Capital Cost Projections – PDF Output
Every poultry farming project has a round figure start-up cost.
But on the way to arriving at such a figure, we need a detailed and itemised list.
Capital start-up costs are divided into one-off and recurring.
This is an example poultry farming project report ‘capital start-up costs’ summary…
The capital cost statement above is a key component of your poultry farming project report.
It informs the reader of what it will take to get your proposed project up and running or initiated.
Thereafter, once begun, your project should produce a healthy enough supply of profit to sustain both it’s operation and growth.
Investors will take a pause at this stage in order to understand…
- how much financial assistance you are asking for?
- why you need it?
- how much personal money you are willing to invest in the project yourself?
Let’s take a more detailed look.
D1. Capital Start-Up Projections
This is an example poultry farming project report ‘capital start-up projection’ summary…
The capital costs enclosed in the box above are one-off costs.
They are to purchase one-off pieces of equipment or to set-up access to services.
The costs of the items will vary from market to market.
Whilst we have a comprehensive array of cost categories above – you might want to augment this list to suit your own individual project parameters.
Obtaining accurate pricing is key to starting successful poultry farming projects.
This is the most sure way of getting your prices right & having a disciplined approach to procurement.
Requests for quotes or proposals from reliable and reputed suppliers will set your estimates within the right bounds.
D1(a). Capital Start-Up Projections
This is an example poultry farming project report ‘start-up projections’ summary…
These figures should look familiar.
These comprise the overheads which we have already look at in-depth in a previous chapter.
Why repeat this information?
Really for the sake of your prospective investor when quoting the amount of total capital needed.
It is necessary to detail not only the one-off capital cost items, but also to see them alongside those working capital items i.e. initial monies required to set the wheels of business operation in motion.
e.g. buying your first batch of chicks, buying your first round of bird feed etc.
D1(b). Capital Start-Up Projections
This is an example poultry farming project report ‘projections’ summary…
This is your official start-up figure for required capital.
The cost of everything you will need to get started – from one-off purchases to initial operational costs.
Included in this summary is the amount of personal capital funds which you are committed to investing in the proposed poultry project.
This in some cases & markets is known as ‘margin money‘.
The total capital cost of your project minus your personal contribution (aka. ‘margin money’) leaves only the remaining sum to be invested, gained either by loan, grant or some alternative arrangement.