PREPARATION GUIDE BY TESSY OKPOTU BUSINESS PLAN PREPARATION GUIDE BY TESSY OKPOTU

<NAME OF ENTERPRISE COVER PAGE BUSINESS PLAN BY   <NAME OF ENTERPRISE (name of owner(s))> <ADDRESS> <BUSINESS SEGMENT> DATE

: OBJECTIVE AND JUSTIFICATION Objective (What do you intend to achieve in your business. it should beSMART: Specific, measureable, accurate, realistic and time bound. e.g. - to achieve output of 4000birds/annum and sales of 3800birds/annum) - financial objective e.g. Reflect profit as a percentage of the investment annum 1.3 Justification ( looking at Opportunities) N.B not more than a paragraph Availability of raw materials (inputs) for the selected enterprise; Manpower/labour; (availability, skilled and unskilled) Product uniqueness; (e.g. best in terms of quality, weight, content e.t.c) Markets. (potential for growth with available statistics) :

PROJECT DESCRIPTION (Paragraph 1:Name of the Company and registration, the Entrepreneur, and training capacity. GPS) (Paragraph 2: what the business is all about e.g production capacity, input-output ratio (Paragraph 3:highlight innovations/technology adopted, and indicate how its affecting the product, cost, quality and productivity, mentorship identification) (Paragraph 4: list five competitors you have and what makes your products unique) (Paragraph 5: Talk about the market and financial output) (Paragraph 6: the cost of the investment that corresponds to the grant amount)

(start point-end point) PRODUCT/SERVICE MECHANISM AND PROCESS (start point-end point) (Indicate the stages and processes involved in the implementation of the product cycle.

TARGETED MARKET TARGETED MARKET FOR THE ENTERPRISE PRODUCT(S). (Here, indicate specific market segments the business will serve e.g. supermarkets, hospitality, schools. Explain the distribution channels, and any logistics involved.) Table 1: Market segmentation and distribution of revenue TARGETED MARKET SEGMENT VOLUME PERCENTAGE DISTRIBUTION PRICE SALES

S/N ITEM QTY UNIT COST TOTAL COST FINANCIAL PLAN (Under this paragraph, the following are required in a tabular form: (i) List of items/cost required by the beneficiary under this empowerment; (ii) Revenue and cost streams required for financial analysis; (iii)Cash flow and financial analysis) 5.1 Checklist of items required for startup: TABLE 2:Checklist Of Items/Cost Required By Beneficiary S/N ITEM QTY UNIT COST TOTAL COST Note: There should be a footnote to explain how the quantity of some of the items are determined e.g feed ration, quantity of inputs per hectare, processing capacity of equipments.

Revenue and Cost table Revenue: sales of products and by- products/ Services Cost= Variable Cost + overhead fixed cost+ Depreciation. Variable costs : Cost that will vary in the same proportion with outputs e.g. fertilizer, seeds, feeds, point of lay, medication, labour for field workers, maintenance cost. Overhead Fixed cost :Cost that do not vary in the same proportion with outputs. E.g. salaries and wages for administrative staff including the entrepreneur, rents) Depreciation: (It is a reduction in the value of an asset over time, due in particular to wear and tear).Depreciated cost of fixed assets e.g. Buildings, machinery and equipments for yr 1. Derived from asset register Table 3B Most of the information used in the revenue and cost table was derived from the checklist table. Revenue and cost streams must be exhaustive

Fixed Cost overhead (C) Depreciation (D) Fixed cost E= (C+D) TABLE 3A REVENUE AND COST STREAM OF THE ENTERPRISE Key assumptions: Revenue and cost is calculated for a year or 18 months for egg production, 2 cycles for aquaculture(5 months per cycle), broiler 4 cycles(8 weeks per cycle), ITEMS UNIT OF MEASUREMENT QTY UNIT PRICE (N) VALUE (N) Revenue (A) Variable cost (B) Gross profit (A-B) Fixed Cost overhead (C) Depreciation (D) Fixed cost E= (C+D) Total cost F=(B+E) Operating profit (A-F) Tax (as applicable to the environment of the enterprise)(x% of Operating profit ) Net profit (Operating profit -Tax)

TABLE 3B ASSET REGISTER An asset register is a comprehensive document which shows the assets that a business owns. This is used to calculate total value and depreciated value of assets. S/N Description of asset quantity value lifespan Depreciation yr1 yr2 Yr3 TOTAL Note: Depreciation is obtained using straight line method. Depreciation= value/lifespan (all assets are assumed to have a lifespan of atleast 3 yrs)

TABLE 4 CASH FLOW PROJECTION INFLOW Yr1/CYCLE 1 (₦) Yr2/CYCLE 2(₦) (5% increase from yr1) Yr3/CYCLE 3(₦) (10% increase from yr1) EQUITY (beneficiary(S) contribution if any) CADP GRANT (from checklist) SALES (from revenue and cost table) OTHER REVENUE (from revenue and cost table REINVESTMENT from first yr from second yr TOTAL INFLOW (A) OUTFLOW TOTAL VARIABLE COST from revenue and cost table) OVERHEAD FIXED COST VALUE OF FIXED ASSET (FROM ASSET REGISTER) from asset register) TOTAL OUTFLOW (B) NET CASHFLOW C= (A-B+D) CASH BROUGH FORWARD (D) From cash carried down yr 1 From cash carried down yr 2 REINVESTMENT E= (C*40%) CASH CARRIED DOWN F=(C-E) DESCRIPTION INFLOW: Equity CADP grant Sales Other revenues Reinvestment TOTAL INFLOW OUTFLOWS: Total variable cost

Contd. Cash flow projection Total inflow= equity+ CADP Grant+ Revenue+ reinvestment. Total outflow= total variable cost+ total fixed over head cost+ total fixed asset cost Net cashflow= total inflow-total outflow + cash brought forward Cash carried down= net cash flow-Reinvestment Reinvestment= 40% of net cash flow cash brought forward= cash carried down from previous year Fixed Asset cycle 2 and 3= only the assets that were purchased in cycle 2 and 3 respectively. Net cashflow= (total inflow – total outflow) + cash brought forward from the last year. Cash carried down= total net cashflow- reinvestment, i.e.= [(total inflow – total outflow) + cash brought forward]- reinvestment.

TABLE 5FINANCIAL ANALYSIS YRS TOTAL COST 1 TOTAL REVENUE 2 PROFIT =(2-1) 3 DISCOUNT FACTOR( (25% FROM DISCOUNT TABLE) 4 NPV (3*4) 5 DISCOUNTED COST (1*4) 6 DISCOUNTED REVE NUE (2*4) 7 0.8 0.64 0.5 N.b. Total cost for yr 1, yr 2 and yr 3= total variable cost+ fixed cost (over head)+ depreciation value of fixed asset. Refer to the revenue and cost table (table 2a) for year 1 Total revenue yr 1, yr 2 and yr 3= primary sales+ sales of by products. Total cost for yr 2 and 3 are gotten from cash flow table and depreciation value from fixed asset register. The total NPV should be higher than the investment. B/C Ratio= discounted revenue discounted cost

RISK ASSESMENT AND MITIGATION MEASURES (In relation to each activity such as irregular fund flow, response from service providers, use of seeds, fertilizers, agrochemicals, machines e.t.c, the problem or impacts from that and mitigation measures)

IMPLEMENTATION PLAN WORK DESCRIPTION 1ST MONTH 2ND MONTH 3RD MONTH 4TH MONTH 5TH MONTH 6TH MONTH

Environmental And Social Safeguard Plan Environmental and Social Impact identified Proposed Mitigation Measures Monitoring Responsibility Schedule Costs and Source of funds 1.accident   2.Pollution of the socio-physical environment: water, Air, and Soil, 2.Enormous waste generation Environmental Officer, Entreprenuer, Relevant Facilitator Environmental Officer, Entreprenuer, Relevant Facilitator

THANK YOU