Thinking about starting a Goat Farming Business?
The business of goat farming has been gaining a lot of popularity these days. There is significant demand for goat products and they also need less investment and high profit margin in a short time period. These are known to be the main reasons behind rising popularity of business.
Being a profitable business, goat farming makes a great source of income for millions of entrepreneurs across the world. But you need to consider some important things before you venture into this business. You should determine the size of your project for goat farming, i.e. number of goats you can keep, your target market, and location like a goat farm. These choices vary by the capital you actually have in hand and size of target market.
If you don’t have many funds, don’t worry because it doesn’t need much and you can also rise with goat farming business plan. You can also grow your business overtime. When starting a goat farming business, you need to follow the best business plan of goat farming and expand your business in a short time period. You can have a great ROI with goat farming as compared to other livestock farming ventures.
Executive summary
In this section of plan of a business, you need to introduce your company and the location you are based at. You need to do a proper feasibility study and market research before you secure the land for your livestock farming.
For example, Jonas Goat Farms Ltd is a licensed and registered goat farming business involved in the commercial breeding of goats. We are specialized in breeding services, boarding services, livestock health, dairy support services, shearing services, and other services.
We have started goat farming business because we are specialized and experienced in the livestock farming industry. We are looking forward to leveraging on vast opportunities and playing our part in growing the country’s economy. We have put strategies and processes to employ best practices in goat farming/livestock breeding processes.
- Company Summary
Jonas Goat Farms Ltd is a privately-owned registered livestock farming company owned by Jonas Livingston. Before starting this business, we have worked with some of the top livestock farms in the US. He has worked for around 5 years before starting his own business.
- Services for Customers
Jonas Goat Farms Ltd is a licensed livestock farming venture devoted to meat processing and goat farming for both the global market and the US market. We are also going to produce raw materials for industries. We operate a food processing plant as part of our offering.
- Marketing Analysis of Goat Farming Business
Here, we are going to do proper marketing analysis and we have been in existence for a long time. In order to make it possible, we need to analyze the market trends and current demand in the market.
- Strategy
When it comes to start goat farming business, one of the most important things is to acquire the right breed. Goats are available in different breeds and each breed has its own uses and specifications. So, we are going to raise both regular and dairy goats to serve different purposes.
- Personnel Plan
In order to raise any business, having proper staff is very important. For doing this, we are going to hire competent and skilled staff to offer our services.
- Financial Plan
The company will be single-handedly and fully financed by the owner and his close family members. To meet further requirements, we need financing for the next few years. Later on, we are projecting enough profits to pay off the loan and grow at the same time.
- Management of the Goat Farming Business
Goat farming management is very important part of goat farming business plan. Usually goats eat plants, grasses, weeds, shrubs and herbs. Along with these feeds, they also need proper vitamins, energy, water and fiber for overall growth. Ensuring growth for goats means ensuring growth for your business. You should have proper knowledge of what to feed them.
- Customers
Basically, the target customers of Jonas Goat Farms Ltd are everyone who uses goat-based products in different ways. Our target markets are going to be householders, individuals and even manufacturers.
- The Business Metrics and Targets
Most goat farming businesses couldn’t make it and fall easily because they don’t have proper goat farming business plan template. In order to make significant profits, you need to target vast market with your products.
Company Summary
Goat farming is one of those businesses that a single person can handle with several yields. With that in mind, we need minimal investment and team to start up. Of course, there is a profit involved in goat raising business. The profitability usually depends on the farmer and the breed he uses for farming goats.
- Company Owner
Jonas Goat Farms Ltd is going to be a goat farming business with multiple yields. The company is owned by Jonas Livingston who is looking forward to see a great profit possibility.
- Why the goat farming business is being started
The owner is starting goat business for production of milk and meat. We believe that goat farming is a very profitable venture in the US. Lots of young people and unemployed youth having smaller farms can start this business without having much money.
- How the goat farming business will be started
To start this business, we will need some people from the rural areas who have experience in keeping multiple goats for regular income. But we will also need a land to acquire and some startup capital.
| Start-up Expenses | ||
| Legal | $72 500 | |
| Consultants | $0 | |
| Insurance | $32 750 | |
| Rent | $222 500 | |
| Research and Development | $32 750 | |
| Expensed Equipment | $62 750 | |
| Signs | $12 250 | |
| TOTAL START-UP EXPENSES | $435 500 | |
| Start-up Assets | $22 000 | |
| Cash Required | $485 000 | |
| Start-up Inventory | $0 | |
| Other Current Assets | $322 500 | |
| Long-term Assets | $52 625 | |
| TOTAL ASSETS | $882 125 | |
| Total Requirements | $1 317 625 | |
| START-UP FUNDING | $1 317 625 | |
| Start-up Expenses to Fund | $435 500 | |
| Start-up Assets to Fund | $882 125 | |
| TOTAL FUNDING REQUIRED | $1 317 625 | |
| Assets | $121 875 | |
| Non-cash Assets from Start-up | $195 000 | |
| Cash Requirements from Start-up | $0 | |
| Additional Cash Raised | $203 125 | |
| Cash Balance on Starting Date | $118 750 | |
| TOTAL ASSETS | $638 750 | |
| Liabilities and Capital | $118 750 | |
| Liabilities | $121 875 | |
| Current Borrowing | $0 | |
| Long-term Liabilities | $0 | |
| Accounts Payable (Outstanding Bills) | $0 | |
| Other Current Liabilities (interest-free) | $0 | |
| TOTAL LIABILITIES | $240 625 | |
| Capital | $0 | |
| Planned Investment | $1 317 625 | |
| Investor 1 | $0 | |
| Investor 2 | $0 | |
| Other | $0 | |
| Additional Investment Requirement | $0 | |
| TOTAL PLANNED INVESTMENT | $1 317 625 | |
| Loss at Start-up (Start-up Expenses) | ($919 500) | |
| TOTAL CAPITAL | ($919 500) | |
| TOTAL CAPITAL AND LIABILITIES | $638 750 |
Goat products for Customers
When starting your goat-raising business, you should be clear of what you are going to produce and offer to your customers. You can produce different products from goats like meat, fiber, milk, skin and manure.
Note
Visit the nearest market and understand the demand for goat farming business products. Focus on producing products that can be sold easily around you and in the market.
As an example, you can produce the following products –
- Meat – These days, goat meat has significant demand across the world. This rate is increasing significantly. According to a report, more than 70% of meat is consumed globally from the goat.
- Milk – Goat milk has a lot of vital nutrients and is easy to digest. Hence, there is a great demand in both local and global market. Goat milk is best suited to make different types of dairy products.
- Fiber – You can also produce fiber from breeds like Angora and Cashmere goats as they produce high quality of fiber.
- Manure – Some of the crop farmers use manure of goats in the field. It serves as an organic fertilizer. It can help you earn some money by selling goat manure.
- Skin – You can produce skin from all goat breeds. But there are few breeds which produce quality skin.
Marketing Analysis for Goat Farming Business
Operational/Strategic Planning Services
Market analyst
Consider the current market demand for goat-based products and goat milk when doing market research. You need to figure out the demand for goats and goat milk and your ability to sell. Be sure to talk to other farmers in the market to approach buyers. You can also visit several eCommerce sites, agricultural forums, and product websites to find buyers online.
Market Trends
A lot of goat farmers focus not only on goat rearing but they also combine the same with meat processing, packaging, and cultivation of crops. It is another common trend in this business plan of goat farming. In essence, it is helpful for them to improve business profits.
Marketing Segmentation
When it comes to get started, you need to deal with all types of businesses, be it small or large. You also have to deal with new ventures and individual clients to large businesses. There is no lack of opportunities to help you grow and to deal with the goat farming business across the US.
| Market Analysis | |||||||
| Potential Customers | Growth | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | CAGR |
| Boarding services | 10% | 22 334 | 32 344 | 43 665 | 52 544 | 66 432 | 10,00% |
| Breeding services | 15% | 11 433 | 13 344 | 16 553 | 18 745 | 20 545 | 13,43% |
| Dairy support services | 10% | 8 322 | 9 455 | 10 655 | 12 867 | 14 433 | 13,00% |
| Livestock health services | 10% | 4 333 | 5 655 | 6 877 | 7 877 | 9 543 | 10,57% |
| Farrier services | 14% | 3 256 | 5 655 | 6 877 | 7 877 | 9 543 | 11,00% |
| Sale and export | 15% | 3 925 | 5 655 | 6 877 | 7 877 | 9 543 | 10,00% |
| Sale of Cattle and milk | 8% | 2 568 | 5 655 | 6 877 | 7 877 | 9 543 | 7,00% |
| Sale of processed meat (beef) | 7% | 2 568 | 5 655 | 6 877 | 7 877 | 9 543 | 10,00% |
| Shearing services | 6% | 2 568 | 5 655 | 6 877 | 7 877 | 9 543 | 8,00% |
| Livestock farming | 5% | 2 568 | 5 655 | 6 877 | 7 877 | 9 543 | 7,00% |
| Total | 100% | 63 875 | 94 728 | 119 012 | 139 295 | 168 211 | 100% |
Being the owner of a goat farming business, you can offer huge range of services. In order to get it done, you need to have well-trained and experienced team to meet the needs of your customers. People from different occupations and classes are included in your target market and local customers.
Business Target
Our target market includes different clients. Everyone uses products based on goat farming in different ways. Here are some of the target consumers for goat farming –
- Manufacturers
- Households and individuals
Product Pricing
We ensure a lot of factors in order to achieve annual sales and desired goal. We go leaps and bounds in cost-cutting when it comes to business operations, while attracting customers to choose our farm instead of choosing competitors.
In this section, it is vital to explain the range of product prices. It is very vital to provide maximum details when it comes to pricing. For instance, you can categorize different products. But you should cover this section in one page only.
Strategy
- To improve and build your networks with a lot of agricultural units which depend on our goat-based products as raw materials to enhance production.
- To promote relevant food, websites and business magazines and to ensure getting the goat farming business enlisted on local directories.
- To attend business fairs, food expo, seminars, and other events always and book the opportunity to promote goat farming.
- To create fliers, business cards, and hand them over to potential customers with your brochure in different locations in the US.
- To promote your friends, employees and family to use words of mouth when it comes to promote goat farming.
- To promote your goat farming online on social media platforms like LinkedIn, Facebook, and Twitter.
Competitive Analysis
We are looking forward to stand out in competition with various goat farmers in our area. We are looking to provide quality products to our customers. Our unmatched customer service will help us to grow further in competition. We are going to take care of every client with great respect and ensure providing best goat farming services.
Sales Monthly
Sales Yearly
Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Dairy support services | 539 | 770 | 1 002 |
| Livestock health services | 265 | 322 | 393 |
| Farrier services | 1035 | 1250 | 1762 |
| Sale and export | 550 | 750 | 1 100 |
| TOTAL UNIT SALES | 2 389 | 3 092 | 4 257 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Dairy support services | $870,00 | $910,00 | $1 200,00 |
| Livestock health services | $650,00 | $750,00 | $850,00 |
| Farrier services | $1 050,00 | $1 200,00 | $1 000,00 |
| Sale and export | $1 700,00 | $2 100,00 | $3 100,00 |
| Sales | |||
| Dairy support services | $468 930 | $700 700 | $1 202 400 |
| Livestock health services | $172 250 | $241 500 | $334 050 |
| Farrier services | $1 086 750 | $1 500 000 | $1 762 000 |
| Sale and export | $935 000 | $1 575 000 | $3 410 000 |
| TOTAL SALES | $2 662 930 | $4 017 200 | $6 708 450 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Dairy support services | $560,00 | $620,00 | $800,00 |
| Livestock health services | $105,00 | $170,00 | $190,00 |
| Farrier services | $750,00 | $790,00 | $940,00 |
| Sale and export | $1 000,00 | $1 350,00 | $2 000,00 |
| Direct Cost of Sales | |||
| Dairy support services | $301 840 | $477 400 | $801 600 |
| Livestock health services | $27 825 | $54 740 | $74 670 |
| Farrier services | $776 250 | $987 500 | $1 656 280 |
| Sale and export | $550 000 | $1 012 500 | $2 200 000 |
| Subtotal Direct Cost of Sales | $1 655 915 | $2 532 140 | $4 732 550 |
Personnel plan
You may need to recruit well-qualified and talented employees who can help you start and grow your business plan of goat farming. You can easily start hiring candidates from senior management on the basis of their performance.
Company staff
You may need to hire well qualified and skilled team as part of our business plan of goat farming–
- HR and Admin Staff
- Accountant
- CEO
- Agriculture manager
- Sales and Marketing
- Customer Support
- Procurement manager
- Assistant
- Worker
Average Salary of Employees
In this section, define average salary of all of your team members properly in your goat farming business.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Chief Executive Office (CEO) | $45 000 | $52 000 | $59 000 |
| Agriculture manager | $145 000 | $152 000 | $159 000 |
| Procurement manager | $410 000 | $440 000 | $480 000 |
| HR and Admin Manager | $55 000 | $65 000 | $75 000 |
| Accountant | $60 000 | $63 300 | $70 000 |
| Sales and Marketing Executive | $20 000 | $23 300 | $30 000 |
| Assistant | $10 000 | $12 000 | $15 000 |
| Worker | $15 000 | $20 000 | $25 000 |
| Total Salaries | $760 000 | $827 600 | $913 000 |
Financial Plan
In order to come up with the proven goat farming business ideas, you should have well skilled and talented finance experts. They are capable to implement the best financial plan and outline the overall growth of your business over the next few years.
Important Assumptions
You need to list down all the estimates of interest and tax rates over the period of three years.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10,00% | 11,00% | 12,00% |
| Long-term Interest Rate | 10,00% | 10,00% | 10,00% |
| Tax Rate | 26,42% | 27,76% | 28,12% |
| Other | 0 | 0 | 0 |
Brake-even Analysis
You should present the overall graph in this section to showcase the overall revenue you are expecting from your company and milestones you can achieve.
| Brake-Even Analysis | ||
| Monthly Units Break-even | 5530 | |
| Monthly Revenue Break-even | $159 740 | |
| Assumptions: | ||
| Average Per-Unit Revenue | $260,87 | |
| Average Per-Unit Variable Cost | $0,89 | |
| Estimated Monthly Fixed Cost | $196 410 | |
Projected Profit and Loss
List down all the expenses and income of your business plan of goat farming in this table –
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $2 662 930 | $4 017 200 | $6 708 450 |
| Direct Cost of Sales | $1 655 915 | $2 532 140 | $4 732 550 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $1 655 915 | $2 532 140 | $4 732 550 |
| Gross Profit | $1 007 015 | $1 485 060 | $1 975 900 |
| Gross Margin % | 37,82% | 36,97% | 29,45% |
| Expenses | |||
| Payroll | $760 000 | $827 600 | $913 000 |
| Sales and Marketing and Other Expenses | $1 850 | $2 000 | $2 150 |
| Depreciation | $2 070 | $2 070 | $2 070 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4 000 | $4 250 | $4 500 |
| Insurance | $1 800 | $1 800 | $1 800 |
| Rent | $6 500 | $7 000 | $7 500 |
| Payroll Taxes | $34 510 | $40 726 | $46 942 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $810 730 | $885 446 | $977 962 |
| Profit Before Interest and Taxes | $196 285 | $599 614 | $997 938 |
| EBITDA | $196 285 | $599 614 | $997 938 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $39 257 | $119 923 | $199 588 |
| Net Profit | $157 028 | $479 691 | $798 350 |
| Net Profit/Sales | 5,90% | 11,94% | 11,90% |
Profit Monthly
This section includes the overview of profits per month for 12 months in 3 years.
Profit Yearly
You need to show the annual profits you are expecting from your business plan of goat farming to the investors. This way, you can figure out the overall annual profits expected for 3 years.
Gross Margin Monthly
Come up with the overall gross margin per month.
Gross Margin Yearly
This table includes the gross margin on every year for the upcoming 3 years.
Projected Cash Flow
Figure out the projected balance of cash flow you can expect from your business plan of goat farming for next year.
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $40 124 | $45 046 | $50 068 |
| Cash from Receivables | $7 023 | $8 610 | $9 297 |
| SUBTOTAL CASH FROM OPERATIONS | $47 147 | $53 656 | $59 365 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $47 143 | $53 651 | $55 359 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $21 647 | $24 204 | $26 951 |
| Bill Payments | $13 539 | $15 385 | $170 631 |
| SUBTOTAL SPENT ON OPERATIONS | $35 186 | $39 589 | $197 582 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $35 296 | $35 489 | $43 882 |
| Net Cash Flow | $11 551 | $13 167 | $15 683 |
| Cash Balance | $21 823 | $22 381 | $28 239 |
Projected Balance Sheet
All the assets and liabilities are listed in this balance sheet for your business plan of goat farming.
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $184 666 | $218 525 | $252 384 |
| Accounts Receivable | $12 613 | $14 493 | $16 373 |
| Inventory | $2 980 | $3 450 | $3 920 |
| Other Current Assets | $1 000 | $1 000 | $1 000 |
| TOTAL CURRENT ASSETS | $201 259 | $237 468 | $273 677 |
| Long-term Assets | |||
| Long-term Assets | $10 000 | $10 000 | $10 000 |
| Accumulated Depreciation | $12 420 | $14 490 | $16 560 |
| TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
| TOTAL ASSETS | $198 839 | $232 978 | $267 117 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9 482 | $10 792 | $12 102 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9 482 | $10 792 | $12 102 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9 482 | $10 792 | $12 102 |
| Paid-in Capital | $30 000 | $30 000 | $30 000 |
| Retained Earnings | $48 651 | $72 636 | $96 621 |
| Earnings | $100 709 | $119 555 | $138 401 |
| TOTAL CAPITAL | $189 360 | $222 190 | $255 020 |
| TOTAL LIABILITIES AND CAPITAL | $198 839 | $232 978 | $267 117 |
| Net Worth | $182 060 | $226 240 | $270 420 |
Business Ratios
All the estimated sales growth are detailed here in percentage.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE |
|
| Sales Growth | 4,35% | 30,82% | 63,29% | 4,00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 5,61% | 4,71% | 3,81% | 9,70% |
| Inventory | 1,85% | 1,82% | 1,79% | 9,80% |
| Other Current Assets | 1,75% | 2,02% | 2,29% | 27,40% |
| Total Current Assets | 138,53% | 150,99% | 163,45% | 54,60% |
| Long-term Assets | -9,47% | -21,01% | -32,55% | 58,40% |
| TOTAL ASSETS | 100,00% | 100,00% | 100,00% | 100,00% |
| Current Liabilities | 4,68% | 3,04% | 2,76% | 27,30% |
| Long-term Liabilities | 0,00% | 0,00% | 0,00% | 25,80% |
| Total Liabilities | 4,68% | 3,04% | 2,76% | 54,10% |
| NET WORTH | 99,32% | 101,04% | 102,76% | 44,90% |
| Percent of Sales | ||||
| Sales | 100,00% | 100,00% | 100,00% | 100,00% |
| Gross Margin | 94,18% | 93,85% | 93,52% | 0,00% |
| Selling, General & Administrative Expenses | 74,29% | 71,83% | 69,37% | 65,20% |
| Advertising Expenses | 2,06% | 1,11% | 0,28% | 1,40% |
| Profit Before Interest and Taxes | 26,47% | 29,30% | 32,13% | 2,86% |
| Main Ratios | ||||
| Current | 25,86 | 29,39 | 32,92 | 1,63 |
| Quick | 25,4 | 28,88 | 32,36 | 0,84 |
| Total Debt to Total Assets | 2,68% | 1,04% | 0,76% | 67,10% |
| Pre-tax Return on Net Worth | 66,83% | 71,26% | 75,69% | 4,40% |
| Pre-tax Return on Assets | 64,88% | 69,75% | 74,62% | 9,00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19,20% | 21,16% | 23,12% | N.A. |
| Return on Equity | 47,79% | 50,53% | 53,27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4,56 | 4,56 | 4,56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19,7 | 22,55 | 25,4 | N.A. |
| Accounts Payable Turnover | 14,17 | 14,67 | 15,17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1,84 | 1,55 | 1,26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0,02 | -0,04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120 943 | $140 664 | $160 385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0,45 | 0,48 | 0,51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23,66 | 27,01 | 30,36 | N.A. |
| Sales/Net Worth | 1,68 | 1,29 | 0,9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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