EYONK FARMS offers Grasscutter, Grasscutter families and Grasscutter feed production to Retailers, other farms in need of Grasscutter families, hotels, restaurant, eateries and other fast food companies. in the Eastern, Northern, Southern and Western part of Nigeria, and all the well established markets, and also in local market. The business has a strong market position and a coherent strategy. It has established clear steps to achieve its objective of Becoming Nigeria's major source of Grasscutter meat, and exporting to nearby countries in the near future. in the next five years.
EYONK FARMS has set targets that they
are committed about achieving. Next year the business will achieve sales of ₦5000000. Sales will grow by 20 percent each year to reach the figure of ₦10368000 at the end of the period. By the final year of this plan the business will be achieving a net profit of ₦7686647. This will represent a good return and provide sufficient retained earnings for future development plans.
EYONK FARMS is formed as a Sole Trader. This is an appropriate legal structure for this type of business and will fit well with its objectives. The management team will review this structure as the business develops.
EYONK FARMS is well placed to offer Grasscutter, Grasscutter families and Grasscutter feed production in the Eastern, Northern, Southern and Western part of Nigeria, and all the well established markets, and also in local market. The management team have the experience and competencies to deliver the targets they have set themselves.
Eyonk Enterprise, Business Owner, has knowledge and experience of Grasscutter farming, including Grasscutter disease management, construction of Grasscutter pen and Grasscutter feed production.
John Benco and group, CoFounder, has developed expertise in Rendering Financial Assistant to the company, providing the necessary farm equipments and structures needed for the farm to move forward..
IITA, Partner, is goal driven and brings knowledge of Training and development of workers, leading a team, bringing new innovative structural designs and carrying out maintenance culture in the farm..
Songhai Farms, Junior Partner, brings skills in Grasscutter disease management, and how to market the the Grasscutter families. The also bring different marketing strategies and and also equip the staff with the skills of how to envelope the market..
The management team are committed to growing the business by providing excellent customer service and building a strong credible brand. This will be demonstrated through their trustworthy relations with customers and other stakeholders. The management team take their responsbility seriously and are committed to an ethical approach to business.
In summary, EYONK FARMS has the correct legal form, values and management team to succeed.
EYONK FARMS intends to target Retailers, other farms in need of Grasscutter families, hotels, restaurant, eateries and other fast food companies. with its Grasscutter, Grasscutter families and Grasscutter feed production. This market represents a good opportunity for the business to capitalise on its low price of products, we sell at low cost because we produce the grasscutter feed in the farm, thereby maximizing profit. We are also known for good quality products, and quick delivery to the customers in need of the animal. advantage. This will provide a strong market position from which to develop the business.
EYONK FARMS faces some competition, as would be expected in this attractive market.
AB and co is the main competitor. It has some strengths, but its critical weakness is its high prices, and unstable production, unreliable in business and inability to meet up to the customer's demands.. This will restrict its capacity to compete.
CD and Co also has a weakness that diminishes its effectiveness in the market. In this case the weakness is its inability to motivate workers, thereby being raised down by low productivity and unreliability..
CD and co is also a potential competitor, but again it has an exploitable weakness. In this case the weakness is its lack of good marketing strategies, and inability to maintain effective marketing strategies. .
EYONK FARMS will be able to exploit the weaknesses of its competitors to gain market position.
In summary, the high demand for the EYONK FARMS offer and the weaknesses identified in its main competitors provide an attractive market opportunity.
EYONK FARMS has the objective of Becoming Nigeria's major source of Grasscutter meat, and exporting to nearby countries in the near future. over the next five years. To achieve this objective the management team has identified key steps that it will implement over the period.
Step 1: Bring down the selling price so as to get numerous customers
Step 2: Produce quality grasscutter families that are capable of serving whosoever buys it.
Step 3: Expand the Business in every geographical location in Nigeria
Step 4: Employ more strategic marketing plans
Step 5: Maintain our integrity
The selection and sequence of these actions has been carefully chosen to produce the full potential of the business and ensure that the targets are achieved. The management team will continuously monitor the business performance against the targets and make necessary adjustments. At all times the focus will be on achieving the key objectives.
In summary, EYONK FARMS has a systematic plan with clearly articulated stages to achieve its five year objectives.
Table 1 below shows a projected income statement for the five years of the plan. This demonstrates how the targets will be achieved. The projections have been carefully constructed and are based upon realistic assumptions.
In the first year of the plan EYONK FARMS will achieve sales of ₦5000000, a gross profit of ₦4000000 and a net profit of ₦3500000. In 2019, midway through the plan, the business will achieve sales of ₦7200000, a gross profit of ₦5760000 and a net profit of ₦5208750. By the end of the plan the business will achieve sales of ₦10368000, a gross profit of ₦8294400 and a net profit of ₦7686647.
The figures demonstrate a steady growth in sales and gross profit during the period of the plan.The business becomes profitable in year one of the plan, which is earlier than many similar rivals and demonstrates the strength of the business model. This will provide a solid financial foundation to develop its plans. The average sales growth of 20 percent across the period is healthy and demonstrates the potential of the business. The predicted sales and growth are realistic given the strengths of the business and the attractiveness of the market.
Years........ ....2017 ....2018 ....2019 ....2020 ....2021
Sales........ .5000000 .6000000 .7200000 .8639999 10368000
Cost of Sales .1000000 .1200000 .1440000 .1727999 .2073600
Gross Profit. .4000000 .4800000 .5760000 .6912000 .8294400
Expenses..... ..500000 ..525000 ..551250 ..578812 ..607753
Net Profit... .3500000 .4275000 .5208750 .6333188 .7686647
Table 1: Income Statement Forecast 2017 to 2021 (₦).
Table 2 below shows a projected cash flow for the five years of the plan. This demonstrates the liquidity of the business during the period.
EYONK FARMS has based the cash flow on the assumption that they will be offering customers 0 days credit. This is in line with industry norms and should be competitive within the market. Suppliers are assumed to offer 30 days credit. This is also realistic given the current practice within the industry. The business achieves a positive cash carried forward position in year one. By the end of the five years the business has a positive cash position of ₦28674021. This shows the robustness of the business and its ability to generate cash to support future plans.
Years........ ....2017 ....2018 ....2019 ....2020 ....2021
Cash from A/R .5000000 .6000000 .7200000 .8639999 10368000
Cash to A/P.. ..917808 .1183561 .1420273 .1704327 .2045194
Expenses Paid ..500000 ..525000 ..551250 ..578812 ..607753
Net Cash..... .3582192 .4291439 .5228477 .6356860 .7715053
Cash B/Fwd... .1500000 .5082192 .9373631 14602108 20958968
Cash C/Fwd... .5082192 .9373631 14602108 20958968 28674021
Table 2: Cash Flow Forecast 2017 to 2021 (₦)
In summary, EYONK FARMS has constructed methodical financial forecasts that show a resilient cash flow and attractive growth in profit over the next five years.
EYONK FARMS is well positioned to target Retailers, other farms in need of Grasscutter families, hotels, restaurant, eateries and other fast food companies. . The management team have provided a clear objective of Becoming Nigeria's major source of Grasscutter meat, and exporting to nearby countries in the near future. in the five year period. The financial targets have been shown to be realistic given the strengths of the business and its strategic position. The management team is committed to achieve the strategic goals. They have a clear plan of strategic stages to realise the potential of the business and generate healthy returns for all stakeholders.
The following assumptions were made in developing this plan.
1. ₦5000000 sales in the first year. This level of sales is realistic given previous experience and the turnover of similar firms within the sector.
2. 20 percent annual growth in sales. This level of sales growth is achievable given the attractiveness of the market and the coherent strategic plans of the management team.
3. 20 percent cost of sales. This cost of sales percentage is in line with the sector average. The cost of sales percentage is expected to remain stable during the period of the plan.
4. ₦500000 expenses in the first year. This level of overhead expense is in line with similar size businesses within the sector.
5. 5 percent annual growth in expenses. This expense growth takes into account changes in overhead as the firm develops.
6. 0 days customer days credit. This is in line with industry terms of trade and should be competitive.
7. 30 days supplier credit. This is realistic given the terms normally offered by suppliers.<
8. The cash flow forecast assumes that receivables and payables are settled before the next period.
9. The cash flow does not take into account the acquisition of fixed assets from cash generated.
10. ₦1500000 equity cash injection. This equity is confirmed to be available and ready to be invested in the business.
11. Equity cash injections are assumed to be made at the start of the plan.
12. These figures take into account inflation.
13. These figures are realistic given the current market situation and expected trends.
14. While a conservative approach has been taken to projections and an attempt to factor in risks, like all predictions there is the potential of unexpected factors.