Mahuraan Poultry

Business
Plan

Prepared By Haleeya, hargeisa city, marodijex

Mahuran Team Mahuran2021@gmail.com

(063) 463-9640 https://mahuranpoultry.co

Table of Contents

1. Executive Summary……………………………………………………….

2. Business Description………………………………………………………

3. Products and Services…………………………………………………….

4. Marketing Strategy………………………………………………………….

5. Economic Impact

6. Management and Human Resource………………………………………….

7. Operational Plan

8. Risk Mitigation Plan……………………………………………………………

9. Financial Plan…………………………………………………………….

10. Appendices……………………………………………………………….
1. Executive Summary

Mahuraan poultry is a business focused on egg production that provides for a large
market range. It is based in Haleeya village, Hargeisa city. The founders have
noticed the health implication of automated and are creating a business to meet the
increased demand for fertilized eggs. Egg is one of the most nutritious food many
people can buy. Eggs provide significant amounts of vitamins and minerals, and
are also an excellent source of high-quality proteins.
The persons who have come together to start this business are Mustafa Omer,
Ahmed Mohamed, Khaled Abdurrahman, Abdi Fatah Mohamed, Ruqiya
Mohamed, Hamda and Warda.
Not only are the founders interested in meeting the demands of the customer, we
also plan to create utmost satisfaction for these customers. The founders also want
to use this business as a means of creating employment within the community it is
based in and to contribute to the economy of the country. We plan on provide
products with quality and maintain this supply efficiently. This is a partnership
business that plans on distributing eggs and chicken to restaurants, home delivery
food centers, hotels, schools and supermarkets. We also plan on doing this at very
affordable prices.
This business plan is meant to articulate the vision and future of our poultry, and to
appeal to investors and external stakeholders to get involved in this business and
help with its funding as it is a capital intensive business. We also hope that it will
serve as a guideline for the firm’s employees to move towards the goal of the
poultry.
Not only do we offer products, but we offer services as well. We plan on providing
home delivery services to customers who order a certain amount of products. This
offer will mostly be used by the section of our target market that uses eggs in large
quantities like schools and bakeries.

3000 chickens would be optimum for the initial operation of the business. We are
planning to keep 2700 chickens for eggs, and 300 roosters for fertilizing hens. For
2700 chickens for eggs, each chicken is expected to lay at least 1 egg per day. For
the whole day, 2430 eggs will be produced (90% laying rate). For every 3 months,
500 adult chickens will be sold. Our production target is to reduce cost of
production by at least 20% in the next 3 years.

Production site is in Haleeya city, plenty open space, cheap labors, road
connection, water availability and immediate access to markets like Hargeisa
market. A house with 3 rooms will be built for the storage of equipment as well as
for the employees to guard the farm. Revenue for this will be gotten from
contributions from each partner. Investment in this business shall be allocated to
the following purposes: buying chickens, building chicken house, hiring the
experts and other miscellaneous tasks. Fifty percent gross margin is expected
within 6 months of its operations withholding the chances of any accidental or
unexpected incidence and we hope to obtain the breakeven point within 2 years.
We have considered the risks, financial, health and technology wisely.

2. Business Description
Poultry farm Mission
Mahuraan poultry’s mission is to provide customers with quality, fresh, and
valuable products. To respect all employees and enable everyone to have a say in
company affairs. Quality and service are our number one priority. To provide
investors with opportunities to receive a nice return on investment and high-quality
growth. To contribute to the community through physical and social programs.
Mahuraan’s poultry farm intends to have the largest poultry farm products.  We
plan to increase and expand our production of chicken to challenge the ever
growing demand for chicken products. The nutritious and protein rich products
from our farm would always be the first choice of our consumers.

Poultry farm Objectives

Mahuraan poultry will measure its success by its ability to achieve the following
objectives:
 
 Becoming the "Best and most hygienic poultry producer in the area".
 Turn in profits from the first six months of operations.
 Winning the hearts and tastes of our beloved consumers and establishing a
brand image of the company through heavy marketing campaigns in the first
one year.

Our keys to success

Mahuraan poultry will follow these principles in order to achieve success in its
market:
.
 Diverse slaughters network, market chain management, optimum inventory
level and ‘customer is king’ policy.
 Regular visits by veterinary medical workers and hygienic poultry house
environment.
Company Legal form Ownership
Mahuraan poultry is owned by seven persons. They are namely Mustafa Omar,
Ahmed Mohamed, Khalid Abdirahman, Abdifatah Mohamed, Ruqiya Mohamed,
Warda, and Hamda. It is a partnership and each person has an equal share in the
business and is also equally liable for any business debts or claims.

3. Products and Services

Product description
We offer chicken eggs to our target market. We plan to take pride in the
uncompromising quality of our products. We also offer fertilizer in form of
chicken manure. Mahuraan poultry shall produce high quality, and the freshest
eggs to satisfy the taste of our beloved costumers. The products shall be distributed
into a number of distributors - supermarkets, public markets, bakeries, restaurants
and in the company’s own retail space for easy access for marketing agents and
consumers. In brief our products can provide a number of health benefits.

 Strong muscles: The protein in eggs helps maintain and repair body tissues,
including muscle
 Brain health: Eggs contain vitamins and minerals that are necessary for the
brain and the nervous system to function effectively.
 A healthy immune system: The vitamin A, vitamin B-12, and selenium in eggs
are key to keeping the immune system healthy.
 Eye health: The lutein and zeaxanthin in eggs help prevent macular
degeneration [is a medical condition which may result in no vision in the center
of the visual field.], the leading cause of age-related blindness. Other vitamins
in eggs also promote good vision.

Competitive advantages
Our business, the partnership has several advantages over the sole proprietorship.
First, it brings together a diverse group of talented individuals who share
responsibility for running the business. Second, it makes financing easier: The
business can draw on the financial resources of a number of individuals.
Delivering products with high quality in the eyes of the customer.
The ability to optimize risk by identifying and controlling risks.

Competitive disadvantages
Unknown brand is at a disadvantage to a widely and recognized brand.
In many cases people will purchase from the firms that align with their values such
as respect, if your firms has an ethical climate this can a significant disadvantage
and risk.
Competition can create an environment where employees are focused more on
their competitors than their own work.

Pricing and Promotion strategy

The price of the egg would range from sl.sh 2000 up to sl.sh 2500 depending on
the size and quality. These prices would also vary depending on the existing
market price of poultry and eggs. As we compete with other poultries, we will
promote our products through advertisements and we use market penetration
pricing to enter the market easily.

4. Marketing strategy
Marketing strategy
Mahuraan poultry will strive for the production of eggs with the highest quality
and we plan on supplying our eggs to hotels, restaurant, schools with campuses and
home deliver food centers we will be supplying to. We would also make contracts
with retail shops for constant supply of eggs at intervals.
Web strategy
Mahuraan poultry also has a website where customers can interact with us and get
a feel of what the business is about. We know a site or two where we can place
online advertisements and we would also make mentions of our poultry in online
newspapers.

4.1. Market Analysis

Market segmentation
We found out that nearly everybody eats egg, so we are targeting the whole
market, individuals, homes and firms that use eggs in large quantities. Specifically
there is a high demand for Egg for home consumption or as gifts during festivals
like, Eid-al-fitr, Ramathan,and etc.
 Others: 10.0 %
Hotels and restaurants: 20.0 %

Individuals: 10.0 %

Homes: 20.0 % Bakeries and food joints: 20.0 %

Retail shops: 20.0 %

Target market segment strategy

Individuals are a small sector in the market segmentation. They are a pretty large group but they
buy a relatively small amount of eggs.
The part of the market that we hope to supply large amount of eggs to are the industries that
need eggs are bakeries, restaurants, home delivery food centers, retail shops and supermarkets.
Another part of our target market that will order our products in medium quantities are the
homes that will require our home delivery as we have a set amount of eggs they need to order
for. We have considered the needs of each section of the target markets and we plan on meeting
these needs effectively.

4.2. SWOT Analysis

SWOT stands for strength, weakness, opportunities and threats and we have made an analysis in
each case.
Strength
 Produce high quality eggs enriched with protein
 Egg is not a seasonal product and can be eaten any time of the year.
 In this area, the poultry business hasn’t been over-exploited
 Poultry are environmentally friendly

Weakness
 Capital intensive. Starting a poultry business requires a large capital funding.
 Outbreak of disease can ruin entire business in a go
 The smell can be quite disturbing

Opportunities
 Expansion into large scale production.
 Export to neighboring towns
 A large and successful poultry will ensure food security
Threats
 More competition
 Avian diseases
 High feed ingredients prices
 Threat of import of frozen chicken

1.1.Competition and competitors

Competition
Competition is not so keen in the markets, however it still exists. The reasons are;
 Poultry products are not branded products; hence what usually matters is
effective positioning and timing.
 Poultry market is not crowded, it’s a seller’s market.
 Competition is usually found within manufactured products and imported
ones.

Competitors
Our main competitors is going to be maandeeq poultry company It sells wholesale
eggs to Somaliland markets, its Hargeisa based company. Located north side of
hargeisa city, village called haleeya. The same village our business is planned to
take place. Our strength over its competitors is firstly based on the fact that we are
not entering this business to make much money. We are entering this industry to
solve the present problem that our population is facing. We are here to provide
quality affordable chicken products. We saw that some of our competitors produce
tasteless eggs. The price is the main factor that competitors can compete to our
company. We set less price with high-quality eggs to get our market share that is
the main profitable decision that we have made.
.
5. Economic Impact
Economic Impact of Poultry Production.
Poultry production is characterized by its high Economic return. It can
Contribute directly to the solution of the problems of unemployment and poultry
breeding can directly open new employment opportunities.
Moreover it can open new jobs indirectly through the development of the
industries connected with poultry production such as;
1. Sales and Marketing.
If you are creative, with fresh ideas and lively imagination, or if you’re a person, a
form of marketing communications like advertising or public relations could be the
challenge you looking for. Certain people are especially good at solving problems
and thinking of new ways to attract and keep customers. If that description fits you,
you may be a perfect candidate for a sales or marketing management position.
2. Research and Technical Support.
The results of research and scientific development are put to work in the industry
almost every day. Scientists are continually studying biotechnology, genetics,
nutrition, vaccines, and disease control, recycling of wastes, environmental
protection, quality control, food safety, and product development. So it could be a
good opportunity for all youth.
3. Computer Science.
If you expertise lies in computer programming, information systems, database
management, or practically any other computer-related function, there is a place
for you in the poultry industry. Today computers are used in almost every aspect of
the industry

6. Management and Human Resources

Management team
The management team is simply the partners in this business. They are Mustafa
Omer, Ahmed Mohamed, Khaled Abdurrahman, Abdi Fatah Mohamed, Ruqiya
Mohamed, Hamda and Warda.
Organizational structure
1. Mustafa Omer, Chief Executive Officer: As the top manager, the CEO, he is
typically responsible for the entire operations of the poultry. It is his
responsibility to implement decisions and initiatives and to maintain the smooth
operation of the poultry, with the assistance of the management team
2. Khalid Abdi Rahman, Chief Operational Officer: as the COO, he looks after
issues related to marketing, sales, production and personnel. More hands-on
than the CEO, the COO looks after day-to-day activities while
providing feedback to the CEO.
3. Ruqiya Mohamed, Chief Financial Officer: Also reporting directly to the
CEO, she is responsible for analyzing and reviewing financial data, reporting
financial performance, preparing budgets and monitoring expenditures and
costs. The CFO routinely checks the corporation's financial health and integrity.
4. Ahmed Mohamed, Chief Information Officer: he reports directly to the CEO
and is a more internally oriented person focused on technology needed for
running the poultry. He is also in charge of the web designs of the poultry.
5. Hamda, Chief Revenue Officer: She is responsible for all revenue generation
processes in an organization, and is ultimately accountable for driving better
integration between all revenue-related areas.
6. Warda, Chief Visionary Officer: As the CVO, she decides on the general
direction of a company, and has a broad and comprehensive knowledge of all
matters related to the business of the organization and the vision required to
steer its course into the future. The CVO is generally in charge of defining
corporate strategies, working plans, and often product ideas.

CEO
COO CVO
CFO CIO CRO
Personnel
Apart from the management team, other personnel include
1. Cleaners
2. Security
3. food technician
4. Veterinary doctor
5. Driver
There are 2 cleaners, 1 security, 2 egg workers and a veterinary doctor.
There is also a driver to make the delivery services. Except from the
veterinary doctor, the personnel are on a monthly payroll and are all in a
short time contract with the poultry.

Hiring method
Mahuraan poultry use many recruitment strategies and methods. Some of the more
widely used recruitment methods include placing advertisements in local
newspapers and online, publishing internal announcements for promotions and
personal referrals, enlisting employment and executive recruitment agencies and
using government job centers. Mahuraan Company also use social and new media
strategies to target the best candidates.
Training and motivation will be next method of hiring employee.
 7. Operational Plan
A poultry farm employee assists in daily operations on the farm. This can include
checking birds, feeding, collecting eggs, washing and packaging. Additionally, they
also perform routine maintenance on the house and watering/heating system as
needed. They also utilize proper biosecurity standards when entering and exiting
houses. In our poultry.

 Ensure birds have access to food and water

 Walk through the house to identify sick or injured birds
 Utilize proper biosecurity standards when entering and exiting houses
 Assist with egg collection, washing and sorting (on a layer farm) 
 Assist with putting eggs in cartons (on a layer farm)
 Control temperature of houses for ultimate bird comfort
 Conduct maintenance on the house and watering/heating system as needed
 Control house lighting to meet bird needs
 Maintain high standards of animal welfare

Our location
Production site is in Haleeya city, plenty open space, cheap labors, road
connection, water availability and immediate access to markets like hargeisa
market. Our head quarter is hargeisa city because of the large population.

8. Risk Mitigation Plan

Financial risks
 Changes in our pricing policies or that of our competitors
 Fluctuation in revenue from distributors and retailers
 Timing of costs related to acquisitions or payments

Health risks
Contagious disease and virus outbreak is very deadly; if one of the chickens should
catch the disease, all of them will be affected and if it's not recognized and treated
early it will lead to the death of all the chickens which is a great loss for the
business. And also some of the diseases are also contagious to human not just
between the chickens which will affect the workers and also those that eat it.
Disease prevalence varies from one area to the other. The problems that may
trigger disease conditions are direct sunlight on egg trays or nests, poor ventilated
houses and very high temperatures in and outside the poultry house, which may
weaken egg shells resulting in poor egg quality. All these conditions will be
avoided to the best of our abilities.
Another thing we considered during the risk assessment is the mortality of the
chickens which is inevitable since we are dealing with living things. This can be
managed with good management and has been calculated to range between 5-10%.
Technological risks
Technology is good but they also have their disadvantages. There are normally
problems involved in using technology; the cost for electricity is also not easy and
some electric problems can lead to fire outrage and burn the building causing the
loss of assets and perhaps the entire business.
Contingency plans
As we considered these risks we have also made contingency plans for
unprecedented events or occurrences. As per the health risks, we will have plans
with a veterinary doctor that will have regular checkups with the chickens while
giving them the best environmental conditions. Another contingency plan we will
make is insurance that will protect our assets. One of the risks we have to face
mentioned earlier, the occurrence of a fire outrage will be curbed by placing fire
extinguishers at strategic places. And in case of financial crises, we may have to
resort to getting loans.

9. Financial Plan
a) Buying a fixed asset
Equipment/Tool Quantity Supplier Price TOTAL
per (USD)
item(
USD)
1 Land ½ blog Suuq haye online $6,000
2 Building Najax cons. $7,000
3 Hatching machine 1 item Dezhou co. $700 $700
4 2L chicken drinker 300 item Tagshan ltd co. $0.62 $186
5 2kg chicken feeder 300 item Tagshan ltd co. $0.88 $264
6 Delivery car Xidig mtr $4000
7 layer chickens 3000 Holland farm $1 $3300
8 office equipment Gamur f. $1000
Water tank 1 item Gamur f. $300 $300
TOTAL [a] $22,750
 b) Pre-operational Costs [These are costs which will be incurred before starting
the business]
no Item Cost per item TOTAL

(USD)
1. Business registration $120
2. Preparing chicken rooms $3,000
3. advertisement $120
4. Electricity preparing $95
TOTAL $3,335
TOTAL [b] (USD) $3,335

c) Costs of running the business for at least one month

Expenses TOTAL (USD)
1. e.g. Salary for employees $600
2. Security $100
3. Transport $160
4. water $140
5. Chicken feed $1500
6. Egg packaging carton $ 475
7. Vaccination $ 300
8. Lightening expense $110
9. Rent for store in downtown $100
TOTAL [c] $ 3,485
TOTAL INVESTMENT REQUIRED [a+b+c] $ 29,570

Group one
1. Mustafe Omer Osman
2. Ahmed Mohamed Abdilahi
3. Abdifatah Mohamed Ahmed
4. Khalid abdirahman abdisalan
5. Ruqiya Mohamed obsiiye
6. Hamda nour amiin
7. Warda ahmed hassan