BUSINESS PLAN

On

EARL FARM FISHERY

Sole Proprietorship

Submitted by:

Aister Earl K. Fidel

_______________
(DATE)

Business Place: Matayumtayum Lapaz Tarlac

Email: aisterearlfidel@gmail.com

Contact Number: 09453512652

 TABLE OF CONTENTS
I. Executive Summary
II. Body of a Business Plan
i. Background and Purpose
A. History
B. Objective
ii. Market Analysis
A. Market Competition
B. Sales Forecasts
iii. Product Development
iv. Marketing Strategy
v. Financial Aspect
A. Projected Income Statement
B. Projected Statement of Financial Position
C. Projected Cash Flow
D. Note to Projected Financial Statements
vi. Manpower complement
vii. Ownership
viii. Conclusion/Summary
III. Appendices
i. Photograph of the product
ii. Key contacts
I. Executive Summary
Earl Farm Fishery tends to improve the fishery industry applying the new
technologies currently available. The company wants to produce the local fish
products with the most efficient and effective manner. The company’s product
includes tilapia and catfish where as tilapia is the main product. Due to high market
demand for those products the competition is not so tight because the products are
very salable. However producing the product in a more efficient and effective
manner is a very big advantage. The company had the advantage over some
competitors because it owns its fishery facility making the business very viable. The
company is applying loan to Land Bank of the Philippines which it’s only source of
financing.

II. Body of a Business Plan

i. Background and Purpose
C. History
Aister Earl had started the fishery business since 2012 but has
been stop earlier in 2014 because the owner went abroad. Now Eister
Earl wants to continue the business for it has a high profit potential.
D. Objective
Earl Farm Fishery wants to provide local fish product with the
lowest price as possible. Producing such products with the integration of
new technologies making more efficient and effective will help the
company achieving those goal.

ii. Market Analysis

A. Market Competition
Unlike other businesses the market competition in fishery
industry is not so tight because the products are very salable. The owner
believes that the company strategies will be very effective particularly in
terms of pricing.
B. Sales Forecasts
Expected semiannual sales: P1, 275,000

iii. Product Development

The fish pond are being prepared following the certain procedure the
ensure water quality and quantity to fit for tilapia fish. The fingerlings are
 being grown to their nursery until they are ready for release. For the fry they
are fed by “fry feeds” by about four to five times a day. Until the tilapia has
grown to 15 to 30 grams they are now being fed by “starter feeds”. From 30
to 100 grams there are being fed by “grower feeds”. After they reach the 100
grams they are now fed by “finisher feeds” until they are ready for harvest. It
takes four to five tilapias to form a one kilo. To maintain the good water
quality throughout the process there are some maintain procedure to follow.
The “chicken manures” are being use as an organic fertilizer for the pond.
The process will take about five to six months every season. There are two
harvest season every year.

iv. Marketing Strategy

The products are being picked up by the wholesaler directly from
our farm. There is no particular marketing method are being applied. The
products are salable by its self.

v. Financial Aspect
A.
Projected Income Statement

Gross Sales (Note 1) P2,550,000

Less: Cost of goods Sold (Note 2) 91,400
Gross Profit 2,458,600
Less: Operating Expense (Note 3) 1,064,000
Operating Income 1,394,600
Less: Finance Cost (Note 4) 75,000
Net Income Before Tax P1,319,600

B.
Projected Statement of Financial Position

ASSETS
Current Assets:
Cash P2,122,210
Non Current Assets:
Property Plant and Equipment (Note 5) 5,862,390
Total Assets: P7,984,600
LIABILITIES AND OWNER’S CAPITAL
 Non Current Liabilities:
Loans Payable 1,000,000
FIDEL’s CAPITAL 6,984,600
Total Liabilities and Owner’s Capital: P7,984,600
C.
Projected Statement of Cash Flow
Beginning Cash Balance P0
Cash Provided by Operating Activities (Note 6) 1,359,600
Cash Used for Investing Activities (Note 7) (162,390)
Cash Provided by Financing Activities (Note 8) 925,000
Ending Cash Balance P2,122,210

D.
Notes to Projected Financial Statements
Note 1
Tilapia Sales (34,000 kilos @ P75.00 per kilo) P2,550,000
Note 2
Duck Weed 200 containers @ P150 per Container P3,000
Fish Fry 8 sacks @ P1,800 per sack 14,400
Feeds 16 sacks @ P1,500 per sack 24,000
Fingerlings 200,000 pieces @ P.25 per piece 50,000
TOTAL P91,400
Note 3
Supplies and materials expense P300,000
Salaries and wages:
1 Guard 360 days@300 per day P108,000
2 Care Takers 360 days@300 per day 216,000 324,000
Utilities expense:
Power/Electricity P30,000 per month @ 12 months 360,000
Representation expense 40,000
Depreciation Expense 40,000
TOTAL P1,064,000
Note 4
Finance cost: P1,000,000 loan @ 7.5% interest P75,000
Note 5
Land P5,000,000
Building and Construction 400,000
Machineries and Equipments 162,390
 Furniture and Fixtures 300,000
TOTAL P5,862,390
Note 6
Net Income Before Tax P1,319,600
Add: Depreciation 40,000
Total Cash Provided By Operating Activities P1,359,600*
*all revenue and expenses are assumed made in cash to simplify the
computations.
Note 7
Water pump 1 pc @ P7,350 per piece P7,350
Pond netting 400 yards @ P250 per yard 100,000
Nursery for fingerlings 1 unit @ P10,000 per unit 10,000
Water system (4”) 2 units @ P520 per unit 1,040
Diesel Engine 2 piece @ P22,000 per piece 44,000
TOTAL P162,390
Note 8
Receipt from loan P1,000,000
Payment of interest (75,000)
TOTAL P925,000

vi. Manpower complement

1 Security Guard
Secure the assets of business and protecting it from thieves.
2 Caretakers
Task to feed the tilapia and monitor water of fish pond to ensure that
tilapias were grow healthy.

vii. Ownership
Eister Earl K. Fidel is a sole owner of “Earl Farm Fishery”.
Forecasted Capitalization: P6,984,600

viii. Conclusion/Summary
There no doubt to the profitability of fishery business. The production
cost will take only P35.00 to P40.00 per kilo but it can be sold by about
P75.00 to P90.00 per kilo. The production capacity of the company’s fish
pond can carry about 17,000 kilos every season. There are only few
contingencies that must have prevented such as fish diseases but those are
 very manageable. What makes the business viable is that there’s a market
demand for the product.
The owner is not new to this business; she has started it by 2012 but was
stop during 2014 because she needs to go abroad. Now she wants to restart
the business but is lacking money to finance the start up and operation cost.
In light of this she is now applying for loan in Land Bank of the Philippines in
amount of P1,000,000.

III. Appendices

iii. Photograph of the product

A. Fingerlings

B. Growing

C. Ready for harvest

iv. Key contacts

A. Business Owner: Eister Earl K. Fidel
Phone: 09453512652
Email: aisterearlfidel@gmail.com
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