Case study: deciding to open a third house, or not, with a complete file
Mrs Adjoua has been running two houses of 8 m by 30 m about ten kilometres from Agnibilékrou for four years. A mason is available in January, her bank told her "come back with a file", and her first customer is asking for more chickens. Everything pushes her to build. This last lesson takes her farm with the tools of the nine previous lessons and builds, piece by piece, the complete file a farm manager puts on the table before deciding: dashboard, complete need, financing plan, forecast accounts on three scenarios, five thresholds, and action plan. The decision falls by itself at the end; it is the typical exercise of the specialisation exam.
15 min read · 5-question quiz at the end
By Abdul Hussein ChoumanFounder of NEXTEKCI · Agnibilékrou hatchery since 2006This lesson is part of Farm manager: finance, growth, succession specialisation. It opens to every registered student, from free registration. Levels 1 to 5 and the tracks remain readable by everyone.
Mrs Adjoua has been running two houses of 8 m by 30 m about ten kilometres from Agnibilékrou for four years. A mason is available in January, her bank told her "come back with a file", and her first customer is asking for more chickens. Everything pushes her to build. This last lesson takes her farm with the tools of the nine previous lessons and builds, piece by piece, the complete file a farm manager puts on the table before deciding: dashboard, complete need, financing plan, forecast accounts on three scenarios, five thresholds, and action plan. The decision falls by itself at the end; it is the typical exercise of the specialisation exam.
- ✓Build the complete file of an investment decision in six pieces, in units and percentages
- ✓Cost a third house on three scenarios and read what it does to profit, cash and the instalment
- ✓Check the five thresholds and conclude without debate, saying what to do before asking the question again
- ✓Tell what would have happened in case of a yes, and what should have been done four years earlier
- Piece 1: the farm as it is, in units
- Pieces 2 and 3: the complete need and the financing plan
- Piece 4: the forecast accounts on three scenarios
- Piece 5: the five thresholds, and the decision
- Piece 6: the action plan, and what would have happened in case of a yes
- Going further
- •Mrs Adjoua's farm: two houses, 12 flocks, profit 8 units, capacity 11, full cost 92 hundredths, threshold 6.4 flocks out of 12, reserve 9 units = 35 days, first customer 55%, FCR 1.88-1.93-1.92.
- •Complete need for the third house: 15 + 2.5 + 4.5 + 0.5 = 22.5 units; contribution 6 from the reserve (3 left = 8 days of feed with three houses), loan 16.5 over four years, instalment 5.3.
- •Three scenarios: normal 11.3 units (7.5%), ratio 34%; FCR 2.05: 4.3 units, ratio 60%; price −8%: loss of 0.7, instalment not covered; break-even point 10.1 flocks out of 18.
- •Five thresholds: cash no, technique no, market no, team partial, debt fragile; decision: no third house this year, file redone in twelve to eighteen months.
- •Plan: FCR 1.85 (+2 units), two customer contracts and first customer under 30%, fixed remuneration and 4 units of reserve per year, trained stand-in; what should have been done from the first house: reserve, contracts, density.