Do you want to start a Poultry Farming business plan?
Starting a business in the food sector requires an ambitious plan. For a poultry farm business, a good business plan for poultry farming will be needed to make it successful.
The primary step to starting this business is to learn how to write a business plan for poultry farming. You can go for food delivery service business plans if the major focus of your startup will be to deliver poultry products.
However, if you are looking to open a farming business in the poultry sector, reading an organic farm business plan or reading this example is a great start. Just like any other business, you will need to develop a solid business plan for a poultry farm. It can help you get required permits as well as investors in situations of need. Here, we will be presenting the business plan for Chuck’s Produce Farm.
2.1 About the Farm
Chuck’s Produce Farm will be a poultry farm started by Henry Chuck. The primary objective of the business will be to provide poultry products such as chicken meat and eggs to supermarkets as well as nearby restaurants.
2.2 How will the Farm be Managed?
According to its Chicken Farming business plan, Chuck’s produce farm will be managed through a detailed plan. The business plan of the poultry farm will include management guides for all aspects of the business, from finances to operations. Henry read through many business plan poultry farming samples to ensure that his chicken poultry farm business plan address all the possible tricky aspects of the business.
In this business plan online template, we will show you how to make a poultry farm business plan for your business.
2.3 Customers of Poultry Farming Company
Our customers will primarily be other businesses to whom we will provide our products and services to be transferred to the general public. Thus, our main customer groups will include:
- Supermarket Chains
- Small Produce Businesses
- Food Factories
2.4 Business Target
The target of Chuck’s Produce Farm will be to become the major supplier of poultry products to businesses in and around Dallas. The business will aim to gain at least a 60% share in the local market by the end of the second year.
The financial targets that the business is aiming to achieve are demonstrated below:
3.1 Farm Ownership & Management
Henry Chuck will be the owner and primary manager of Chuck’s Produce Farm. He studied biology and biochemistry as a student and then worked with many organizations to manage product dissemination operations. His father had a farm, and it was always his dream to make use of the farm to create an organic business.
3.2 Why is the Farm Being Started?
Henry noticed that with an increase in the consumption of food, especially poultry products, industries had started to resort to harmful chemicals just to meet demands. He wanted to change the narrative by providing organic and healthy poultry substitutes so that local people could consume poultry products without the added harm of chemicals.
3.3 Basic Steps to Start Poultry Farm Business
Step1: Refine Your Idea
The first step to the start of anything new is an idea. So, before Henry even thought about how to set up a poultry farm, he needed a basic business idea. Refining the idea before he developed a business plan on poultry farming was a great advantage as it helped him limit the scope of his planning.
Step2: Develop the Uniqueness
The next step before writing a poultry farming business plan is to develop the unique areas of your business. Henry used this step as a build-up of the idea. He knew the importance of marketable businesses and products, so he created a brand around the unique propositions of his farm.
Step3: Location Selection and Permits
Henry already had a location for starting Chuck’s Produce Farm. However, since one cannot start a commercial farm on a whim, he worked to get the required permissions from local authorities. This will allow him to run his business smoothly without any legal complications.
Step4: Online Presence
Since Henry’s business idea is focused on commercial customers instead of the public, so most of the orders will be in bulk. In order to manage such orders and keep up to date with customers and their demands, Henry decided to invest in the development of an online portal with which his customers could put in orders. Henry also decided to develop social media profiles for his business for a greater audience reach about organic products.
Step5: Follow the Plan
One cannot learn how to run a poultry business or any other business without dedicating research to a developed plan. After developing the business plan for poultry farm pdf, Henry will follow the guidelines to establish a sustainable farming business.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$273,300|
|Other Current Assets||$251,000|
|Start-up Expenses to Fund||$273,300|
|Start-up Assets to Fund||$891,800|
|TOTAL FUNDING REQUIRED||$1,165,100|
|Non-cash Assets from Start-up||$1,140,300|
|Cash Requirements from Start-up||$111,300|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$31,300|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$61,100|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,165,100|
|Loss at Start-up (Start-up Expenses)||$88,500|
|TOTAL CAPITAL AND LIABILITIES||$1,332,900|
When thinking about how start a poultry farming business, Henry zoned in on the services he would be providing to his customers. This helped him filter out what operations needed planning and which ones didn’t. To start a poultry farm business or any other business for that matter, a refined list of marketable products and services is needed. In his small scale poultry farming business plan, Henry decided to add all the services that his produce farm aimed to provide. To learn how to open a poultry farm, you can look at the list of services we are providing in this poultry farm business plan. You can also refer to a cattle farming business plan to understand what scale of services is best to start a business.
- Chicken and Turkey Products
The first set of products offered by Chuck’s Produce Farm will be chicken and turkey. We will offer clean meat that is processed in different ways. Our customers will be able to buy full chickens or turkeys ready for roast, boneless meat, and so on.
Chuck’s Produce Farm will also rear chickens for laying eggs. This will be an added facet to Henry’s pdf on poultry farming business plan. The farm will provide these eggs to our customers regularly at a wholesale price.
- Poultry Rearing Services
The farm will also aid other smaller poultry farms with proper rearing of poultry and chickens for both eggs and meat. In this regard, our farmers will give training sessions and tips to the locals.
- Chick Shipments
Our last service will be to provide chicks to poultry farms in other parts of the country. This is to promote the development and rearing of own meat and poultry in all parts of the country. This service will help in the sustainable consumption and rearing of poultry in the industry.
Marketing Analysis of Poultry Farming Company
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Starting a poultry farm business requires the collection and use of a lot of information. No business can be started without knowing about your target market. Whether you are developing a dairy farm business plan or a business plan for a poultry farm pdf, you need to learn about the target market.
Therefore, Henry decided to do some research into the poultry farm industry when learning how to set up a poultry farm business. He learned that the business plan of poultry farming should include its products and services along with its unique propositions over the market. It should inquire into the previous trends and predicted future trends to invest in operations that are useful in figuring how to establish a poultry farm.
After looking into the industry, Henry knew the major trends which he decided to utilize in developing his business plan for poultry farm. Through these trends, Henry identified the target customers for his business as presented in the poultry farming business plan template below.
5.1 Market Trends
According to IBISWorld, chicken and turkey meat production has a market share of around $30 Billion in the United States alone. And according to Reportlinker’s “Poultry Global Market Report 2021: COVID-19 Impact and Recovery to 2030” report, the industry has a growth rate of 3.8%. This means there is significant room in the industry for another player like Chuck’s Produce Farms.
5.2 Marketing Segmentation
The target customers of Chuck’s Produce Farm are as follows:
Business Plan for Investors
5.2.1 Supermarket Chains
Our primary customers will be the supermarket chains in Dallas. We will provide the products for their meat and produce sections. We will also provide eggs and other meat options for these chains. Thus, they will be our indirect link to the public.
5.2.2 Small Produce Businesses
The second set of customers we expect to serve will be small produce businesses. Smaller businesses have a harder time setting up their operations and properly rearing poultry. Thus, Chuck’s Produce Farm will offer training and shadowing services to these new businesses to promote the production of poultry on a local scale.
5.2.3 Food Factories
Our third target group of customers will be food factories in the nearby areas that need poultry like chicken and turkey along with eggs to create their products. We expect to have contracts with quite a few of these factories.
Our final target group will be restaurants in Dallas. Usually, restaurants look for the wholesale rate of poultry products to save expenses. Therefore, Chuck’s Produce Farm will reach out to many restaurants for an exclusive contract to supply organic poultry products.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
- To achieve the status as the best organic poultry farm in Dallas.
- Promote the production of clean poultry products across the country.
- To provide chemical-free meat and poultry products to our customers.
- To increase the preference for organic, chemical-free poultry over regular one.
5.4 Product Pricing
Since our products have to compete with industrial products at a commercial level, our prices will be similar to the market competitors. However, at the same price, we will be providing chemical-free products that can be checked for health benefits against competing products.
To write a business plan on poultry farming, Henry ventured to search for his target market. This allowed him to develop a business plan sample for poultry farm that could focus on marketing for these particular customers.
A marketing plan is an essential element of a farming poultry business plan. In fact, it is a very important part of every business plan, whether it is a pig farm business plan or a broiler poultry farming business plan.
Therefore, in this business plan, we are presenting the marketing plan and strategies for Chuck’s Produce Farm.
6.1 Competitive Analysis
- We will provide meat that is free of chemicals usually used to increase the growth rate or size.
- We will offer organic products that stem from proper poultry grooming.
- We will aid local poultry farms and focus on a helping business model.
- We will use organic and eco-friendly feed and products that harm neither the poultry nor its consumers.
6.2 Sales Strategy
- We will offer organic products as compared to the chemically treated ones in the market.
- We will reach contracts with local restaurants and businesses.
- We will advertise through word of mouth and local training and guide sessions held throughout Dallas.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Chicken/ Turkey Products||15,000||15,900||16,854|
|TOTAL UNIT SALES||54,500||57,770||61,236|
|Unit Prices||Year 1||Year 2||Year 3|
|Chicken/ Turkey Products||$45.00||$52.20||$60.55|
|Chicken/ Turkey Products||$675,000.00||$829,980.00||$1,020,543.41|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Chicken/ Turkey Products||$15.00||$16.50||$17.33|
|Direct Cost of Sales|
|Chicken/ Turkey Products||$225,000.00||$262,350.00||$291,995.55|
|Subtotal Direct Cost of Sales||$912,500.00||$1,063,975.00||$1,184,204.18|
If you have hen business ideas or something of the like, you may be trying to learn how to start a small poultry farm. Henry had the idea of an organic farm business plan which is how he developed the idea of Chuck’s Produce Farm. To ensure the success of his business, Henry added an employee section in his business plan for a poultry farm. The workforce needed to start Chuck’s Produce Farm can be found below for reference.
7.1 Company Staff
- 1 Co-Manager to help in overall operations
- 10 Trained Poultry Farmers
- 2 Vets
- 8 General Cleaners
- 1 Technician to maintain machines
- 3 Sales and Marketing Executives
- 1 Accountant
- 2 Drivers
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
Starting a poultry farm requires much more than a food idea. It requires consistent effort and planning to maintain the business. In order to develop a successful business plan for poultry farming, Henry put in a significant amount of effort in the financial analysis section.
To start and run a sustainable business, Henry planned out the costs for different operations of the farm along with expected sales and product prices. This kind of financial analysis is necessary for every business plan, may it be a goat farming business plan. For making a financial plan for your startup, you can follow the example below for guidance.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|Average Per-Unit Revenue||$231.00|
|Average Per-Unit Variable Cost||$0.62|
|Estimated Monthly Fixed Cost||$163,800|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$912,500||$1,063,975||$1,184,204|
|TOTAL COST OF SALES||$912,500||$1,063,975||$1,184,204|
|Gross Margin %||63.86%||65.73%||68.98%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$801,700||$868,200||$947,125|
|Profit Before Interest and Taxes||$810,800||$1,172,565||$1,686,259|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|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||$74,000||$79,000||$85,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$69,000||$70,000||$76,000|
|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|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||74.89%||75.00%||75.00%|
|Pre-tax Return on Assets||96.30%||101.12%||106.17%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.56%||34.60%||35.67%||N.A.|
|Return on Equity||55.80%||57.53%||59.31%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
- How do I start a poultry farm business plan?
You can start chicken farm by looking at poultry farming business ideas and developing a good business plan like the one above.
- How much profit does a poultry farm make?
According to ChickenFeedMachinery, a poultry farmer can make up to $2000/month for 300 egg-laying chickens, but it varies from one type of business to the next.
- Is poultry farming a profitable business?
A poultry farming business can be highly profitable if you have a commercial poultry farm business plan like the one shown above.
- Which poultry is most profitable?
The success of a poultry business depends more on its management than its type. So, you can download a poultry farm business plan like the one above to sharpen those skills.
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