OVERVIEW

Poultry House Project CC is a community based project that was conceptualised by three passionate, committed and enthusiastic social entrepreneurs. This exciting project is the brainchild of Thando, Tsegofatso and Pearl. Poultry House Project CC was set up to promote the creation of jobs, women and youth empowerment, economic development and poverty alleviation. It features key stakeholders such as the youth and women, members and workers of the project, customers, suppliers and the wider community. The project will specialise in the production and sale of eggs. The project will essentially purchase ‘ready to lay’ pullets and raise them through their productive cycle. The project members have already identified a suitable location for the project and have entered into discussions in connection with leasing a farm. The project shall be based in the outskirts of Rustenburg (North West Province), South Africa.

THE BUSINESS OPPORTUNITY

The members of the project have realised that there is great demand for eggs by hotels, bed and breakfast providers, guest houses, holiday resorts and other related entities. These entities usually procure their eggs from as far as Ventersdorp and are inconvenienced financially as well as time wise by transportation activities and their associated costs and risks. There are currently few reliable egg producers and suppliers based in the outskirts of Rustenburg.

Poultry House Project CC wishes to exploit the opportunities presented by engaging in the production and sale of eggs. This shall be by means of purchasing ready to lay pullets, which shall be kept and nourished at the premises of the project during the productive phase of their lifespan. The eggs produced shall be collected, sorted, packaged and thereafter sold and distributed to the target market of the project - which primarily encompasses, small to medium sized hospitality related entities.

THE MARKET

The identified key segments for the project include, individual and corporate consumer market segments. In terms of similarities, both individual and corporate clients seek the health and taste benefits of eggs. They regard eggs as an excellent source of protein, which is at times an alternative to red or white meat. As for the differences, the quantities required and purchased by corporate clients supersedes that of individuals. The corporate market segment is more lucrative as compared to the individual consumer market segment. This is attributed to the fact that the segment has a greater growth rate, growth potential and is more profitable.

THE TARGET MARKET

The selection of a lucrative market is imperative to the success of Poultry House Project CC. Key factors were considered prior to selecting a lucrative market for the project. These encompass profitability, growth, growth potential, size of the market, risks associated with the market and the capacity of the business to serve the selected market. The proposed target market for Poultry House Project CC shall be primarily composed of consumers within the corporate arena. The business will target resorts; essentially the customers shall emanate from bed and breakfast providers, guest houses, mine kitchens and hostels, tertiary institutions as well as small scale and emerging community stores within the outskirts of Rustenburg. The project shall primarily target hospitality businesses near Sun City as well as attraction centers such as Pilanesberg National Park. Additionally, the project shall strive to secure contracts to supply eggs to prominent hotels on a regular basis.

THE COMPETITION

The market is composed of both direct and indirect competitors. Direct competitions will emanate from small scale poultry farms in close proximity to the business. These include Phokeng Poultry Farm and other small scale commercial farmers. The project will face indirect competitors from well established players such as Rainbow Chickens, OBC Chickens, Chubby Chicks, Supreme Poultry, California Chickens, Big Chicken Company and other premier commercial farmers.

THE COMPETITIVE STRATEGIES

In terms of competitive advantages, the project will focus on having a thorough understanding of the needs and preferences of the customers. The business will strive to ensure that it has a better understanding of the customer’s needs and preferences as compared to its direct and indirect competitors. Meeting the expectations of customers will be a key priority for the business. Efficient and effective marketing will be important to drive the sales and profits of Poultry House Project CC. Emphasis will be placed on establishing a strong brand for the project that provides an excellent positioning for the project.

THE MANAGEMENT TEAM

The Close Corporation is made up of a strong management team of three committed and dedicated women. They will share various roles and responsibilities in the identified business functions such as marketing, human resources, operations, finance and many more. The three members will represent the ownership of the project but specific management and operational functions will be given to each member. One of the three members will be given the responsibility of the overall management of the project and will report to the other members who will act like a board.

THE FINANCIAL PLAN

The project will require R2 394 500 in total in order to finance its capital asset requirements (R1 067 000) as well as its working capital (R578 000 – includes funds for feed). The main requisitions shall include: poultry houses for layers, feeding systems, a delivery van, feed, vaccines, medicine, office furniture, equipment, fixtures and fittings and much more.

PURPOSE OF THE BUSINESS PLAN

The purpose of the business plan is to serve as a motivation document to source the required funding for Poultry House Project CC.

The business plan shall also be instrumental in the following ways:

§ To further understand the project

§ To understand the macroeconomic factors affecting the project

§ To understand the microeconomic factors affecting the project

§ To understand the industry that the project will operate in

§ To understand the dynamics of the market

§ To draw up a SWOT analysis and devise a vision and mission for the project

§ To develop strategic objectives and strategies for the project

§ To improve the performance of the project

§ To focus on a profitable activities and customers

1. PROJECT SUMMARY

1.1 PROJECT NAME

The name of the project is Poultry House Project CC.

1.2 PROJECT LOCATION

The project shall be situated in the outskirts of Rustenburg.

1.3 PROJECT SPONSOR

Poultry House Project CC is sponsored by the three project members. The project shall seek financial and non-financial support from the local Municipality as well equity funding from local businesses and community members. Debt financing shall also be sought from reputable commercial banks should the need arise.

1.4 PROJECT GOALS AND PURPOSE

The purpose of the project is to contribute towards improving the community, women and youth empowerment as well as add value to the lives of the stakeholders of the project.

The project is expected to realise the following goals:

§ To empower women and youth

§ To create sustainable employment for women and youth

§ To contribute towards poverty alleviation

§ To ultimately create women’s participatory self-sustaining development at local levels

1.5 PROJECT SCOPE

The scope of work at (business planning stage) includes an analysis of the industry, market, competition, external and internal environment. The business plan shall also be coverage of the technical/operational aspects of the project, the legal aspects, human resources and financial requirements of Poultry House Project CC.

1.6 METHODOLOGY AND APPROACH

The following methodology and approach will be used to help Poultry House Project CC achieve its purpose and objectives:

Project Initiation	The key milestones in the project initiation phase encompass the following: § A consultation session with the key stakeholders of the project § The development of a project charter § The development of a business case
Project Plan	The project plan will provide a detailed guideline aimed at helping Poultry House Project CC realise its purpose and objectives.
Project Execution	This will primarily involve the implementation of the proposed solutions in the project plan.
Project Evaluation	This stage will evaluate the performance of the project in order to render the necessary actions and learn from the project for future reference.
Project Closure	This will mark the closure of the project and confirm that all deliverables have been provided and accepted.

1.7 PROJECT SCHEDULE

The main phases in the project include: the project initiation, project plan, project execution and project closure. The progress of the project will be guided by the project timeline shown below

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