Head Office:

Plot 287, Buye Road

Ntinda, Kampala.

P. O. Box 35430, Kampala Uganda

Tele: 0392 179150, 782 098 005

E-mail: ifarmcare@ifarm.ug

Website: www.ifarm.ug

By: Bob Moses Oyuru

UGANDA

EXECUTIVE SUMMARY:

Introduction:

IFARM UGANDA is an Agribusiness company with the aim alleviating poverty in rural farmers in

Uganda and promotes food security through offering agriculture support and information to

farmers, Boost family incomes through market accessibility and improve quality productivity

through quality standard trainings. We also have an online portal under a domain www.ifarm.ug

which helps linking a farmer to a potential buyer of their products and the same time the buyer in

search of an agriculture product can visit www.ifarm.ug to find a potential farmer he can buy

from directly or through iFarm Uganda as a company.

Ifarm Uganda came to life when Mr. Oyuru Bob Moses joined farming and through networking

with different farmers he realized a common problem that all farmers said to have, which was,

not having enough market for their farm products thus coming up with a thought of IFARM

through combining information technology with farming to help solve the problem of market

availability.

He realized that some people and industries out there need the farmer’s products but fail to

connect with farmers there by being forced to import items from other countries and the farmers

as well face challenges of approaching the big buyers because of the little quantities they

produce. IFARM wants to solve this by having farmers under one platform where by in such

cases where a farmer cannot meet the required quantities needed by the buyer, they approach

ifarm and ifarm contacts other farmers of the same product category from its database and gets

them to join their products so as to meet the required quantities that the buyers wants. They

letter share the according to the quantity each of them contributed. This will solve the problem of

farmers’ products going to waste because the buyers only target the large scale farmers thus

leaving the small farmers without market for their crops and animals.

IFARM anticipates future growth whereby there will be need to help farmers store their

harvested farm crops in cases of abundance in the market that forces them to sell at very low

prices because of fear of the products going bad or spoilt. IFARM hopes to set up storage

facilities for the farmers at easily accessible locations, thus the farmers won’t worry any more

about products going to waste because of excess production. This is expected to be done in

phases.

LOCATION:

Plot 287, Buye Road

Ntinda, Uganda

THE COMPANY:

IFARM UGANDA is a fully registered company under the registrar of companies in Uganda.

OUR SERVICES:

� IFARM avails the farmers with market information and commodity prices. � IFARM coordinates and trains farmers in quality measure ways of farming. � IFARM avails farmers with information on quality inputs, farm management and post-

harvest for market accessibility. � IFARM locates and runs a database of all categories of farmers, their Contacts, crop

production and locations on the ifarm website (www.ifarm.ug). � IFARM finds potential product buyers for the farmer’s products such as Exporters, Hotels,

Restaurants, Factories and Industries that ordinary farmers can’t get to. � The website will also make it easy for a consumer to find a farmer of interest to contact

and buy from the farmer even without contacting ifarm. FINANCIAL CONSIDERATIONS:

The current financial plan for iFARM UGANDA is to secure funding in the amount of $299,595.

The funding is to cater for the first phase IFARM budget which includes to acquire suitable office

premises for IFARM, Install an SMS platform for ifarm to build on the communication network,

Cater for salaries of employees for the start, Purchase trucks that will help transport farmers

produce to different destinations, Purchase vehicles that will facilitate the movement of

employees to different regions of the country to locate the farmers, organize a number of

workshops to improve on the farmers skills and quality of their products, Transportation of

IFARM stuff as they lobby for market outside the country and generally working capital until the

business maintains profitability.

The major focus for funding is as follows.

To fund a company that will boost the small scale farmers’ income, motivate farmers to grow and

farm more, offer storage facilities to farmers, offer free consultation services to farmers, avail raw

materials for most of the small scale industries in the country and most above all give hope to

the farmers in the country.

OBJECTIVES:

(i) To become a premier solution provider to the farmers market problem in Uganda.

(ii) To help reestablish farming as the backbone of the country’s economy.

(iii) To become Uganda’s leading exporter of agriculture products.

MISSION:

IFARM to grow into the most valuable service provider to farmers through improve the

livelihoods of local subsistence and commercial farmers throughout the country by availing them

with market contacts for their agriculture and farm products.

COMPANY SUMMERY:

IFARM UGANDA was established to counter play the farmers’ cry for lack of market for their

produce after harvest and poverty in the rural areas. Located at Plot 287 Buye Road, IFARM

provides directory, sales and marketing services to farmers using an online platform. IFARM

also helps subsistence farmers with low output to find buyers and advising them to sell

collectively in groups in order to meet the buyers’ bulk orders.

COMPANY OWNERSHIP:

IFARM UGANDA is currently examining the best alternatives for its legal establishment in order

to provide Uganda with its quality online service portal.

START-UP SUMMERY:

IFARM UGANDA LIMITED is requesting financing in the amount of $299,595(Two hundred

ninety nine thousand five hundred ninety five dollars), this amount will be used to fund startup

expenses incurred from time the fund is secured.

Startup Table:

START UP CAPITAL $ 299,595

START UP Qty Rate Amount Exchange

rate

Amount

Fixed Assets: UG Shs US Dollars $

Furniture & Fittings 10 2,000,000 20,000,000 3,200 6,250

Computers & Accessories 20 3,000,000 60,000,000 3,200 18,750

SMS Platform 1 12,000,000 12,000,000 3,200 3,750

Motor Vehicles 6 80,000,000 480,000,000 3,200 150,000

- 3,200 -

Operating Expenses: - 3,200 -

Office Space (Rent) 12(mts) 3,000,000 36,000,000 3,200 11,250

Salaries of Management Staff 12(months) 5,000,000 60,000,000 3,200 18,750

Salaries of Professional Staff 12(months) 6,000,000 72,000,000 3,200 22,500

Salaries of Junior Staff 12(months) 1,600,000 19,200,000 3,200 6,000

Transportation cost 12 1,500,000 18,000,000 3,200 5,625

Marketing and Advertising 12(months) 9,500,000 114,000,000 3,200 35,625

Website Hosting 5(years) 2,300,000 11,500,000 3,200 3,594

Workshops 6 3,000,000 18,000,000 3,200 5,625

Other Operating expenses 1 25,000,000 25,000,000 3,200 7,813

Working Capital 1 13,000,000 13,000,000 3,200 4,063

Total Requirement 958,704,000 3,200 299,595

PRODUCTS AND SERVICES:

The primary service for IFARM will be acquiring market for farmers by linking them to the buyers

of their produce once the company has registered a good number of farmers and lobbied market

in industries, factories, Hotels, Restaurants and outside the country not leaving out the local

individual based market. The first step in development is to increase the number of farmers

registered with the company along with the associate market base and facilities required to

maintain and service the daily day to day operations. Once the first step is attained; the

company will start printing releases of the IFARM AGRO DIRECTORY which will also to be

marketed and the associated profits from advertisement will be reinvested in the facilities and

maintenance of the company. As the number of farmers is expected to grow high every year that

will go by, the market and prices are expected to be interfered with majorly by over production

and climate. IFARM expects to have built the capacity and able to acquire funds to construct

storage facilities where farmers can store their produce for some time until the market and prices

get back to normal for them to resume selling.

MARKET ANALYSIS SUMMARY:

The Farmer is the most important person in Uganda.

However, because of some factors a number of farmers have abandoned farming and some

deliberately reduced the capacity of production of their farms. During this same period, the

number of agro based manufacturing industries and exporters’ has increased and is continuing

to grow. This makes the farmer even more important to the economy of the country and the

future of agriculture.

According to research made by iFarm, Less than a quarter of Uganda’s GDP comes directly

from agriculture, but almost three quarters of its working population is engaged in this sector.

Subsistence agriculture employs 16 times more workers than the commercialized agricultural

sector, yet a worker in non-monetary agriculture produces 4 percent of output by those in the

commercialized agriculture. 37 percent of the workers in urban areas are engaged in agriculture,

but 82 percent of workers in rural areas are farmers.

The agricultural sector remains the backbone of Uganda’s economy as its main source of

livelihood and employment for over 80% of the population. It contributes over 70% of Uganda’s

export earnings and provides the bulk of the raw materials for most of the industries that are

predominantly agro based.

As the proportion of agro based small scale manufacturing firms increase, the proportion of

quality production farmers decreases in the name of lacking market.

There are over 34,000,000 people living in Uganda. Of that population less than 10% claim

farming as an occupation (and about 4% actually live on their farms). Majority of the people have

quit farming because of the market factor which is believed to be a problem because of the

farmers’ poor approach to the market players.

Most of these small scale farmers are individuals or families of whom some individuals have

formed modest associations and enterprises to take advantage of the available market to

improve their livelihoods.

The training in quality agriculture production and market search for the products after harvest will

boost the production in the agriculture sector, increase the number of people joining agriculture

and improve the income earnings of small and large scale farmers at the same time boosting the

manufacturing sector with availability of abundant raw materials for their production processes.

iFarm Uganda will target the 10% population that claims farming as their principal occupation.

MARKET SEGMENTATION:

Farmers’ with specialty crops, birds animals and their products often required for food, use as

raw materials and needed for exportation such as Maize, Beans, Coffee, Cotton, Soya beans,

Cassava, Fruits, Poultry birds, animals and a lot more needed by individuals, manufacturing

companies and exporters require iFarm Uganda’s help in the quality production sensitization and

market search in the production of their crops and farm management.

Ironically, the people that need the crops and animals from the farmers the most are a big part of

the problem. Giant manufacturing companies have played a big role in pushing these farmers

out of the farming practice because of their price offers claiming poor quality products to the

ignorant farmer.

On the other hand large scale commercial farming can be very lucrative, commercial farmers

make millions of money each season and still they can’t handle the demand.

This means when the small scale farmers get to learn about quality agriculture production, 80%

of the said 10% farmers will have to join commercial or improved farming to be able to meet the

demand of agro production.

Table: Market Analysis.

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Growth CAGR UG Farmers 10% 3,400,000 3,409,600 3,419,296 3,429,089 3,438,980 10.12% Other 0 0 0 0 0 0 0.00% Total 10.00% 3,400,000 3,409,600 3,419,296 3,429,089 3,438,980 10.12%

TARGET MARKET SEGMENT STRATEGY:

The goal of iFarm Uganda is to target the farmer of specialty crops, birds and farm animals and

link them to the SMEs and Giant companies that need their products through market their quality

products.

Service Business Analysis:

iFarm Uganda provides quality seeds consultancy services during the start of the season or at a

time that a farmer is willing to start planting a garden or raring animals which is critical in the

quality production cycle of agribusiness.

After the harvesting time farmers begin reporting losses of 30-90 percent of their produce got

from their farms and gardens. While these losses are not unexpected during sale of the produce,

the magnitude of losses suffered by some farmers is highly unusual and this phenomenon,

which currently has a recognizable underlying cause, has been termed “No Market”. With such

substantial losses to the farming population it is difficult to determine the remaining available

farming population and along with the fact that farming is responsible for 45% of the country’s

economy, particularly for specialty crops, fruits, birds and animals it is easy to see the current

demand for an increase in quality farming production.

COMPETITION AND BUYING PATTERNS:

With the current decline in quality agro production, it has become necessary for SMEs,

Industries, Exporters and Wholesalers to import quality products from other countries. Business

men travel, load and transport agriculture products from farmers across other countries every

harvest season leaving back the money that would improve a million homesteads and lives in

our own country.

iFarm will establish excellence in quality agriculture production and will help fulfill the farming

requirements of the nation by leading in close consultancy to the small scale farmer deep in the

village for the production of quality crops, fruits, birds, animals and their products in this country.

WEB PLAN SUMMARY:

The company website is designed to provide farmers with a directory platform for easy contact,

location and provide necessary information about market prices and required supplies presented

in a simple and organized format required for the farmer to make an informed decision regarding

the market. The website will provide company location, detailed description of services,

Agronomist discussion forum pages and associated fees.

Website Marketing Strategy:

Research indicates that an easy to use website significantly increases sales. A sophisticated

website is vital to our marketing strategy to attract website users and visitors. The website is

visibly appealing yet simple and organized, encouraging sales through annual subscription.

The website is organized in such a way that it facilitates browsing and the ability of potential

visitors to locate relevant information, illustrations and descriptions. The design of the ifarm

website encourages sales since it’s efficient and easy to use and provides the visitor or user with

the ability to subscribe online and the farmer to acquire consultations online.

An easy to use, simple website is of the utmost importance in securing sales for the farmers as

research indicates that many websites lose customers without securing purchases because the

site is confusing and not easily navigable leaving visitors aimlessly migrating through a site and

leaving in frustration.

The website is created in such a way that it is easily updated and maintained by the

management to maximize efficiency in detailing agriculture descriptions and pricing information

and to ensure the safety and security of all customer information. The website will be supported

by the PayPal financial transaction processing system.

iFarm Uganda focuses on utilizing modern forms of internet and social media advertising to

create company visibility, detail services provide with associated information when possible and

promote customer satisfaction and candid testimonials. The company’s goal is to rank high for

preferred keywords on the main search engines in “Agriculture” or “Farming” searches and

increase Search Engine Optimization by writing a key word rich title. iFarm will submit the

website to key directories. The company will also dramatically increase visibility by writing quality

farming and market related articles and distribute them to editors as free content for email

newsletters or websites requesting that a link to the company website and a one-line description

of company offerings be included with the article.

It is projected that the ifarm website will be fully functional within three months and some or all

the website construction and update is implemented when feasible unless management

determines the cost of a professional is justified.

Development Requirements:

iFarm utilized an online website builder for the construction of the company website and user

interface which the company expects to improve with days of receipt of funding. The website will

be an ongoing company project and will be updated as service offerings are extended and

modified and customer testimonials and results are received.

STRATEGY AND IMPLEMENTATION SUMMARY:

The primary marketing strategy for ifarm includes the following:

a) To provide a parallel connection market service to farmers for their crop harvest and

animal husbandry.

b) To establish a loyal following of farmers based on a high level of farmer’s satisfaction.

c) To link farmers to the best buyers of their products at good rate offers.

d) To establish and maintain an extensive database of farmers for marketing purposes.

e) To provide the best agriculture training and consultancy service at an affordable cost.

iFarm has clearly defined the target market and has differentiated itself by offering a solid

solution to fulfilling its farmers’ needs. Reasonable sales targets have been established with an

implementation plan designed to ensure the goals set forth are achieved.

SWOT ANALYSIS:

The SWOT analysis aids in displaying the internal strength and weakness that iFarm must

address. It allows us to examine the opportunities presented as well as its potential threats. The

company’s strength will help it to succeed and strengths are valuable, but it’s also important to

realize the weaknesses must address which include the lack of funding to expand and grow the

business. The company’s strength will help it capitalize on emerging opportunities which include,

but not limited to the fact that iFarm has established a name for itself within the farmers’

population by providing them with the best quality farming and production practices and availing

them with market for the harvested crops or animal products. The Company’s focus is to expand

upon this base by increasing farmers’ awareness through the use of social networking

advertising, cultivated agricultural relationships and the creation of a website featuring a

directory list of the iFarm farmers and their contacts and information familiarizing the general

public and increase visibility. The combination of these efforts along with an increased visibility

will ensure a greater market share going forward. Threat that the company should be aware of

include, the existing economically challenged financial environment we all presently face.

i) Strengths.

iFarm intends to distinguish itself as the leader in marketing the farmers’ products in

the agricultural industry by not only availing market avenues for farmers in need of

selling their produce but by providing an essential global environment in order to

reestablish agriculture practices in this country. iFarm’s services to Ugandan farmers

more especially small scale will account for a large part of the country’s growth as the

nation continues its recognition for the need of support efforts to improve livelihood of

its population practicing small scale farming and sustain agricultural practices amongst

the people of our nation, reducing our dependency on imported crops such as fruits,

vegetables, cereals and increasing the ability of our country to feed its self.

ii) Weaknesses.

The weakness facing iFarm Uganda is the lack of funding to develop and sustain itself

to profitability.

iii) Opportunities.

The opportunity presented to iFarm is the demand for Market from farmers for their

produce. According to proven research by ifarm, all agricultural crops and animal

products have market quality standards and all companies and SME that are potential

buyers of these products have quality measure for all raw materials used.

Unfortunately our farmers know neither of any of these quality measures nor ways of

how to achieve them.

Farmers have therefore always grown and produced poor quality crops thus being

denied market presence since the players in the market cannot buy poor or low quality

produce. Farmers have been then forced out of the agriculture practice because of

frustrations due to lack of market and the few who have been able to sell have always

sold at a low market price value leading to starvation and poor livelihoods because of

low income earning. This supports the need for ifarm to help farmers improve the

quality of their agricultural outputs through trainings and consultancy services.

iv) Threats.

The threat faced by iFarm is the lack of funding to finance the necessities required to

expand and sustain the agricultural trainings and services to the local small scale

farmers deep in the rural areas.

COMPETITIVE EDGE.

iFarm Maintains a competitive edge of no competition of local small scale farmers in the country

and the current demand for increase in agriculture production and quality improvement ensures

the company’s position.

MARKETING STRATEGY.

Escalating public interest in the newest communication devises is well documented and has

become an important part of everyday life for virtually every age group and ethnic background.

Modern communication methods such as use of phones in texting(SMS), emailing and the use

of social websites, blogs and sophisticated company website must be an integral part of a

company’s marketing strategy for it to become and remain successful.

Every effort should be exhausted to develop printed and present public marketing material in an

identical and consistent manner. Company “branding” defines companies with the use of

advertisements, flyers, business cards, letterhead, forms, marketing materials, and the company

website having identical design, color logo and appearances. With the use of company branding

in early stages, the public immediately identifies and recognizes a marketing piece as belonging

to a company once sufficiently exposed.

Not more than 10% of annual gross sales will be allocated to the marketing budget and

regardless of what type of marketing campaign is developed; management will make a

conscious effort to research and gather data supporting and testing the campaign, and analyze

directly related expenses with potential profit to determine cost justification.

Marketing research and the compilation of data will include the development and maintenance of

a customer information database that will be used for email, text, telephone and direct mail

advertising campaigns.

Future consideration will be given to any economical marketing strategies that assist in obtaining

referral business through verbal advertising, and converting new customers into loyal repetitive

ones.

SALES STRATEGY.

iFarm will organize workshops for the farmers informing them of the company services and how

they are to benefit from them in different regions of the country. Since market is a big problem

faced by farmers in the country, the easy forms of media communication that will be used

include SMS messaging, Billboards, Radio and Television advertising. The advanced forms will

include internet advertising thus increasing service visibility to farmers’ nationwide.

SALES FORECAST.

It is anticipated that by the end of year one iFarm Uganda will have helped to improve and

increase income for over 500 small scale farmers through providing knowledge and information

about the agriculture inputs and market accessibility. In year two iFarm will have developed and

increased the number of farmers it works with with a 150% increase in revenue and a 200%

increase in revenue in year three. Annual revenue will be got from services like farmers

registration fees, Directory listings, SMS subscriptions, Website online advertisers,

Table: Sales Forecast.

Income July August Septembe October November December January February March April May June Total

Registration fee 750,000 1,125,000 1,687,500 2,531,250 3,796,875 5,695,313 6,834,375 8,201,250 9,841,500 14,762,250 22,143,375 48,715,425 126,084,113

Directory Listing 10,000,000 20,000,000 30,000,000

Directory Adverting: 0

Full colour 15,000,000 30,000,000 45,000,000

Black and white 15,000,000 22,500,000 37,500,000

Cover page- Out 5,000,000 5,000,000 10,000,000

Cover page- In 4,000,000 4,000,000 8,000,000

Backpage-Out 4,000,000 4,000,000 8,000,000

Backpage-In 3,500,000 3,500,000 7,000,000

Spine 2,000,000 2,000,000 4,000,000

SMS charges 20,000,000 30,000,000 45,000,000 54,000,000 81,000,000 121,500,000 145,800,000 174,960,000 209,952,000 882,212,000

On-line Advertiser: 0

Top banner 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 18,000,000

Side Banner 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 12,000,000

Slide Banner 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 6,000,000

Storage Facilities: 0

Sales mark-up 2,500,000 3,750,000 4,500,000 5,400,000 8,100,000 8,910,000 9,801,000 10,781,100 16,171,650 24,257,475 36,386,213 130,557,438

0

Total Sales 100% 3,750,000 25,125,000 38,437,500 40,031,250 42,196,875 61,795,313 91,244,375 154,502,250 165,122,600 179,733,900 224,360,850 298,053,638 1,324,353,550

Chart: Sales Monthly.

Chart: Sales by Year.

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Monthly Sales in USD:

Monthly Sales in USD:

$-

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

YEAR 1 YEAR 2 YEAR 3

Sales by Year in USD:

Sales by Year in USD:

Milestones.

iFarm will utilize grant funding expected to be received by;

� Acquiring enough office space to house the company.

� Setting up an SMS platform and acquiring a short code for phone messaging

communications to farmers.

� Contracting experienced consultants to do a full local and international market research.

� Purchasing necessary machines to be used by the company such as computers.

� Setting up a call center for easy access to agriculture information by the public.

� Purchasing of motor vehicles that will make access of ifarm staff to local farmers easier.

� Purchasing of small sized silos for storage facilitations at the company premise.

� Implementing an aggressive advertising campaign.

� Funding the company’s working capital in order to cover operating expenses and

projected payroll.

Table: Milestones.

Milestone Start Date End Date Budget Manager Department

Office Space 1st Aug, 2015 28th Feb, 2016 $ 25,000 Bob Oyuru Director

SMS Platform 1st Aug, 2015 30th Sep, 2015 $ 3,750 Bob Oyuru Director

Office Equipment 1st Sep, 2015 31st Oct, 2015 $ 11,250 Kiconco Lillian Procurement

Market Research 1st Aug, 2015 30st Sep, 2015 $ 25,000 Bob Oyuru Director

Motor Vehicles 1st Sep, 2015 31st Oct, 2015 $ 150,000 Boniface Kamau Procurement

Advertising 1st Sep, 2015 28th Feb, 2016 $ 35,625 Kiconco Lillian Marketing

Working Capital 1st Aug, 2015 28th Feb, 2016 $ 80,220 Bob Oyuru Director

TOTAL $ 330,845

Chart: Milestone.

Management Summary.

iFarm was established in 2015 by Bob Moses Oyuru. Ifarm will convey its commitment to quality

service and professionalism by investing the time required to extensively train all company

personnel to uphold and adhere to the company’s standards of excellence in service and

business decorum.

Bob Moses Oyuru the Founder/C.E.O, Boniface Kamau the Logistics Manager, Mr. Denis

Mugabi the company Agronomist is in charge of the farmers farm trainings and agronomy

practices and Kiconco Lillian the Farmers’ Coordinator/PRO will oversee all elements of the

company and its operations, profitability and commitment to service and exceeding customer

expectations. The company projects the inclusion of additional employees by the end of the

year.

Personnel Plan.

iFarm projects the extension of addition employees by the end of year one with salaries

including a 20% annual cost of leaving in year two. It’s the company’s goal to provide stable

employment with proportionate salaries to its employees in order to compensate appropriately

for the working environment and extended travel.

2015 2016 Aug Sep Oct Nov Dec Jan Feb

Milestone 1 Aug 1

Milestone 2 Sep 30

Milestone 3 Sep 30

Milestone 4 Oct 31

Milestone 5 Oct 31

Milestone 6 Feb 28

Aug 1, 2015 – Feb 28, 2016 Office Space

Aug 1 - Sep 30, 2016 SMS

Platform Sep 1 - Oct 31, 2015 Office Equipment

Aug 1 - Sep 30, 2015 Market

Research

Sep 1 - Oct 31, 2016 Motor Vehicle purchase

Sep 1 - Feb 28, 2016 Advertising

Working

Capital Aug 1 - Feb 28, 2016

Milestone 7 Feb 28

Table: Personnel.

Personnel Plan Year 1 Year 2 Year 3

Bob Moses Oyuru - Director 2,500,000 3,000,000 3,600,000

Boniface Kamau - Logistics 2,000,000 2,400,000 2,880,000

Kiconco Lillian - PRO 900,000 1,080,000 1,296,000

Denis Mugabi - Agronomist 900,000 1,080,000 1,296,000

Pathologist 900,000 1,080,000 1,296,000

Solar Technician 900,000 1,080,000 1,296,000

Financial Plan:

The current financial plan for iFarm Uganda is to obtain funding. The funding will be used to

acquire office space, acquire an SMS plat form for short code communication, purchase office

equipment, do a market research on Agriculture products, Pay company employees for the first

one year, Advertising on different media platforms, Purchasing motor vehicles to make transport

to the farmers’ easier and to provide operating funds until the company maintains profitability.

The following section of this plan will serve to describe the Company’s financial plan in more

details:

• General Assumptions

• Break - even Analysis

• Profit and Loss

• Cash Flow

• Balance Sheet

• Ratios

Start-up Funding.

iFarm Uganda has requested funding in the amount of USD 299,595 and expects receipt of that

funding in September of 2015, at which time the company will proceed with the goals in the

milestones table executing the company purchases as listed and working capital.

Table Start-up Funding.

START UP CAPITAL $ 299,595

START UP Qty Rate Amount Exchange

rate

Amount

Fixed Assets: UG Shs US Dollars $

Furniture & Fittings 10 2,000,000 20,000,000 3,200 6,250

Computers & Accessories 20 3,000,000 60,000,000 3,200 18,750

SMS Platform 1 12,000,000 12,000,000 3,200 3,750

Motor Vehicles 6 80,000,000 480,000,000 3,200 150,000

- 3,200 -

Operating Expenses: - 3,200 -

Office Space (Rent) 12(mts) 3,000,000 36,000,000 3,200 11,250

Salaries of Management Staff 12(months) 5,000,000 60,000,000 3,200 18,750

Salaries of Professional Staff 12(months) 6,000,000 72,000,000 3,200 22,500

Salaries of Junior Staff 12(months) 1,600,000 19,200,000 3,200 6,000

Transportation cost 12 1,500,000 18,000,000 3,200 5,625

Marketing and Advertising 12(months) 9,500,000 114,000,000 3,200 35,625

Website Hosting 5(years) 2,300,000 11,500,000 3,200 3,594

Workshops 6 3,000,000 18,000,000 3,200 5,625

Other Operating expenses 1 25,000,000 25,000,000 3,200 7,813

Working Capital 1 13,000,000 13,000,000 3,200 4,063

Total Requirement 958,704,000 3,200 299,595

Important Assumptions:

The table below present the assumptions used in the financial calculations of this funding plan.

iFarm Uganda is determining its status as a company and according to this plan is taxed

accordingly at an estimated 18% tax rate. Depreciation expense is based on the scheduled

additions in the milestones table. Insurance, utilities and all other expenses assume a 50%

annual increase due to inflation and other cost variables.

Break even Analysis:

The company’s monthly revenue break-even analysis for year 1 is projected to be USD.12,583.

Sales are projected to increase by 200% in year 3 due to the internal expansion of the company

and corresponding advertising campaigns.

Table Break-even analysis.

Break-even Analysis Monthly Revenue Break-even $12,583 Assumptions. Average percent variable cost 5% Estimated monthly fixed costs$ 5,000