Business plan

Prepared by

GIMBA IBRAHIM DANLADI

08034518030

On

Fish FARMING
Presented
TO
Small and medium enterprises
development agency of Nigeria

For agsmeis loan

JUNE, 2020.
 EXECUTIVE SUMMARY
The Business Plan considers the viability of the proposed GIMBA
IBRAHIM DANLADI Fish Farm. The project is located at KUYI VILLAGE
MAIKUNKELE BOSSO LGA NIGER STATE. The project plan is to
accommodate Six Thousand juvenile at 1,000, for difference of one month interval.
The project that is the fishing pond has six difference ponds, build to accommodate
1000, fingerling each. The pond is built on land measures 250feet by 200feet
square. Each pond is about 43feet by 40feet for the length, while its six feet deep to
the ground.
The market and financial analysis carried out has shown the viability of the
project on the basis of three financial models this include the payback period (PBP)
which is,2.7 years, the net present value NPV7949703.8 and profitability
index,0.07, which are all positive beyond the financial analysis, the market
research indicate that the investment as a worthy decision on the wider setting
Niger State has unlimited opportunities for agricultural industries given the state
Agririan and tourist hub of the country.
The business will be for now sole ownership but will sort for the services of the
expert or the experience hand in the business for their services.

BACKGROUND INFORMATION
The farm is located at KUYI VILLAGE MAIKUNKELE BOSSO LGA NIGER
STATE. The farm idea was conceptualize about three years but the actual work on
site started last years, the land as earlier mention is about 250feet by 200feeet
square. There is six pond build on the land each of the pond if completed could
take up to (1000) one thousand fishes or finger line for start.
It cost one million five hundred thousand (1,500,000) to procure the land, it cost
about five hundred thousand (500,000) to build each of the six ponds to the level at
which they are. Each of the pond measured between 45 feet to 40feet by square
meters and it is six feet to the ground. The project is at the level at which are, each
pond has been built to a level but the flour cannot be concrete, the sources of the
water shall be from a nearby flowing river that flow at all season. The pond is built
in such a way that has the inlet and outlet, where water will be pump in and when it
will be realize out for another fresh one. The office structure also is already build
that will accommodate the CEO/MD and security and a store where the material
will be sate kept. The business major product shall be fresh table size fish. The
production involves the stocking of finger line or juveniles direct to the ponds for
rearing to at least five months. The source of the fingerling shall be from Ilorin in
Kwara State. Improved floating feeds will be used in the fish production.
Medication and other expecting or specializing service will be employ on the base
of either part time of full time as the case may be.
My major sales out lets targeted are open market or general public, Hotels, Eateries
abound town and Niger State School feeding programmes, other fish roasting
joints in town. The market analysis conducted customers from Abuja always
flowing to Minna in need of fish both fresh and smoked fish
The project require the completion of the ponds, procurement of the equipment
such as pumping, engine, generator for electricity, an aerator weighing scale,
scooping nets as well finger line. The total cost for procurement of this materials
and completion of the six ponds under construction is Nine million four hundred
thousand Naira (N9,400,000).

BRIEF DESCRIPTION OF PROJECT PROCESS

The intend fish production will involve the stocking of 6,000 fingerling or juniles
which will be source from a reputable fish farm especially from Ilorin in Kwara
State, the fingerling will be source at eight weeks from reputable fish farms from
Ilorin and the stocking will commence immediately, sorting of fish is carried out
weekly to create the fish according to sizes for marketing merging purposes and
ensure uniformity in term of growth.
They will be reared to 12cm sizes before been treat with lime because of the effect
of cement on them. Commercial fish feeds 1.09 conversion rations (feed flesh) at 5
body weight initially and later 3% body weight will be used to attain marketable
size (1.4kg) within a period of 5 month.
With proper management, medication and routine activities will ensure that the
enterprise attains the average weight 1.4kg per fish harvest. The harvest fish are
graded by size for buyers/customers to have standard price.

LOCATION OF THE PROJECT

The location of this project is at KUYI VILLAGE MAIKUNKELE BOSSO
LGA NIGER STATE.
The location is choose as a result of source of natural water, the location gives the
project easy access to natural water that is suitable for the rearing of fish, the
location has a good weather, have security because there are villages around the
area that gives the location a good security. The weather gives it an enabling
environment for the fish farm. Because of the nearness to the flowing river that
survives all season.

MARKET AND PROMOTION STRATEGY

With the market survey conducted, there is availability of fish market in Minna and
its environment; the demand for fish in the market is not always meet by the supply
available because of the perishable nature of the fish or the storage problem of fish
in Nigeria.
So what we just need is to create awareness of the product there will flood of
buyers to the farm especially the retailers in the fish business.

DISTRIBUTION STRATEGY

We intend to use the establish distribution channels of producer – wholesaler –

retailer – customer

a. Supply Hotels, fast food joint, school especially boarding school.

b. Directly to the end users especially customer on request of large quantity,
especially during occasional like wedding, burial, Naming ceremony.

c. Will have our stand at busy joint, market and supermarket in town.

PROMOTION STRATEGY

- We will have billboard that indicate our production location or pond/farm on

how to get there with ease.

- We will keep the address/GSM numbers of our customer as they once

patronize us in areas to remain in constant touch with them at also inform
them during harvest.

- We will use Facebook, Whatsapp and other internet application to advertise

our product.

PROFIT OBJECTIVE

To obtain an earning after income of 15% total assets, to achieve a target return on
investment and maximizes profit.

- To penetrate the market and gain and maintain a market segment.

- To penetrate Hotels, Restaurants market and achieve at least 40% shares at

the end of the first year.

- To extend the market coverage beyond the state and environs.

- To keep scaling expenditure down to at least 8% of sales.

MANAGEMENT PERFORMANCE AND DEVELOPMENT

- To operate a system of enumeration base on job content qualification,

known and level of responsibility.

- To introduce and make full use of control performance of labour, plant,

material utilization.

COMPETITIVE ADVANTAGES TO EXISTING COMPETITORS

- High product quality and standard

- Relatively cheaper selling price per kilo unit especially cooperate customers,
example Hotels, Restaurants.

- Delivers product as at when due to the and after delivery services.

- To keep the customer happy and become service leader in the town and a
Farm of first choice, this strategy will allowed the project meet the target on
investment.

MANAGERIAL STRUCTURE

MD/CEO

Farm Manager

Farm Attendance Sales Rep. Security

MD/CEO is in charge of the farm decision in conjunction with the Farm Manager
Supervisor and delegate responsibilities. The Manager has been in business for quit
sometime and also have gone through basic and advance business training in
(NDE) National Directorate of Employment for a period of four weeks called Start
Your Own Business (SYOB).
SWOT ANALYSIS
Strength
- Experience in business
- Adequate security arrangement
- Location is in the serene and conductive environment within the village
settlement.
Weakness
- Existence of competitors
- Epidemic
Opportunities
- Could take market share from other competitors
- Increase in tourism activities
Threat
- Another farm could move into this area
- Stall perching by new entry
- Keeping train staff
- Decrease in purchasing power of customer

FINANCIAL ANALYSIS
The section shows the production and viability of the project for the first six month
and the next five years operation after the completion of the project. The projection
assumes 365 days a year and operating 24 hours staff a day.

REVENUE COMPONENT
The project revenue have been based on the following key assumption and
information.
a. Operating schedule of 2 circle per annum
b. Mortality rate of 10%
c. Average price per kilo at N1,700

DEPRECIATION
Depreciation allowances are based on straight line method and the following rate
are proposed.
Land ……………………………………………………………….. NIL
Building…………………………………………………………….. 5%
Plants/machine ……………. And equipment……………………. 10%

NOTE:
The total depreciation changes for the first will be approximated at 45% the total
asset value.
LEGAL RESPONSIBILITY OF THE BUSINESS
The project is in the process of registration with the relevant bodies that have direct
bearing on the existence and the wellbeing of the project, such bodies are follows,
Niger State Ministry of Commerce, Corporate Affair Commission (CAC) National
Agency Food and Drug Administrative Commission (NAFDAC) that give it a legal
entity.
We will also ensure membership of all union that has direct bearing on our
existence, Registration with state chamber of commerce industries Minna and
Agriculture (NCCIMA).
INSURANCE

The project will be ensured with a reputable insurance company as soon as it take
up to mitigate it against any disaster that may occurs in the feature for the
magnitude of the fund in this project.

TABLE 2 : RETURN ON INVESTMENT PROJECTION

KEY ASSUMPTIONS:

The analysis is for one year, i.e two production circle (period 5 months/cycle) and
the stock sizes is 6,000 juveniles/cycle.

The expected average per fish at 5 months is 1.4kg

10% mortality rate

Insurance is put at 2.5% of the cost of fingerling or the juvenile.

TABLE 2 RETURN ON INVESTMENT ON THE PROJECT

ITEMS UNIT UNIT PRICE Q/Y VALUE

REVENUE
TABLE SIZE 4kg 800
FRESH FISH

S/N ITEMS UNIT QUANTITY UNIT TOTAL

COST COST
1. Concrete Pond 43+4x40+4 6 6 500,000 3,00,0000
2. GENERATOR 2 2 750,000 1,500000
3. HOUSE/TIO 3 ROLES 3 ROLES
4. PIPE/RODE/RUBER 36 36
5. COMPLETING WORK OF 6 6 600,000 3,600,000
THE POND
6. WEIGHING SCALE 1 1
(STANDING)
7. SCOOPING NET 26 26 3 78,000
8. NE SHED 18 18 2 36,000
9. EARATORS 6 6 15 90,000
 10. LABOUR/WAGES 250,000

RETURN ON INVESTMENT ON THE PROJECT FOR PER CIRCLE

ITEMS UNIT UNIT PRICE QTY VALUE

REVENUE
TABLE SIZE Kg 800 4750 620,000
FRESH FISH
TOTAL 620,000
REVENUE(A)
VARIABLE NO 450 3,000 450,000
COST(INPUT)
FINGERLINE
FEEDS BAGS 65kg 7,00 45 315,000
Medication 10% COST - - 3,150
OF FEED
COMPANY 10,000
REGISTRATION
(CAC)
INSURANCE 16,000
TOTAL 1,244,150
VARIABLE
COST
DEPRECIATION 305,000
GROSS 939,150
MARGIN

FIXED ASSETS REGISTER

S/N ITEMS COST LIFEFAN ANNU ANNUAL
EXPECTED AL DEPRECI
DEPRE ATION
CIATI VALUE
ON
1. CONCRETE PONDS 500,000x6 10 YEARS 5% 150,00
43H+40H 3,000,000
2. FISH SMOKE AND 390,000 10YEARS 5% 19,500
DRYING MACHINE
3. HOSE/TIO 2 ROLES 10 YEARS 5% 30,000
400,000
4. PIPE/RUBER/IRON 250,000 10 YEARS 5%
5. WEIGTH SCALE 280,000 10 YEARS 5% 14,000
6. SCOOPING NET 78,000 2 YEARS 5% 3900
7. NET SHED 36,000 2 YEARS 5% 1800
8. EARATORS 90,000 10 YEARS 5% 45,000
10. COMPLETION 350,000 133300
POND
TOTAL 9,400,000 453,000

CASH FLOW PROJECTION FOR FIVE YEARS

YEAR CASHIN DISCOUNT PV CUMULATIVE
FLOW FACTOR
0 10,000 12% - -.
1 4690,000 0.98881 4634189 4634189
2 3452,000 0.9764 33705328 8004721.8
3 2848,000 0.9648 2745472 10750193.8
4 3500,000 0.9648 3336900 14087093.8
5 4100,000 0.9421 3862610 17,949703.8
NPV 7949703.8

NPV = Present Value – Initial Capital

= 17,949703.8 – 9,400,000

= 7,94973.8

Payback period = b + (a - c)
d
= a =9,400,000
b=4
c = 8004721.8
d = 2745472
= 2+ 9,400,000 – 8004721.8
2745472
= 1995278.2
2745472 = 2+0.7 = 2.7

The payback period (PBP) = 2year 7month.

Profitability index 1 16 Net present value
 Initial capital
= 794973.8
9,400,000
= 0.07
The profitability or positive for this investment.

CONCLUSION AND RECOMMENDATION

The project proposed here show a payback period of two years seven months
and the not present value of about Seven Hundred and Ninety-Four Thousand Nine
Hundred and Seventy-Three Naira Eight Kobo (N794, 973.8).

The cash flow table also indicate substantial surplus in the first years to the
fifty years of operation.

We are therefore of the opinion that the project is economically attractive

and viable and we are hereby recommended that the project be funded through this
opportunity for this loans.