Chicken Farming Business Plan South Africa – In this article we have put together two simple chicken business plans for both small scale farmers and intensive or larger scale poultry farming. A small scale business plan will guide you how to farm with chickens and a more advanced plan feature points that you can present to the Bank for a loan or Government Funding
- Backyard or Small Scale Chicken Farming Business Plan
- Intensive or larger Chicken Farming Business Plan
Breakdown of a Backyard or Small Scale Chicken Farming Business Plan
- Housing Cost
- Bedding Cost
- Feed and Water Cost
- Health and Treatment Cost
- Marketing and Marketing Cost
We will look at the basics and profitability of small scale farming.
But let me explain why you need a business plan. A business plan is a written tool about your business that projects 3-5 years ahead and outlines the path your business intends to take to make money and grow revenue. Think of it as a living project for your business, and not as a one-time document. Break it down into mini-plans – one for sales and marketing, one for pricing, one for operations, and so on.
A good business plan guides you through each stage of starting and managing your business. You’ll use your business plan for how to structure, run, and grow your new business. It’s a way to think through and detail all the key elements of how your business will run.
Setup and Cost
You need to determine how many chickens you can operate with. When building your coop you need to construct the building to easy extent it if needed as your business grow. Housing should be protected from strong winds and must be waterproofed.
Day old chicks are not cold tolerant and you can lose your stock if they are not protected against bad weather. Make sure that your coops are also protected against rodents and do not store feed in your coops.
Planning the cost of your housing carefully will save you money as you will not buy unnecessary material and pay extra wages to redesign your housing if errors were made.
Plan your bedding well before the chicks arrive. You can get bedding at your closest sawmill or at pet stores or even make wood shavings yourself. Bedding is a nominal cost and you will need to maintain it as long as you have chickens.
Bedding is not expensive and can be resold as manure after your farming cycle. Bedding can be bought in bulk and stored in a dry place which are rodent free.
Feed and Water
Watering Systems are expensive and need to be planned carefully. You need to get the right amount of bell drinkers or water holders and raise them as the chickens grow.
You will need 3 types of feeds for broilers in the form of starter feed, grower and finisher. You will find a breakdown of feeding methods on our website.
Planing your feed is crucial and having too many chicks at the startup of your business you don’t want to run out of cash to buy feed for the chickens.
Work out how much starter, grower and finisher you are going to need. You can use this Feeding Calculator for Layer and Broiler Chickens
Health and Treatment Cost
You need to plan for chickens getting sick. Talk to your state vet before starting your business. Virukill is a must for any chicken farmer to disinfect their coops floors and walls. You can also use it to wash their drinkers and feeders.
Marketing and Marketing Cost
Marketing is an essential part of your business. Plan ahead on how to market your business. Advertising in news papers or on social media is a good way to create public awareness and almost guaranteed to bring clients to you. There are many free methods of marketing but it is time consuming and not always an effective strategy to market your business.
You have to decide how much help you are going to need and budget for wages. Chickens take time to return your investment and running out of cash means that you are going to run out of workers.
Selling your products are not always easy. We have put together a paragraph on how to sell your chickens and eggs.
Poultry Farming Business Plan Outline – For Bank Loans or Government Funding
You need to follow these points to create a full and complete business plan to present to your Bank for a loan or to apply for Government Funding.
- Executive Summary
- Mission Statement
- Keys to success
- Financial Summary
- Net Income
- Business Overview
- Company Ownership
- Location and facilities
- Company Ownership
- Market Analysis
- Industry Analysis
- Challenges facing the poultry industry
- Market segmentation
- Target market segment strategy
- Market trends
- Startup Summary
- Startup costs
- Products & Services
- Product description
- Future products
- Service Description
- Future services
- Competitive Analysis
- Competitive edge
- Marketing Strategy and Implementation
- Marketing strategy
- Pricing and promotion strategy
- Web strategy
- Sales strategy
- SWOT analysis
- PEST analysis
- Management and Organization Structure
- Management team
- Organizational structure
- Hiring Plan
- Financial Plan
- Projected Profit and Loss
- Projected Cash Flow
- Projected Balance Sheet
- Risk Assesment
- Financial risks
- Health risks
- Technological risks
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