicken eggs and chicken meat that will be gotten from layers and broilers to our
target market. We plan to take pride in the uncompromising quality of our products. We also
offer fertilizer in form of chicken manure. This is mostly used in vegetable farming and as an
ingredient for feed in fish farming. XYZ poultry shall produce high quality, contaminant-free
chickens and the freshest eggs to satisfy the taste of our beloved costumers. In brief our
products are;
Main products
a) Eggs
b) Live chickens
By-products
a) Chicken droppings
Service Description
We plan on servicing our customers by providing home delivery for customers who are
willing to buy at least a certain amount of our products.
Research and development work:
In preparing the business plan, it is important to consider need of the external sources and not
merely provide their own perspectives. This will keep the plan from being an internalized
document that emphasizes only the technical advantages of a product or market advantages of
a service, without consideration of the feasibility of meeting market goals and long term
financial projection. So for our project collecting information, we have completed various
research and development works that are as fallow:
Firstly, we investigated the existing farms overall history, existing products or services
background of the founders or management team and any information that might
create favorable image.
Secondly, we investigated the present competitors position to gain more knowledge
about strategy in the marketplace such as the process of distribution and advertisement.
And finally, we also investigated the potential customers through the asking specific
question on their needs, competitive products potential interest in the new ventures
products and services.

PRODUCTION SUMMARY
Production plan:
14

In our poultry, we are planning to keep 5,000 chickens for meat, and 5000 chickens for eggs.
For 5000 chickens for eggs, each chicken is expected to lay at least 1 egg per day. For every
3 months, adult 2500 chickens will be sold. Our production target is to reduce cost of
production by at least 20% in the next 3 years.
Production costs:
Our fixed costs include
Insurance payments covering both general liability and product liability,
Area of about one plot will be allocated for the farm;
A house will be rented for the storage of pellets;
Materials for office and store furniture, shelving, a computer, phone system, and
tools.
Long-term assets including the refrigerator unit for the shop, window displays and a
refrigerated delivery van.
Raw materials used include
Broilers
Layers
Water, Feed
Production systems:
There are many production systems in Bangladesh. But we will follow the Battery Cage
System in which hens are kept throughout their productive life time in cages. However, this
system requires high capital investment. In this system, hens do not have contact with
droppings which reduces infections. Feeding, providing water, egg collection, removal of
litter and cleaning are easier for the poultry attendants to perform.

MARKET ANALYSIS SUMMARY

Market segmentation:
15

Although in the Bangladesh populace, there are a few taboos, religious or cultural practices
that will prevent the consumption of poultry produce, during the market segmentation, we
found out that nearly everybody eats eggs and meat, so we are targeting the whole market,
individuals, homes and firms that use eggs and chicken in large quantities. Specifically there
is a high demand for live chickens for home consumption or as gifts during festivals like Eidal-Fitr, Christmas, New Year, Easter etc.

Market Segmentation

Hotels and restaurants

Bakeries and food joints
Retail shops
Homes
Individuals
Others

Target market segment strategy:

Individuals are a small sector in the market segmentation. They are a pretty large group but
they buy a relatively small amount of eggs.
The part of the market that we hope to supply large amount of eggs are the industries that
need eggs. We have strategically placed our site close to these industries. They are bakeries,
restaurants, boarding schools, home delivery food centers, and retail shops.
Another part of our target market that will order our products in medium quantities are the
homes that will require our home delivery as we have a set amount of eggs they need to order
for. Homes generally utilize eggs in the preparation of edibles like chicken burger, chicken
pie, salads, Scotch egg, omelets, egg soup etc.

16

The parts of our target market interested in live chickens are small scale poultry farmers and
festive individuals. We have considered the needs of each section of the target markets and
we plan on meeting these needs effectively.
Extension of Market:
The poultry product enjoys the extensive market all over the world. Poultry products (broiler
meat in particular) have the highest per capita consumption in the world. People eat many
different poultry products, including eggs, turkey ham, Buffalo wings, hot dogs, chicken
nuggets, chicken-patties, fried, roasted, glazed, marinated, etc. Not all of poultry products,
however, are directly consumed by humans. For example, eggs are also used for the
production of therapeutic vaccines and are beginning to be used for production of antibodies
and pharmacological proteins. Part of the increase in poultry production in the 1980s and
1990s can be attributed to the development of new, further-processed, value-added products.
Similarly, the egg market has changed in scope through the late 1980s such that a greater
proportion of eggs that are produced are destined for a liquid egg market. Liquid egg is used
in a variety of institutions including hotels, restaurants, hospitals, and if dried, included in
numerous other products, such as cake mixes.
Competition
Competition is not so keen in the markets, however it still exists. The reasons are;
Poultry products are not branded products; hence what usually matters is effective
positioning and timing.
Poultry market is not crowded; its a sellers market.
Most poultry produce are sold through informal channels. Competition is usually
found within local products and imported ones.
Business competitive edge
Our strength over its competitors is firstly based on the fact that we are not entering this
business to make much money. We are entering this industry to solve the present problem
that our population is facing. We are here to provide quality affordable chicken products. We
saw that some of our competitors are seasonal they only produce their chicken at a given
period of time. We wont work like that always is ready to provide chicken and eggs. We
know the importance of time and know that people have many and varying activities;
knowing all that we will be delivering our products to the customers door. Through our
motto customer is the king we will have an ever fast delivery. The other factor that will
help us to have success over our competitors is to motivate our employees and helping them
to improve their way of living, this will help our employees to be focused on their work and

17

provider better services to their customers. We expected our business to grow and start
working at national level and this will be achieved through hardworking of management
team and efficiency and effective use of materials and time is the key to be successful over
our competitors.
Marketing strategy
XYZ poultry will strive for the production of products with the highest quality and we plan
on employing the following strategies. Our location puts us in proximity of a major hotel,
restaurant, schools with campuses and home deliver food centers we will be supplying to. We
would also make contracts with hawkers in markets to sell our live chickens and eggs. We
would also make contracts with retail shops for constant supply of eggs at intervals.
Focusing on associated following issue:
Packaging: In case of packaging the egg the farm use well equipped mechanism which helps
the product to maintain its quality and getting the confidence of the consumer.
Pricing: It is very formidable task to select the price of the egg because if the farm fixes the
price without concerning the demand and supply situation of the market the farm may have
to lose the market. The farm selects the price by considering the following factors:
Quality of the egg.
Conducting the marketing research and try to determine a reasonable price that the
consumers are willing to pay.
Knowledge of competitors price.
Policy:
The farm is giving some discounts and allowances for quick payment.
There is also some credit terms are fixed with retailers.
Payments period.
Distribution: The management of the farm evaluates all possible options for distribution
before making a decision in the marketing plan. Marketing research as well as networking
among associated business farms, friends and consumer helps the farm to select the right
distribution channel.
Factors such as:
a.
b.
c.
d.
e.
f.

Type of channel.
Member of intermediaries.
Cost.
Location of channel members.
Area of coverage.
Transportation.
18

Are also take into account before making the decision by the farm. The farm is using both
whole seller and retailer in their distribution.
Whole seller is used to deliver the egg to the institutional customer and for market and
retailers is used for the distribution of egg to home of local area. The poultry farm also has
two vans to provide the egg in different stores.
Promotion: Like the other venture this poultry farm also takes the necessary steps to inform.
The farm is considering the following factors before going into the promotion of the product:
Evaluate each of the media alternatives
a. Considering the cost associated.
b. Effectiveness of the medium.
c. Media interest in publicity.
The poultry farm generally use leaflet in local area as a media. And it also uses newspaper to
the promotion of the farm and the product. Sometimes the farm also uses Radio as a media to
introduce the farm.
Web strategy
XYZ poultry also has a website where customers can interact with us and get a feel of what
the business is about. We know a site or two where we can place online advertisements and
we would also make mentions of our poultry in online newspapers.
Sales strategy

Better farm management practices

Regular visit by veterinary doctors
Recycling wastes as fertilizer
consumer is king policy
Keeping up with new technology for production efficiency

19

HUMAN RESOURCES
Management Team Background:
The management team of the partnership business will consist of six individuals. Five of the
six are active partners of the farm and the remaining one person is an experienced one in this
sector.
Name and background of each of the management team individual is given below:
Belayet Hossen (partner): Born and raised in Narail. Currently graduating from the Islamic
University, Kushtia major in finance & banking. No background relative to this sector.
SM Nahidul Islam (partner): Born and raised in Khulna. Currently graduating from the
Islamic University, Kushtia major in finance & banking. No background relative to this
sector.
Md. Touhidul Islam (partner): Born and raised in Bogra. Currently graduating from the
Islamic University, Kushtia major in finance & banking. No background relative to this
sector.
Shimul Sardar(partner): Born and raised in Bagerhat. Currently graduating from the
Islamic University, Kushtia major in finance & banking. No background relative to this
sector.
Abu Sayed (partner): Born and raised in Meher Pur. Currently graduating from the Islamic
University, Kushtia major in finance & banking. No background relative to this sector.
Khairul Alam (Non-partner): Born and raised in Kushtia. Passed HSC in the year 2009
from Kushtia Govt. College. He has an experience to work in a poultry farm for last 3 years
successfully.
Duties and Responsibilities of the Management Team:
Belayet Hossen:
Designation-General Administrator Manager.
He will take care of the daily business operations. Includes hiring new employees as well as
providing training and supervising. Periodic employee performance evaluation will also be
performed by him.
Md. Touhidul Islam:
Designation- Sales Marketing and Promotion Manager.
Responsible for creating marketing and promotional activities, monitoring daily sales. He
will be responsible for the design and distribution of all direct marketing materials.

20

Shimul Sardar:
Designation- Distribution and Research & Development Manager.
Responsible for maintaining the regular distribution network. Performs all the research &
development activities related to the business. Find any trend in the economy; forecast the
future demand, any change in demand, and entry of any new potential competitor.
SM Nahidul Islam:
Designation- Financial Manager.
He will be responsible for keeping records of all daily transactions. He will handle all the
financial dealings. Another partner having the check signing authority on behalf of the
business. Handles all the purchase and sales of assets. Responsible for payroll, billing and
other legal matters.
Khairul Alam:
Responsible for all the chicks related matters. Such as knowledge about daily production,
maintaining healthy environment in the farm, taking care of the chicks, keep them safe from
diseases.

Payment of salaries and Benefit to the Management Team:

According to the partnership contract the partners will not get any kind of salaries or bonuses
for performing their respective responsibilities. Partners will only share profit or loss at the
end of a financial year after the auditing has been performed. But in case of the last member
in the management Khairul Alam the treatment will be different. Since he is a non-partner
and will not share any profit and loss so he will get monthly salary of Tk.8000 per month.
Personnel
Apart from the management team, other personnel include
1.
2.
3.
4.
5.
6.

Cleaners
Security
Technician
food technician
Veterinary doctor
Driver

There are 5 cleaners, 2 security, 1 technician, 2 food technicians and a veterinary doctor.
There is also a driver to make the delivery services. Except from the veterinary doctor,
the personnel are on a monthly payroll and are all in a short time contract with the
poultry.

21

INTERNAL ENVIRONMENTAL ANALYSIS

SWOT analysis:
SWOT stands for strength, weakness, opportunities and threats and we have made an
analysis in each case.
Strength

Produce high quality eggs enriched with protein

Relatively good infrastructure systems
Good marketing system
Eggs and chicken are not seasonal products and can be eaten any time of the year
In this area, the poultry business hasnt been over-exploited
Poultry are environmentally friendly

Weakness
Capital intensive. Starting a poultry business requires a large capital funding.
Outbreak of disease can ruin entire business in a go
The smell can be quite disturbing
Opportunities
Expansion into large scale production of byproducts(fertilizer and detergent)
Export to neighboring towns
A large and successful poultry will ensure food security
Threats

More competition
Avian diseases
High feed ingredients prices
Threat of import of frozen chicken
EXTERNAL ENVIRONMENTAL ANALYSIS

Socio-cultural Eating habits of our consumers will definitely affect our business. Also, the
success of restaurants and other firms that order our products will indirectly affect our
business.
Technological - A good technical infrastructure would lead to better production and hence
lower costs. Technology will also mean more effective business marketing.
Economic economic trends such as demand and supply will determine the sustenance and
profitability of the business. Also inflation rates will affect the way we pay our employees
and the price of the product.

22

Political this will include government policies concerning inspection by the ministry of
health and organizations.
FINANCIAL PLANNING

Estimated amount and sources of funds

Equity financing
Debt financing
Total financing =

1000000 (partners capital)

1000000 (long term debt)
2000000

Loan repayment schedule

Year
1st
2nd
3rd
4th
5th

Amount of
loan
1000000
800000
600000
400000
200000

Principal
payment
200000
200000
200000
200000
200000

Rate of
interest
10%
10%
10%
10%
10%

Interest
payment
100000
80000
60000
40000
20000

Total
payment
300000
280000
260000
240000
220000

Poultry farm start up costs

Items

Costs

Land
Building
Advertising / marketing
Equipments (Feeders and drinkers, Crates, Egg tray, Cages,
Refrigerator)
Computers
Insurance
Electricity, water supply and sewerage installation and system
development
Pre-production cost (Registration of partnership deed)
Food stuff godown
Day old chicken purchase ( 5000 chicks tk 80)
Laying eggs chicken purchase (5000 chicks tk 80)
Farm house
Other outlays
Total initial outlay =

23

300000
200000
18000
200000
100000
50000
20000
2000
10000
400000
400000
100000
50000
1850000

Projected Income statement

Poultry Farm Project
Income:
1. Live chicken
Sales
2. Eggs sales

3. Fertilizers
4. Total income
(1+2+3) =
Expenses:
5. Day old
chicken
purchase
6. Laying eggs
chicken
purchase
7. Feed
8. Insurance
9. Internet
10. Labor
11. Advertisemen
t
12. Depreciation
13. Other
expenses
14. Total
expenses =
15. Net income
before interest
and taxes (414)=
16. Interest =
17. Net income
before taxes

1st year
20000 kg tk
120
2400000
150000 eggs
tk 6
900000
80000

2nd year
20000 kg
tk 120
2400000
150000 eggs
tk 6
900000
80000

3rd year
22000 kg
tk 125
2750000
160000 eggs
tk 6
960000
85000

4th year
23000 kg
tk 125
2875000
170000 eggs
tk 6
1020000
90000

5th year
25000 kg
tk 130
3250000
180000 eggs
tk 6
1080000
95000

3380000

3380000

3795000

3985000

4425000

(5000 chicks
tk 80)
400000
(5000 chicks
tk 80)
400000
800000
100000
20000
192000

(5000 chicks
tk 80)
400000
(5000 chicks
tk 80)
400000
800000
100000
20000
192000

(5000 chicks
tk 80)
400000
(6000 chicks
tk 80)
480000
875000
100000
20000
192000

18000
185000

18000
185000

18000
185000

18000
185000

18000
185000

50000

50000

50000

50000

50000

2165000

2165000

2320000

2420000

2515000

1215000
100000
1115000

1215000
80000
1135000

1475000
60000
1415000

1565000
40000
1525000

1910000
20000
1890000

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(6000 chicks (6000 chicks

tk 80) tk 80)
480000
480000
(6000 chicks (6500 chicks
tk 80)
tk 80)
480000
520000
895000
950000
100000
100000
20000
20000
192000
192000

(15-16)=
18. Taxes (40%)
19. Net income
(17-18) =

446000

454000

566000

610000

756000

669000

681000

849000

915000

1134000

Cash flow analysis

Poultry Farm Project
Items
1. Net income
2. Depreciation
3. Operating cash
flow(1+2)
4. Salvage value
(after tax)
5. Initial
investment
6. Net working
capital
7. Total I.I. (5+6)
8. Total cash flow

Year-0

Year -1
669000
185000

Year -2
681000
185000

Year -3
849000
185000

Year -4
915000
185000

Year -5
1134000
185000

854000

866000

1034000

1100000

1319000
1200000

854000

866000

1034000

1100000

2519000

(1850000)
(150000)
(2000000)
(2000000)

Pay Back Period (PBP) = 2.27 (approx.)

Net Present Value @ 15% (NPV) = 1958703
Internal Rate of Return (IRR) = 44.52 % (approx.)
Additional consideration:
Initial requirement of working capital = Tk. 150000
The depreciation rate is 10% for the project
After 5 year the project will be sold at tk. 2000000

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Conclusion
Some times reports used only to acquire financing from the financial institutions and
having no particular use. But this report is prepared from the viewpoint of reality and will
use for creating and maintaining a real poultry farm. So this plan has a real good prospect
in its real life application.
Appendix:
United Nations Conference on Trade and Development. United Nations, New York
and Geneva, 2003.
www.researchgate.net/...Poultry_Business_Plan
http://www.entrepreneur.com/businessplan/index.html
http://www.entrepreneur.com/article/247574

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