Cross River University of technology (crutech)

Faculty of basic medical sciences

(okuku campus)
Department of medical biochemistry
An assignment on
Entrepreneurial……………………..
Question:
Written by:
Name: akpan, mmeyene chrysantus
Matriculation no: 18/d/bcm/001
Course code: ent 3101

Submitted to:

Course lecturer

In partial fulfillment of the course requirement (ent 3101)

 MICARY’S FISHERY
Table of Contents
1. Executive Summary
1.1. Fish Farming Startup Expenses
2. General Site Description
3. Products and Services
3.1. Industry Analysis
3.2. Customer Profile
4. Fish Farming Marketing Plan
4.1. Marketing Objectives
4.2. Pricing
4.3. Economics
5. Product
5.1. Features and Benefits
5.2. Customers
5.3. Competition
5.4. Niche
5.5. Strategy
5.6. Promotion
5.7. Sales Forecast
6. Operational Plan
6.1. Production
6.2. Location
6.3. Legal Environment
6.4. Personnel
6.5. Inventory
6.6. Suppliers
6.7. Credit Policies
7. Management and Organization
8. Personal Financial Statement
9. Startup Expenses and Capitalization
10. Financial Plan
10.1. 12-Month Profit and Loss Projection
10.2. Business Plan Projected Cash Flow
Mission Statement
To be self-employed, create employment opportunity for others, provide protein to the
populace and help save some foreign exchange for Nigeria.

Goals and Objectives/Aim

The goal is to have a healthy Our, successful company that is a leader in customer
service and that has a loyal customer following. While our Objective will be to have our
dried fish in every port of soup in Nigeria.

Business Philosophy
To earn a good living from what I offer to my customers, while they continue desiring
that we serve them always.

EXECUTIVE SUMMARY
Our business plan on fish farming shall begin with the production of catfish but later,
tilapia shall be added. We shall sale fresh initially but later, the introduction of drying
and packaging also follow. Our customers shall be open market, restaurant and
grocery. Over time with reasonable expansion, we shall commence exporting the
product when the local market is satisfied. The name of the business is "MICARY'S
FISHERY. With God on our side, the bisness will be expanded in future since fish will
always be consumed by man and there is no way everybody would go into fish
production.

Fish Farming Startup Expenses

The fish farming project would take approximately N 600,000 (six hundred thousand
naira only).
The pelletizing machine and dryer would enable the preparation of feed which would be
cheaper at the long run, thereby increasing the profit. This is because imported fish feed
is expensive and would reduce the profit margin if depended upon throughout the six
months grow-out period.

GENERAL SITE DESCRIPTION

Our business will basically be hinged on preparing the site, acquiring one mobile ponds,
fertilize the ponds within 2 weeks, buy 100 fingerlings for the pond, feed them two times
day till maturity at 6 months and then sale off as point-and-kill or as dried fish or both.
Having sold off, we stock again and repeat the process of brood and sale. We shall also
go into hatching over time.

Target Customer
 Since there are no religious, cultural or demographic barriers on the consumption of
catfish, our customers shall be the open market, restaurants and grocery shops. Over
time with reasonable expansion, we shall commence exporting the product when the
local market is satisfied or just to earn foreign currency.

Competition
Catfish farming business is still in its infancy in Nigeria, with the commodity very
expensive because it is insufficient to go round. Most of the practitioners do it on small
scale in their backyards and near their houses. With enough financing the country would
begin to witness large scale fish farming running into hundreds of million naira. Cost of
imported fish feed is very high now because of high cost of the dollar. This in turn
makes the fish unaffordable by the common man. With growth overtime, and
encouraging national agricultural finance policy, we desire venturing into commercial
local fish feed production as soon as possible so that we can have first-time advantage.

Strength and Competences

The most important strength and competence of Micary's Fishery is based on the fact
that the prime mover is an educated and trainable person. She can easily adapt to
changing situations.

Legal ownership:
For now, our Legal form of ownership is Sole proprietorship and is subject to available
cash but, we are open to other business structures like Partnership, Limited liability and
even Public Liability as our final destination.

PRODUCT AND SERVICES

This fish farming will basically be hinged on preparing the site, acquiring one mobile
pond, fertilizing the pond within 2weeks, buying 100 fingerlings for the pond, feeding
them two times a day till maturity at 6 months and then selling off as point-and-kill or as
dried fish or both. Having sold off we stock the ponds again and repeat the process of
brooding and selling.
At this point, we intend to keep some fish until we can use them for hatching. This
would mean constructing another mobile pond as hatchery/nursery pond, like 1 number
of 8 x 8 feet.
At the onset of operations, the Fishery will have approximately one person in
addition with the owner making it two people to assist with the day to day operations.
Another important product and service is the preparation and sales of fish feed. This
would however require separate capital outlay not covered in this business plan.
Nigerian economy is slowly recovering from recession. This slowdown in the
economy has also greatly impacted real estate sales, which has halted to historical
lows. Many economists expect that this recession will continue through 2021, at which
point the economy will begin a prolonged recovery period. However, this should have a
minimal impact on the Fishery’s ability to generate revenues, as much of its produced
fish will be geared towards popular fish that are constantly in demand regardless of the
general economic climate.

Business Analysis
Each year, the business generates a lot of money from fish farming through retail fish
sales. These sales also include the receipts generated by restaurants that specialize in
the sale of seafood. Among importers and distributors, a lot of money running into
millions is recognized annually among market agents. The business also employs so
many people.
The growth of the business is expected to continue as more Nigerians are seeking
to add fish and other seafood products to their diets for both the taste and health
benefits associated with seafood. One of the most common trends in the fishery
business is that newer technologies are actually increasing the net profit margins of the
business while concurrently lessening the ecological impact of fisheries on the
environment.

Customer Profile
It is extremely difficult to determine the customer profile of people that will acquire the
fish produced by us because fish is consumed by all. Micary's Fishery intends to do
business with farmer’s markets, fishery coops, and fish/seafood wholesalers that will
acquire the Micary’s inventories of fish.

FISH FARMING MARKETING PLAN

The Fishery’s marketing operations will be minimal as once the Micary's Fishery
solidifies ongoing relationship with fishery coops and wholesalers, very little marketing
will be required to maintain these relationships.
At the onset of operation, we intend to aggressively develop relationship with local
and regional fishery coops that will assist the Fishery in maintaining stringent pricing
(through forward and future contacts) so that the Fishery always has a predictable
stream of income. However, in the future, we might seek to brand certain fish items that
we produce. In this instance, the Micary's Fishery will hire a marketing/advertising firm
to properly position the Micary's Fishery image and brand so that it can directly sell
packaged fish to major groceries, supermarkets, farmer’s markets, and select retailers.
This Fishery intends to maintain an extensive marketing campaign that will ensure
maximum visibility for the business in its targeted market. Below is an overview of the
marketing strategies and objectives of the Fishery.

Marketing Objectives
We intend developing relationship with major groceries and fish/seafood wholesalers
that will acquire bulk inventories from us and polish ongoing purchase order relationship
with cooperatives throughout the target market.
Pricing
Our pricing shall be as in the table below:

AGE PRICE
MONTH N
FINGERLINGS Up to 1 30

JUVENILE 2 50

TABLE SIZE 6 1000 per kg

BROOD STOCK 8 and above 2500 per kg

The price of various categories of our fish shall be average prices and compete on
quality and service. Our intended customers really make their purchase decisions
mostly on price, so we are better off remaining average. Our credit policy shall be cash
and carry so that our customers would always come with their money.As stated in the
executive summary, we intend to develop the Fishery as a multi-fish producing farm that
will spawn, grow, and distribute its fish to seafood wholesalers throughout the target
market. We already have the potential land, but the equipment that will be used for the
Fishery’s operations would be sourced. Additionally, it should be noted that we will join
a fishery cooperative that will assist with the distribution and sale of the fish.

Listed barriers of entry into this market:

 High capital costs
 High production costs
 High marketing costs
 Consumer brand recognition
 Training and skills
 Unique technology and patents
 Unions

Shipping costs
To surmount the above barriers, however, we have of course plunged into the business
and beginning to eliminate them one after the other from our comfort zone.
Apart from natural disaster, we do not foresee any adverse effect on our business as a
result of change in technology since we are currently almost manual in our operations.
Change in government regulations most likely would favour us as it must be ban on
imported fish. There is no way change in the economy, no matter how bad, would affect
total rejection of catfish by man.
PRODUCT
We have described our products and services under Products and Services section
above as we see them. Now follows their description from our customers’ point of view.

Features and Benefits

Fingerling production shall be within one-month order. This will enable us produce and
supply any number demanded by our customers. We shall not be selling the last grade
of fingerlings to our customers rather, we will grow them ourselves for dried fish
purposes only. We must use daphnia or artemia to raise our fingerlings, for 2 weeks at
least, to enable our fish longevity. It will also be applicable to our juvenile, which are
grown with balanced rations. When you feed animals regularly with balanced rations,
they grow out having more density and are tasty because they had all they needed. Our
table size shall be after 6 months, weighing between 1 and 3kg. As for the brood stock,
we must make sure they stay up to 8 months and their eggs brown, before declaring
them for sale.
Apart from the tasty and palatable aroma and sensation derived from catfish in our
food, the importance of fish protein and oil in our diet and our body system can never be
over emphasized.
Our after-sale services will include delivery, service contracts, support for
processing, follow-up on startup fish farms, and refund policy.

Customers
Our customers base cuts across all religion, ages, gender, location, social class,
educational level and occupation. However, point-and-kill catfish is for middle and high
income levels, while the dried one would readily be available to the low income earners.
For business customers, we have open market, restaurants and grocery shops.

Competition
Most fish farmers around us depend on imported fish feed with its huge overhead cost.
We intend to formulate our own feed which will be nutritive enough but cheaper,
translating into higher profits even when we sale cheaper. Although all the fish farmers
put together cannot yet saturate the market because all of us are currently very small
scale farmers. So competition is too early to be given consideration in catfish production
in the Nigerian contest, but we shall prepare ourselves in readiness. Imported frozen
fish is not catfish and tastes different.
Of cause, we still envisage indirect competition, from meat, example beef, pork,
chicken, snail, goat meat, frozen fish, stock fish. Again, meat taste different from fish.
Other fish farmers are excluded because, put together, we cannot produce enough for
now. The compettion is only on certain customers because a customer who wants
point-and-kill must have catfish or nothing at all.
Competitive Analysis would have been necessary had it been that fish farming
business has become institutionalized in Nigeria, but the reverse is the case.
Niche
Our unique corner of the market is just to start producing table size catfish for resellers,
restaurants etc.

Strategy
Our strategy shall be phone calls, messagings and personal contacts to inform our
readiness to sale at maturity and average prices.

Promotion
Advertising: phone calls, short text messages, posters and handbills.
We shall also use other methods such as dealer incentives, word of mouth and
network of friends or professionals.
We want to project success to our customers so that they would see us as
successful catfish farmers.
In addition to advertising, we plan to have graphic image support. This would
include things like logo design, cards.
We would computerize our operations, identify repeat customers and then
systematically contact and reward them accordingly.

Proposed Location
We do not yet have a precise permanent location picked out yet. That is why we are
starting to run from home for a while with mobile fish ponds, before pinpointing a
permanent location and concrete/earthen ponds.
Our current location is motor able and highly accessible, convenient with enough
parking space. Whether rain or sunshine the compound has enough shade.

Distribution Channels
Our distribution channel shall be retail for families, wholesale for resellers, agents and
independent representatives who might want some commission are also welcome.

Sales Forecast
Except for 10% mortality, which is provided for in any animal husbandry outfit, we
forecast 95% sales of our output. We therefore predict an annual growth rate of 45%.
The loan would have 2-year term with 10% interest rate.
OPERATIONAL PLAN
The daily operation of the business is as simple as manually feeding the fish twice a
day, between 6am and 8am and 5pm and 7pm. While doing this we make sure that ¼
volume of water flows out and is replaced every day.

Production
The ponds are washed, fertilized and stocked with fingerlings, manual feeding continues
for 6 months when maturity is achieved.
Aerated water constantly flows through the pond to achieve artificial stream. Depending
on the age and size of the fish, correct size of feed, measured in mm, is used in the
feeding.
Customers are placed on notice when the fish will mature.
Daily feed consumption is noted to ensure that we have enough for 1 month before
restocking.

Location
We would prefer a sloppy topography or a location with adequate drainage system, so
that discharging our waste water would not waterlog the environment.
Physical requirements of a plot of land, measuring 100 by 100 feet, would be good
for a start. A small store, fishponds, overhead tanks, water bore hole and power house.
Electricity will be supplied daily.
Access to our location is excellent,we have excellent proximity to freeway, airports,
railroads and seaport.
The only unavoidable construction needed for a start now is 2 units of 10 feet by 10 feet
mobile fishpond.

Legal Environment
We shall register our business with CAC (Corporate Affairs Commision).There is no law
prohibiting fish farming and so no permit is required to practice. The loan amount shall
be insured by NAIC (Nigerian Agricultural Insurance Corporation).

Inventory
Major inventory in this business is fish and the feed, with some fuel to pump water. We
shall also keep feed raw materials since we intend to formulate and prepare our own
feed. We are looking at inventory investment of N200,000.00 (Two Hundred and eighty
Thousand Naira only). The lead-time for ordering is 1 month.

Suppliers
Key supplier for fish feed is Zyex Nigeria Limited, Obizi, Amakama, Olokoro, Umuahis
South LGA, Abia State. You can request for any quantity from them, their credit policy is
cash and carry. Their feed is nutritious and highly fortified with vitamins and minerals. It
is also noted that supply costs are always on the increase, hence the option to
formulate and produce our own feed.
Credit Policies
We do not plan to sell on credit because it is not customary in this business and clients
would neither be expecting it.

MANAGEMENT AND ORGANISATION

Micary’s Fishery will manage the business on a day-to-day basis. she received her
traning from Zyex Nigeria Limited, who are also in constant consultation and SEEDC
(South East Entrepreneurship Development Centre). The plan is to train everyone in the
family/company as a way of ensuring continuity.
Micary’s Fishery is the owner. She has National Diploma in Science Laboratory
Technology. She is currently a Direct Entry student. She is a Christian and a Nigerian.
She has also gained 1year experience in Zyex Nigeria Limited.

Startup Expenses and Capitalization

Items Unit Quantity Amount

Price
Plot Of Land 100x100 Ft 100,000 1 100,000
(Renting)
10x10 Ft Mobile Pond 40,000 1 40,000
8x8 Ft Mobile Pond For 30,000 1 30,000
Hatching
Fingerlings 40 150 6,000
Feeds 400 250 100,000
Pelletizing Machine 70,000 1 70,000
Dryer 40,000 1 40,000
Medium Size Generator 70,000 1 70,000
Fuel 15,000 6 MONTH 90,000
Feed Raw Material 4,000 - 4,000
Salary 15,000 6 MONTH 90,000
Contigencies 34,980 6 MONTH 34,980
Grand Total - 500,000

Financial Plan
Our financial plan consists of a 12-month cash-flow projection and a break-even
calculation. Together they constitute a reasonable estimate of Micary’s Fishery financial
future. More importantly, we hereby present the financial insight into the inner financial
workings of this business.

12-Month Profit and Loss Projection

As is evident in our 1 year Cash Flow in the table below, with a loan of N500,000.00, we
will be able to generate 2,052,000 . We project 2 sales within the year, that is every 6
months. After the sales we restock our ponds and the cycle is repeated. We assume
that each fish will grow out into 2 kilograms. This is not generally the case as the
weights vary between 1kg and 3kg at grow out.
From the above projection it can be seen that we will be able to repay the
N500,000 (Five Hundred Thousand Naira) loan within one year but, we prefer the
repayment spread over 2 years with 1-year moratorium.

Business Plan Projected Cash Flow

The profit projection is the heart of our business plan, cash flow is the blood that the
heart pumps.

12
mont
h flow
Cashflow - Fish Farm Business Plan
The preliminary expenses are shown in the TOTAL under month1 934,833 Naira, plus
recurrent monthly expenditure bringing it to (1,114,167) for the first five months before
sales in the following month.