competitiveness of our product by maintaining its quality.

We’ll have to freeze and to make them clean

to avoid any damage and unnecessary smell.

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

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

(1) Direct type of distribution.

DIVE FISH FARM END CUSTOMER

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

DIVE FISH FARM CONSIGNOR END CUSTOMER

I. PROPOSED MARKETING PROGRAM

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

II. PROJECTED SALES

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

III. PRODUCTION

Product Specification

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

Production Process

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

Plant Size and Production Schedule

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

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

Startup Source and Supply of Bangus

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

Utilities

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

Tools and Equipment 523,710

Miscellaneous Expense 200,000

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

XI.FINANCIAL FEASIBILITY

Funding

 Use of Funds

Pre-operating expense 700,000

Fixed Assets to be acquired 523,710

Initial Working Capital 276,910
Total 1,500,000

 Sources of Funds

Equity Contribution 1,200,000

Bank Loan 300,000

Total 1,500,000

Major Assumptions

 Sales 1,500,000 in year 1 to increase 22,000 kilos every year or total of 3,300,000
sales increase.
 Cost of Sales is 60% of the Sales.
  Operating Expenses

Salaries Expense 400,000

Installation Expense 100,000

Miscellaneous Expense 200,000
Depreciation Expense 26,180

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

 Fixed asset to be acquired is P523, 710 in year 1 to increase by 2% every year.

 Capitalization

Owners Equity 1,200,000

Bank Loan 300,000

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

Dive Fish Distribution Company

Forecasted Income Statement

For the first Five Years

Year1 Year2 Year3 Year4 Year5

Sales 1,800,000 5,100,000 8,400,000 11,700,000 15,000,000

Less: Cost of Sales 648,000 3,060,000 5,040,000 7,020,000 9,000,000
Gross Profit 1,152,000 2,040,000 3,360,000 4,680,000 6,000,000
Less:
Operating Expenses
Salaries 400,000 400,000 400,000 400,000 400,000
Installation 100,000 - - - -
Miscellaneous 200,000 202,000 204,020 206,060 208,120
Depreciation 26,186 26,186 26,186 26,186 26,186
Total Expenses 726,186 628,186 630,206 632,246 639,306
Net Earnings 425,814 1,411,814 2,729,794 4,047,754 5,365,694
 Dive Fish Distributor Company

Projected Balance Sheet

For the first Five Years

Year1 Year2 Year3 Year4 Year5

ASSETS:
Cash 1,428,000 2,380,002 3,663,484 4,946,733 6,229,744
Fixed Assets 523,710 534,184 544,868 555,765 566,880
Accumulated (26,286) (52,372) (78,558) (104,744) (130,930)
Depreciation.
Total Assets 1,925,814 2,861,814 4,129,794 5,397,754 6,665,694
LIABILITIES AND EQUITY
Loan Payable 300,000 250,000 200,000 150,000 100,000
Owners Equity 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
Retained Earnings 425,814 1,411,814 2,729,794 4,047,754 5,365,694
Total Liabilities & Equity 1,925,814 2,861,814 4,129,794 5,397,754 6,665,694
 Dive Fish Distributor Company
Projected Cash Flow
For the first Five Years

Estimated Cash Inflows: Year1 Year2 Year3 Year4 Year5

Sales 1,800,000 5,100,000 8,400,000 11,700,000 15,000,000

Partners Investment 1,200,000 - - - -
Proceeds from bank loan 300,000 - - - -
Total Cash Inflow 3,300,000 5,100,000 8,400,000 11,700,000 15,000,000
Estimated Cash Outflow:
Operating Expenses & Cost of 1,121,710 4,087,814 7,055,834 10,355,854 13,655,874
sales
Acquisition of Fixed Assets 523,710 10,474 10,684 10,897 11,115
Cash Payment for bank loan 50,000 50,000 50,000 50,000 50,000
Total Cash Outflow 1,871,710 4,148,288 7,116,518 10,416,751 13,716,989
Cash Balance 1,428,290 951,712 1,283,482 1,283,249 1,283,011
ADD: Beginning Balance - 1,428,290 2,380,002 3,663,484 4,946,733
Cash Ending Balance 1,428,290 2,380,002 3,663,484 4,946,733 6,229,744

Financial Analysis

 Return on Investment = Average Net Income/Average Equity

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

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

=425,814+1,411,814+2,729,794+4,047,754+5,365,694
5
=13,980,870/5
=P2, 796,174
  Average Equity= (Equity of year 1+year5)/5

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

The Group behind the Wall:

 Michelin Tan