Business Plan Essay Example | Topics and Well Written Essays - 1000 words - 9

Business Plan - Essay Example orporate Affairs Commission (CAC)—the national regulatory body in charge of registration and monitoring of limited liability companies operating at national and international levels. A board of directors comprising 3 directors with limited share holdings will be reconstituted to meet the requirements of CAC. All Stars is entirely into agricultural production. The company purchased a plot of land in a village in Toro Local Government Area of neighbouring Bauchi State for the construction of fish ponds, livestock house, and 2 small warehouses. The company’s farm is located in another village in Bassa Local Government Area of Plateau State. The choice of the location was influenced by factors such as availability of cheap land and proximity to natural stream for perennial source of water. An administrative office is located in the city-centre of Jos. Except for animal feed concentrates and fertilizer, all other inputs and supplies are sourced locally within the village community. The business is currently financed using personal savings. Thus far over $8,700.00 has been invested from this source. To expand the business, however, the company has sought for a loan of $12,711.00 from 2 banks. This loan is payable in one year. The interest rate on the loan component from a private commercial bank ($8,474.50) is 17% while that on the credit component from an Agricultural and Cooperative bank ($4,236.50) is 8%. The transformation of the business into a Limited Liability Company will require constitution of a board of director. Each member of the board is expected to have limited number of shares as provided by law. This will also raise the running capital for the business. All Stars Farms is essentially into agribusiness. It has 3 major sections: the fish farm, a livestock and vegetable farm. The company’s production is seasonal and mainly for the open market. There is no plan for processing in this phase of the company’s expansion. Therefore, profitability of