Page 82 - Bisiness Studies_Form_3

Business Studies for Secondary Schools

An example of a simple business plan

Mosi is a Form Four student at Mtakuja Secondary School in Mtakuja Ward. Mosi
is intending to start a business soon after completing Form Four. Upon exploring
opportunities, Mosi discovered that there is a shortage in the supply of broiler chickens
in their nearby community and that he can work in partnership with Mei, who had the
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same observation. Mei had already started making preparations to start that business,
and she had some savings. However, she had no proper place to build a chicken coop.
The cost of the building was also relatively high for her. On his side, Mosi was given
two coops for free by his family, which could be easily used for keeping broilers, but
he had no start-up cash. The coops could accommodate up to 1,000 chickens at once.
Thus, the two could work well in partnership, whereas Mosi’s capital contribution will
be the coops, and Mei’s will be cash. The two have agreed to write a business plan to
enhance the chances of their business success. The following is a sample of business
plan for Mosi and Mei’s business idea:

Business description
Our business is about rearing and selling broiler chickens in Mtakuja Ward because of
the shortage in the supply of such products. The business will be located in Mtakuja
Ward to serve our community, where we believe there is a high probability of success.

Business name
The business will be called “Quality Chicken Suppliers,” abbreviated as QCS.
Legal status
Mosi and Mei will run QCS as a partnership. They will share experiences, physical
resources, and finances, and strive to secure a business licence.

Ownership structure
The ownership of the business is to be based on the value of capital contributed by
each partner. Mosi will contribute two coops, which have a market value of 8 million
Tanzanian shillings, and Mei will bring 8 million Tanzanian shillings in cash. Therefore,
QCS will be owned equally by both partners.

Operation status
The partners for QCS are Mosi and Mei, who will share profits and losses equally. Mosi
will not be involved in the daily operations of the business and thus will not be entitled
to any salary. Mei will be involved in the daily operations of the business and will be
entitled to a monthly salary.
Vision
“To be the leading supplier of broiler chicken in Tanzania”.

Student’s Book Form Three 74