1.0 Executive
summary
Agape fish farming company is a new and a
well designed company which will be involved in raising and harvesting finfish
(tilapia) and raising and harvesting other aquaculture (such as seaweed,
alligators and frogs). We want to leverage on the vast opportunities available
in the agriculture industry, to contribute in raising national economy and also
to make profit. We want to provide services not currently being offered by any
competitor not only in Morogoro Region but also in the whole region of
Tanzania. We will ensure that we hold ourselves accountable to the highest standards
by meeting our client’s needs precisely and completely. We want to have our own
fish farming hatchery, tools and equipment that will help us raise and produce
fish in large commercial quantities with less stress so as to meet the market
demand.
1.2 Objectives of the company
These are the areas we will concentrate on
our fish farming business;
Ø Raising and harvesting finfish ( tilapia )
Ø Raising and harvesting other aquaculture
(such as seaweed, alligators and frogs )
Ø Processing and packaging of fish
Ø Exportation of packed fish
1.3 Our Mission Statement
AGAPE FISH FARMING COMPANY LIMITED is
committed in raising fish for both the internal and external market. We want
our fish farming company to be one of the developed companies which will be
dealing with the raising of fish, processing, packaging and exporting.
1.4 Our Vision Statement
Our Vision is to become one of the successful
fish farming brand not only in Morogoro but also in the whole region of
Tanzania.
2.0
Company summary
Agape
fish farming company is a start-up company engaged in the provision of services
to our customers with high quality products and will be dealing with the
raising of fish, processing, packaging and exporting.
2.1Company Ownership
Agape
fish farming company is a private
held corporation co-owned by ten primary shareholders: . Mfala Edga, Mwangi
Sharif Z, Amos Fransisco , Lyageni Robert,
Abel Amani, Charles Happiness, Magadula Regina John, Gowele Grace
Erasto, Nestory Emilia and Mwasongwe Liwitiko Daniel. In order to achieve the
objectives of the company we have decided to seek for the loan financing. This
loan will be paid from the cash flow from the business, and will be secured by
the assets of the company and backed by the character, experience and personal
guarantee of the owners.
2.2 Company location
Our
company will be situated at SUA main campus that is Sokoine university of
Agriculture, and the new constructed SUA pond will be used for raising fish.
2.3 Start up summary
The
initial expenses will be associated with setting up of the management office,
the amount required for the purchase of the first set of fishes, and the pond
preparation for introducing fish. The start up capital will be used for
designing fish farming hatchery and acquiring tools and equipment used for
raising, harvesting, processing,
packaging and exporting fish. The total fund is analyzed in the financial
summary. We plan to finance our corporation through a combination of
shareholder investment and financing loan.
|
Requirements
|
Tanzania Shs.
|
|
Start-up
Expenses
|
|
|
Legal expenses
|
5,000,000
|
|
Office and Stationary
|
1,000,000
|
|
Insurance
|
3,000,000
|
|
Marketing promotion
|
2,000,000
|
|
Official Website
|
1,000,000
|
|
Business Consultant Fees
|
3,000,000
|
|
Pond preparation
|
3,000,000
|
|
Purchase first set of fishes
|
5,000,000
|
|
Tools and equipment
|
5,000,000
|
|
Fish hatchery
|
3,000,000
|
|
Operational costs
|
7,000,000
|
|
Total
Start-up Expenses
|
38,000,000
|
|
Start-up
Assets
|
|
|
Cash Required
|
7,000,000
|
|
Start-up Inventory
|
4,000,000
|
|
Other Current Assets
|
3,000,000
|
|
Long-term Assets
|
8,000,000
|
|
Total
Assets
|
22,000,000
|
|
Total
Requirements
|
60,000,000
|
3.0 Strategy and implementation
Ø Growth
strategy: Introducing new
product such as tilapia in a prepared pond and maintaining the feeding in a
clean environment with all required condition.
Ø Product
quality: In our company we
intend to produce fish which are of good quality and acceptable standards
required in our country.
Ø Service:
Our Company will engage in giving proper and
fair service to all the customers in a required manner and in a comfortable
environment.
Ø Marketing:
We will need to target our customers early
and often, while the business is located in a central and accessible location
and aiming at selling our product at low cost.
4.0 Fish Farming Business Plan – SWOT
Analysis
We will engaged the services of a core
professional in the area of business consulting and structuring to assist our
organization in building a well structured fish
farming company.
Here is a summary from the result of the SWOT
analysis that was conducted by our company.
4.1 Strength:
Our strength as a company based on the
fact that we will be able acquire the
latest fish farming hatchery, tools and equipment that will help us raise and
produce fish in commercial quantities with less stress.
4.2 Weakness:
Our weakness could be that we are a new fish
farming company in Morogoro perhaps it might take us sometime to attract big
time customers in the industry. We are aware of this and we have planned to
overcome this weakness with time and turn it to a major advantage for the
business.
4.3 Opportunities:
The opportunities that are available to us as
a standard fish farming company based on
the fact that are loads of households, and businesses such as hotels and fast
food restaurants that can’t do without daily supply of fresh water fish. We are
well positioned to take advantage of this opportunity
4.4 Threat:
Some of the threats and challenges that we
are likely going to face when we start our own fish farming company are global
economic downturn that can impact negatively on household spending, bad weather
and natural disasters such as flooding, unfavorable government policies and the
arrival of competitors within same location. The company expects to face some
problems such shortage of power, machines failure and breakage and price fluctuation
during purchase of materials.
5.0
Organizational structure
Our initial team will consist of ten members,
and we will divide our self into five groups as follows
Ø The first group Regina John and Gowele Grace
Erasto will act as Chief Operating Officer,
Ø The second group Mfala Edga and Mwangi Sharif Z will act as General Fish Farm
Manager,
Ø The
third group Amos Fransisco and Lyageni Robert will act as Human Resources and
Admin Manager,
Ø The
forth group Abel Amani and Charles Happiness,
will as Accountant / Cashier,
Ø The
fifth group Nestory Emilia and Mwasongwe Liwitiko Daniel will act as Sales and
Marketing Executive and Field Employees.
5.1
Products and services.
Our company will be involved in the raising
harvesting processing packing and exporting tilapia fish and other aquaculture
products such frogs.
5.2
Competitive comparison
Despite there are many companies in Morogoro
town which are engaging in fish selling but our company will start its service
provision with standards to meet customer’s requirements, in order to compete
with the present companies. Also we plan to offer high standard service of a
reduced and affordable price by our clients.
5.3 Management summary
We will maintain our business by keeping the
surrounding in good manner, good quality production, to emphasize the cleanness
and good exportation for both external and internal market
Our management team will consist of the
shareholders and will ensure that there is respect for each of our fellow
employees, respect for every customer and individual responsibility.
5.4 Market analysis summary
Our
target market will be raising of fish, processing, packaging and exporting.
This will include selling our products at the farm site, distribution to all
communities around SUA, Morogoro region, other region in Tanzania and exporting
outside the country. Based on our survey, 65% of our services will be
associated with fish farming(tilapia), 25% will concern with processing,
packaging and exporting fish and 10% will concern with harvesting other
aquaculture (such as seaweed, alligators and frogs).
5.5
Our Target Market
Below is a list of the people and business that we will
market our fish and other aquaculture products;
Ø Households
Ø Individuals
Ø Hotels
Ø Restaurants
Ø Researchers
5.6
Pricing
We are quite aware that one of the easiest
means of penetrating the market and acquiring loads of customers for all our
fishes is to sell them at competitive prices hence we will do all we can to
ensure that the prices of our fishes are going to be what other fish farmers
would look towards beating.
Our prices will be slightly lower than those
of our local competitors.. Overtime our prices may fluctuate along with the
rises and falls of the raw resources as well as trying to remain close with our
competitors and not allow the gap between quality and price become too large.
The figure below is a generic list of some of the basic products we hope to
sell and the price we plan to sell them at
|
Product
|
Price (Tsh)
|
|
Tilapia
|
6000
|
|
Frog
|
2000
|
Ø
6.0 Financial plans
Basically our financial plan is initiating,
maintaining and improving the factors that create, stabilize and increase our
cash flow. We must create visibility so as to create customer flow and we must
maintain a dependable, cheerful employee force so as to minimize turnover.
6.1 Start-up
funding
Agape fish farming Company funding
requirements of 60,000,000/=Tsh will come from a combination of owner capital
contributions and an CRDB bank loan. Each owner will contribute 2,000,000/=Tsh
to the company. From the CRDB bank loan we will be able to secure assistance
financing of 40,000,000/=Tsh, and the loan packet will be presented to local
banks for final funding. The loan is expected to adhere to the following terms:
an interest rate no more than 8.5% and a loan term no greater than 5years.
Start-up
Funding
Amount (Tsh)
Start-up Expenses to Fund
38,000,000
Start-up Assets to Fund
22,000,000
Total Funding Required
60,000,000
Assets
Non-cash Assets from Start-up 15,000,000
Cash Requirements from Start-up 7,000,000
Additional Cash Raised
0
Cash Balance on Starting Date 7,000,000
Total Assets
22,000,000
Liabilities and Capital
Liabilities
Current Borrowing
40,000,000
Long-term Liabilities 0
Accounts Payable (Outstanding Bills) 0
Other Current Liabilities
(interest-free)
0
Total Liabilities 40,000,000
Capital
Planned Investment
Owner
20,000,000
Investor
0
Additional Investment Requirement 0
Total Planned Investment 20,000,000
Loss at Start-up (Start-up Expenses) (38,000,000)
Total Capital
(18,000,000)
6.2
Break Even Analysis
Our break even analysis we assume estimated
operational cost per batch which include payroll, rent, utilities and other
running costs. Payroll alone is only estimated at 60,000,000 Tsh per batch
including taxes and we will have six batches.
We expect to have total revenue of
96,000,000TZS per month.
6.3
Profit per year
Profit per year = Total revue per year– total
variable cost per year
Profit per month = 96,000,000 Tsh –
60,000,000 Tsh.
Profit per year = 36,000,000Tsh. Making this
profit per year, we are able to continue with our business as it has shown a
good indicator of getting a good profit. Hence we expect to pay for loan at
interest of 15% of our profit after 6 months.
6.4 Projected profit and loss:
In our projected profit and loss statement
there are two important assumptions
Ø Our revenue is based on minimum estimated
averages against highest expenses expectations.
Ø Sufficient access to capital.
Ø Solid economy with no major downturn
7.0
CONCLUSION AND RECOMMENDATION
7.1
CONCLUSION
The business plan holds all requirements for
successfully establishment of barbershop company, objectively to provide
services reaching acceptable standards, meanwhile trying to minimize costs of
installation as low as we can. If we manage to run in line with the budget, the
company expects to yield 36,000,000 Tshs per year as profit allows paying of
the loan acquired from (CRDB) bank for interest of 15% of the profit for 6
months and continue with business.
7.2
RECOMMENDATION
Ø Implementation of other alternative sources
of power such as solar power to enable a continuous production.
Ø Maintenance to be given high priority so as
to avoid unexpected breakdowns.
8.0 APPENDICES A;
EXPECTED SALES;
|
Item
|
Amount
(Tsh)
Cost to
profit per
profit per Process sold(per month) price sold kg profit per batch year
|
|||||
|
Tilapia
|
3000
|
5000
|
6000
|
3000
|
15,000,000
|
90,000,000
|
|
Frogs and other aquaculture
|
1000
|
1000
|
2000
|
1000
|
1,000,000
|
6,000,000
|
|
Total
|
16,000,000
|
96,000,000
|
||||
WORST CASE
|
Item
|
Amount
(Tsh)
Cost to profit per profit per Process sold(per month ) price sold kg profit per month year
|
|||||
|
Tilapia
|
3000
|
4000
|
6000
|
3000
|
12,000,000
|
72,000,000
|
|
Frogs and other aquaculture
|
1000
|
500
|
2000
|
1000
|
500,000
|
3,000,000
|
|
Total
|
12,500,000
|
75,000,000
|
||||
BEST CASE
|
Item
|
Amount
(Tsh)
Cost to
profit per
profit per Produce sold(per day) price sold item profit per day month
|
|||||
|
Tilapia
|
3000
|
6000
|
6000
|
3000
|
18,000,000
|
108,000,000
|
|
Frogs and other aquaculture
|
1000
|
1500
|
2000
|
1000
|
1,500,000
|
9,000,000
|
|
Total
|
353,000
|
117,000,000
|
||||
