OL’LESSOS TECHNICAL TRAINING INSTITUTE

BUSINESS PLAN

ELIKOR’S FISH FARMING

PRESENTED BY : ELIZABETH JEPKORIR

INDEX NUMBER : 295411014441

COURSE CODE : 2920

PAPER NUMBER : 307B

SUPERVISOR :

THE KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL

FULFILLMENT FOR THE AWARD OF CERTIFICATE IN LIBRARY SCIENCE

EXAM SERIES : NOVEMBER 2019

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DECLARATION
I declare that this business plan is purely my original work and has never been submitted to
any examination council for any award.

CANDIDATE’S NAME : ELIZABETH JEPKORIR

DATE : ........................................

SIGNATURE : …………………………..

SUPERVISOR’S NAME DATE : MR. CHARLES LULEI

SIGNATURE : …………………………..

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DEDICATION
I wish to dedicate my family.

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ACKNOWLEDGEMENT
My sincere appreciation goes to my supervisor who guided while I was writing these plan

I am also grateful to numerous authors whose source i consulted. I am not able to

acknowledge each one individual as most of their names are not available.

GOD BLESS YOU ALL.

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Table of Contents
DECLARATION................................................................................................................................ii
DEDICATION..................................................................................................................................iii
ACKNOWLEDGEMENT...................................................................................................................iv
CHAPTER ONE................................................................................................................................1
1.0BUSINESS DESCRIPTION............................................................................................................1
1.1 MISSION...................................................................................................................................1
1.2 SPONSORS...............................................................................................................................2
1.3 BUSINESS IDENTITY..................................................................................................................2
1.4BUSINESS LOCATION................................................................................................................2
1.5 BUSINESS OWNERSHIP............................................................................................................4
1.6 TYPE OF A BUSINESS................................................................................................................4
1.7 BUSINESS GOALS.....................................................................................................................4
1.8 PRODUCT AND SERVICES.........................................................................................................5
1.9 NATURE OF OPPORTUNITY......................................................................................................5
1.10 JUSTIFICATION OF THE OPPORTUNITY..................................................................................6
1.11 ENTRY AND GROWTH STRATEGY...........................................................................................6
2.2 CUSTOMERS.............................................................................................................................7
2.3 MARKET SHARE........................................................................................................................8
2.4 COMPETITION ANALYSIS..........................................................................................................8
2.5 COMPETITORS ANALYSIS TABLE........................................................................................9
2.6 LOCATION AND PREMISES.......................................................................................................9
2.7 PRODUCT AND SERVICES.........................................................................................................9
2.8 PRICING STRATEGY................................................................................................................10
2.9 PROMOTION AND ADVERTISING STRATEGY..........................................................................10
2.10 DISTRIBUTION STATEGY.......................................................................................................11
2.9.1 SALES STRATEGY.................................................................................................................11
2.9.10 MARKETING S.W.O.T ANALYSIS........................................................................................12
CHAPTER THREE...........................................................................................................................13
3.0 ORGANISATIONAL /PEOPLE PLAN/OJECTIVES.......................................................................13
3.1MANAGEMENT TEAM.............................................................................................................13
3.3 RECRUITMENT AND SELECTION.............................................................................................14
SELECTION...................................................................................................................................15
3.4 RETAINING AND MOTIVATION...............................................................................................15
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3.5 APPRAISAL OF STAFF.............................................................................................................15
3.6 REWARDS...............................................................................................................................15
3.7 TRAINING AND DEVELOPMENT.............................................................................................16
3.8 COMMUNICATION.................................................................................................................16
3.9 SUPPORT SERVICE..................................................................................................................17
CHAPTER FOUR............................................................................................................................19
PRODUCTION PLAN.....................................................................................................................19
4.0 OBJECTIVES............................................................................................................................19
4.1 PRODUCTION/OPERATION FACILITIES AND CAPACITY..........................................................19
4.2 OPERATION/PRODUCTION PROCESS.....................................................................................19
4.3 REGULATIONS AFFECTING OPERATIONS...............................................................................19
CHAPTER FIVE..............................................................................................................................20
FINANCIAL PLAN..........................................................................................................................20
5.0 OBJECTIVES............................................................................................................................20
5.1CONTRIBUTION.......................................................................................................................20
5.2 DESIRED FINANCING........................................................................................................20
5.3 PRE-OPERATIONAL COSTS.....................................................................................................21
5.4 OPERATIONAL COST..............................................................................................................21
5.5 INCOME STATEMENT FOR THE YEAR 2020,2021,2022..........................................................22
5.7 BREAK EVEN ANALYSIS FOR THE YEAR 2020, 2021 AND 2022...............................................23
5.8 FISH FARMING BALANCE SHEET FOR THE THREE YEARS......................................................24
5.9 RATIO FOR THE YEAR 2020, 2021 AND 2022.........................................................................24
6.2 PROJECTED CASH FLOW – YEAR 2020....................................................................................25
6.3 PROJECTED CASH FLOW – YEAR 2021..................................................................................26
6.4 PROJECTED CASH FLOW – YEAR 2022..............................................................................27
CHAPTER SIX................................................................................................................................30
6.0PORTANTIAL RISKS..................................................................................................................30
6.1ECONONY...............................................................................................................................30
6.2 NDUSTRY...............................................................................................................................30
6.3 LOCATION VALUE...................................................................................................................30
6.4 MARKETING...........................................................................................................................30
6.5 OPERATIONS..........................................................................................................................30
6.6 FINANCIAL..............................................................................................................................30
6.7 SECURITY...............................................................................................................................30
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6.8 OTHER....................................................................................................................................30
6.9 RISK ANALYSIS........................................................................................................................31

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CHAPTER ONE

1.0BUSINESS DESCRIPTION

The name of the business will be Elikor’s Fish Farming. It shall be a sole proprietorship
form of business located near Oyugis.

The business fall under agricultural form of farming. The business main markets shall be
(customers)

Schools

Hospitals

Colleges

Universities

Towns

The business shall be advertising its products and services through:

1.Radios

2.Newspapers

3.Internet site

The boss of the business shall be known by the name Mr. Elikor. He will be the only
decision maker of the business and shall enjoy the profits alone.

1.1 MISSION

The proposed business mission is to produces quantity and quality fish to the potential
customers and active markets within the country and making an effort of exporting the
suppliers fish outside the country

The business is producing all types of various fish ponds. There are quality foods that make
them grow big and health.

The business is expanding its optimistic efforts to various places that are conducive to fish
production within the county

Business main mission is to be the best fish producing firm among other best in the country

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1.2 SPONSORS

The proposed business is owned by the sole proprietorship individual ownership has
limited procedures to be followed thus decision making is faster. The owner of the business
enjoys profits when the business makes and more over makes his name paramount towards
expanding his premises.

The owner acquire more of his income that supported him raise the project from the sale of
the farm out puts maize tea leaves and part of his cattle

The owners of the business acquire his skills from then neighbouring county kisumu when
he was in his grandparents home at his tender age.

The sale of more fish from a single background has led to it’s expansion to more fish ponds
within the counties.

1.3 BUSINESS IDENTITY

The name of the proposed business shall be Elikor’s fish farm. The name shall be more
identified as the business will be making more sales to a wide geographical area.

The name of the business shall be unique to avoid contradiction with other related business
in the region. It shall be registered on 20th March 2019 after selling the products that are
now on stock.

The name of the business shall expand as the business is expanding its products and
services to various institutions stated below

Schools

Hospitals

Colleges

Universities

Hotels

1.4BUSINESS LOCATION

The business being optimistic has not stop producing its services and products day in day
out, because it has been situated at ready market and conducive environment. The river site
of breeding the fish is 56km away from the industries and10 km away from noisy markets
and shops.

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The business shall be situated at OYUGIS location Homabay county where the business
shall not face more competition because we have more potential customers mentioned
bellow.

1.Post office

2.Schools

3.Hospital

College

Bus Stage

Elikor’s Fish
Farm
Kisumu Kisii highway
Petrol
station

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1.5 BUSINESS OWNERSHIP

The business chosen shall be own by sole proprietorship. The proposed ownership his
many advantages and privileges to the sole proprietor when the business makes and
produces the profits as the intended purpose of the business. The owner enjoys the profits
alone and his family.

The chosen ownership is faster in decision making of the business as the ethics proposed
shall never be rejected. The profits cultivated will not be compared to that of partnership
which produces more but when it comes to sharing it is limited.

The proposed business ownership may not collapse easily as no one corrupts the planned
programmes of the business, unlike partnership where embezzlement of funs by the official
is experience.

1.6 TYPE OF A BUSINESS

The proposed fish farming business will fall under agriculture. Fish farming is very
important as it is required world wide to supply the fish production to the growing
population as people require more health for more production of their services in the
society.

The technology used shall be modern technology in terms of fish catching to reduce the
number of fish being kill. The business shall use the modern methods of fish preservation
to speed up the services and to reduce the number of fish getting spoil.

The business shall produce quality products and services to the entire country. The
business shall be arranging schedules and programmes for the tourists to visit fish ponds
making it a more source of income.

1.7 BUSINESS GOALS

The owner of the business aim is to sell more quality and quantity products to the potential
customers at a cheaper price to avoid stiff competition from outside markets.

The owners’ main aim is to attract more customers to his business to purchase the products
on stock. the business is aiming at expanding in all area especially the fish ponds in all the
available markets.

The business shall be producing offer services to customers who purchase the items in
larger quantity the services shall be:

Free transport

reduce prices of some items

Security of goods on transits.

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It shall be producing goods stock to avoid shortages and to ensure reliability to its
customers.

The owners business is aiming at employing more qualified staff with good pay and
offering them old payments.

1.8 PRODUCT AND SERVICES

The products of the business shall be offering high standards. The business shall be
separating the parts of the fish easy processing,. The products shall be -:

i.Pelvic fin

ii.Pectoral fine

iii.Tails

iv.Scales

v.Lateral line

After fishing the fish, it shall be dried up using various methods according to various parts
of the bodies. The sun shall be the main drying agent as the preservation methods shall be
refrigeration and sail methods.

The owner of the business design various ways of selling the fish, it shall be sold when the
fish as been divided into two parts, when separated into various parts.

The scales shall be removed but not be sold because that contains no proteins. Some of
parts shall be sold at lower prices and others at higher prices depending on its size and
contents.

1.9 NATURE OF OPPORTUNITY

The fish farming is the best option that can safe man kind all round the existing problems.
The business has it will be growing it will create employment for the community members.
The business produces and sales shall create developments stated:

a)Transport system

b)High standards of living

c)Sources of income

d)Water development projects

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The business shall set aside some of its money to assist disable by opening an account

As the business develops and expands its services shall open up other services like V.C.T
to assist teach on current diseases HIV/AIDS the business shall pay for the services offer to
victims.

As the business is employing more of the landless works, it shall set beside part of its 50
Acre land to build the residence for them.

1.10 JUSTIFICATION OF THE OPPORTUNITY

The business being optimistic of the good services and products offering shall prosper to
achieving its goals of being the best fish production firm. The ready markets within and
outside the country shall make it be successful.

The policemen and other employed security offices shall ensure that the internal
programmes of the business are run smoothly. The entrepreneurship skill acquire through
training at Ol’lessos Technical training institute. Has enable the fish farming to be
successful and to achieving its goals and aims.

The business has not yet face stiff completion form distant markets this has enable it to be
victorious and superiors. The entrepreneur’s skills shall enable the business to be watchful
and balancing on the seasons.

Good communication network between the customers and the business has enable it to
prosper. Good relationship between the working employer’s s and the employees has
encouraged good progress of the business.

1.11 ENTRY AND GROWTH STRATEGY

The business will be started on 2nd March 2019. The business shall advertise its
programmes and progress through posters which shall be produce and be placed at various
junctions

Two sig post shall be improvised one shall be placed at the main road near the post office
another one shall be placed at the entry gate to the fish pond

The local people be the main advertiser as they get access to the business products and
disservices, they shall be calling to their friends through phones and letters on the available
fob opportunities

The business is intending to increase the number of workers to increase the number of
services and products. The number of fishers is to increase by around 50,000. The number
of fish ponds are to be expanded to around 10 with each having around 1000,0000 fishes.

CHAPTER TWO

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2.0MARKETING PLAN

2.1OBJECTIVES

The owner of the business aims at realizing his dream and utilizing his ambitions at same
tile shall make use of locally available resources, this is because the existing fish farming
have not yet exploit them fully.

The business shall also satisfy customers by availing the needed products to their residence
tom avoid unconvincing of travelling far to acquire the quality products of their choice.
The business shall provide employment to the jobless to market the firm fishers and to
attract more customers.

fish farming shall have qualified workers with experience on how to caten the fish at an
aim of hiving quantity and quality fish

The time management shall be of important to achieving he business goals and adjectives,
shall be expanding its business to a wide geographical area, fish ponds shall be as many as
possible to facilitated consistency and steady supply in the market.

2.2 CUSTOMERS

It’s strategical position is between Kisumu and kisii road targeting variety of customers
within and outside the area. It is intending to supply fish to the following categories of
customers

a)Institutional customers

b)Commercial customers

c)Individual customers

a. Institutional customers

The fish farming in intending to serve several institution one being mawegoTechnical, the
institution customers shall constitute 50% of the customers and this shall be the largest
percentage which actually shows they are the main customers. Quality and fresh fish shall
be avail to them

b. Commercial customers

Since fish farming shall lower it prices commercial customers shall buy from them at an
aim of attracting more customers at their shops and hotels

c. Individual domestic customers

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they shall be buying at small quantities for domestic consumption. they shall increase the
profits of the business when they buy in large quantities when they have ceremonies and
occasions in their home grounds

2.3 MARKET SHARE

The business is expected to grow at a slow rate but measures shall be defined to gap all the
contains hence uplift the business to grow with the prevailing economy.

The owner has estimated that after a year form the start it may begin to adventure through
superior Medias which will enable capture large markets.

Since competition shall be high the owner will try hard to ensure that at least a lower
percentage of 70% for the first one year is captured and the remaining 30% will be shared
by other competitors also the owner shall ensure that there will be provision of high quality
products

The market at the start shall be:

Fish farming

Kisumu fish farming

Victoria fish farming

Sunrise fish farming

2.4 COMPETITION ANALYSIS

My fish farming shall face competition from BASSY’S FISH FARMING which has
developed 5 years ago, it has been a competitive market with allot of customers from a
wide geographical area. It has been offering other free services and products to their
customers when transaction their goods.

fish farming shall come out with strong and fundamental ethics that should be followed
critically in order to overcome the existing market.

The owner of the business shall approach Bassy’s fish farming and observe on how they
attract their customers and how they produce their best goods and services. The same rules
be applied on fish farming to impose competition

The owner shall also overcome competition from the nearby market kendu Market which
import fishers from other countries for commercial purpose. The owner shall give
discounts credit sales and also advertise to create more awareness.

2.5 COMPETITORS ANALYSIS TABLE

Competitors Ownership Age Strength Weakness
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fish Sole New High quality Expensive due to
farming proprietorship   charge low price modern technology
         
Bassy’s fish partnership 9 years Capture large Low quality
farming     markets advance Products
      technology  
         
Chepkos Fish Partnership 6 years Capture large Poor planning and
Markets     market constant Forecasting
      supply  
         
Kisumu Sole 4 years Use skilled No distribution
ndogo proprietorship   labour and in channel no sound
      market & well Advertisement
      known  
         

2.6 LOCATION AND PREMISES

The Fish farming shall strategically centred to enable its market products and services.
The firm incur no rental expenses has the property is situated at the owners ancestral land.

The competition within the area is low since the existing competitors have less experience
of explosion the resource within the area.

The buildings for storing the produce will be build in a modernized manner to enhance
vapour able temperatures to the working employee and the products.

The premises shall be accessible as then business shall used modern technology to avoid
sting smell from the big fish products.

2.7 PRODUCT AND SERVICES

The business shall be dealing with the production of fresh and quality fish to the
institutions the owner shall offer transport free of charge as an attraction

Shall ne using high technology in preserving fish and good handling materials when selling
the fishes, this improves hygiene to the customers

The business shall be licensed to be faithful to the customers that mean any fish shall be
supplied.

The products being part of human food shall constitute to body building that is proteins,
which eventually protect our bodies from foreign agents and diseases

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2.8 PRICING STRATEGY

The aim of the business s to achieve more profits but to ensure that it will be mindful at
customers welfare such that they can not be over charged. The business shall price
depending no the quantity of the products, when the quantity if high the price shall be low
and when the quantity is low the price shall be high.

In this case the firm will adequate price that is slightly lower than of its competitors about
15% lower. This will enable the firm penetrate into the market and attract all the customers.

The kind of a fish known as Tilapia shall be sold at 45.00//- each that is 15.00//- cut from
the normal price, Kisumu s known by the name ‘omena’ shall be soled at 150.00//- per
korokoro having cut 50.00//- from the normal price.

This will facilitate consistency in market and the name of the business shall be uplifted.

2.9 PROMOTION AND ADVERTISING STRATEGY

Being in infancy stage may not advertise through superior means /media but it will
advertise trough sign post which shall be position at around OYUGIS markets which are
7km away from the fish pond, another sign post shall be placed at the junction before
Bassy’s fish farming.

It is optimistic to advertise trough radio, TV and magazines which shall be produce weakly
depending on the changes of the business.

Employees shall be from a wide geographical area so that they can advertise the product to
various premises

The employees shall be given a monthly leave as a sign of motivation.

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2.10 DISTRIBUTION STATEGY

The intended business will offer its services to the customers who come to the premise,
pack for them and transport for them if they buy in bulk.

The firm will employ direct and indirect method of distribution

I.Direct distribution

This is where customers buy directly from the fishing and processing ground. They are
mainly domestic customers who constitutes 30% of the firm’s customers

II.Indirect distribution

This is where products has to be pass through middle me before reaching to the customers,
in this case the workers shall be middlemen and shall be a wholesaler.

Wholesale

Retailer

Retailer

Distribution pattern is above

2.9.1 SALES STRATEGY

fish farming shall comment itself in serving customers to their expectations and ensure
that interest is maintain thus attracting more customers. The potential customers shall get
fishers distributed to their local shops and markets having paid no transport charge.

The stock fishers shall be sold on credit to the obedient customers and some of the products
shall be negotiable. The big fishers shall have there prices fixed and shall not be produce in
large quantity.

2.9.10 MARKETING S.W.O.T ANALYSIS

Area Strength Weakness Opportunity Trends
         
Marketing Steady supply The needed Have tenders in Competition my
  of products than type of fish all institutions copy the style of
  competitors. Tilapia some in the region. marketing.
    times not    
    available.    
         
Production Produce quality Low sales when Reduced price Quarantine
  and quantity the institutes hence high during outbreak
sales
  fish. are closed up. through dealers. of diseases like

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         cholera.
         
Personnel Work extra Demand high Skilled and Fraud by
  time. salaries. technology unfaithful
      oriented. workers.
         
Management Close superiors Worker may Easy decision Low
  good and steady not like the making. coordination of
  growth.      
         
       
    owner being   duties when the
    manager.   owner is sick.
         
Finance Borrowing Loan my delay. Relatives are Interest of loans
from
  money lending   ready to may rise as
  institutions.   supplement economy
      high capital. fluctuate.
         
Environmen Availability of Work may not Owners uses Community
t
  cheap labour be done to the uses father’s differences
  with use of standard. assets hence affect business
  local materials.   low expenses. activities.
         
Quality of Steady and Fuel consumed Owner shall use Mechanical
services quality supply by the car is not his fathers car down affects
  of products. inclusive with to transport supply.
    fish price. products.  
         

CHAPTER THREE

3.0 ORGANISATIONAL /PEOPLE PLAN/OJECTIVES

The role of the organization is to make sure that adequate, sufficient, quality and quantity
fish are produced at a constant rate to avoid inconveniency in the market has the business
has to win 70% of the market shared.

The employees are to make sure that the business activities are carried out efficiently
without delays. They should ensure cooperation and coordination is following to achieve
the intended purpose of increasing profit and at the same time reducing the costs.

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The organization ad people plan objectives will be as follows:-

I.To plan how the organization will expand its outlet to increase sales and create

employment to other people.

II.To serve customers diligently by maintaining excellent staff relationship.

III.To develop staff through training as well as rewarding them generally so as to maintain
them at high levels for motivations hence achieving high performance in return

IV
To recruit work force that is well trained and experienced so as to attain
.
  organizational productivity and success.

3.1MANAGEMENT TEAM

fish farming is owned and managed by the owner who is the holder of certificate in
Agriculture Management. He is management oriented since he did agriculture as a partial
fulfillment for the award of his certificate.

The owner played many roles as followers

Decision making and implementing changes in the firm

Responsible for employment sucking and promotion of workers

Monitors funds circulation in business and access whether the business is running at a loss
or making profit.

Responsible for holding and banking of money in the business.

The owner has design other managers on various sections like preservation sections
manager. Manager and transportation sections manager. They coordinate to the holder of
the business at any given time.

Qualification

a. Should be computer literate

b.Holder of a certificate in agriculture studies

c.Should have experience in fish farming

3.2PERSONAL STAFFING

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As fish farming is a sole proprietorship run and own by the owner it has to design other
members of staff to reduce the work force of the holder.

The proposed business staff shall occupy positions as follows with their salary.

19

Position NoBasic salaryAllowances

       
Holder 1 - -
Supervisor 1 9000 2000
Salesman 2 4000 1000
Production manager1 8000 1500
Accountant 1 8000 2000
Driver 1 5000 900
Preservation 1 6000 800
manager 1 7000 1000
Production manager     
       

3.3 RECRUITMENT AND SELECTION

Recruitment takes place whenever there is a vacant place or position in a work place.

Recruitment process shall be done through advertising where the person is required to write
an application to the manager.

The manager wills short list those who have qualified then they are trained and employed.
The firm recruit 2 personnel to manage the production sector, for to be salesmen and to at
the baking section this is because the work on these areas is complicated.

The holder of the business is in charge of recruiting the staff, gender equality shall be
considered and the over shall go has by the papers and qualifications, there shall be no
bribing to be employed.

SELECTION

The firm shall select the best personnel with qualification of high standard to archive the
best both in quality and quantity, to attain the aims and the objectives of the business by
connecting the business to world wide markets.

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3.4 RETAINING AND MOTIVATION

fish farming retain its workers in their positions up to the standard age set by the firm. A
good business productivity is based mainly at the younger age who are still capable of
working even to overtime.

The firm shall retain those who are honest to the firm holders and those who talk positively
towards business progress.

The firm shall motivate the workers through the following:-

I.Providing the with conducive working environment

II. Providing them with insurance cover in case of accident III. Providing them with
clothing in the work places

IV. Providing them with at list one month leave

3.5 APPRAISAL OF STAFF

The owner will access the performance of the employees for increment every year, the
workers with slow production rate will have the number of staff increase to ensure high
quantity of goods.

The owner shall employ causal workers to be paid daily to aid the firm on the weaken
areas, the employees opinions shall be listed so as to improve on their ways of working the
weak and strong area shall be identified and changes shall be applied on them.

3.6 REWARDS

fish firming shall improve and encourage its employees by setting a side part of the firm
funs to purchase rewards as a sign of appreciation towards the work done.

Good relation among employees means effective and adequate work of the firm, it will
reward according to the output and effort put upon by the users.

The staff and the committee of the firm shall set aside a price giving day once in a year to
recognize those who worked for the firm in previous years (retired) and the optimistic
preceding ones.

The firm shall also recognize and reword those who purchase its products in large quantity
and more over to those who oriented the name of the business in the name of selling its
products to wide geographical areas.

The rewords shall include:-

a)Farm tools

b)s ,goats and sheep

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c)Utensils

d)Bedding

e)Clothing

3.7 TRAINING AND DEVELOPMENT

In terms of training it shall be done in the firm fully but there will be partial training by
those who are more experienced in the firm other experience may be attained by organizing
trade shows, exhibitions and seminars for them.

The firm has to do all these so as to improve its productivity. The workers has to develop
their skills by putting in practice what they have gain in training, the shall be visiting
centres regularly to gain more current skills.

3.8 COMMUNICATION

Communication system is critical and fundamental to a growing and progressing

organization, these creates more understanding between the employees and the employer, it
is therefore a process of sharing information, feelings and thoughts with one another.

This involves sending messages, receiving the message as the sender intended, and
providing the appropriate feedback. The customers shall be using E-mails and telephone
lines.

Sender  Receiver 
   
  Feedback  key channel
   

3.9 SUPPORT SERVICE

An organization can not run its operations by itself without the support of out sliders in that
regard fish farming is not exceptional thus it has to seek for services from its external
environment. These include;-

Banking

The firm will open a current account with the Kenya Commercial Bank, oyugis branch for
its banking service and assistance in terms of loans wherever the firm is under liquidity.

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The firm has selected this because of its low rate on savings.

Contacts

KENYA COMMERCIAL BANK.

P.O.BOX 216 OYUGIS

TEL 053-2014

CELL PHONE:0703601495.

INSURANCE

The firm shall also register with C.I.C insurance company so that in case of any accident it
may be able to restore the financial status of the business in this case the owner will be
preventing its firm.

Contacts are:-

C.I.C INSURANCE

P.O.BOX 21014 KISUMU

TEL NO: 024-32611

CELLPHONE: 0724353605.

This will advice fish farming on a legal matters pertaining the firm the owner has select’s
MIKE and Advocates contacts :-

MIKE’S AND ADVOCATES;

BOX 6161 KISII

TEL NO: 022- 52O34.

CELL PHONE: 0716272718 OR 0752344549.

LEGAL ASPECTS

Its very crucial document given by the municipal council enabling the proposed business to
go ahead and start its operations.

PRESIDENT PORTRAIT

Its a recurrent for every business of which fish farming shall acquire one. It shall also
observe all the labour laws these include:-

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I.Children of under 18years shall not be employed in the firm

II.Foreigners are not also employed except those who have valid permit and are allowed to
work

MANAGING CHANGE

fish farming shall be accessing the performance of its management team, the positions of
the small managers shall be changing annually to the monotony of the work.

The owner of the firm shall be in charge of this to ensure good relation and equality gender
among the employees, those who have worked for the firm for a long time of period shall
be design permanent workers with unique clothing to distinguish them.

CHAPTER FOUR

PRODUCTION PLAN

4.0 OBJECTIVES

The business is aiming at producing large quantity of fish to the entire markets within
geographical regions.

The business shall sale large quantity and quality of fish to attract more customers.

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4.1 PRODUCTION/OPERATION FACILITIES AND CAPACITY

The business operates on personal property to minimise the cost of hiring from other
residence.

The operation land shall accommodate 15 acters of the total land, 10 acters shall operate on
and 5 actors shall be use for future expansion.

4.2 OPERATION/PRODUCTION PROCESS

The business shall produce according to customers needs and it shall adapt the continuers
process to avoid inconvenient in the markets. The business shall operate from stated hours
of the day to over time.

4.3 REGULATIONS AFFECTING OPERATIONS

The business shall not operate on other business other than the stated business, the staff
members of the organization shall not be allowed to operate on their on choice of work
without the managers authorities.

CHAPTER FIVE

FINANCIAL PLAN

5.0 OBJECTIVES

The proposed business will have the following objectives for it to work effectively.

I.To employ well trained staff to be in charge of financial records

II.To ensure there is continuous production of fish to generate more profits for the business

~ 19 ~
III.To source the business start up loan from other financial institution that will offer
conditional services to ensure good business stability

5.1CONTRIBUTION
ITEM AMOUNT
   
Owners
450,000
contribution
   
Donation 88,115
   
Loan from bank 200,000
   
Total 738,115
   

27

5.2 DESIRED FINANCING

The firm desire to have 1,500,000 spent to enter business operation

ITEM AMOUNTS (KSH)

   
Pre-operational cost 98,000
Working capital 200,000
Owners contribution 100,000
Bank loan 500,000
Friends and relatives 10,000
Total financial requirement44,000
Total investment 6000,000
   
TOTAL 1,480,000
   

5.3 PRE-OPERATIONAL COSTS

These referred to cost used to start the business or incurred before business starts

PARTICULARS COSTS
   
Insurance 12,000
Licence and permit 2,000
Telephone
2,000
connection
Electricity 5,800
Building 30,000
~ 20 ~
Furniture 10,000
Fish pond 10,000
Refrigerator 30,000
Boat 20,000
   
TOTAL 480,000
   

5.4 OPERATIONAL COST

These are the money required to run the business projected for 3years, it is the difference
between current assets and liability i.e

Working capital = Current assets – Current liability. It is known as acid test of the business,
is more excess cash or less

Particulars 2020 2021 2022

       
64,442.5
Current assets 17,700 18,300
0
Cash in hand      
Cash at bank 579,877 150,000 150,677
Stork 43,465 16,000 20,034
Debtors 6,767 20,787 4,000
Total current
     
assets
Current liabilities 30,000 50,000 120,000
Creditors      
Total current 30,000 50,000 120,000
6,667,90
liability working 1,789,7001,794,100
1
capital      
       

5.5 INCOME STATEMENT FOR THE YEAR 2020,2021,2022

PARTICULARS 2020  2021 2022
        
Sales 2,300,000 3,427,000 3,130,000
Less cost of sales 958,000  1,309,000 1,905,000
Cross profit 1,342,000 2,118,000 1,225,000
Less expenses       

~ 21 ~
Salaries and wages684,000  684,000 720
Insurance 12,000  15,000 15,000
License and
15,000  12,000 12,000
permit
Electricity 12,300  15,500 11,400
Water 38,100  37,000 40,700
Stationary 4,650  6,700 7,500
Advertisement 29,125  40,000 35,500
Postage 4,250  6,400 8,200
Renovation 13,575  38,000 53,000
Repair and 21,500  35,025 58,500
maintenance       
Telephone 4,550  6,100 8,600
Security 36,000  48,000 54,000
Miscellaneous 21,850  44,000 76,000
Total expenses 911,900  986,725 1,100,400
Profit before tax 430,100  131,275 124,600
Less 50% tax 21,505  56,563.75 6,230
Net profit after tax 408,595  1,074,711.25118,370
        

   

5.7 BREAK EVEN ANALYSIS FOR THE YEAR 2020, 2021 AND 2022

B.E.P=F.C

CM

Contribution margin = sales –variable cost

~ 22 ~
Fixed cost 2020   2021 2022
         
Salaries and wages 684,000   864,000 770,000
License and permit 12,000   120,000 12,000
Insurance 15,000   15,000 15,000
Security 36,000   48,000 54,000
Loan repayment 10,000      
         
Total fixed cost 847,000   759,000 801,000
         
Variable costs 2014   2015 2016
         
Electricity 12,300   15,500 11,400
Water 38,700   37,000 40,700
Stationary 4,650   6,700 7,500
Advertisement 29,125   40,000 35,500
Postage 4,250   6,400 8,200
Renovation 13,575   38,000 53,000
Repair and 21,500   34,025 58,500
maintenance        
Telephone 4,550   6,100 8,600
Miscellaneous 21,850   44,000 76,000
Nance     6  
         
Total variable cost 149,900   227,725 366,900

5.8 FISH FARMING BALANCE SHEET FOR THE THREE YEARS

Particulars 2020 2021 2022
       
Fixed assets      
Machinery and 34,010 33,330 32,663
equipment      
Less 2% 6,80 6,67 6,53
depreciation      
  33,330 32,663 32,010

~ 23 ~
 Total fixed assets      
Current assets 20,000 24,000 28,800
Stock 35,000 45,000 55,000
Debtors 579,983 153,630 1,647,270
Cash at bank 64,443 17,707 183,030
Cash in hand      
  699,426 1,839,700 1,548,040
Total current assets 732,756 1,872,363 1,580,050
Total assets      
Current liability 30,000 50,000 120,000
Creditors      
Long term liabilities 702,756 1,822,363 1,460,050
Owners equity      
       
Total liability 732,756 1,872,363 1,580,850
       

5.9 RATIO FOR THE YEAR 2020, 2021 AND 2022

Types of
Formula 2020 2021 2022
ratio
             
G.P ratio G.P x 100 58.3%61.8%39.1%
  7.5        
         
Return on Net profit after58.1%59% 7.5%
equity x 100      
    Tax        
  Owners equity      
         
Return on Net profit after14.3%7.6% 0.53%
investment   x 100      
  Total      
  investment      
             

~ 24 ~
6.2 PROJECTED CASH FLOW – YEAR 2020
NARRATION JAN FEB MARC APR MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL
H
Beginning 173405 1602405 169535 179175 189595 114230 201115 2130650 25135 237555 1524999 262285 770088
cash 0 0 0 0 0 0 0 0 0 50 0
Cash sales 310000 316000 320000 324000 330000 333600 338000 340000 34200 344000 348000 350,00 725,00
0 0 0 0
Debtors - 2000 3000 4500 4000 500 6000 6000 4000 3500 6000 6000 7800

Total cash 1200,00 124600 123890 128160 133050 139230 146610 1542700 16264 171325 1809650 192565 150288
flow 0 0 0 0 0 0 0 0 5

Purchases - 30,000 35,000 22,000 18000 12000 10000 8000 8000 7000 6000 4000 396,00
0
Electricity 4000 4000 4500 4200 4300 4400 4500 4600 5000 2000 3000 4000 11000

Licencse 2000 - - - - - - - - - - - 3000

Permit 5000 - - - - - - - - - - - 25000

Salaries and 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 35000
wages
Transport 4000 4000 4200 4300 4500 4500 4600 4600 4800 4800 5000 5000 3920

Water 1000 1100 1100 1200 1200 1000 1000 1100 1200 1200 1200 1200 22800
Rent 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 763370
Insurance 2000 - - - - - - - - - - -
Miscellaneo 1000 1200 13000 1500 1500 1600 1600 1800 1800 1500 1200 1600
us
Total cash 171,000 230,000 191,50 190,00 188,20 184,90 185,30 187,550 187,50 188,70 190,000 191,60
out show 0 0 0 0 0 0 0 0

Net cash 50745 55150 5505 556770 57095 56305 58930 71365 80785 92195 90225 90,225 739175

~ 25 ~
 flow

6.3 PROJECTED CASH FLOW – YEAR 2021

NARRATION JAN FEB MARCH APR MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL
Beginning 1734050 16024050 1695350 1791750 189595 1142300 2011150 2130650 251350 2375550 15249995 262285 770088
cash 0 0 0
Cash sales 310000 316000 320000 324000 330000 3336000 338000 340000 342000 344000 348000 350,000 725,000
Debtors - 2000 3000 4500 4000 500 6000 6000 4000 3500 6000 6000 7800

Total cash 1200,000 124600 1238900 128160 133050 1392300 1466100 15427000 162640 1713250 1809650 192565 1502885
flow 0
Purchases - 30,000 35,000 22,000 18000 12000 10000 8000 8000 7000 6000 4000 396,000

Electricity 4000 4000 4500 4200 4300 4400 4500 4600 5000 2000 3000 4000 11000

License 2000 - - - - - - - - - - - 3000

Permit 5000 - - - - - - - - - - - 25000

Salaries and 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 35000
wages
Transport 4000 4000 4200 4300 4500 4500 4600 4600 4800 4800 5000 5000 3920

Water 1000 1100 1100 1200 1200 1000 1000 1100 1200 1200 1200 1200 22800
Rent 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 763370
Insurance 2000 - - - - - - - - - - -
Miscellaneou 1000 1200 13000 1500 1500 1600 1600 1800 1800 1500 1200 1600
s
Total cash out 171,000 230,000 191,500 190,000 188,200 184,900 185,300 187,550 187,50 188,700 190,000 191,600
show 0

~ 26 ~
Net cash flow 50745 55150 5505 556770 57095 56305 58930 71365 80785 92195 90225 90,225 739175

~ 27 ~
 6.4 PROJECTED CASH FLOW – YEAR 2022

NARRATION JAN FEB MARCH APR MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL
Beginning 1734050 16024050 1695350 1791750 189595 1142300 201115 2130650 251350 237555 15249995 2622850 770088
cash 0 0 0 0
Cash sales 310000 316000 320000 324000 330000 3336000 338000 340000 342000 344000 348000 350,000 725,000
Debtors - 2000 3000 4500 4000 500 6000 6000 4000 3500 6000 6000 7800

Total cash 1200,00 124600 1238900 128160 133050 1392300 146610 15427000 162640 171325 1809650 1925650 1502885
flow 0 0 0

Purchases - 30,000 35,000 22,000 18000 12000 10000 8000 8000 7000 6000 4000 396,000

Electricity 4000 4000 4500 4200 4300 4400 4500 4600 5000 2000 3000 4000 11000

Salaries and 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 96,000 35000
wages
Transport 4000 4000 4200 4300 4500 4500 4600 4600 4800 4800 5000 5000 3920

Water 1000 1100 1100 1200 1200 1000 1000 1100 1200 1200 1200 1200 22800
Rent 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 763370
Insurance 2000 - - - - - - - - - - -
Miscellaneous 1000 1200 13000 1500 1500 1600 1600 1800 1800 1500 1200 1600

Total cash out 171,000 230,000 191,500 190,000 188,200 184,900 185,300 187,550 187,500 188,700 190,000 191,600
show

Net cash flow 50745 55150 5505 556770 57095 56305 58930 71365 80785 92195 90225 90,225 739175

~ 28 ~
BREAK EVEN POINT FOR 2020

Contribution margin = T.S-V.C

=2,300,000-149,900

=21,501,000

C.M.P = C.M x 100

T.C

=450,100 x 100

230,000

=93.5%

B.E.P = F.C

C.M.P

= 847,000 = 84,700

93.5% 0.935%

=9,058,882

40

BREAK EVEN POINT FOR YEAR 2021

Contribution margin = T.S – V.C

=3,427,000 – 227,725

=3,199,275

B.E.P = F.C x sales

C.M

=75, 9000 x 3,427,000

3,199,275
~ 29 ~
=813,026

BREAK EVEN POINT FOR YEAR 2022

Contribution margin = T.S – V.C

=3,130,000 – 366,900

=2,763,100

B.E.P = F.C x sales

C.M

=801000 x 3130000

2763100

=907,361

~ 30 ~
CHAPTER SIX

6.0PORTANTIAL RISKS

6.1ECONONY

The business has to be located in a urban canters due to increasing economy the business has to
capture more of the customers who are the fish eaters.

6.2 NDUSTRY

Our fish industry is going to be top most cultivators of income because of high demand of the
products. The industry shall attract and value employees and discourage all sots of corruption

6.3 LOCATION VALUE

fish farming shall be located nearly schools and collage to receive good services offered by the
farming

6.4 MARKETING

For the business to grow it must have good market and good relation from the society

6.5 OPERATIONS

Operations describes channels to be employed so as to ensure that the customers needs and
performance are met

6.6 FINANCIAL

The pre-operational cost promote income statement break even point analysis and business
profitability will be shown in the financial plan

6.7 SECURITY

Security is very fundamental element in certain organizations and it must ensure that it is well
maintained and respected. The business shall employ honest security to maintain peace and order

6.8 OTHER

The operational personnel organized the work and recognize it as per customer instruction
because there are other bakeries which provide related services to the workers and customers

~ 31 ~
6.9 RISK ANALYSIS

The installment of alarms and fire extinguishers to be used in case of accident

~ 32 ~