description of business

Topics: Chicken, Egg, The Egg Pages: 14 (950 words) Published: September 28, 2014
Description of Business

Khaddy’s Egg Supply (KES) will be a sole trader business involved in the production of eggs for the people of Bonham Spring, bakeries, restaurants, supermarkets etc. KES will purchase young layer chick and feed from North Agri-Supplies. We pride ourselves in providing quality eggs and outstanding services to our customers.

Justification of Location

The KES farm will be located in the rural area of Exchange. Reasons for locating the KES farm in Exchange are; It will be more environmentally friendly since there is more land space to rear chicken and less people around hence the odour of the chicken coops will be of minimal effect. The consideration of adequate infrastructure is necessary since the chicken needs proper lighting and water supply. Electricity and water supply is readily available in exchange however in case of problems KES will have a generator for electricity and a tank for water supply. Availability of Customers and qualified worker in exchange and nearby locations. Therefore, it will be of easy access for both the customers and its employees.

Selection of Appropriate Labour

At KES a total of (4) four persons will be employed. There will be both skilled and unskilled workers within the organization to include: The manager who will be responsible for the supervision of subordinates, ensuring they are punctual, properly attired and are customer friendly. The manager will handle all cash and credit transactions and perform all related clerical duties. The Delivery person who will purchase raw material and deliver eggs to customers who request delivery. Two Farmers/Cleaners who will ensure the chicken coops are cleaned avoiding unbearable odours etc. also to oversee the process of egg production and the maintenance of healthy chickens.

Sources of Fixed and Working Capital
KES will use both fixed and working capital. A total of eighty thousand dollars (80,000) will be used to start the business. The Fixed capital will be generated through bank loans (50%), in order to receive the loan KES will use the land title of the business as collateral. The Fixed capital will be used to purchase and maintain the equipments that are used in the production process examples The Egg Packer (PSPC 30), Candler. The working capital will be generated through monetary gifts from family members (10%) and savings (40%). This will be used to buy raw material such as feeding, litter and manage debt and honor the obligation that the company makes as part of its overall operations.

Roles of the Entrepreneur

An entrepreneur is a person who uses his/her skills, talents and initiatives to set up and operate a business venture in the face of risk. The roles of the entrepreneur are conceptualizing, planning, access funds, bearing the risk and reaping the profit or bearing the losses. (Define with use of note book)

Type of Production

KES will be engaged in secondary production which is taking raw materials and converting them into finished or semi-finished products. Raw material will be layer chickens which would produce eggs. Therefore some examples of secondary production that the business will undergo are producing eggs for residents of Bonham Spring, bakeries and supermarket.

Level of Products

KES level of production will be that of domestic, thus involves producing eggs and services for the local market in St. Ann’s Bay, Brown’s Town and Ocho Rios.

Quality of Control

The quality control measures that KES will undergo are providing clean litter in nest box therefore eggs will be in clean conditions, and the collection of eggs as frequently as possible to avoid the damage to eggs.

Use of Technology


Bibliography: Robinson Karlene, HamilSybile, (2001), Principles of Business, Carlong Publishers (Caribbean) Limited
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