SimplifiedCredit-business Plan

2/9/2020 SimplifiedCredit
9/2/2020
MINI BUSINESS PLAN
LIVESTOCK PROCESSING
ENTERPRISES
Prepared by: Olufemi Sorunmu
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 sorunmuo@gmail.com
 +234 706 640 9274
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https://www.simplifiedcredit.net/bva/5dee2a1ad02f9d6f99e66d3b/report 1/20
Content
1. Business Description 2. Industry Overview

1. Personal Information 1. Sector Analysis
2. Business Details 2. Sub-sector Analysis
3. SWOT Analysis
4. Leadership Structure
3. Marketing and Sales 4. Financial Analysis

1. Competition 1. Key Assumptions
2. Advertising and Sales 2. Products and Services
3. Target Market 3. Financial Projections
4. Current Financing
5. Funding Requirement 6. Viability Summary

1. Proposed Loan 1. Profitability Ratios
2. Use of Funds 2. Viability Ratios
3. Weighted Average Gross Margin
4. Fund Repayment Ability
7. Conclusion
1. References
2. Photographs
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Business Description
Personal Information
Name: Other Name:
Olufemi Sorunmu Olayinka
Gender: Email:
Male sorunmuo@gmail.com
Contact: Government issued ID:
0706 640 9274 International Passport
Identification number: Address:
A06557574 No 8 Dr Shehu Giwa Street, Tsaunin Kura GRA ,

Sabon-Tasha
Bank Verification Number:
22280734516
Educational qualification:
Institution name: Qualification: Course:

Ahmadu Bello University Doctor of Veterinary Medicine (DVM) Veterinary Medicine
Date awarded: Certificates proof:

11/28/2013 Yes
Business Details
Name: Business age:
Livestock Processing Enterprises 2 Years
Address:
Plot 57 and 58, Ungwar Maigero New Layout, , Chikun LGA,

Kaduna
Recognised cooperative association:
Association name:
Veterinary Council of Nigeria
Address:
Federal Capital Territory
Business description:
In times past, abattoirs had an impregnable cycle of operations. The Veterinary Doctors cum Meat Inspectors medically
certified or condemned animals in whole or part; get their recommendations implemented by government law enforcers and
make submissions to the government pertaining Butchers’ compensation. Over time, this seamless sequence has been twisted
into a vicious cycle where only Meat Inspectors and Butchers are the surviving stakeholders. This aberration has culminated in
an institution of chaos, where malaise, illnesses and deaths ensue from the consumption of a product that hitherto symbolized
health and well-being. Livestock Processing Enterprises is replacing this vicious cycle with a five-layered tamperproof
mechanism where the Veterinarian takes charge of every single process from the acquisition of livestock to packaging,
preservation and distribution. Our business reduces to the barest minimum the need for compensations and minimizes wastage
of the processed livestock by preservation under universally acceptable standards, and salvage of remnant products by
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conversion into barbecue or dried meats to be incorporated into pet food. Our business structure replaces the mode of
operations of pre-existing abattoirs with a five-layered tamperproof mechanism where veterinarians dutifully oversee every
process. The stakeholders’ forum affords readymade access to raw materials and human resources to efficiently run
constituent businesses. The processing and packaging of our quality, wholesome and hygienic products, to be distributed to
the inhabitants of Kaduna town and environs at pocket-friendly rates, will take place at our abattoir premises, located at Plot
57 & 58, Ungwar Maigero New Layout. Livestock here being ‘domesticated animals raised in a farm and used for supply of
dietary protein e.g. goats, chicken, fish, quails, turkey, rabbit and snail.’ We will begin operations with processing of Cattle and
Goats, and incorporate other species as time and resource permit. Livestock Processing Enterprise will establish its
competitive edge through the expertise of its Management and an astute knowledge and relationship with the surrounding
market; and I, Dr. Olufemi Sorunmu, empowered and emboldened by over 5 years hands-on experience in professional meat
inspection, will be the Coordinator of all activities on site. I am a Veterinary Surgeon with the Veterinary Council of Nigeria
(VCN) Registration Number 005813. At optimal working capacity, the business has the potential to generate the following in its
first 6 years: S/NO TIME TURNOVER N GROSS PROFIT N NET PROFIT BEFORE TAX N NET PROFIT AFTER TAX N 1. YEAR 1
52,784,000.00 11,086,400.00 7,571,840.00 6,814,656.00 2. YEAR 2 56,880,000.00 11,942,400.00 6,075,840.00 5,468,256.00 3.
YEAR 3 68,736,000.00 14,284,800.00 8,518,973.00 7,667,165.70 4. YEAR 4 79,968,000.00 16,094,400.00 10,263,153.00
9,236,837.70 5. YEAR 5 91,200,000.00 17,779,200.00 12,047,953.00 10,843,157.70 6. YEAR 6 102,432,000.00 19,588,800.00
13,957,453.00 12,562,465.50
USP:
1. It will be of superior quality
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SWOT Analysis
Strengths Weaknesses
The friendly taxation on agricultural products Inability to handle large supplies because of limited funds
Ease of reaching customers and absence of prejudices Increase in the price of fuel and most farm consumables,
against beef unlike other protein sources like pork reducing the margin made on sales of products
Ease of accessibility to customers due to the availability of Problems with awareness building because of conservatives
a delivery Van hell-bent on patronizing traditional butchers.
Opportunities Threats
School feeding programmes by the Federal and State Perishable nature of some of our products, meaning daily
governments sales is essential
High internet penetration making online sales possible and Widespread poverty due to low earning powers of some
internet and social media usage families
The ever-increasing Rural-Urban migration and the

attendant increased earning power as well as the increasing Theft
population which is put at 2.8% annually
Leadership Structure
Details of owners of the business
# Name Shareholding in %
1 Sprunmu Olufemi Olayinka 100
100.00%
100.00%
Sprunmu Olufemi Olayinka
Details of managers of the business
# Name Area of Responsibility
1 Sorunmu Olufemi Olayinka CEO/Onsite Veterinarian
2 Idoko Felix Offsite Veterinarian
3 Bodam Kumai Robert Human Resources Manager
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Industry Overview
Sub-Sector Analysis - Butchery

Five forces
Bargaining Power Bargaining Power

of Customers of Suppliers
HIGH LOW
5
FORCES
Industry Rivalry Threat of
Substitution
HIGH Threat of New LOW

Entrant
HIGH
General
Butchery is the art of slaughtering animals into different parts for sale in the form of meat. Butchery business is a profitable
venture that provides employment opportunities and income generation for the populace, especially in developing counties. In
Nigeria, meat is largely consumed, and this consumption has been projected to grow by 117% between 2010 and 2050.
Beyond consumption, meat is also processed and retailed in diverse business enterprises such as shops and supermarkets
amongst others
Trends
The Nigerian butchery industry recently received international aid from the Food and Agriculture Organization (FAO). The FAO
has launched Nigeria's first ever training workshop on the Livestock Emergency Guidelines and Standards (LEGS), to enhance
the capacity of the country's livestock sector. The industry is also expanding as entrepreneurs are now tapping into the
opportunities available in the processing and packaging of meat
Demand
The consumption of meat has been estimated by the Food and Agriculture Organization to grow from 10.5 million metric tons in
2018 to 35 million metric tons in 2050. This consumption trend suggests increasing demand in the future, as well as a spread
of job opportunities that can be explored. In Nigeria, the current primary production of livestock is unable to meet the
domestic demand. An increasing demand coupled with a shortfall of supply and increasing unemployment indicates a viable
business opportunity that can be exploited by the masses
Regulatory considerations
Butcheries in Nigeria must be licensed by the Corporate Affairs Commission (CAC) and conform to the regulations of the
Butchers Association of Nigeria
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Risks
Raw meat can carry infectious diseases and pose a risk to the health of the initial handlers. This can be mitigated by
employing food safety management procedures during all stages of meat production
*Sources: FAO, 2018
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Marketing And Sales
Competition
Key competitors:
Price of the
individual’s/ Price of
Name of Name of company’s Competitor Region of LGA of Difference
Competing Competitor product/ product Competitor Competitor from your
# Products Product Organization service( ₦ ) (₦) Operations Operations product
Our
products
are more
hygienic
and
wholesome
compared to
our
competitors
Open Market and we
1 Beef Beef 1,300 1,400 Kaduna Chikun
Meat Vendors guarantee
and
prioritize
preservation
onsite, in
transit and
in sales
outlets
unlike our
competitors
Our
products
are more
hygienic
and
wholesome
compared to
our
competitors
Goat Open market and we
2 Goat meat 1,400 1,500 Kaduna Chikun
meat meat vendors guarantee
and
prioritize
preservation
onsite, in
transit and
in sales
outlets
unlike our
competitors
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Price of the
individual’s/ Price of
Name of Name of company’s Competitor Region of LGA of Difference
Competing Competitor product/ product Competitor Competitor from your
# Products Product Organization service( ₦ ) (₦) Operations Operations product
Our
products
are more
hygienic
and
wholesome
compared to
our
competitors
and we
guarantee
and
prioritize
preservation
onsite, in
transit and
Open in sales
3 Kilishi Kilishi market/traditional 1,000 1,000 Kaduna Chikun outlets
kilishi producers unlike our
competitors
Also, we
have
certification
under
NAFDAC
and are
already
working to
see our
products
certified by
the
Standards
Organizatio
of Nigeria
Advertising And Sales

Advertisment type:
1. Radio
2. Print Media
3. Mobile marketing
4. Social media
Sales:
1. Direct sales and marketing by you or your employees

2. Direct online sales with delivery
3. Direct sales through your own outlets
4. Indirect sales through distributors, agents, or other shops
5. Export to foreign clients
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Target Market
Target customers of bussines : Individuals
All All
Gender Age Category
97,418,391
Customer population by location
 100%
Customer proportion by age group
> Target locations:
States: Kaduna,Lagos,Rivers,Fct Abuja
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Financial Analysis
Key Assumptions
No of holidays / year Operating workdays / week Operating weeks / year
26 6 50
Operating days / year
274
Assets:
Land & Building Machinery &

Purchase price ( ₦ ): 16,350,000 Equipment
Year of accuistion: 2017
Purchase price ( ₦ ): 5,420,000
Lifespan (years): 100
Year of accuistion: 2017
Lifespan (years): 10
Products And Services

Product list:
Product Production Production Company price of product Retail price of product

# name quantity period (₦) (₦)
1 Beef 5,200 Monthly 5,200,000 6,760,000
2 Goat Meat 1,040 Monthly 1,040,000 1,456,000
3 Kilishi 1,000 Monthly 700,000 1,000,000
Frequency of increase in Product/Service price: Percentage of increase in Product/Service price:
Once every two years Inflation rate
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Financial Projections
Projected profit ( ₦ ):
900,000,000,000
809,835,780,035
809,835,780,035
800,000,000,000
736,214,345,486
736,214,345,486
700,000,000,000
669,285,768,624
669,285,768,624
608,441,607,840
608,441,607,840
600,000,000,000
553,128,734,400
553,128,734,400
500,000,000,000
451,994,880,000
451,994,880,000
₦) ( tnuomA
400,000,000,000
300,000,000,000
200,000,000,000
100,000,000,000
0
-11,280,000
-11,280,000 -12,408,000
-12,408,000 -13,648,800
-13,648,800 -15,013,680
-15,013,680 -16,515,048
-16,515,048 -18,166,553
-18,166,553
100,000,000,000
Year 1 Year 2 Year 3 Year 4 Year 5 year 6
Net Revenue Cost of revenue Gross profit
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Projected operating expenses ( ₦ ):
1,100,000
1,000,000
960,000
960,000 960,000
960,000 960,000
960,000 960,000
960,000 960,000
960,000 960,000
960,000
900,000
800,000
480,000 480,000 480,000 480,000 480,000 480,000

700,000
₦) ( sesnepxE
600,000
500,000
400,000
240,000 240,000 240,000 240,000 240,000 240,000
300,000
0 0 0 0 0 0
200,000
240,000 240,000 240,000 240,000 240,000 240,000

100,000
0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
General and Administration Utility costs Rent Others
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Financial indicators ( ₦ ):
# Statement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
1 EBITDA 553,115,366,400 608,426,999,040 669,269,794,944 736,196,870,438 809,816,653,482
2 DEPRECIATION -705,500 -705,500 -705,500 -705,500 -705,500
3 EBIT 553,114,660,900 608,426,293,540 669,269,089,444 736,196,164,938 809,815,947,982
4 INTEREST INCOME / (EXPENSE) -821,887 -668,347 -500,405 -316,708 -115,779
5 NET EARNINGS BEFORE TAXES 553,113,839,013 608,425,625,193 669,268,589,039 736,195,848,230 809,815,832,203
6 TAXES -165,934,151,704 -182,527,687,558 -200,780,576,712 -220,858,754,469 -242,944,749,661
7 NET EARNINGS 387,179,687,309 425,897,937,635 468,488,012,328 515,337,093,761 566,871,082,542
Note* - Assuming OPEX as flat and COS growth rate is equal to the Quantity growth rate.
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Funding Requirement
Proposed Loan
Loan required: Loan duration:
₦ 10,000,000 6 Years
Loan start year:
2019
Loan Repayment
Repayment mode:
Monthly instalment payments
Loan moratorium:
Yes, for one year
Reason for moratorium:
To cover the time for purchase and installation of equipment
Use of Funds
Funds Allocation
# Use % Allocation
1 To purchase new machinery to expand our existing line of business 90
2 To fund operations / working capital 10
New Machinery/Equipment
No. of
# Name Use of equipment units Unit cost Total
Single line system + Overhead slab

1 To hoist livestock 1 4,270,000 4,270,000
where its anchored
To meet the requirements for easy-to-

2 Tiling of floor: 20 by 20 meter 1 632,000 632,000
wash surfaces by the authorizing bodies
3 oven-Dryer Combo For hygienic production of Kilishi 1 2,620,000 2,620,000
4 Automatic meat slicer For hygienic production of Kilishi 1 220,000 220,000
A4-sized customized packaging

5 For hygienic production of Kilishi 20,000 26.5 530,000
nylons
Small-sized customized packaging

6 For hygienic production of Kilishi 20,000 8 160,000
nylons Powered by:
No. of
# Name Use of equipment units Unit cost Total
1.5 Horse power air-conditioning For maintenance of ambience

7 4 93,000 372,000
systems with installation accesories temperature of meat-packaging area
8 Raw Materials/Running cost For Day to day operations 1 1,076,000 1,076,000
Fairly Used Machinery/Equipment
# Name Use of equipment No. of units Unit cost Total
1 Mixer For hygienic production of Kilishi 1 120,000 120,000
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Viability Summary
Profitability Ratios
Gross Profit % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
EBITDA 553,115,366,400 608,426,999,040 669,269,794,944 736,196,870,438 809,816,653,482
Viability Ratios
Values Decision
Internal Rate of Return (IRR) 10,000.01% Good
Net Present Value (NPV) 2,020,568,656,334.77 Good
Weighted Average Gross Margin : 100.00 %
Fund Repayment Ability

Debt Service Coverage (DSCR) 632,089.4548823092 2,309,742.6968173617 2,700,645.1613287805 3,295,698.816432708 4,466,466.745505517
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Conclusion
References
No Full Name Contact Address
1 Elisha Anuye Eraskeb 08038851334 Oron Close, Ungwar Romi New Extension, Kaduna
2 Apagu Benjamin 08038390441 Tsaunin Kura GRA, Sabon Tasha, Kaduna
Photographs
Photograph of business operations
Photograph of business owner
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Connect With Us
LIVESTOCK PROCESSING ENTERPRISES
No 8 Dr Shehu Giwa Street, Tsaunin Kura GRA ,
Sabon-Tasha
 sorunmuo@gmail.com
 +234 706 640 9274
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Simplified Credit, 16 Cairo Street, Wuse 2, Abuja,

Nigeria
 Support@simplifiedcredit.net
 +234 706 5000 835
 www.simplifiedcredit.net
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2/9/2020 SimplifiedCredit

MINI BUSINESS PLAN

1. Business Description 2. Industry Overview

3. Marketing and Sales 4. Financial Analysis

5. Funding Requirement 6. Viability Summary

Olufemi Sorunmu Olayinka

Contact: Government issued ID:

0706 640 9274 International Passport

Identification number: Address:

A06557574 No 8 Dr Shehu Giwa Street, Tsaunin Kura GRA ,

Bank Verification Number:

Institution name: Qualification: Course:

Date awarded: Certificates proof:

Livestock Processing Enterprises 2 Years

Plot 57 and 58, Ungwar Maigero New Layout, , Chikun LGA,

Recognised cooperative association:

1. It will be of superior quality

The ever-increasing Rural-Urban migration and the

1 Sprunmu Olufemi Olayinka 100

Sprunmu Olufemi Olayinka

Details of managers of the business

# Name Area of Responsibility

1 Sorunmu Olufemi Olayinka CEO/Onsite Veterinarian

2 Idoko Felix Offsite Veterinarian

3 Bodam Kumai Robert Human Resources Manager

Sub-Sector Analysis - Butchery

Bargaining Power Bargaining Power

HIGH Threat of New LOW

*Sources: FAO, 2018

Marketing And Sales

Advertising And Sales

1. Direct sales and marketing by you or your employees

> Target locations:

States: Kaduna,Lagos,Rivers,Fct Abuja

Operating days / year

Land & Building Machinery &

Products And Services

Product Production Production Company price of product Retail price of product

1 Beef 5,200 Monthly 5,200,000 6,760,000

2 Goat Meat 1,040 Monthly 1,040,000 1,456,000

3 Kilishi 1,000 Monthly 700,000 1,000,000

Frequency of increase in Product/Service price: Percentage of increase in Product/Service price:

Once every two years Inflation rate

Net Revenue Cost of revenue Gross profit

Projected operating expenses ( ₦ ):

480,000 480,000 480,000 480,000 480,000 480,000

240,000 240,000 240,000 240,000 240,000 240,000

General and Administration Utility costs Rent Others

# Statement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 EBITDA 553,115,366,400 608,426,999,040 669,269,794,944 736,196,870,438 809,816,653,482

2 DEPRECIATION -705,500 -705,500 -705,500 -705,500 -705,500

3 EBIT 553,114,660,900 608,426,293,540 669,269,089,444 736,196,164,938 809,815,947,982

4 INTEREST INCOME / (EXPENSE) -821,887 -668,347 -500,405 -316,708 -115,779

5 NET EARNINGS BEFORE TAXES 553,113,839,013 608,425,625,193 669,268,589,039 736,195,848,230 809,815,832,203

6 TAXES -165,934,151,704 -182,527,687,558 -200,780,576,712 -220,858,754,469 -242,944,749,661

7 NET EARNINGS 387,179,687,309 425,897,937,635 468,488,012,328 515,337,093,761 566,871,082,542

Monthly instalment payments

Yes, for one year

Reason for moratorium:

To cover the time for purchase and installation of equipment

1 To purchase new machinery to expand our existing line of business 90

2 To fund operations / working capital 10