I.

INTRODUCTION

The world nowadays is in great turmoil, financial crisis seems to plunge each
and everyone. Aching global oil crisis, threatening nuclear crisis, and sinking
financial economies are such of the few that warned us that we have to save and
we have to be practical.

Thus, in order to answer the needs of the time, we carved this idea of having
a fish farm business project to alleviate or even just soothe the crisis faced by most
of the consumers right now. We plan to raise this project, not just of aiming to have
bountiful gains but also to aid the masses of consumers by offering quality product
guaranteed with pocket-friendly price.

II. NATURE OF BUSINESS

We’ll name our business as Dive Fish Farm Company, an ideal business
venture, to be located at Dongon, Maasin City. It will engage in fish farming and
selling commercial fish such as Bangus. It will target to sell to the well known
restaurants, sardine manufacturers and mainly to the ordinary consumers. We, the
partners, we’ll have to converge our resources and intellect to run this proposed
business. As agent of the business success, each one of us shall endeavor to make
this venture to be lucrative.

The production phase is expected to create minimal cost because there are
lot of traditional yet effective process of raising fishes that can be combined with
scientific technology which will surely provide productive harvests at low cost. The
cash requirement of implementing the project is estimated to reach P 700,000. The
source and cost of financing the project will be charged to the partner’s capital.
III. RISKS

The risks involved with starting Dive Fish Farm Company are:

• Will there be an escalating demand for the product offered by the company?
• Will the price not be onerous to the consumers?
• Will the cost of accessing Dive Fish Farm Company not hinder the consumer
to negotiate?

IV. PROPONENT, MANAGEMENT AND PERSONNEL

Each of the partners is responsible for the management of the business

operations. They are also responsible to look out the 20 personnel of the company
in maintaining and raising the fish farm. The work force will be the one to maintain
and to take care of the fish farm but with supervision of the partners. Each partner
has his own respective scheduled duty in the company in order to supervise the
employees each day.

• PROPONENTS

 Edner Anthony Casulla

 Joel Gaddi

 Leo Omamalin

 Michelin Tan

 Juvy Ann Verano

• PERSONNEL OR WORK FORCE

Number Position Qualification Salary

1 Manager CPA/Commerce P6,000
Grad
1 Security Guard College level 1,000
1 Cashier Commerce Grad 5,000
 1 Bookkeeper Accountancy 5,000
Grad
16 Workers High School 1,000
Grad
Number Description Unit Cost Total Cost
1, 000 Mini-Styro Box P2.00 each P 2,000.00
1, 000 Plastic P11.00 per 100 P 110.00
pieces
10 Sealer P300.00 P3, 000.00
1 Delivery Van P500.00 P 500.00
3 Weighing Scale P 1, 300.00 P 3, 900.00
1 Cash Register P 9, 000.00 P 9, 000.00
1 Telephone P 1, 800.00 P 1, 800.00
2 Ceiling Fan P 1, 200.00 P2 , 400.00
1 Fish Net P 1, 500.00 P 1, 500

• MACHINERIES AND EQUIPMENTS

Total P 523,
710.00

• ORGANIZATIONAL CHART

MANAGER

CASHIER BOOKKEEPER

SECURITY
WORKERS
GUARD
V. PROJECT TIMETABLE

Activity Time Frame (Week)

1 2 3 4 5 6 7 8 9 1 1 1
0 1 2
1. Project Planning

2. Acquiring Space

3. Acquiring equipment

4. Securing Business
Permit

5. Hiring Personnel

6. Searching of customer

7. Start of operation

VI. MARKET FEASIBLITY

Our target market is not just the plain consumers or the families but we have
widened our scope from the families to the restaurants and sardines manufacturer.
We will also distribute our products through consignors.

The major targeted consumers and costumers of our products mostly are the
people in our province Southern Leyte. But it doesn’t mean that we’ll just confine
here in our province but we’ll also mark to accept customers from neighboring
islands. We have expected that the demand of our product will reach up to
maximum 150,000 kilograms this coming 5 years. The supply divides as about 83%
for human consumption and 17% for exports and non-food uses.

The proposed prices of our product lie between P100.00 to P150.00 per kilo.
The price will be anticipated fluctuate due to the variability of demand and supply of
the harvest. Our price will be much lower than the competitor to attract customers,
to provide them satisfaction and most of all, to suffice our objective—to provide
pocket-friendly price to the customer. We’ll always mark to maintain the
competitiveness of our product by maintaining its quality. We’ll have to freeze and
to make them clean to avoid any damage and unnecessary smell.

For bulk sale, we will offer a free delivery system especially to far-flung
customers.

There are two channels of distribution of our product which can be illustrated
as follows:

(1) Direct type of distribution.

DIVE FISH FARM END CUSTOMER

(2) Indirect type of customer by channeling first the product to

consignors.

DIVE FISH FARM CONSIGNOR END

CUSTOMER

VII. PROPOSED MARKETING PROGRAM

We will make the packaging of our product be attractive to the buyer. We

will categorize the packaging into three according to the number of kilos: 1
kilogram; 2 kilograms; 3 kilograms and above. The color of our packaging will be a
color gradient white and blue plastic with a mini-Styrofoam box inside which will
serve as the container. We have also planned to advertise our product in radio and
in newspaper.

VIII. PROJECTED SALES

For the next five years, we will expect to sell almost 150,000 kilograms of
fishes considering that our marketing program and competitive position will be
maintained. Financially, we are trying to aim to reach 15 million pesos cumulative
gross sales for the next five years.

IX. PRODUCTION
 • Product Specification

The fish that we are going to produce and sell is a high quality fish, fresh and
one source of providing protein. The customer doesn’t have to wait for a longer time
because we have sufficient supply of fish, continuous operation and on time
delivery. We can assure that every kilo have its exact weight.

• Production Process

In raising Bangus, we will provide and sprinkle milk powder or flour to the
growing Bangus. The fishes could also be given breadcrumbs and food leftover. The
size of the male Bangus was ready for market within 4 months while the female will
almost reach 6 months before ready to be marketed. It is possible to harvest 1 ton
of Bangus in every one hectare within 3 to 4 months if the sufficient food supply for
the fishes will be maintained.

• Plant Size and Production Schedule

We’ll timing the period of raising the Bangus in such a way that we can
possibly harvest every month and there will be no lag of production. We’ll develop a
systematic and sophisticated scheduling of raising and harvesting.

The size of the pond is 1.5 hectares by 1.5 hectares long and wide and 4
meters deep which contained 15 cubicles.

• Startup Source and Supply of Bangus

The supply of the young Bangus for the start up is available in the
Department of Agriculture, Maasin City. Its unit cost is P2.00 each. The supply of the
commercial floater feeds costs P1, 550.00 per sack based on the current quoted
price of Magic 9 Marketing Enterprises, Tunga-Tunga, Maasin City.

• Utilities

We need electrification for the lighting and mainly for the refrigeration of our
product. Our water supply is connected to Barangay Dongon Water Supply for our
rest room, washing and processing area but except for the water supply to our fish
farm. We will sustain the water supply for the fish farm by getting directly from
Dongon River via pipelines. We also have to ponder wireless telephone to ease the
access of the customer and this will cost P5, 000. 00 per month.

X. OPERATING COST:

Tools and Equipment 523,710

Miscellaneous Expense 200,000
Salaries Expense 400,000
Installations 100,000
Total 1,223,710

XI.FINANCIAL FEASIBILITY

• Funding

 Use of Funds

Pre-operating expense 700,000

Fixed Assets to be 523,710
acquired
Initial Working Capital 276,910
Total 1,500,000

 Sources of Funds

Equity Contribution 1,200,000

Bank Loan 300,000
Total 1,500,000
• Major Assumptions

 Sales 1,500,000 in year 1 to increase 22,000 kilos every year or

total of 3,300,000 sales increase.
 Cost of Sales is 60% of the Sales.
 Salaries Expense 400,000
Installation Expense 100,000
Miscellaneous Expense 200,000
Depreciation Expense 26,180
 Operating Expenses

The total fixed asset will be depreciated using straight line method and
are expected to have average useful life of 20 yrs. Other expenses except
salaries will vary every year in increase of 1%. The installation expense will
only appear during the first year.

 Fixed asset to be acquired is P523, 710 in year 1 to increase by

2% every year.
 Capitalization

Owners Equity 1,200,000

Bank Loan 300,000

The amount of Bank Loan is already net cash proceeds which mean that the
interest is already deducted in advance.
 • Financial Projection

Dive Fish Distribution Company

Forecasted Income Statement

For the first Five Years

Year1 Year2 Year3 Year4 Year5

Sales 1,800,000 5,100,00 8,400,00 11,700,0 15,000,00
0 0 00 0
Less: Cost of 648,000 3,060,00 5,040,00 7,020,00 9,000,000
Sales 0 0 0
Gross Profit 1,152,000 2,040,00 3,360,00 4,680,00 6,000,000
0 0 0
Less:
Operating
Expenses
Salaries 400,000 400,000 400,000 400,000 400,000
Installation 100,000 - - - -
Miscellaneous 200,000 202,000 204,020 206,060 208,120
Depreciation 26,186 26,186 26,186 26,186 26,186
Total Expenses 726,186 628,186 630,206 632,246 639,306
Net Earnings 425,814 1,411,81 2,729,79 4,047,75 5,365,694
4 4 4
 Dive Fish Distributor Company

Projected Balance Sheet

For the first Five Years

Year1 Year2 Year3 Year4 Year5

ASSETS:
Cash 1,428,00 2,380,00 3,663,48 4,946,73 6,229,7
0 2 4 3 44
Fixed Assets 523,710 534,184 544,868 555,765 566,880
Accumulated (26,286) (52,372) (78,558) (104,744) (130,93
Depreciation. 0)
Total Assets 1,925,81 2,861,81 4,129,79 5,397,75 6,665,6
4 4 4 4 94
LIABILITIES AND
EQUITY
Loan Payable 300,000 250,000 200,000 150,000 100,000
Owners Equity 1,200,00 1,200,00 1,200,00 1,200,00 1,200,0
0 0 0 0 00
Retained Earnings 425,814 1,411,81 2,729,79 4,047,75 5,365,6
4 4 4 94
Total Liabilities & 1,925,814 2,861,814 4,129,794 5,397,754 6,665,69
Equity 4
 Dive Fish Distributor Company
Projected Cash Flow
For the first Five Years

Estimated Cash Year1 Year2 Year3 Year4 Year5

Inflows:
Sales 1,800,00 5,100,00 8,400,0 11,700, 15,000,0
0 0 00 000 00
Partners Investment 1,200,00 - - - -
0
Proceeds from bank 300,000 - - - -
loan
Total Cash Inflow 3,300,00 5,100,00 8,400,0 11,700, 15,000,0
0 0 00 000 00
Estimated Cash
Outflow:
Operating Expenses 1,121,71 4,087,81 7,055,8 10,355, 13,655,8
& Cost of sales 0 4 34 854 74
Acquisition of Fixed 523,710 10,474 10,684 10,897 11,115
Assets
Cash Payment for 50,000 50,000 50,000 50,000 50,000
bank loan
Total Cash Outflow 1,871,71 4,148,28 7,116,5 10,416, 13,716,9
0 8 18 751 89
Cash Balance 1,428,29 951,712 1,283,4 1,283,2 1,283,01
0 82 49 1
ADD: Beginning - 1,428,29 2,380,0 3,663,4 4,946,73
Balance 0 02 84 3
Cash Ending Balance 1,428,29 2,380,00 3,663,4 4,946,7 6,229,74
 0 2 84 33 4

• Financial Analysis

 Return on Investment = Average Net Income/Average Equity

=2,796,174/ 1,200,000
=.233
` = 23.3%

 Average Net Income=Sum of annual net income for 5 yrs./5

=425,814+1,411,814+2,729,794+4,047,754+5,365,694
5
=13,980,870/5
=P2, 796,174

 Average Equity= (Equity of year 1+year5)/5

=1,200,000+1,200,000
2
=2,400,000
2
=P1, 200,000

The Group behind the Wall:

 Michelin Tan

 Leo Omamalin

 Edner Anthony Casulla

 Juvy Ann Verano

 Joel Gaddi

We have attached herewith our resumes.