BUSINESS PLAN MODERATE AGRICULTURE AROUND BULE HORA AREA IN OROMIA REGIONAL STATE IN ETHIOPIAN

BULE HORA UNIVERSITY
FRESHMAN (WEEKEND)
TITLE: BUSINESS PLAN MODERATE AGRICULTURE AROUND BULE
HORA AREA IN OROMIA REGIONAL STATE IN ETHIOPIAN
COURSE TITLE: ENTREPRENEURSHIP AND BUSINESS
DEVELOPMENT
COURSE CODE: MGMT 102
NAME OF STUDENTS-----------------------------------ID/NO
1.
2.
3.
4.
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6.
INSTRUCTOR NAME:
SUBMISSION DATE: 28/07/2016 E.C
BULE HORA, OROMIA, ETHIOPIA

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Executive Summary
The business plan outlines the establishment of a moderate agriculture venture in the Bule Hora
area of Oromia Regional State, Ethiopia. The venture aims to leverage the region's agricultural
potential to produce and market a variety of crops, focusing on sustainable and environmentally
friendly practices. The business seeks to contribute to local food security, create employment
opportunities, and generate profit through the sale of agricultural products.

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Abstract
This business plan outlines the establishment of a moderate agriculture venture in the Bule Hora
area of Oromia Regional State, Ethiopia. The venture aims to leverage the region's agricultural
potential to cultivate and market a variety of crops using sustainable and environmentally friendly
practices. The primary objective is to contribute to local food security, create employment
opportunities, and generate profit through the sale of agricultural products.
The moderate agriculture venture will adopt modern farming techniques, including proper land
preparation, irrigation methods, crop rotation, and integrated pest management. Emphasis will be
placed on using organic fertilizers and minimizing the use of chemical inputs to promote
sustainable and eco-friendly farming practices. The business will focus on cultivating crops
suitable for the local climate and market demand, considering factors such as profitability and
suitability to the region's soil conditions.
A comprehensive market analysis will be conducted to identify the demand for agricultural
products in the Bule Hora area and surrounding regions. Potential buyers, such as local markets,
wholesalers, retailers, and export opportunities, will be identified to establish effective distribution
channels and maximize profitability. The marketing and sales strategy will include branding
efforts, packaging design, promotional activities, and partnerships with local retailers, restaurants,
and export agents.
Financial projections will be developed to assess the profitability and viability of the venture. This
will include estimating the initial investment required for land preparation, infrastructure
development, machinery, and equipment. Ongoing operating expenses, such as labor costs, inputs,
maintenance, and marketing expenses, will also be considered. Revenue projections will be based
on expected crop yields, market prices, and sales volume.
Risk management strategies will be implemented to mitigate potential risks and challenges
associated with moderate agriculture, such as climate-related risks, pests and diseases, market
fluctuations, and regulatory constraints. Sustainability and environmental considerations will be
prioritized, with a focus on reducing water consumption, preventing soil erosion, promoting
biodiversity, and minimizing the use of chemical inputs.

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The implementation of the moderate agriculture venture will follow a timeline that outlines key
milestones and activities, ranging from land preparation to infrastructure development, crop
cultivation, and marketing initiatives. Ongoing monitoring and evaluation will be conducted to
ensure the business's success and identify areas for improvement.

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Contents
Executive Summary........................................................................................................................ 1
Abstract........................................................................................................................................... 2
Unit one........................................................................................................................................... 5
1. Introduction................................................................................................................................. 5
1.1 Business Description............................................................................................................. 6
Unit two .......................................................................................................................................... 7
2. Market Analysis.......................................................................................................................... 7
2.1 Product Line.......................................................................................................................... 9
Unit three ...................................................................................................................................... 10
3. Operational Plan........................................................................................................................ 10
Unit four........................................................................................................................................ 13
4. Financial Projections................................................................................................................. 13
4.1 Organization plan................................................................................................................ 15
4.2 Risk Management................................................................................................................ 17
4.3 Sustainability and Environmental Considerations .............................................................. 17
4.4 Implementation Timeline.................................................................................................... 17
4.5 Conclusion........................................................................................................................... 18
4.6 Appendix............................................................................................................................. 18

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UNIT ONE
1. INTRODUCTION
The following business plan outlines the establishment of a moderate agriculture venture in the
Bule Hora area of Oromia Regional State, Ethiopia. This plan presents a comprehensive overview
of the proposed agricultural business, its objectives, strategies, and anticipated outcomes. The
venture aims to leverage the region's agricultural potential to cultivate and market a variety of
crops using sustainable and environmentally friendly practices.
The Bule Hora area is known for its rich agricultural heritage, favorable climate, and fertile soil.
However, there exists a need to optimize and modernize agricultural practices to meet the growing
demand for food, generate employment opportunities, and contribute to the economic development
of the region. This business plan seeks to address these challenges by establishing a moderate
agriculture venture that will employ advanced farming techniques, prioritize sustainability, and
capitalize on market opportunities.
The primary objective of the moderate agriculture venture is to contribute to local food security
by increasing agricultural production and improving the availability of high-quality crops. By
adopting modern farming practices, such as proper land preparation, efficient irrigation methods,
crop rotation, and integrated pest management, the business aims to optimize yield and ensure the
production of healthy and nutritious crops.
Sustainability and environmental considerations are core principles of this venture. The business
will emphasize the use of organic fertilizers, reducing chemical inputs, and implementing efficient
water management practices. By promoting sustainable agricultural methods, the venture aims to
preserve the natural resources of the Bule Hora area, prevent soil degradation, and maintain
ecological balance.
Market analysis plays a crucial role in the success of the moderate agriculture venture.
Understanding the local market dynamics, consumer preferences, and competition is essential for
effective planning and resource allocation. Through comprehensive market research, the business
will identify the demand for agricultural products in the Bule Hora area and its surrounding

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regions. This analysis will inform crop selection, pricing strategies, and marketing efforts, ensuring
that the produced crops meet market demand and generate profitable returns.
1.1 Business Description
The moderate agriculture venture will engage in the cultivation of various crops suitable for the
local climate and market demand. The business will adopt modern agricultural techniques,
including proper land preparation, irrigation methods, crop rotation, and integrated pest
management, to ensure optimal yield and product quality. The venture will also prioritize the use
of organic fertilizers and minimize the use of chemical inputs to promote sustainable and eco-
friendly farming practices.

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UNIT TWO
2. MARKET ANALYSIS
Conduct a comprehensive market analysis to identify the demand for agricultural products in the
Bule Hora area and its surrounding regions. Assess the local market dynamics, including consumer
preferences, purchasing power, and competition from other agricultural producers. Identify
potential buyers, such as local markets, wholesalers, retailers, and export opportunities, to establish
effective distribution channels and maximize profitability. The market analysis section provides a
comprehensive assessment of the local agricultural market in the Bule Hora area, Oromia Regional
State, Ethiopia. It examines the demand for agricultural products, identifies target customers,
analyzes competitors, and explores market trends and opportunities. The findings of this analysis
will inform the business's strategies for product selection, pricing, distribution, and marketing.
1. Market Size and Growth:
Determine the size and growth rate of the agricultural market in the Bule Hora area. Consider
factors such as population growth, urbanization, and changing consumer preferences. Analyze
historical data, industry reports, and government statistics to estimate the total market value and
identify potential growth opportunities.
2. Market Segmentation:
Segment the agricultural market based on customer characteristics and preferences. Identify
different customer segments, such as households, local markets, wholesalers, retailers, and
potential export markets. Consider factors such as income levels, purchasing power, and
preferences for specific crops or agricultural products.
3. Target Market:
Define the specific target market for the moderate agriculture venture. Identify the most profitable
and accessible customer segments based on their demand for agricultural products and the
business's capabilities. Consider factors such as market size, growth potential, competition, and
the suitability of the venture's product offerings.

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4. Customer Analysis:
Conduct a detailed analysis of the target customers. Understand their preferences, needs, and
buying behavior regarding agricultural products. Assess factors such as price sensitivity, quality
requirements, product variety, and packaging preferences. Gather data through surveys,
interviews, and market research to gain insights into customer preferences and develop strategies
to meet their expectations.
5. Competitor Analysis:
Identify and analyze the existing competitors in the local agricultural market. Assess their
strengths, weaknesses, market share, pricing strategies, product offerings, and distribution
channels. Understand the competitive landscape and identify opportunities for differentiation and
competitive advantage. Consider both direct competitors, such as other local farmers or
agricultural businesses, as well as indirect competitors, such as imported products.
6. Market Trends and Opportunities:
Identify and analyze current market trends and emerging opportunities in the agricultural sector.
Consider factors such as changing consumer preferences, dietary trends, government policies and
initiatives, and export potential. Stay updated on industry news, technological advancements, and
market research reports to identify market gaps and capitalize on emerging opportunities.
7. Distribution Channels:
Assess the existing distribution channels for agricultural products in the Bule Hora area. Identify
the most effective and efficient channels to reach the target customers. Consider options such as
direct sales to consumers, partnerships with local markets, wholesalers, or retailers, and potential
export channels. Evaluate the advantages and disadvantages of each distribution channel and
develop strategies to optimize product reach and maximize profitability.
8. Price Analysis:
Conduct a price analysis to determine the appropriate pricing strategy for the agricultural products.
Consider factors such as production costs, competitors' pricing, customer willingness to pay, and
perceived value. Develop a pricing strategy that aligns with market demand, ensures profitability,
and maintains competitiveness.

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9. Regulatory and Environmental Factors:
Consider the regulatory and environmental factors that may impact the agricultural market in the
Bule Hora area. Understand the local regulations, permits, and certifications required for farming
and selling agricultural products. Assess environmental factors such as climate change risks, water
availability, and sustainability practices. Ensure compliance with relevant regulations and
highlight the business's commitment to environmental stewardship.
10. SWOT Analysis:
Conduct a SWOT (Strengths, Weaknesses, Opportunities,
2.1 Product Line
Determine the specific crops and agricultural products that will be cultivated and marketed by the
venture. Consider factors such as market demand, profitability, and the suitability of crops to the
local climate and soil conditions. Potential crops may include grains, vegetables, fruits, or specialty
crops based on market trends and viability.

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UNIT THREE
3. OPERATIONAL PLAN
Outline the operational aspects of the moderate agriculture venture. This includes land acquisition
or leasing, infrastructure development (such as irrigation systems, storage facilities, and processing
units), machinery and equipment procurement, and staffing requirements. Develop a detailed
production plan, including planting schedules, crop rotation strategies, and harvest timelines, to
ensure efficient operations and consistent product supply.
The operational plan outlines the day-to-day activities, processes, and resources required to
successfully implement the moderate agriculture venture in the Bule Hora area. It covers key areas
such as land preparation, crop cultivation, infrastructure development, supply chain management,
and quality control. The operational plan ensures efficient and effective operations to achieve the
business's objectives.
1. Land Preparation:
Identify suitable land for agricultural activities and assess its soil fertility and composition.
Conduct soil tests to determine nutrient levels and pH balance. Based on the results, develop a land
preparation plan, which may include activities such as clearing, plowing, leveling, and enhancing
soil fertility. Ensure compliance with local regulations and sustainable land management practices.
2. Crop Selection and Cultivation:
Select crops that are suitable for the local climate, market demand, and profitability. Consider
factors such as crop rotation, pest resistance, and water requirements. Develop a crop cultivation
plan that includes activities such as seed selection, planting, irrigation, fertilization, weed control,
and pest management. Implement sustainable farming practices, such as organic fertilizers,
integrated pest management, and efficient water usage.
3. Infrastructure Development:
Assess the infrastructure requirements for the moderate agriculture venture. This may include
constructing or renovating farm buildings, irrigation systems, storage facilities, and processing

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units. Plan and manage the development of necessary infrastructure in line with the business's
budget and timeline.
4. Supply Chain Management:
Establish efficient supply chain management processes to ensure the timely and cost-effective
delivery of agricultural products. This involves activities such as sourcing seeds and other inputs,
managing inventory, coordinating transportation, and collaborating with suppliers and distributors.
Develop partnerships with local markets, wholesalers, retailers, and potential export agents to
optimize product distribution.
5. Quality Control:
Implement rigorous quality control measures to ensure that the agricultural products meet the
highest standards. Develop quality control protocols for each stage of production, including seed
selection, cultivation, harvesting, and post-harvest handling. Conduct regular inspections, testing,
and monitoring to ensure compliance with quality parameters. Implement appropriate packaging
and labeling practices to maintain product quality and appeal.
6. Human Resources:
Assess the human resource requirements for the moderate agriculture venture. Determine the
number and skills of employees needed for various tasks, such as farming, irrigation, pest control,
maintenance, and administrative functions. Recruit, train, and manage a skilled workforce. Foster
a positive work environment, provide ongoing training, and establish performance evaluation
mechanisms to ensure employee productivity and satisfaction.
7. Equipment and Machinery:
Identify the necessary equipment and machinery for efficient farming operations. This may include
tractors, irrigation systems, harvesters, storage facilities, and processing equipment. Procure or
lease the required equipment based on the business's budget and operational needs. Develop a
maintenance schedule to ensure the proper functioning and longevity of the machinery.

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8. Marketing and Sales Strategy:
Define the marketing and sales strategy to promote and sell the agricultural products. This may
include branding efforts, packaging design, promotional activities, and participation in local trade
fairs or farmer's markets. Consider developing partnerships with local retailers, restaurants, or
export agents to expand market reach and increase product visibility.

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UNIT FOUR
4. FINANCIAL PROJECTIONS
Prepare financial projections, including income statements, balance sheets, cash flow statements,
and break-even analysis. Estimate the initial investment required for land preparation,
infrastructure development, machinery, and equipment. Forecast the operating expenses, including
labor costs, inputs, maintenance, and marketing expenses. Develop revenue projections based on
expected crop yields, market prices, and sales volume. Assess the financial viability and
profitability of the venture.
The following financial projections outline the anticipated financial performance of the moderate
agriculture venture in the Bule Hora area. These projections are based on an initial capital
investment of $100,000 and cover a period of three years. Please note that these projections are
estimates and should be adjusted based on market conditions, operational performance, and other
relevant factors.
1. Revenue Projections:
The revenue projections are based on the anticipated crop yields, market prices, and sales volume.
Consider conducting thorough market research to determine the demand for specific crops in the
Bule Hora area and surrounding regions. Estimate the expected sales quantities and prices for each
crop. Calculate the total revenue for each year based on these projections.
2. Cost of Goods Sold (COGS):
The cost of goods sold includes the direct costs associated with crop cultivation, including seeds,
fertilizers, pesticides, labor, irrigation, and other inputs. Estimate the COGS for each crop based
on historical data, market prices, and production costs. Calculate the total COGS for each year.
3. Gross Profit:
The gross profit is calculated by subtracting the COGS from the total revenue. This represents the
amount available to cover operating expenses and generate net profit.

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4. Operating Expenses:
Operating expenses include various costs involved in running the business, such as labor wages,
administrative expenses, marketing and promotion costs, maintenance and repairs, utilities,
insurance, and other overhead expenses. Estimate the annual operating expenses based on industry
benchmarks, projected business activities, and expected growth.
5. Net Profit/Loss:
The net profit or loss is calculated by subtracting the operating expenses from the gross profit. A
positive net profit indicates profitability, while a negative net profit indicates a loss.
6. Cash Flow Projections:
Prepare cash flow projections to analyze the inflows and outflows of cash throughout the year.
Consider factors such as accounts receivable, accounts payable, inventory management, and
capital expenditures. It is essential to ensure that the business has sufficient cash flow to cover
expenses, repay loans, and maintain adequate working capital.
7. Break-Even Analysis:
Perform a break-even analysis to determine the sales volume required to cover all costs and achieve
a net profit of zero. This analysis helps identify the minimum sales target needed to cover expenses
and reach profitability.
8. Return on Investment (ROI):
Calculate the return on investment to assess the profitability of the initial capital investment.
Divide the net profit by the initial investment and multiply by 100 to obtain the ROI as a
percentage.
9. Sensitivity Analysis:
Conduct sensitivity analysis by adjusting key variables such as crop prices, yields, and operating
expenses. Evaluate how changes in these variables affect the financial projections and assess the
business's resilience to potential market fluctuations.

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10. Financial Ratios:
Calculate key financial ratios, such as gross profit margin, net profit margin, return on assets, and
return on equity. These ratios provide insights into the business's profitability, efficiency, and
financial health.
4.1 Organization plan
The organization plan outlines the structure, roles, and responsibilities of the team involved in the
moderate agriculture venture in the Bule Hora area. It defines the organizational hierarchy, key
positions, and reporting relationships. The plan also covers recruitment strategies, personnel
development, and strategies for fostering a productive and cohesive work environment.
1. Organizational Structure:
Define the organizational structure for the moderate agriculture venture. Consider the size of the
operation, the complexity of tasks, and the reporting requirements. Typical structures may include
a hierarchical model with various departments or a flatter structure with cross-functional teams.
Determine the reporting lines and decision-making processes.
2. Key Positions and Roles:
Identify the key positions and roles required for the success of the business. This may include
positions such as farm manager, agronomist, operations supervisor, sales and marketing manager,
finance manager, and administrative staff. Define the responsibilities, qualifications, and
experience required for each position.
3. Recruitment and Training:
Develop a recruitment strategy to attract and select qualified individuals for each position.
Advertise through local channels, online platforms, and agricultural networks. Conduct thorough
interviews, reference checks, and skills assessments to ensure the right fit. Develop a
comprehensive training program to equip employees with the necessary skills and knowledge to
perform their roles effectively.

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4. Personnel Development:
Implement strategies for personnel development and career advancement. Provide ongoing
training and professional development opportunities to enhance employees' skills and keep them
updated on industry trends and best practices. Encourage employees to take on additional
responsibilities and provide mentoring and coaching programs to foster growth and retention.
5. Work Environment and Culture:
Create a positive and inclusive work environment that promotes teamwork, collaboration, and
open communication. Establish a culture that values innovation, productivity, and continuous
improvement. Encourage employee engagement through regular team meetings, feedback
sessions, and recognition programs.
6. Health and Safety:
Ensure compliance with local health and safety regulations and develop protocols to maintain a
safe working environment. Conduct regular safety training, provide necessary personal protective
equipment, and establish procedures for handling hazardous materials and emergency situations.
7. Communication and Collaboration:
Establish effective communication channels to facilitate information flow within the organization.
Use a combination of meetings, email, instant messaging platforms, and project management tools
to coordinate activities and share updates. Encourage collaboration and cross-departmental
communication to foster a cohesive and aligned workforce.
8. Performance Evaluation:
Implement a performance evaluation system to assess employee performance and provide
constructive feedback. Set clear performance goals and metrics for each position. Conduct regular
performance reviews and provide opportunities for employees to discuss their career aspirations
and development plans.

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9. Legal and Compliance:
Ensure compliance with all legal and regulatory requirements related to employment, taxation,
land use, and environmental regulations. Stay updated on changes in applicable laws and
regulations and adjust organizational practices accordingly.
10. Succession Planning:
Develop a succession plan to identify potential future leaders within the organization. Provide
opportunities for employees to develop leadership skills and groom them for higher positions. This
ensures continuity and minimizes disruptions in case of employee turnover or retirement.
4.2 Risk Management
Identify potential risks and challenges associated with moderate agriculture in the region. This
may include climate-related risks, pests and diseases, market fluctuations, or regulatory
constraints. Develop risk mitigation strategies, such as crop insurance, diversification of crops,
and maintaining strong relationships with suppliers and buyers. Consider the impact of external
factors, such as political stability and economic conditions, on the business operations.
4.3 Sustainability and Environmental Considerations
Highlight the commitment to sustainable agricultural practices and environmental conservation.
Discuss strategies to reduce water consumption, prevent soil erosion, promote biodiversity, and
minimize the use of chemical inputs. Emphasize the social and economic benefits of sustainable
agriculture, such as job creation, improved livelihoods, and community development.
4.4 Implementation Timeline
Develop a timeline that outlines the key milestones and activities for implementing the moderate
agriculture venture. This includes land preparation, infrastructure development, crop cultivation,
marketing and sales initiatives, and ongoing monitoring and evaluation.

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4.5 Conclusion
Summarize the potential impact of the moderate agriculture venture in Bule Hora and the surrounding
region. Emphasize the economic, social, and environmental benefits, such as increased food production,
job creation, income generation, and sustainable development. Highlight the business's commitment to
quality, sustainability, and community engagement.
4.6 Appendix
The appendix section of the business plan provides additional information and supporting
documentation for the moderate agriculture venture in the Bule Hora area. It includes relevant
data, research findings, charts, and other supplementary materials that contribute to the
understanding and credibility of the business plan. The following elements can be included in the
appendix:
1. Market Research:
 Market analysis reports
 Demographic data of the target market
 Competitor analysis and profiles
 Customer surveys and feedback
2. Financial Projections:
 Detailed financial statements (income statement, balance sheet, cash flow statement) for
each projected year
 Breakdown of revenue projections by crop
 Assumptions and calculations used in financial projections
 Sensitivity analysis and scenario planning
3. Supporting Documentation:
 Copies of licenses, permits, and certifications required for agricultural operations
 Land lease or ownership documents
 Environmental impact assessment reports
 Legal agreements or contracts (supplier agreements, distribution contracts, etc.)
 Insurance policies

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4. Operational Information:
 Standard operating procedures (SOPs) for various farming activities
 Equipment and machinery specifications
 Farm layout and infrastructure plans
 Crop rotation schedules and planting calendars
5. Marketing and Sales:
 Marketing materials (brochures, flyers, etc.)
 Advertising and promotional strategies
 Pricing strategy and analysis
 Distribution channels and partnerships
6. Human Resources:
 Organizational chart
 Job descriptions and qualifications for key positions
 Recruitment and training plans
 Employee handbook or policies
7. Risk Assessment:
 Risk management strategies and contingency plans
 Insurance coverage details
 Safety protocols and emergency response plans

BUSINESS PLAN MODERATE AGRICULTURE AROUND BULE HORA AREA IN OROMIA REGIONAL STATE IN ETHIOPIAN

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