This thesis involves a business plan for business expansion of the Sole Trader Metsätyö Vääräkoski. The business operates in the forest industry and its main line is logging. In the beginning of the year 2014 the business is going to expand its industry to livestock. Here the focus is on sheep farming. Originally the sheep were for a hobby but now the entrepreneur wants to link them as part of his business. The main purpose of this thesis is to create a business plan for the expansion to help the entrepreneur to make a decision about the sheep farming.

The main goal of this thesis is to create an operational business plan for the entrepreneur so he can use it later if needed and also to see if the expansion is profitable enough. Case study has been used as a research method by interviewing a couple of sheep farmers and analysing literature about the subject. Profitability was examined by calculating the difference of costs and income resulted from the expansion, which reveals the profit or loss created by the sheep farming. Costs are already realized cost items while revenue is mainly based on estimates because the sheep farming is still such a new business.

The last two sections contain some development proposals and a summary of the whole thesis. By considering these proposals the entrepreneur can improve his sheep farming profitability. The last section also introduces the writer´s own ideas and experiences on conducting this thesis.

Appendices contain all the calculations about the subject and a business plan model which is generally used. Appendices also involve questions that were asked in the interviews.