NATIONAL OPEN UNIVERSITY OF NIGERIA

RABBIT FARMING BUSINESS PLAN

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PREPARED BY

FULL NAME: ANIEDI ISRAEL U.

MATRIC NUMBER: NOU171031995

DEPARTMENT: BSc. POLITICAL SCIENCE

FACULTY: SOCIAL SCIENCE

SEMESTER: 2019/2

LEVEL: 300

INCUBATION CENTRE: SOUTH WEST

STUDY CENTRE: IBADAN STUDY CENTRE

PRESENTED IN PARTIAL FULFILMENT FOR PASSING

GST 302 – BUSINESS CREATION AND GROWTH

Business Overview
A pretty good business that falls under the agriculture cum meat production industry that an
entrepreneur can successful start is rabbit farming. Rabbit farming is not capital intensive and
management tasking, especially when compared to other meat rearing business like poultry and
catfish farming.

The feeds are readily available and you can even produce it yourself as rabbits feed on grasses,
yam peels and other kitchen waste. You can start small from your backyard and grow from there.
Due to its high nutritional value, rabbits have become a very popular delicacy amongst Africans
and African communities in the Oyo state and abroad.

Rabbits are capable of reproducing seven times in a year. For reproduction to take place, the
buck and the doe should be kept in one place to mate. After that, you have to separate them. One
female rabbit is capable of producing up to 50 kits in a year.

It is necessary that a rabbit house be spacious enough, so as to give chance for the young ones
and also the growth and expansion of the business. Rabbits can be kept in hutches or in cages.
The rabbit cage should be constructed in such a manner that the rabbits will be protected from
rainfall and direct sunlight.

Rabbits feed on either compounded feed or grasses like elephant grass, potato, shrubs, leaves and
herbs. They must be given food at least twice a day. Clean drinking water must be made
available for them 24 hours a day. These containers should be cleaned regular basis for the sake
of the health of the rabbits. It is advisable to study their exact daily consumption of compounded
feed in order to avoid wasting the feed.

Executive Summary
Israeli’s Rabbit Farm is a registered and licensed livestock farming company that will be based
in the outskirt of Agbeni – Oyo state. We have done our detailed market research and feasibility
studies and we were able to secure five hectares of land to start our livestock breeding business.
Our livestock breeding business is a going to be standard one hence will be involved in
commercial breeding of rabbits and other livestock.

We choose to start our rabbit farming business in Agbeni – Oyo state because we are sure of
generating enough market for our rabbits considering the robust populations of Nigerian cum
African communities in the Agbeni – Oyo state and of course throughout nation.

We have plans in the pipeline to start our rabbit meat processing plant and also start exporting
our products to other parts of the world where they have active African communities. This is
why aside from the fact that we’ve secured the required farming land for breeding rabbits in
commercial level, we have also secured all the necessary permits that will enable us successfully
run this type of business in Oyo state.
We are in the rabbit farming business because we want to leverage on the vast opportunities
available in the livestock farming industry, to contribute our quota in growing the Nigeria
economy, in national food (meat) production, to export agriculture produce from the Oyo state to
other countries and over and above to make profit.

Israeli’s Rabbit Farm is well equipped and well positioned to become one of the leading rabbit
farming business in the Oyo, which is why we have been able to source for the best hands and
equipment to run the business.

We have put process and strategies in place that will help us employ best practices when it
comes to livestock breeding / rabbit farming processes and meat processing and packaging as
required by the regulating bodies in the Oyo state.

Israeli’s Rabbit Farmis a family registered livestock farming company that is owned and
managed by Aniedi Israel U. and his immediate family members. The company will be fully and
single handedly financed by the owner – Aniedi Israel U. and his immediate family members at
least for a period of time before inviting other investors.

Aniedi Israel U. is a Nigerian decent that has robust relationship with the Nigerian cum African
communities throughout the Oyo state with intercontinental hotels who serve rabbit meat as part
of their cuisine.

Our Product Offerings

Israeli’s Rabbit Farm is a licensed livestock farming business that is committed to rabbit farming
and rabbit meat processing and packaging for both the Oyo state’ market and the global market.
We will also ensure that we operate a standard food processing plant as part of our
complimentary business offering.

We are in the rabbit farming line of business cum livestock rearing industry to make profits and
we are going to do all that is permitted by the law in the state to achieve our business aim and
objectives.

Our Vision Statement

Our Vision is to become one of the leading rabbit farming company not just in Agbeni – Oyo
state, and also in Nigeria.

Our Mission Statement

Our mission is to sell our produce (live rabbits), and processed and well packaged rabbit meat in
commercial quantities both locally, nationally and internationally. We want to build a rabbit
farming business that will become the pacesetter for rabbit farming business in the Oyo state and
the nation.
Our Business Structure
Israeli’s Rabbit Farm is a livestock cum rabbit farming company that intend starting small in a
private property in Agbeni – Oyo state, but hope to grow big in order to compete favorably with
leading livestock farms in the industry both in the Oyo state and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture
of the kind of world class business we want to own. This is why we are committed to only hire
the best hands in and around Iowa.

At Israeli’s Rabbit Farms Ltd, we will ensure that we hire people that are qualified, hardworking,
dedicated, customer centric and are ready to work to help us build a prosperous business that will
benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of five years or more as
agreed by the management of the farm. In view of the above, Israeli’s Rabbit Farm have decided
to hire qualified and competent hands to occupy the following positions;

 Chief Operating Officer (Owner)

 Rabbit Farm Manager
 Administrator / Accountant
 Sales and Marketing Executive
 Field Employees
 Front Desk Officer

Roles and Responsibilities

Chief Operating Officer:

 Increases management’s effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers; communicating values, strategies, and
objectives; assigning accountabilities; planning, monitoring, and appraising job results;
developing incentives; developing a climate for offering information and opinions;
providing educational opportunities.
 Responsible for providing direction for the business
 Creates, communicates and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

Rabbit Farm Manager

 Responsible for the planning, management and coordinating all farm activities across the
various sections on behalf of the organization
  Supervise other section manager
 Ensures compliance during project executions
 Provides advice on the management of farming activities across all section
 Responsible for carrying out risk assessment
 Uses IT systems and software to keep track of people and progress of the growth of
crops, fishes, birds and animals
 Responsible for overseeing the accounting, costing and sale of farm produce after harvest
 Represent the organization’s interest at various stakeholders meetings
 Ensures that farming goals desired result are achieved, the most efficient resources
(manpower, equipment, tools and chemicals et al) are utilized and different interests
involved are satisfied. Responsible for preparing financial reports, budgets, and financial
statements for the organization
 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Oversees the smooth running of the daily rabbit farming activities

Administrator / Accountant

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Responsible for financial forecasting and risks analysis.
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the company
 Serves as internal auditor for the company

Sales and Marketing Officer

 Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
 Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of new business
 Writes winning proposal documents, negotiate fees and rates in line with company policy
 Responsible for handling business research, marker surveys and feasibility studies for
clients
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
 Develops, executes and evaluates new plans for expanding increase sales
  Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company.

Field Workers / Contract Staff

 Responsible for feeding rabbits as instructed by the supervisor

 Responsible for cleaning the rabbit farm / cage
 Handles Rabbit farm implements and machines as instructed by the section manager /
supervisor
 Assists in handling the breeding and harvesting of rabbits
 Carries out task in line with the stated job description
 Assists in transport working tools and equipment from the farm and back to the
designated store room
 Handles any other duties as assigned my the line manager

Client Service Executive / Front Desk Officer

 Welcomes guests and clients by greeting them in person or on the telephone; answering
or directing inquiries.
 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the
client with a personalized customer service experience of the highest level
 Through interaction with clients on the phone, uses every opportunity to build client’s
interest in the company’s products and services
 Manages administrative duties assigned by the manager in an effective and timely
manner
 Consistently stays abreast of any new information on the company’s products,
promotional campaigns etc. to ensure accurate and helpful information is supplied to
clients
 Receives parcels / documents for the company
 Distributes mails in the organization
 Handles any other duties as assigned my the line manager

SWOT Analysis
We are aware that lots of people in the Oyo do not eat rabbit meat which is why we want to do
our due diligence before launching the business.

Israeli’s Rabbit Farm do not intend to launch out with trial and error hence the need to conduct a
proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded
in creating the foundation that will help us build a standard rabbit farming business that will
favorably compete with leading livestock farms in the Oyo state and in the rest part of the world.

As a rabbit farming business, we look forward to maximizing our strength and opportunities and
also to work around our weaknesses and threats. Here is a summary from the result of the SWOT
analysis that was conducted on behalf of Israeli’s Rabbit Farms Ltd;
  Strength:

Our strength as a rabbit farming business is the fact that we have healthy relationships with lots
of major players (agriculture merchants, African communities and intercontinental hotels who
serve rabbit meats) in the meat production industry; both suppliers and buyers within and outside
of the Oyo state.

We have some of the latest rabbit breeding and farming tools and equipment that will help us
breed rabbits in commercial quantities with less stress. Aside from our relationship (network)
and equipment, we can confidently boast that we have some the most experienced hands in
Rabbit farming line of under our payroll.

 Weakness:

Aside from the fact that lots of people do not eat rabbit meat in the Oyo state, one of our
weaknesses could be that we are a new livestock cum rabbit farms in the Oyo state and we may
not have the required cash to pump into promoting of our business and encourage people to eat
rabbit meat. We are aware of this and from our projection will overcome this weakness with time
and turn it to a major advantage for the business.

 Opportunities:

Despite the fact that the average Nigerians do not eat rabbit meat, the opportunities that are
available to us as a rabbit farming business cannot be quantified, we know that there are lots of
African communities and intercontinental hotels that will source for rabbit meat from our rabbit
farms both Oyo state, Nigeria and other parts of the world.

 Threat:

Some of the threats and challenges that we are likely going to face when we start our own
livestock farm cum rabbit farming business are global economic downturn that can impact
negatively on household spending, bad weather cum natural disasters (draughts, epidemics),
unfavorable government policies and the arrival of a competitor within same location. There is
hardly anything you can do as regards this threats and challenges other than to be optimistic that
things will continue to work for your good.

MARKET ANALYSIS
 Market Trends

We really are aware of the importance of doing a thorough market research. We have done just
that and that is why we are doing our best to see that the market trend favors us, come what may.
In the Oyo state, it is not trendy to find people who do eat rabbit meat except for few people
from other states and other African countries. As a matter of fact, some Nigerians will find it
strange that people do eat rabbit meat.
In view of the above, people who are into rabbit farming ensure that they target Nigerian or
African communities in the Oyo state or wherever they intend selling their rabbit meat. They also
ensure that they target intercontinental hotels that serve rabbit meat as part of their cuisine.

Lastly, rabbit farmers ensure that they leverage on health benefits of rabbit meat in marketing
their rabbits. As a matter of fact, rabbit meat is extremely low in calories and fat hence people
who are watching their weight find it appealing.

 Our Target Market

It is really vital that any business identifies its target market. Aw have done just that and we are
optimistic that that singular act is able to fetch us a lot. As you would expect, the target market of
those who are the end consumers of rabbit meat and also those who benefits from the business
value chain of rabbit farming is all encompassing; it is far – reaching.

We will ensure that we position our business to attract consumers of rabbit not just in Oyo state
alone but also other parts of the world which is why we will be exporting some of our rabbits
either in live form or processed form to other countries of the world.

Here are the people and organizations we will market our rabbits to;

 Nigerian cum African Communities in Agbeni – Oyo state and other states in the nation
 Weight watchers
 People recovering from cardiovascular disease, cancer and those trying to recover from
injuries
 Intercontinental hotels and restaurants that serves rabbit meats
 People who would want to keep rabbits as pets in their yards.

Our Competitive Advantage

Competition isn’t new to the world. We are therefore poised to position well so as to compete
really favorably. It is important to state that rabbit farming especially for the purpose of meat
production is not a common enterprise in the Oyo state, hence the level of competition is not as
stiff as it is amongst other livestock farming businesses.

Israeli’s Rabbit Farm is fully aware that rabbit farming for the purpose or meat production is not
a popular line of business in the Oyo state which is why we decided to carry out thorough
research so as to know how to take advantage of the untapped market in the Oyo state and in
other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us
leverage in the marketplace; some of the factors are effective and reliable rabbit farming
processes that can help us sell our rabbit and processed and well packaged rabbit meat at
competitive prices, good network and excellent relationship management.

Lastly, all our employees will be well taken care of, and their welfare package will be among the
best within our category (startups livestock cum rabbit farming businesses in the Oyo state) in
the industry. It will enable them to be more than willing to build the business with us and help
deliver our set goals and achieve all our business aims and objectives.

SALES AND MARKETING STRATEGY

We are fully aware that marketing rabbits in a country like Nigeria can be a bit tasking because
lots of people do not eat rabbit meat. It will take conscious effort for us to convince people who
do not eat rabbit meat to patronize us and start eating rabbits.

Our goal is to grow Israeli’s Rabbit Farm to become the leading livestock cum rabbit farms in
the whole of Agbeni – Oyo state and the nation. Which is why we have mapped out strategy that
will help us take advantage of the potential market and grow to become a major force to reckon
with in the rabbit farming cum livestock farming industry.

Over and above, we have perfected our sale and marketing strategies first by networking with
agriculture merchants and intercontinental restaurants and hotels that rely on rabbit meat from
rabbit farms cum livestock farming industry who are likely to refer become our customers.

In summary, Israeli’s Rabbit Farm will adopt the following strategies in marketing our
commercial farm produce;

 Introduce our rabbit farming business by sending introductory letters alongside our
brochure to stake holders in the agriculture industry, intercontinental restaurants and
hotels that rely on rabbit meat from the rabbit farms cum livestock farming industry,
Nigeria cum African communities, and agriculture produce merchant et al.
 Advertise our business and livestock farms in agro – allied and food related magazines
and websites
 List our rabbit farms on yellow pages ads (local directories)
 Print out fliers and business cards and strategically drop them in offices, libraries, public
facilities and train stations et al.
 Attend related agriculture / livestock and food expos, seminars, and business fairs et al
 Leverage on the internet to promote our business
 Engage in direct marketing
 Encourage the use of word of mouth marketing (referrals)

Sources of Income
Israeli’s Rabbit Farmis in the livestock breeding industry cum rabbit farming business for the
purpose of maximizing profits hence we have decided to explore all the available opportunities
within this line of business to achieve our corporate goals and objectives. In essence we are not
going to rely only on the sale of our live rabbits and processed and well packaged rabbit meat to
generate income for the business but also other business interests within the value chain.

 Sales Forecast
From the survey and market research conducted, we were able to discover that the sales
generated by a commercial livestock farm cum rabbit farms depend on the size of the farm, the
network of the farm.

We have perfected or sales and marketing strategies and we are set to hit the ground running and
we are quite optimistic that we will meet or even surpass our set sales target of generating
enough income / profits from the year of operations and build the business from survival to
sustainability.

We have been able to critically examine the rabbit farming line of business cum commercial
livestock farm business and we have analyzed our chances in the industry and we have been able
to come up with the following sales forecast. The sales projection is based on information
gathered on the field and some workable assumptions as well with respect to the nature of
commercial livestock farm / rabbit farming business that we want to run.

Below are the projections that we were able to come up with for the first three years of running
Israeli’s Rabbit Farms Ltd;

 First Fiscal Year-: #2,240,000

 Second Fiscal Year-: #1,450,000
 Third Fiscal Year-: #700,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption
that there won’t be any major economic meltdown that can impact negatively on household
spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government
policies. Please note that the above projection might be lower and at the same time it might be
higher.

Our Pricing Strategy

We are aware that if you want to get the right pricing for your livestock or rabbits as the case
may be, then you should ensure that you choose a good location for your rabbit farm, choose a
good breed that will guarantee steady and multiple breeding (prolific breeds), cut the cost of
running your rabbit farm to the barest minimum and of course try as much as possible to attract
buyers to your farm as against taking your rabbits to the market to source for buyers; with this,
you would have successfully eliminate the cost of transporting the rabbits to the market and other
logistics.

So also, we are quite aware that one of the easiest means of penetrating the market and acquiring
lots of customers for all our rabbits is to sell them at competitive prices hence we will do all we
can to ensure that the prices of our rabbit and processed and packaged rabbit meat are going to be
what other rabbit farmers would look towards beating.

One thing is certain, the nature of rabbit farming business we are involved in makes it possible
for farmers to place prices for their rabbits and processed and packaged rabbit meats based on
their discretion without following the benchmark in the industry. The truth is that it is one of the
means of avoiding running into loss. The easier you sell off your rabbits when they are mature
the better for your business.

Payment Options
The payment policy adopted by Israeli’s Rabbit Farm is all inclusive because we are quite aware
that different customers prefer different payment options as it suits them but at the same time, we
will ensure that we abide by the financial rules and regulation of the state.

Here are the payment options that Israeli’s Rabbit Farm will make available to her clients;

 Payment via bank transfer

 Payment with cash
 Payment via online bank transfer
 Payment via check
 Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make
payment for farm produces purchase without any stress on their part. Our bank account numbers
will be made available on our website and promotional materials to clients who may want to
deposit cash or make online transfer for our live rabbits and processed and packaged rabbit meat.

Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating
from must be ready and willing to utilize every available means (both conventional and non –
conventional means) to advertise and promote the business. We intend growing our business
which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and
to create a corporate identity for our Rabbit farming business. Below are the platforms we want
to leverage on to boost our commercial livestock cum rabbit farm brand and to promote and
advertise our business;

 Place adverts on both print (newspapers and magazines) and electronic media platforms
 Sponsor relevant community based events / programs
 Leverage on the internet and social media platforms like; Instagram, Facebook , twitter,
YouTube, Google + et al to promote our business
 Install our Bill Boards on strategic locations all around Agbeni – Oyo state
 Engage in road show from time to time in targeted neighborhoods
 Distribute our fliers and handbills in target areas
 Contact Nigeria cum African communities, intercontinental hotels and restaurants and
residence in our target areas by calling them up and informing them of Israeli’s Rabbit
Farm and the farm produce we sell
 List our rabbit farms in local directories / yellow pages
 Advertise our rabbit farms in our official website and employ strategies that will help us
 pull traffic to the site.
 Ensure that all our staff members wear our branded shirts and all our vehicles and trucks
are well branded with our company logo et al.

Financial Projections and Costing

When it comes to calculating the cost of starting a commercial livestock farm cum rabbit farm,
there are some key factors that should serve as a guide. The most important expense is the
construction of the rabbit farm or cage as the case may be.

For example, the start – up cost for a fish farm is different from the start – up cost for
mechanized crop farming, so also the start – up cost for poultry farming is different from the start
– up cost of cattle ranch (dairy farm) et al. As a matter of fact, if you choose to start a
mechanized crop farming, then you should be willing to raise huge capital base to start the
business. This is so because some cultivation machines / equipment can be pretty expensive.

Below are some of the basic areas we will spend our start – up capital in setting up our
commercial livestock cum rabbit farm;

 The Total Fee for incorporating the Business in Oyo state – #45,750.
 The total cost for payment of insurance policy covers (general liability, workers’
compensation and property casualty) coverage at a total premium – #219,400
 The amount needed to acquire / lease a farm land  – #450,000
 The amount required for preparing the farm land (for construction of rabbit cages /
fencing et al et al) – #70,000
 The cost for acquiring the required working tools and equipment / machines / fencing et
al– #50,000
 The amount required for purchase of the first set of male and female rabbits – #250,000
 Operational cost for the first 3 months (salaries of employees, payments of bills et al) –
#140,000
 The Cost of Launching an official Website – #6000
 The amount required for payment of workers for a period of 3 months – #100,000
 Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) –
#86,000

Going by the report from detailed research and feasibility studies conducted, we will need an
average of #3,600,000 to start a standard commercial livestock cum rabbit farming business in
Oyo state
Generating Funding / Start up Capital
No matter how fantastic your business idea might be, if you don’t have the required money to
finance the business, the business might not become a reality. Finance is a very important factor
when it comes to starting a business such as rabbit farming. No doubt raising start – up capital
for a business might not come cheap, but it is a task that an entrepreneur must go through.

Israeli’s Rabbit Farm is a family business that will be owned and managed by Aniedi Israel U.
and his immediate family members. They are the sole financial of the firm, but may likely
welcome other partners later which is why they decided to restrict the sourcing of the start – up
capital for the business to just three major sources.

These are the areas where we intend sourcing for fund for Israeli’s Rabbit Farms Ltd;

 Generate part of the start – up capital from personal savings and sale of his stocks
 Generate part of the start – up capital from friends and other extended family members
 Generate a larger chunk of the start up capital from the bank (loan facility).

N.B: We have been able to generate about #3,600,000 (Personal savings #1,300,000 and soft
loan from family members #820,000) and we are at the final stages of obtaining a loan facility of
#1,500,000 from our bank. All the papers and document has been duly signed and submitted, the
loan has been approved and any moment from now our account will be credited.

Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and
competence of the employees, their investment strategy and the business structure. If all of these
factors are missing from a business (company), then it won’t be too long before the business
close shop.

One of our major goals of starting Israeli’s Rabbit Farm is to build a business that will survive
off its own cash flow without the need for injecting finance from external sources once the
business is officially running. We know that one of the ways of gaining approval and winning
customers over is to sell our farm produce (live rabbits and processed and packaged rabbit meat)
a little bit cheaper than what is obtainable in the market and we are well prepared to survive on
lower profit margin for a while.

Israeli’s Rabbit Farm will make sure that the right foundation, structures and processes are put in
place to ensure that our staff welfare are well taken of. Our organization’s corporate culture is
designed to drive our business to greater heights and training and re – training of our workforce
is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management
staff and it will be based on their performance for a period of five years or more as determined
by the management of the organization. We know that if that is put in place, we will be able to
successfully hire and retain the best hands we can get in the industry; they will be more
committed to help us build the business of our dreams.