1. PREPARATION GUIDE BY TESSY OKPOTU
BUSINESS PLAN
PREPARATION GUIDE BY
TESSY OKPOTU

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

3. : 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) :

4. 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)

5. (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.

6. 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

7. 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) 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.

8. 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

9. 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)

10. 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)

11. 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

12. 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.

13. 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)
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

14. 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)

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

16. 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

17. THANK YOU