Business plan
BRIAN FRUITS GROWERS
Brian fruit growers
Tel: 0774-678 987
Email: brianfruitbgrowers@gmail.com
TITLE PAGE
BRIAN FRUIT GROWERS LIMITED
Nature
Brian fruit growers limited is a partnership company that will deal in fruit farming by particularly supplying fruits both for retail and wholesale purposes.
Address
Brian fruit growers’ limited
P.O.Box 444
Misindye-Sonde
Goma division
Mukono district
w.w.w brian.co.ug
0312 003378
0705 648170
Co.owned by
BRIAN
0705 648170
Jonathan kabala
0705648228
Prepared on; Monday , October 31, 2016
INTRODUCTORY PAGE
BRIAN FRUIT GROWERS LIMITED
MISINDYE SONDE
GOMA DIVISION MUKONO DISTRICT
0312-0033378
CO-OWNERS
Brian George
Description of the business
Brian fruit growers limited will provide its products that is passion fruit on contract basis to small and medium sized business such as hotels in mukono, universities around and within mukono and households among others on our website, www.brian.co.ug or an office contact 0312-003378.
Financing
The initial finances are the initial capital which will be contributed by the owners and a stanbic bank loan 50 million which will be paid off over 2.5 years in installments basing on the terms and conditions as per the loan which will be attached to it.
The contribution from owners will be from personal saving and donations from their families, friends and well-wishers.
The debt will cover needs such as construction of buildings because the land is yet available, purchase feeders, connecting to utility services like water, electricity that will be sufficient for the initial operation in the production of the products such as eggs , incubation services to the regular customers and chicks
Statement of confidentiality
“This report is confidential and is a property of the owners listed above therefore intended only for use by the person to whom it is transmitted and any reproduction of any of its content without the prior written consent of the company is not alone “.
TABLE OF CONTENTS
Description of the business. iii
Statement of confidentiality. iii
1.2 BRIAN FRUIT GROWERS POULTRY PRODUCTS. 1
1.1 COMPETITORS AND COMPETITIVE ADVANTAGES. 2
1.5 MANAGEMENT CAPABILITIES. 2
1.8 PARTNERSHIP SUCCESS FACTORS. 3
3.1.1 COMPETITOR’S STRENGTH.. 6
Table1. Analysis of strength and weakness of our potential competitors. 6
3.1.2 GENERAL COMPETITION WEAKNESS. 7
They have poor demand planning for their products. 7
3.3 STRATEGY IMPLEMENTATION.. 9
4.4 PARTNERSHIP OBJECTIVES. 12
4.5 PRIMARY PRODUCTS OF THE PARTNERSHIP. 12
4.6 THE LEGAL FORM OF THE PARTNERSHIP. 12
5.1 PRIMARY END OF THEIR PRODUCT.. 13
5.5 OPPORTUNITIES FOR EXPANSION.. 13
6.3.1 PRESENTATION OF SOME OF BRIANFRUIT GROWERS LIMITED’S PRODUCTS. 15
6.3.3 PROMOTION AND ADVERTISNG.. 16
6.4 MARKET SIZE AND TREND.. 16
7.2 MANAGEMENT PERSONNEL AND THEIR ROLES. 17
7.4 PARTNERSHIP STRUCTURE.. 17
7.5 BRIANFRUIT GROWERS ORGANISATION CHART.. 18
7.8 EMPLOYEE REMUNERATION.. 19
8.2 POTENTIAL PRICING WARS. 21
8.3 LONG LEAD TIME DURING PROCUREMENT.. 21
8.4 LEGAL OR RISK OF LITIGATION.. 21
8.5 LONG TERM DEVELOPMENT.. 22
9.2 GEOGRAPHICAL LOCATION.. 23
9.3 FACILITIES AND IMPROVEMENTS. 23
10.1 STATEMENT OF INITIAL OUTLAY.. 24
10.2 IMPORTANT ASSUMPTIONS. 25
Statement of financial position for the years ending 10th June 2017. 27
Statement of comprehensive income for the year ending 10th June 2020. 28
STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 10th JUNE 2020. 29
CASH FLOW STATEMENT FOR THE PERIOD ENDED 10th JUNE 2017. 30
10.6 BRIANFRUIT GROWERS LIMITED BREAK EVEN ANALYSIS. 31
CHAPTER ONE
EXECUTIVE SUMMARY
1.0 INTRODUCTION
BRIAN fruit growers Limited will be a dealing in fruits farming and mainly supplying fruits to different organization. With the vision “to be the leading fruit growers and empower people with in Uganda and east Africa at large”, mission “to provide quality products and create sustainable customer base”, And a motto “your health is our pride”.
Brian Fruit growers will commence on 10th June 2017. The partnership will be located in Misindye (Sonde) where the site has already been land scaped in Goma Division Mukono District. It is owned by two partners who came up with a proposal of starting up a farm after studying the market place around Misindye and since it is in the middle of big towns like Bukerere, Namugongo, Sonde and Seeta and also surrounded by schools which may need big supplies thus the population is big. The partners are Brian and Emmanuel.
The partnership’s target customers are roadside food sellers, restaurants, bakeries, schools and individuals who act as whole sellers and retailers. The partnership is aiming at producing superior products to be able to compete favorably on the market this is fostered by factors like technological, economic, political and physical factors.
1.1 OBJECTIVES
- Below are the objectives of Brian fruit growers limited.
- Providing Quality products to the client’s taste and preference.
- Establish a strong poultry partnership in and around the region.
- Creation of employment opportunities for the people around the area.
1.2 BRIAN FRUIT GROWERS LIMITED
The partnership will provide products such as fruits to all the regular customers. BRIAN also intends to produce special genetically modified fruits in the near future for not only the areas around but also in the entire Africa where fruit is highly demanded like Japan, China and Asia.
PRODUCTS TO BE EXPECTED BY OUR CUSTOMERS
Fruits for both processing by manufacturing firms as well as fruits for domestic consumption.
The partnership will face competition from farms in the fruits farming industry among other small emerging fruit growers. Such competition will be a stumbling block for the quick developments of the partnership because they already occupy the market which the partnership also intends to target. They have got a well advertising that the partnership will adopt after a period of two months and adopt new strategies once in operation. However, they have some weaknesses which the partnership will exploit and gain a competitive advantage such as reluctance to change to an ever changing customer taste.
1.4 MARKETING MIX
Our prices will be attractive to enable customers buy our products.
Our products will be passion fruits, oranges and mangoes.
Promotion will involve special offers like price discounts, transportation of products to customers premises and advice of customers among others. Advertisement will run in all media houses in an effort to enlighten the public about the products being offered on the market’
Customers will be reached through dealers like wholesalers and retailers who will cover all markets within and around mukono town which will reduce on the length of distribution, we will also have delivery vans that will help customers who buy n bulk and those in different locations.
1.5 MANAGEMENT CAPABILITIES
The partnership will have 2owners who will be trained in management field such that the entrepreneur takes over as the chief executive, whereas the other equity shareholders acquires the executive directing position, according to their equity contribution in capital structure.
The management team will consist of accounting and finance officer, estates manager and other casual workers.
This will help management to get the necessary information because the management team will be skilled according to the field they will occupy.
1.7 FINANCIAL STANDINGS
The partnership will use initial capital which will be contributed by the owners and a stanbic Bank loan of 50 million which will be paid back in installments basing on the terms and conditions as per the loan which will be attached to it.
Contribution from owners will be from personal savings and donations from their families, friends plus well-wishers. The debt will cover needs such as construction of building because the land is yet available, purchase feeders, connecting to utility services like water, electricity that will be sufficient for the initial operation in the production of the products such as eggs, incubation services to the regular customers, chicks.
1.8 PARTNERSHIP SUCCESS FACTORS
The partnership will succeed in various ways, and some will be;
Supply a variety focus on customer satisfaction
Delivering the products in time.
Exploit weaknesses of the competitors.
1.9 PROFIT FORECAST
The partnership will react to maximizing profits that will get fields like buying the raw materials from the supplier at least at a low price. The partnership will make normal profits in a period of 2and half years as from potential customers.
These profits would be used to pay the loan, expand the partnership also acquiring more equipment.
CHAPTER TWO
2.0 VISION
The vision will be; “To be the leading fruit growers and empower people within Uganda and Africa at large”.
2.1 MISSION
The mission will be; “To provide quality fruits farmer to each clientele segment and create a sustainable customer base”.
Brian fruit growers limited intend to be the fruits farmer through building the partnership’s motto “Your health is our pride”
2.1 MOTTO
Brian fruit growers limited intend to be the largest fruits farmer through building the partnership motto, “your health is our pride”.
CHAPTER THREE
INDUSTRY ANALYSIS
3.0 INTRODUCTION
The fruits industry has been on a rather high profit in Uganda, but, the culture of consuming fruit products on an individual basis in particular is gradually picking with in Uganda. This gives this nature of business a very high potential. Fruit farming and especially on an individual basis as recently in the last 15 years has not been highly developed since it requires a heavy capital outlay yet limited available financial support for such business in the hands of individual investors. This requires the entrepreneur to commit a portion of their own equity into the undertaking, which will be further facilitated by a Post Bank loan to enable boost the investment and capital structure of the farm.
Table1. Analysis of strength and weakness of our potential competitors.
| Competitors | Strength | Weaknesses |
| Kagodo Fruits growers | Ø Affordable prices Ø Diversification Ø Quality products Ø Location advantage Ø Good name advantage | Ø Inadequate capital Ø Poor management Ø Few customers |
| Biyinzika fruits fruit growers | Ø Adequate capital Ø Cheap labor force Ø Location advantage Ø Good name advantage | Ø Low quality products Ø Low product diversion Ø Less advertising |
| Kireka fruits fruit growers | Ø Adequate capital Ø Good reputation Ø Good quality products Ø Product diversion |
they have been in the industry for quite some time.
The competitors maintain their top level management and their top management and top level technology staff in an attempt to maintain the confidentiality of production methods of their products and this is achieved through good remuneration of their top management and good working condition. Their products legally exist on the market since they are tested and approved by the quality standard bodies like Uganda National Bureau of standards, International Standards Organization among others.
3.1.2 GENERAL COMPETITION WEAKNESS
The competitors rely mostly on the urban consumers putting no or less consideration onto peri-urban outskirt markets.
They have poor demand planning for their products
The competitor firms have always put less consideration on starting up their sources of utilities for example starting up corn gardens to reduce reliance on unreliable suppliers and to have an effective cost control for their firms.
The compression to the quality and cost utilities, our competitors charge a very high price which is justified by the thirst of high profits in small gestation periods and poor book keeping competences to curb the norm.
3.1 STRENGTH
- Quality products.
- Cheap labour.
- Affordable prices
- Good location
- Product diversity
- Supply in time
Weakness
- Inadequate capital
- Low market being new in the market
3.1.3 OPPORTUNITIES
Brian Fruit growers has identified several future opportunities from which it expects to take driver’s seat within the industry. Some of the identified opportunities may include but not limited to the under listed.
- Providing a variety of a full range of quality fruits among others on the market from which the customers can have choice. This is based on our objective of providing quality products.
- Favorable government policies. The taxes charged on the products in the industry are minimal in comparison to tariffs in other industries in addition to the simple legalities involved in the undertaking beside protection laws for local producers.
These will have an impact on the success or failure of Brian Fruit growers as a partnership undertaking and these have been identified as;
- Too many small scales competitors who provide low price and relatively low quality products.
- Unfavorable government policies such as payment of fees for transportation of corns and other equipment to and from the farms.
- Acquiring market, a substantial market is already occupied by a certain though negligible number of fruits farming.
3.2 CONSUMER’S PROFILE
The consumers of Brian Fruit growers will range from children to adults, low to high income earners, students, to non-students, the uneducated to educated, rural to urban settlers, homesteads to hotels and restaurants and wholesalers to retailers of fruit farm products. This will generally depend on their demand which has to be fulfilled in accordance with the vision and mission of the partnership.
3.3 STRATEGY IMPLEMENTATION
Brian will penetrate the market through frequent and aggressive advertising policies such as constant radio and Television adverts in all media houses, sponsoring for renown events such as PAM awards, musical launches, and other programs intended to help the needy. Brian has identified its market as busy hotels, restaurants, schools, bakeries and individuals among others in the region that mind about quality and treasure their life in addition to providing quality products. Brian will strive to ensure clientele loyalty as well as positive public and media support.
3.4 COMPETITIVE EDGE
Brian Fruit growers’ competitive edge will be provision of high quality products placing timely responses to the request of customers’ opinions and complements or complaints to enable the partnership fight unnecessary competition from small processors relative to the quality provided.
3.5 PEST ANALYSIS
The partnership will also analyze its external environment for which it has no control as analyzed below.
Political factors such as government regulation, policies and strategies, taxes business and industry. Government is trying to go into international treaties that are aimed at reducing consumption of genetically modified foodstuffs and actually in some countries they have banned while in others, strict measures of production are already in place thus it’s the onset of such regularities that the investment becomes risky and complex.
Economic factors such as movement in trade cycles, level of disposal incomes, interest rates and inflation which have a greater impact on the consumption patterns of the client for example with in a slum, a rational customer will find it easier to reduce consumption of poultry products but maintain the level of health and education services in the home which on the other hand has a negative impact on the investment though it would be better otherwise with in a boom.
Social factors such as aging consumer, increase in one parent families, attitude towards poultry products and culture for example in Buganda where women used not to eat chicken.
Technological factors may include changes in production methods, advancement in research and development in the production of better poultry products like eggs and chicken. This is in addition to creation and innovation of breeds that do not only have a shorter period to maturity but have a shorter gestation period too coupled with attainment of maximum weight desired by the customers.
CHAPTER FOUR
PARTNERSHIP OVERVIEW
4.0 INTRODUCTION
BRIAN fruit growers limited as an agricultural farm will be a partnership i.e. retiring members and admitting new ones. The partnership will be both wholesale and retail depending on the market and quality demanded.
4.1 PARTNERSHIP NAME
The partners have chosen to trade as Brian Fruit growers limited as their business name depending on the fact that the project is going to be done in their home district of Mukono. For the start, the partnership intends to expand and take on its first sales in their home district and for this matter poultry farming in the area will be developed before it is spread to other districts of the country and after made international.
4.2 OWNERSHIP
The partnership will be co-owned by Brian and Johnathan kabala, though there will be some shares that will be on for those who will be interested of 20%. The shareholders will also be regarded as owners in the partnership.
4.3 LOCATION
The partnership will be located in Misindye (Sonde) in Mukono District. The main reason as to why we decided it to be located here is because it is an administrative and residential area, besides the space is enough for future expansion of the partnership. The farm will also have to set up service centres though out the region. Other location determinants for Brian fruit growers limited have been established to include the following.
- Enough land for expansion. The place where the farm will be put or established is large and this will allow future expansion for the partnership that will be after the third year when it has gained profits.
- Accessibility to and from the town centre, the vicinity to all those who may want to come to the farm.
- Power supply. The fact that Mukono is an administrative, residential and recreational area, the power is available hence minimal power shortages.
- There is enough market for the farm products. Mukono being a highly populated area gives the farm already market for the products.
4.4 PARTNERSHIP OBJECTIVES
The objectives of Brian Fruit growers will be as listed below.
- Provide quality poultry products to the client’s taste and preferences.
- Establish a strong poultry farming partnership in and around the region.
- Creation of employment opportunities for the youth with in the area as a contribution to poverty eradication campaign.
4.5 PRIMARY PRODUCTS OF THE PARTNERSHIP
The main products will be fresh fruits , mango fruits and orange among others. The farm intends to expand in case of any opportunity in terms of service provision and product expansion.
4.6 THE LEGAL FORM OF THE PARTNERSHIP
The partnership will be registered by the registrar of companies. This will be in accordance with the partnership Act Chapter 10 of the Uganda Laws. The partnership will also be registered with the Uganda National Bureau of Standards (UNBS), which will confirm its requirements, policies and regulations. It will also be registered with the International Standards Organization (ISO) which will help to facilitate and introduce international trade. The partnership will also have patent rights and copyrights, which will protect the partnership’s operation.
CHAPTER FIVE
PRODUCT PLAN
5.0 INTRODUCTION
The partnership will provide its customers with the finest and top of the range of product packages for all kinds of fruit farming products to regular customers.
5.1 PRIMARY END OF THEIR PRODUCT
The different products from our farm will be;
The products will be mainly passion fruits, mangoes and oranges.
5.2 UNIQUE FEATURES
The partnership will produce special products which will include the following.
- The products will be superior and of exceptional quality.
- Packaging will be attractive in different affordable sizes to enable product differentiation.
- The farming methods will be protected against duplication by acquiring patent rights.
- A brand name will be used, maintained and protected.
5.3 STATE OF DEVELOPMENT
Through research and development the products is proved of high quality because of the technology used. The research further reveals that product will take approximately two months to fully develop teat and be introduced into the market.
5.4 HEAD START
There are features that will give it an unfair advantage over the competitors such as good quality fruits products and also providing them always when needed.
5.5 OPPORTUNITIES FOR EXPANSION
We are there to gap any opportunity that will be in our way including sale of oranges, providing our own poultry feeds and also expanding for sale f poultry products.
CHAPTER SIX
MARKETING PLAN
6.0 INTRODUCTION
Brian Fruit growers limited being a new venture will follow a strong marketing plan which will enable the partnership to capture a reasonable market.
6.1 MARKETING STRATEGY
Brian Famers plans to introduce 5% pricing of the product in the first month and it will co- sponsor a local athletic charitable events such as offering support to babies homes, to raise visibility of their brand names.
Sales strategy will be building customer loyalty in the new market. Brian fruit growers will increase its sales through searching for new clients using intensive advertising schedule.
6.2 TARGET CUSTOMERS
Brian Fruit growers will sell its products to different market segments. The market segments include the poor and rich, young and old, male and female. Geographical and economic segmentation will be considered and the major customers will be retailers and wholesalers, food vendors and individuals. More than 2/3 of the total market is located in and around Mukono town and Namugongo which will enable distribution of the products easier.
6.3 MARKETING MIX
6.3.1 PRESENTATION OF SOME OF BRIANFRUIT GROWERS LIMITED’S PRODUCTS
6.3.2 PRICE
Pricing products is a very important thing in business .This can be possible after analyzing the overall objective of the business, prices of competitors and other factors at large.
The price will be attractive to enable customers buy the product. That price will cover the costs incurred during production as well as maximizing sales and profits of the farm. The predicted price is as below;
TABLE OF PRICE LISTS
| Product | Quantity | Price (Per Unit) UGX Wholesaler | Price (Per Unit) UGX Retailer |
| Oranges | 30 | 150 | 200 |
| Passion fruits | 300 | 4500 | 5500 |
| Mangoes | 300 | 4000 | 5000 |
6.3.3 PROMOTION AND ADVERTISNG
It will involve special offers like price discounts, transportation of products to customer’s premises, and advice of customers among others. Advertisements will be run in all media houses in an effort to enlighten the public about the products being offered on the market.
6.3.4 PLACE
Customers will be reached through dealers like wholesalers and retailers. These will cover all markets with in and around Mukono town which will reduce on the length of the distribution channel. In addition, the partnership will have four delivery vans that will help customers buy in bulk and those in different geographical locations.
6.4 MARKET SIZE AND TREND
The market size and trends will be determined by the market share which is the amount of the market in terms of sales revenue or value held by the firm.
TABLE SHOWING FORECASTED MARKET SHARES
| CATEGORY | MARKET SHARE (%) |
| Passion fruits | 20% |
| Mangoes | 35% |
| Oranges | 45% |
| Total |
CHAPTER SEVEN
MANAGEMENT PLAN
7.0 INTRODUCTION
The section will be made up of all persons that will be in charge of running the partnership and their duties plus the level of skills each will own.
7.1 ORGANISATION
Brian Fruit growers will be organized in a way that will allow management act within the expected standards set by the partnership director.
7.2 MANAGEMENT PERSONNEL AND THEIR ROLES
Ms. Brian is the proposed Chief Executive Officer of the business and the chairperson of the board of directors; she is expected to take en- all, Administrative and policy making responsibilities of Brian Fruit growers limited She holds a Bachelor’s degree with Honors in Business studies with education from Kyambogo university.
.
Mr. Johnan Duncan Matovu will be the partnership’s executive Director. He will act as the Human Resource Manager of the partnership. He holds a Bachelor’s Degree in accounting and finance from Makerere University. He worked as General Manager Meru fruit growers company based in Nairobi for 4 years; he has an experience of 2 years and has the managing skills like motivation, perception skills. He will be in charge of motivating employees, training them in-sofne-fields, recruiting and expulsion where required.
Since this is an innovative investment, the policy will be to employ staff in compression to the available jobs and clients. The Estates Department, Accounting and Finance and sales, marketing officers and casual workers will be proposed as soon as the first Board of Directors meeting takes underway hence for the start we shall leave the offices vacant.
The structure of/partnership will be flat and all decisions will originate from the above that is from the board of directors and pass through the heads of departments. The partnership will be equipped with qualified and skilled personnel. The partnership will establish a structure that will be followed by the employees.
7.5 BRIANFRUIT GROWERS ORGANISATION CHART
As per now, there are no other investors but they will be admitted in future in order to raise capital for the expansion of the firm.
This will consist of partnership directors BRIAN, Samalie Prisca Aand Johnathan Kabala.
These will be assisted with top management which will mediate between shareholders and partnership to bridge any conflicting gap between the two sides. The board of directors will help in the following ways;
Motivating employees to ensure efficiency and effectiveness in the operation.
Making important and influential decisions of the partnership
Providing enough funds to run the business.
Advancing the partnership to its greater expansion
The employees will be remunerated according to the work done and also the contribution towards the partnership. Their salary will be based on the work they will be doing and the position they will hold in the partnership.
The following table shows the personnel plan for Brian Fruit growers Limited.
| NUMBER | SALARY (SHS) | ANNUAL (SHS) | |
| CHIEF EXECUTIVE | 1 | 500,000 | 6,000,000 |
| EXECUTIVE DIRECTOR | 1 | 450,000 | 5,400,000 |
| GENERAL MANAGER | 1 | 300,000 | 3,600,000 |
| ACCOUNTING | 1 | 150,000 | 1,800,000 |
| SALES AND MARKETING | 3 | 80,000 | 2,880,000 |
| ESTATES DEVELOPMENT | 4 | 50,000 | 2,400,000 |
| CAUSAL WORKERS | 4 | 45,000 | 2,160,000 |
| TOTAL | 15 | 1,575,000 | 24,240,000 |
There is increasing number of small-scale fruit fruit growers and this has led to high competition in the industry for the clients especially in this region. Therefore to develop and maintain our market shares, we will give our clients quality and timely delivery of our products at competitive prices i.e. minimizing queues and delays thus maximizing efficiency.
We might come to situations where the partnership has run out of cash especially with a fall in demand in comparison to the forecasted position. This will be handled by analysing and evaluating seasonal demand and having a clear budget projection. This will keep us in the business
Our competitors may decide to lower prices so as to take our customers. However the reason we are located is with people with demand for our products. On the border, very many business men and women trade in fruit products especially in passion fruit farming. This means that we shall maintain our quality good to the extent that our customers will not depend on the prices but quality of the product they purchase
8.3 LONG LEAD TIME DURING PROCUREMENT
We shall ensure that we have policies to control stock at our premises as to know when orders are to be placed for maize, silverfish, sea shells, and cotton and salt suppliers. The methods used shall be analytical to avoid regrets.
8.4 LEGAL OR RISK OF LITIGATION
The other risk that may affect Brian Fruit growers Limited is that of being sued by clients over substandard products, breach of contracts with suppliers. The partnership can also be sued for production of substandard poultry products such as poor chicken breeds and harmful genetically modified fruits products.
Therefore Brian Fruit growers Limited staff will be highly motivated so as to operate in a professional and business ethics climate which will be a strong policy position for the partnership hence minimizing the risk of lawsuit
Brian Farmer Limited is an innovative farm that targets a new growing market. We assume that the market will respond and grow quickly in the next two years. Our goal is to create a reputation of quality and consistency that will take us to the forefront of the fruit fruit growers management business.
Our marketing efforts will be concentrated on take-out and delivery, the areas of most promising growth. As the market changes, new products will be added to maintain sales
Ideally, Brian will expand to more than thirty units of production in the next three years. At that time, the farm will entertain the possibility of taking our larger orders from clients and outside Uganda like Kenya, Tanzania, Burundi, and Sudan where the demand may be higher.
Brian fruit growers Limited shall carry on its processes as its main headquarters in Misindye (Sonde) Mukono District.
Every process in the department system especially production will not exceed 2 months. This will help to reduce on wastage in the production section that may in reaction reduce on operating cost.
According to the geographical analysis made by the promoters or directors, the place is flat, accessible and strategically located in relation to its customers. There is power supply and conducive for the production process.
There is cheap and clean water necessary in the production process like in mixing the ingredients and the feeds production machinery
The area is blessed with cheap and available labour, skilled, semi-skilled and unskilled who will be helpful in the partnership.
9.3 FACILITIES AND IMPROVEMENTS
The farm shall purchase all the necessary facilities for drinkers and other assets since it has enough capital to finance the business. Almost all necessary equipment shall be acquired before the incorporation of the partnership. This will aid a smooth running of the partnership.
The place for the location of the farm is enough and will cater for all increases in projected sales that is for all expansion that may occur if the partnership over expands, different branches will be opened up in different areas of the country.
Brian Fruit growers/Limited will strive to pursue financial regulation principals and policies that have been designed to ensure easy access to resources and to achieve effective financial control through monitoring and carrying out required corrective measures needed. The financial information will also be needed to protect, compare and evaluate the partnership earning, profitability, liquidity, efficiency and leverage Rons thus aid the decision making process towards other investments and assessing in such investments.
120,000,000 shillings is needed over the next five years to purchase chicken troughs, land, building, chicken feeds mixers, loose tools and equipment and the incubator.
10.1 STATEMENT OF INITIAL OUTLAY
| ITEM | AMOUNT |
| FARMING LAND | 2,000,000 |
| LAND AND BUILDINGS | 45,000,000 |
| FRUITS GROWERS | 12,000,000 |
| LOOSE TOOLS AND EQUIPMENT | 4,000,000 |
| TRANSPORTATION VAN | 10,000,000 |
| TOTAL | 73,000,000 |
| ADD CAPITALISED EXPENDITURES | |
| INSURANCE | 3,600,000 |
| 450,000 | |
| INSTALLATION | 5,500,000 |
| TOTAL | 9,550,000 |
| GRAND TOTAL | 82,550,000 |
The assumptions taken into account while formulating the projected statements include;
- The salaries are expected to remain constant for all the years put in consideration.
- The sales are expected to increase due to an increasing demand in the area
- Insurance expenses will also be kept at constant.
- Advertising expenses are also expected to be in the initial year but fail in the subsequent years.
- Depreciation of fixed assets is expected to be at 25% rate annually
10.3 BRIAN FARMER LIMITED
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 10 ST JUNE/2017 FRUIT GROWERS LIMITED
| PARTICULAR | AMOUNT (SHS) |
| Revenue turnover | 420,900,000 |
| Material and direct costs | (345,981,650) |
| Gross profit | 74,918,350 |
| Operating expenses | |
| Farming overheads | (18,467,550) |
| Direct farm wages | (316,583,450) |
| Administrative expenses | (23,457,408) |
| Total | 73,508,408 |
| Net profit before taxes | 1,409,942 |
| Taxation | (144,524) |
| Net profits after taxes | 1,265,418 |
Statement of financial position for the years ending 10th June 2017
| Particulars | Amount |
| Assets | |
| Non-current assets | 15,459,303 |
| Current assets | |
| Inventory of raw materials | 10,000,000 |
| Trade receivables | 40,000,000 |
| Tax deposite | 3,000.000 |
| Cash and bank | 15,006,250 |
| Other assets | 11,299,865 |
| Total | 94,765,418 |
| Equity and liabilities | |
| Reserves | 1,000.000 |
| Retained earnings | 1,265,418 |
| Non-current liabilities | |
| Stanbic bank loan | 50,000,000 |
| Current liabilities | |
| Trade payables | 40,000,000 |
| Tax provision | 2,500,000 |
| Total | 94,765,418 |
BRIAN FRUIT GROWERS LIMITED
Statement of comprehensive income for the year ending 10th June 2020
| Particulars | Amount |
| Revenue turnover | 510,000,000 |
| Material and direct costs | 201,000,000 |
| Gross profits | 309,000,000 |
| Operating expenses | |
| Farming over heads | (20,000,000) |
| Direct farm wages | (110,000,000) |
| Administrative expenses | (23,000,000) |
| Total | (153,000,000) |
| Profit before tax | 156,000,000 |
| Taxation | 50,000,000 |
| Profit before tax | 106,000,000 |
STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 10th JUNE 2020
| PARTICULARS | AMOUNT (SHS) |
| ASSETS | |
| NON CURRENT ASSETS | |
| Fixed assets | 15,459,306 |
| Current assets | |
| Inventories of materials | 13,450,000 |
| Trade receivables | 52,900,000 |
| Cash and bank | 15,006,250 |
| Tax deposit | 9,880,010 |
| Other assets | 30,012,500 |
| Total | 136,708,066 |
| Equity and liabilities | |
| Capital reserves | 99,017,374 |
| Retained earnings | 256,818 |
| 99,274192 | |
| Non-current liabilities | |
| stanbic bank loan | 30,012,500 |
| Current liability | |
| Payables | 7,225,350 |
| Tax provision | 196,024 |
| Total | 7,421,374 |
| Total equity and liability | 136,708,066 |
CASH FLOW STATEMENT FOR THE PERIOD ENDED 10th JUNE 2017
PARTICULARS AMOUNT (SHS)
Net profit for the year 265,418
Adjustment for Depreciation 4,896,034
Operating Profit before working capital changes 5,161,452
Increase/ decrease in inventory (239,784,900)
Increase in trade and other receivables (720,000)
Increase/ decrease in trade payables (170,550)
Cash generated from operation (240,675,450)
Income tax paid (948,500)
Net cash generated from operations 241,623,950
Cash flows from investing activities
Disposal of fittings 120,000
Net cash flows generated from investing activities 120,000
Cash flows from financial activities Drawings
Capital 206,928,151
stanbic Bank Loan 30,012,500
Net cash flows from financing activities 236.940,651
Net cash Decrease/ Increase (4,563,299)
Cash and cash equivalent at the beginning of the period 19,563,549
Cash and cash equivalent at the end of the period 15,006,250
10.6 BRIAN FRUIT GROWERS LIMITED BREAK EVEN ANALYSIS
The partnership is going to base its break even analysis on the existing operating costs are this will determine what the partnership needs to purchase and sell in order to cover its fixed costs and stay in operation in the long run.
Its estimated that the fixed costs for the partnership will be 3,000,000 shillings at variable costs 2,000 per unit purchased and the average selling price on all products to be sold being 3,000 shillings and an estimated total demand for 500 customers in the year of opening up business.
| CONTRIBUTION UNIT | Selling price variables costs 3,000-2,000 1,000shs per unit |
| Break-even point per (UNIT) | FIXED COSTS CONTRIBUTION PER UNIT 3,000,000 1,000 3,000 Clients
|
| Break-even point (amount) | Fixed costs*selling price Contribution per unit 3,000,000*3,000 1,000 9,000,000 shillings |
10.7 MARGIN OF SAFETY
Budget/actual demand-break-even point demand
= 10,000-3,000
= 7,000 customers
= 7,000*3,000
|
21,000,000 Ugx
|
BREAK EVEN CHART
10.8 COST CONTROL
The partnership shall ensure cost control by minimizing the number of employees so that the members who are employed have interest in the business and therefore be able to minimize costs themselves. We shall always maintain records concerning costs so that we can always evaluate their impact on profits.
The partnership will need a minimum of five million in cash to run its daily operations well. The loan that the partnership will get will be paid in time i.e. three years.
CURRICULUM VITAE
BIODATA
Surname : BRIAN
OTHER NAME : SHAKAM
Date of birth : 10th, October, 1992
Nationality : Ugandan
Marital status : Single
Tel contact : ++256/705648170
Email address : BRIAN@gmail.com
EDUCATIONAL BACKGROUND
| INSTITUTION | DATE | QUALIFICATION |
| Kyambogo University | 2013-2016 | Bachelor of business studies |
| Seeta high school | 2011-2012 | UACE |
| Gayaza high school | 2007-2010 | UCE |
| Jubilee academy | 2006 | PLE |
Here skills such as
- Team work,
- Conflict resolution and management,
- Time management the previous fields
ABILITIES
Computer skills that is to say Microsoft word, Excel, power point and access
LANGUAGES SPOKEN
| LANGUAGE | WRITTEN | SPOKEN |
| English | fluent | fluent |
| Luganda | Fluent | fluent |
| Lunyakole | Fair | fair |
HOBBIES
Travelling/touring
Watching sports, movies
REFEREES
Mr oketcho wilbroad
Business manager W.O.K consults
070755555667
Isabiryeaggrey@yahoo.com
Mr fred oketch
Human resource manager
Plan Uganda arua branch
CURRICULUM VITAE
BIO DATA
Surname :Kabala
Other name : Johnathan
Date of birth : 10th, October, 1990
Nationality : Ugandan
Marital status : Single
Tel contact : +256/705648228
Email address : JohnathaKabala @gmail.com
EDUCATIONAL BACKGROUND
| INSTITUTION | DATE | QUALIFICATION |
| Makerere University | 2010-2013 | Bachelor of accounting and finance |
| Wampewo Ntake | 2008-2009 | UACE |
| Light secondary school | 2004-2007 | UCE |
| Jubilee academy | 2003 | PLE |
Experience
Two experience as general manager Ken chick based in Nairobi
Here skills such as
- Team work,
- Conflict resolution and management,
- Time management the previous fields
ABILITIES
Computer skills that is to say Microsoft word, Excel, power point and access
LANGUAGES SPOKEN
| LANGUAGE | WRITTEN | SPOKEN |
| English | Fluent | Fluent |
| Luganda | Fluent | Fluent |
| Lusoga | Fair | Fair |
| Kiswahili | Fair | Fluent |
HOBBIES
Travelling/touring
Watching sports, movies
REFEREES
Mr Odeke Samuel
Executive Director
Ken Chick
0774647009
0deke@yahoo.com
Mr Sserunkuma Joseph
Human resource manager
Uganda Coffee Processors Ltd
0785986555
KYAMBOGO UNIVERSITY
SCHOOL OF MANAGEMENT AND ENTREPRENEURSHIP
BACHELOR OF SCIENCE IN ACCOUNTING AND FINANCE
NAME : KABAYA SHAKAM
REG NO : 14/U/2697/AFD/PD
YEAR : III
SEM : I
LECTURER : MR. BISAASO
COURSE UNIT : ENTREPRENEURSHIP SKILLS
TASK : BUSINESS PLAN
SIGNATURE :……………………………………….
Date : 31/10/2016
