Thaba Goats Business Plan — The Five-Stage Roadmap and Gates

How the herd scales from 50 to 300 breeding does across five separately funded stages, and the gate each stage must clear before the next.

The Five-Stage Roadmap and Gates

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  • 6.1 What each stage does
  • 6.2 The gates

The plan is five stages, each sized so the capital required matches what a farmer at that point in their track record can realistically raise.

The funding ladder — each stage matched to an obtainable instrument
Figure 7. The funding ladder — each stage matched to an obtainable instrument.

Stage

Year

Does

Capital

Primary funding

Stage 1

Year 1

50

R427 000

Own savings, NYDA grant, SEDFA micro-finance

Stage 2

Year 2

80

R227 000

SEDFA small enterprise loan and working capital facility

Stage 3

Year 3

130

R576 000

Blended Finance Scheme via Land Bank

Stage 4

Year 4

200

R564 000

Blended Finance Scheme second tranche

Stage 5

Year 5

300

R655 000

Land Bank or commercial expansion facility

Total

R2 449 000

6.1 What each stage does

Stage

Objective

Physical scope

Stage 1 — Year 1, 50 does

Prove you can keep goats alive, healthy and recorded

One camp, one water point, kraal and kidding pens, the founder doing the herding

Stage 2 — Year 2, 80 does

Prove the system repeats and establish a second camp so grazing can be rotated

Second camp fenced, second water point, shelter extension, one additional buck

Stage 3 — Year 3, 130 does

Cross into commercial scale and formalise

Third and fourth camps, third water point, own transport, kidding extension

Stage 4 — Year 4, 200 does

Cross break-even

Handling and quarantine facility, expanded water storage, camp extension

Stage 5 — Year 5, 300 does

Full operation with a management layer beyond the founder

Camps to 300 does, fourth water point with solar pump, feed and lick storage

6.2 The gates

Gate

Conditions — do not move to the next stage until all are true

Gate 1, end of Stage 1

Kid survival to weaning above 82% · doe mortality below 6% · twelve months of complete kidding, mortality and dosing records · CIPC registration, tax compliance and a business bank account in place · at least two trader relationships and one direct community customer

Gate 2, end of Stage 2

Kid survival above 85% · kids weaned per doe above 1.50 · reviewed annual financial statements for Year 1 · clean repayment record on the Stage 1 facility

Gate 3, end of Stage 3

Kid survival above 87% · two years of financial statements · Blended Finance Scheme scorecard of at least 20 out of 50 · grazing capacity confirmed sufficient for 200 does by an independent assessment

Gate 4, end of Stage 4

Break-even herd size exceeded · cash EBITDA positive for a full year · breeding stock sales established as a channel · grazing secured for 300 does

Gate 5, end of Stage 5

Kids weaned per doe above 1.90 · debt service cover above 1.25 times on cash EBITDA · a herder or supervisor able to run daily operations without the founder present