Industry sector:

Poultry farm: Capital expenditure


The cost of your property, if you are buying and not renting, should be entered here as should the cost of establishing a laying or breeding flock (but not a flock of table birds). If necessary, your bank manager will be able to help you to enter the figures correctly.

Now that you have given further thought to exactly how your business will operate, you might like to revisit your estimates of capital costs to make sure that you have identified all of the items you will need and any other capital costs you will incur.

Don't forget to include all the expenditure on your enterprise such as sheds, cages, feeders, incubators and machinery.

If you are paying cash for all the items you are buying for your business, enter the amounts - including VAT - in the months when you expect to pay for them.

If you decide to buy some items on hire purchase, or with a loan, enter the deposit and the monthly payments in the months in which you will pay them. These payments will be made up of both capital and interest. Enter the capital here and the interest under 'Bank/finance charges and interest' in your cash flow. The agreement will identify the amount of interest payable annually - if you deduct this from the total amount you have to pay each year the balance is the capital.

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