Entrepreneur Observation Report Essay Example For Students

Entrepreneur Observation Report Essay This report outlines a very small business of my brothers. It describes his business, target market, financial plans, and marketing plans. I have tried to keep a neutral opinion about his opinions as much as possible. I have tried to keep my inputs and thoughts in the conclusion only. The whole idea of my brother, insert name here, owning a business started in early March of 1998 when one of the neighbors jokingly suggested he should raise chickens and sell them to people. A few days later he realized it could be easily done, and with a profit. From mid-March to September, he and I raised, and easily sold 600+ chickens, we only wished we could have raised more. When March of 1999 rolled around we were contemplating how many chickens to buy, when the person we bought the chickens from told us about the possibilities of rabbits. Because rabbits are a yearlong project, and we knew I would be leaving in the fall, it became his decision and ultimately his project. He started out with 20 baby doe (females), 3 baby bucks (males), and a small-borrowed hutch (cage) with all 23 rabbits jammed in tight. His investment in rabbits, although considerable, was still to be outdone by the ones in hutches and feed. He essentially spent all profits from chickens the year before and then some. His project now consists of 20 mature doe, 3 mature bucks, and approximately 60 babies. He has taken over a section of a large barn and turned it into a 30+ hutch rabbitry system with a circulating automatic watering system., and recently acquired a large weaning cage. I asked him how he felt when he was getting started and he said he didnt like spending all that money but he knew he would get it all back someday. I then asked him if he was afraid of competition, or of there not being a big enough market. He said he knew of nobody else selling rabbit meat in the area on any scale, and that because rabbit meat is practically thee healthiest meat, he couldnt see any problems in the market. He then said that if personal selling fails he can sell them through his chicken provider on a per pound basis. One thing I have always known about my brother and his rabbit business is that he is very confident in its success and that even though he knows there will be small problems he is very sure of overall success. When I asked him who he sees as his typical customer he said that first he would talk to people that bought chickens last year, and then possibly put an add in the Kearney Hub (an area newspaper). He then said that because rabbit meat is so healthy he saw the health conscience as his primary customers he also said that because it wouldnt be real cheap, they would be people with money to spend on special health food. He didnt have any demographics, Psychographics, or Geographics, but that he knew there the supply and that all demand would be his. I asked him if he saw any reason for his market to shrink, and he said he didnt see any reason for it not to grow. Most of the funding for his business came from our chicken profits, from me (expecting to be paid back plus some) and from his savings. While he did not have a business plan set in concrete he had some basic numbers that he thought would be attainable and some ideas on how to attain them. He did not receive funding from a bank. Profit margins for his business are somewhat unpredictable the number of kits (baby rabbits) a doe has a year can greatly effect the business. He tries to conservatively figure his profits. Confucianism And Raise The Red EssayHere I will try to give you a little info on the possible income of a 20 doe rabbitry. If the average doe has 12 kits a litter and has a litter every 1 month or 9 litters a year, then each doe averages 108 babies a year. Take this number times the number of doe or 20 and you get 2160 babies a year. If each baby weighs 4-6 pounds (well use 4) when sold on a per-pound rate you are selling 8640 pounds of rabbit a year. Take this number times $.95, (a conservative price for rabbit meat per live pound) and youre bringing in $8,200. 00 a year. Subtract the estimated $900.00 a year in feed and $500.00 for any other expenses and youre left with $6,800.00. This .