- Country: Kenya
- Industry: Food, Beverages, Tabacco
- Stage: Initial growth (first revenues)
- Investment size: $49,000 / min. $26,000
- Type of investment: Equity
I'm an entrepreneur currently running a chicken breeding business in Kenya and Zimbabwe. I would like to expand production and need investment to scale up.
It’s a newly formed business but I have done smaller runs before. I have studied the market and checked out the business plan. I have employers and manger there to run the business on site. I’m currently in Australia but I’ll also be at the farm full time.
The product is taken off my hand every 6 weeks. I want to keep a percentage to develop my own clients as well. I plan to scale the business to 70 to 100 k chickens per run.
The investment will be returned as follows:
• 50 percent after the first run within 8 weeks
• There are 2 options for the other fifty percent:
Option 1: Get it back on next run that’s 16 weeks and then make you're profit 30 percent on your cash. The amount will be paid back in full in 26 weeks or sooner.
Option 2: On the full amount required 49,000 below applies
Leave the other 50 percent in there and receive 2000 per chicken house run so we do 7 runs per year. We will have 4 houses done in year one so that's 8 k to the investor every 6 to 8 weeks and so on until10 houses are done producing 70 k chicken per run.
We have a line of established clients, so you don't need to worry about selling our produce – it is taken off our hands every 6 weeks.
Rationale for the deal
The deal is about a chicken breeding business. We will sell 70k to 100k to the larger firms. They will come to collect the ready produce from us every 6 weeks.
The return on investment is excellent and quick.
Use of financing
Funding is needed to expand our infrastructure and build chicken houses.
We have a small feeding machine that saves 50 percent on the cost for feeding.
I plan to use the money to keep increasing the infrastructure to expand production to 70k chickens.
I am a very good operator and I’m running this business with excellent people next to me. I have established partnerships with firms who are ready to purchase the chicken produce.
Opportunity for the investor
The investment is excellent. You have the option to choose how you want to get your return whether It be short term in 26 weeks and 30 percent on your money, or leave 50 percent of the investment required and return residual income every 7 to 8 weeks (for full amount required).
The latter option means that from the start you would see 4 k every run coming in, and with every run the amount will increase, so in the second run you would receive 6 k. At the moment when we have 10 chicken houses running you will get 20 k per run, which is not bad for a small investment. This will be for 12 months once the business is fully developed.
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