Business Idea: PANTHER Fish Powder

Description:

PANTHER is the brand of our business, which product is fish meal or fish powder. Fish
powder is a commercial product made from ​fish that can usually be used to feed pets like cats
and dogs, poultry like chickens and ducks, cattle, sheep and goat and also fish farms. Fish
powder ​can be made from almost any type and any part of ​sea animals or creatures. Therefore,
we can put the whole sea animals or creatures with their bones, head and ​offal to be processed
to the grinding machine and grind it to be become brown powder and cake, keeping its
nutritional value in a more convenient form.

Bhide Framework

1. GOALS

1.1. Personal Aspiration

- To create product to solve multidimensional problems in fisheries and animal

husbandries sectors.
- To do business with a brain of businessman and a heart of social worker.
- To provide competitive, alternative fish products as farm animal feed material.

1.2. Business Sustainability & Size

- In 2014, ​according to data from the Ministry of Marine Affairs and Fisheries of the
Republic of Indonesia, the demand for fish powder reached 100.000-120.000 tonnes per
year. It was estimated that 75% from that fish powder’s demand has to be imported from
 Southern America. Moreover, the fact shows that 90% of those are imported from Chile
and Peru, which show there is high demand for such products.
- According to statistics, Indonesia has 1.4 million fisherman households and 5.6 million
people who rely on the fisheries sector. This shows the abundance of our raw materials.
- Based on the facts above, this can be a sizable and long term business plan in
Indonesia.

1.3. Tolerance Risk

- Unavailability of raw fish material due to change of weather (especially during monsoon).
We plan to mitigate this risk by using substitute raw material such as maggots of black
soldier flies, which might be acquired at a lower cost.
- Pricing competition from more established (and bigger) competitors.
- Starting business using owners’ capital for pilot stage.

2. STRATEGY

2.1. Clear Definition

- We utilize small fishes and other sea animals that are also caught in the fishermen
nets with other economic-value fishes as the raw material of our product which can be
obtained for free, or acquired for a low price. ​We put the whole fishes and other caught
sea animals such as starfish, with their bones, head and ​offal from processed fish to
the grinding machine and grind it to become brown powder and cake.
- The market/target segments of PANTHER are breeders and animals farmers all
around Indonesia, but mostly from strategic areas that are well known as livestock
producers; such as animal husbandries in Madura, horse farms in East Nusa
Tenggara, pig farms in North Sulawesi and North Sumatera, poultry farms in West and
East Java, also freshwater fish farms in western part of Indonesia and Sulawesi.
- Pricing Strategy: ​our product is 30% cheaper than existing market price due to two
factors:
1) Distribution aspect: our product has minimum distribution cost because we don’t
import the material from other countries.
2) Material aspect: low cost raw material because the material are from fish waste
or can be acquired with low price directly from fishermen.
 - Promotion Strategy: Personal selling, participating in exhibitions and advertising.
- We are targeting 3 market segments:
1) ​Premium​, this type is made from selected raw material (first class raw material),
intended for pets like cats and dogs, having solid shape like cookies and packed
into small box made of carton.
2) ​Medium​, this type is made from medium class raw material, intended for poultry
and packaged in plastics.
3) ​Regular​, this type is made from third class material, intended for cattles and
packed in sacks, means that it can be purchased at retail price per kilogram.

2.2. Profitability and Potential for Growth

2.2.1. Capital Expenditure (Capex)

Details Total Unit Price/Unit Total

Rp Rp

Hydraulic Press Machine 1 Set 2.000.000 2.000.000

Drying Oven 1 Set 6.000.000 6.000.000

Steam Machine 1 Set 1.000.000 1.000.000

Grinding Machine 1 Set 3.625.000 3.625.000

Disc Mill 1 Set 1.000.000 1.000.000

Packaging Machine 1 Package 250.000 250.000

Training and Socialization 1 Package 1.000.000 1.000.000

Legality 1 Package 250.000 250.000

Total 15.125.000
2.2.2 Depreciation Cost

Detail Total

Rp

10% x Capex/12 Months 1.512.500

Total 1.512.500

2.2.3 Operational Expenditure (Opex)

Detail Total Unit Price/Unit Total

Rp Rp

Raw Material 0,5 Ton/Day 10 Ton 2.500.000 25.000.000

Sack/Packaging 2 Pieces/Day 40 Piece 2.000 80.000

Yarn 2 Roll 25.000 50.000

Employee/Worker 3 Person/Mo 1.800.000 5.400.000

Water, Electricity and Gas 1 Month 500.000 1.000.000

Promotion 1 Package 250.000 250.000

Rent Cost 1 Month 3.000.000 3.000.000

Transportation 1 Package 500.000 500.000

Total 35.280.000
2.2.4 Total Investment Needed

Detail Total

Rp

Capex + Depreciation + Opex 51.917.500

Total 51.917.500

2.2.5 Profit and Loss Projection

Total Revenue

Detail Total Price/Unit Total

(Kg) Rp

Fish Meal/Fish Powder 7.000 7.000 49.000.000

Total 49.000.000

Gross Profit

Detail Total

Revenue - Operational Cost 13.720.000

Total 13.720.000

Tax

Detail Total

PPN (10% x Gross Profit) 1.372.000

Total 1.372.000
 Nett Profit

Detail Total

Gross Profit - Tax 12.348.000

Total 12.348.000

2.3. Business durability

To begin this enterprise in a small scale production might be a better option due to limited initial
capital from owners, parallel with our efforts to find buyers/customers of PANTHER. We are
aiming to get first customers from typical small scale and/or family owned poultry farming and
animal husbandries, while at the same time using personal approach to educate customers and
farm owners the importance of PANTHER as animal feed supplement.

2.4. Rate of Growth

The growth of the business is forecasted through several calculations, including:

(1) Benefit and Cost Ratio: For every 1 Rupiah that we invested (cost) will generate 1.38 Rupiah
of Revenue

(2) Break Event Point: We will reach BEP when the production has reached 7.417 Kg or 7.4
Tonnes of Fish Powder

(3) Return on Investment: For every 1 Rupiah that we invested (cost) the efficiency level will be
at 23.78%

(4) Payback period: The total investment cost will be paid back in 4.5 months.

2.4.1 Benefit and Cost Ratio (B/C Ratio)

Revenue
B /C Ratio = Operational Cost

49.000.000
B /C Ratio = 35.280.000

B /C Ratio = 1 : 1, 38
2.4.2 Break Event Point
T otal Cost
B EP P roduct = P rice/kg

51.917.500
B EP P roduct = 7.000

B EP P roduct = 7.417 Kg

2.4.3. Return on Investment

N ett P rof it
ROI = T otal Investment

12.348.000
ROI = 51.917.500

ROI = 0, 2378388 = 23, 78%

2.4.4 Payback Period

1
P BP = 0,2348388 * 1 M onth

P BP = 4, 204 Months
3. EXECUTION

3.1. Resources

3.1.1. Human Resources

- We empower the coastal community, particularly fishermen and their families.

- At the beginning, the founders will take the following roles: CEO, Head of Operations,
Head of Finance and Head of Marketing & Sales. Later on, after the business has grown
we will recruit professionals.

3.1.2. Physical/Material Resources

- Raw material : Small fishes and other sea animals that are unintentionally caught on the
fisherman’s net becomes PANTHER’s raw material, which can be bought with small
amount of money.
- Machinery: Hydraulic Press Machine, Drying Oven, Steam Machine, Grinding Machine,
Disk Mill, Packaging Machine.
- Office equipment : Laptop, printer and stationary.
- Building : Rent a building for production, packaging and business administration.

3.1.3. Financial Resources

- Cash to fund the production and distribution.

- Funding from investors.

3.1.4. Intangible Resources

- Intellectual property: Patent of PANTHER brand.

3.2. Organizational Structure

We have identified that the critical structure for our company consists of a Chief Executive
Officer (CEO), Head of Marketing and Sales, Head of Operations, and Head of Finance. For a
company that has just started, this is sufficient to make it run.