CHAPTER I

THE INDUSTRY, THE COMPANY AND ITS PRODUCTS

1.1 The Industry

Tilapia is the second most important cultured species in the country accounting

for 281,111 MT total production in 2021. Philippines’ total production was 263,871 MT

in 2020, which makes up 20% of the Philippines’ aquaculture production, with Central

Luzon as the leading region with tilapia production of 136,218 MT. The most common

species is the Nile tilapia (Oreochromis niloticus), or gray tilapia, which has several

improved breeds available from government and private hatcheries. It can tolerate

brackish water with salinities of up to 25 parts per thousand. Tilapia is an important

commodity for food security because it is widely accepted and is suitable for mass

production through grow-out culture in backyard and commercial scale.

Tilapia fry produced in breeding units are kept in the nursery unit until fingerling

size before moving them into grow-out units to ensure proper growth of the fish and good

survival rate. Fish need adequate space, food, and a healthy environment so it is

important to consider water depth, food supply, and water quality.

In the Philippines, tilapia is produced mainly for local consumption. The produce

can be sold fresh, chilled, or live. When grown to large size and fileted, tilapia can also

be marketed as a premium white fish as its mild tasting lean flesh is flaky for its

somewhat firm texture. Some places in the country, smoking of tilapia is done but mainly

for the immediate locality.

1.2 The Company and the Concept

 According to the city government of Kidapawan, the city government provides a

great and widely support in aquaculture in fact last year 2021 the city government had an

intervention to provide these local Tilapia farmers with an easy way to produce processed

food for their tilapia fingerlings and other pellets for livestock as well as fertilizers to

boost production. This served as a response to Covid19 that they are doing these as

measures to assist local farmers and to help maintain food security in the city of

Kidapawan.

K-Siete Tilapia Farm is a business venture that supply and retail the company’s

products of Tilapia fish which are available directly in the farm located in Kidapawan

City. On the other hand, our Tilapia farm provides a wide variety of products which are

fresh Tilapia fishes straight from the farm, other Tilapia goods like Dried Tilapia. Our

clients can purchase our products directly on the farm. We also provide a social media

platform page like Facebook, we provide the address, contact number and other details

for faster transactions.

Furthermore, customers can also place their orders via email to cater multiple

demands for the huge potential market. Moreover, we also offer deliveries that have extra

charges within Kidapawan City and other neighboring municipalities for customer’s

convenience and for urgent orders right through their doorsteps. The uniqueness of our

business is that we offer our fresh products because we have our owned Tilapia farm that

is open every day to cater numerous clients. Wholesalers and retailers are also welcome

for our Tilapia products.

 The proposed business will be owned and managed by Cherly-An C. Deculongan,

Ameejoie G. Batucal and Ernesto T. Intong Jr. K-Siete Tilapia Farm is a one stop

supplier that offers fresh Tilapia fishes and dried tilapia. It has a physical Farm; it caters

customers who have bulk orders.

LOGO

Figure 1.1 K-Siete Tilapia Farm Logo

The logo symbolizes customer’s recognition and identification of the business and

it gives the idea for the market to instantly connect with the product in just one sight.

Kidapawan City, where the company is based, is where the name K-Siete comes from. he

K-Siete Tilapia Farm’s tagline is “We Do Fish Farming by Heart”.

1.3 Business Location

K-Siete Tilapia Farm is located at Barangay Kalaisan Kidapawan City. It is 1

hectare of land which is owned by the partnership.

Figure 1.2 The Location Map of K-Siete Tilapia Farm

1.4 Vision/Mission/Goal/Objectives

VISION

To provide one stop shop of freshly harvested Tilapia fishes and other processed

Tilapia products in North Cotabato and other provinces in the Philippines.

MISSION

Based on good, reliable and mutual relationships, we provide our customers with

fresh caught Tilapia fishes, sustainably caught or farmed and processed, packaged, stored

and distributed with the utmost care and under perfectly hygienic conditions,

straightforward and sustainable fish products that offers for a reasonable price.

GOALS
  To sustain a wide provision of the market in North Cotabato and other provinces

of fresh and quality and freshly harvested Tilapia products for a reasonable price.

 To Increase the total income of 10% over the next two years.

 To expand the Tilapia business in other provinces over the next three years.

OBJECTIVES

 To drive more sales of Fresh Tilapia and Tilapia products.

 To improve the equipment and materials for effective production.

 To maximize growth rate and minimize production cost.

 To develop stronger relationships with the resellers and wholesalers

1.5 The Product and The Concept

The products offered by the K-Siete Tilapia Farm are fresh products such as the

fresh Tilapia and Dried Tilapia. Basically, K-Siete Tilapia Farm is open and will be

offering these variety of Tilapia products to the local market in Kidapawan City and for

the neighboring municipalities as well. Our farm will sell for bulk orders only or

wholesale customers.
 FRESH TILAPIA

Figure 1.3 The Products of K-Siete Tilapia Farm

1.6 Entry and Growth Strategy

This market study examines the impact of the market demand when it comes to

how K-Siete Tilapia Farm firstly, be able to widely pursue for sustainability of the

business growth that also includes the working plan for the production of the other

processed products aside from the freshly harvested Tilapia fishes to increase revenues.

Secondly, it also needs to focus on how to reach new customers and how to keep them as

well. Additionally, it also needs to target on long-term growth of the company and how to

provide larger impact by assessing local market size and growth rates in all possible and

various scenarios that may emerge along the way. And lastly, by also predicting how the

market react towards inflation and from previous widely pandemic spread affecting the

local economy in Kidapawan City and the entire province of North Cotabato.

These are the growth strategies that the business will take and plan for overcoming

current and future challenges:

 Market development strategy – This involve a wider research of the business to

identify a different market segments in different municipalities and provinces,

 and then identify the potential customers and attract them by providing what K-

Siete products have in order to increase the sales.

 Product Development Strategy- This involve the development of the Fresh

Tilapia, by providing enough food for the fish and other resources that makes

them healthy and fresh.

 CHAPTER II

MARKET RESEARCH AND ANALYSIS

2.1 The Market

K-Siete Tilapia Farm's first strategy is to make sure that our products are always

available to the wide range market in Kidapawan City and other neighboring

municipalities. Through this, it can supply the demand of different kinds of market and its

potentials. Since establishing the venture’s products to be known to much higher

potential was the primary goal however, national branded organizations will yet take time

to pursue, so the focus is to start on concentrating to meet both ends with the supply and

distribution to the local market first which is within the Kidapawan City. The Farm will

also utilize the possibilities of outer City market like the closest municipalities too this is

why production should always be the main priority. The target market of K-Siete Tilapia

Farm are the wholesalers in Kidapawan City and nearby municipalities.

2.2 Market Size and Trends

The total population in North Cotabato is 1.4 million which will be a part of the

market size by population wise alone that is according to the National Statistics Office

(NSO) year based last 2020. Kidapawan City itself

has contributed a large number of potential size market for the benefit of the local

business industry including the K-Siete Tilapia Farm. Moving forward in the year 2022 in

early month of May, the latest survey of NSO based per household in Kidapawan City

alone went up to 99.53% which therefore, will be the market size potential of K-Siete
Tilapia Farm which therefore if the market size alone, the business will have its full

potential.

Tilapia will never be out of trends because Tilapia fish is highly known to the

local people of Kidapawan which there is no need to introduce the product for promotion

any father. It is very popular that the whole world knows about the fish and has always

been ‘IN’ for every kind of season specially Tilapia fish can turn into a very savory and

delicious delicacies that people would really love its tastes. It is easy to access the supply

because has owned the Tilapia Farm.

2.3 Competition and Competitive Edge

K-Siete Tilapia Farm has a lot of competition when we only talk about Tilapia

fish selling alone. One of the biggest competitor of K-Siete Tilapia Farm is the LaVilla

Aqua Farm located in the Manongol, Kidapawan City, serves Tilapia, Hito, Carpa and

Taiwan Shells. There are also numbers of existing local sellers of Tilapia already existed

for decades within the Mega Market wet market fish section. They are already known to

the customers and even has branding their avid customers as ‘SUKI’. They are one of the

most popular competitors of our company. However, K-Siete Tilapia Farm will have a

lead of competitive edge when it comes to price and quality because the K-Siete Tilapia

Farm provide freshest Tilapia fishes; farm to table concept kind of freshness. It is

practical and sure for the quality of the product. The farm location is an edge to keep the

freshness of the fish. Additionally, the convenience of the business we can provide to our

customers because it is again a one stop shop Farm providing and catering customers for

selling other different products that can be offered to the variety of customers both online
and those who physically visits the K-Siete Tilapia Farm. For instance, if the customer

wished to purchase fresh and even the processed Tilapia product, the availability would

never the question.

2.4 SWOT Analysis

Table 2.1 The SWOT Analysis of K-Siete Tilapia Farm

STRENGTHS  WEAKNESSES
 It provides a one-stop-shop  Small production.
concept for the customers.  It has a potential supply
 It offers fresh tilapia products. scarcity due to the changing
 Cost effective pricing. whether condition.
 Accessibility for urgent  Less capitalization.
availability.
OPPORTUNITIES THREATS
 It has a huge potential  Other existing bigger local
market in Kidapawan City. Tilapia farm competitors.
 Opportunity to gain profit.  Unpredictable weather
conditions.
 There are a lot of things to consider when it comes to business ventures especially

when the rate of inflation is not backing down hence, it keeps moving higher. However,

in doing the business, entrepreneurs must need courage, business intellect and wide and

longer time of accumulated experiences in handling business, man power and financing.

This SWOT analysis will serve as an early predicament on how to maneuver and take the

leap of transition of manifesting growth of K-Siete Tilapia Farm a successful business in

Kidapawan City.

2.5 Demand Structure

It has been known that Fish farming is one of the highest profitable businesses to

rise within our country. It is popular not only in the province of North Cotabato and in the

Philippines, but it is also known to other countries especially in the United States of

America and to the whole world. Aside from Tilapia fish’s nutritional value and its taste,

Tilapia fish is also very versatile. It can be served in variations when it is still raw in the

form of ‘Kinilaw, fried, dried, stew, grilled and many other menus. Additionally, it can be

preserved as well as Dried Tilapia. The demand of Tilapia fish and other Tilapia products

are non-questionable because the Market can potentially be not just from the locality but

also internationally which therefore lead K-Siete Tilapia Farm to be one of the best

businesses to invest with because of its market demand potentials.

 CHAPTER III

MARKETING PLAN

3.1Overall Marketing Strategy

The relevance of each goal is inclined to provide a certainly fresh, quality and

enjoyable farm experiences for our valued customers who comes first before revenue and

profitability. Upon making the framework of this project, we have come in mind the

interest of our consumers and clients are our top priority of course. We have provided a

committee to oversee the feedbacks and comments of our customers to our services

offered so that possible improvements on our product are made and this will help in

greater provision for the market that may leads in greater sales.

Continuing and long-term planning on innovation, the K-Siete Tilapia Farm

products are already at hand hence, any challenges during the operations, interventions

and preventive measures are applied to avoid the halting of the operations and prevent

losses on our partnership business.

Pricing

With respect to our local competitors of providing Tilapia fish and other Tilapia

products in Mega Market in Kidapawan City in particular, which they had been already

providing the Tilapia products and fresh Tilapia fish for decades. However, the quality

and the freshness of our Tilapia fish and other Tilapia product such as Dried Tilapia

served in the
farm also compete enthusiastically to the existing competitors and K-Siete Tilapia Farm

eagerly provides the products and offer services at its reasonable prices.

Table 3.1 The Product and the Selling Price of K-Siete Tilapia Farm

PRODUCT SELLING PRICE BULK SALE PRICE

FRESH TILAPIA P 156.00 P 145.00

3.2 Service and Warranty Policies

As we give primary importance to the quality products of K-Siete Tilapia Farm

and the customer service of the company, still our customer always comes first before

revenue and profitability, we assure that our given products and services are aligned with

our service and warranty policies.

Our customers are entitled to have automatic availment of satisfaction and

enjoyable experience for paid Tilapia products. In case of unsatisfied customer claim due

to a valid claim with regards to the products, K-Siete Tilapia Farm company will give

replacements and discounts for any inconvenience accordingly. This aim to directly

address the customers concerns about such matter.

Additionally, the products of K-Siete Tilapia Farm are safe, clean and nutritious

given the fact that it follows the standard of the right preparations of foods by wearing

hair nets and face mask for the personnel in charge to maintain the health and sanitation.

And that of the benefit value of the raw products of K-Siete Tilapia Farm is observed

from food preparation up to the application of standard health protocols in terms of

distributions and services that the K-Siete Tilapia Farm provides knowing that the

pandemic is not yet totally eradicated.

3.3 Advertising and Promotions

Promotion and advertising the business is one of the best strategies for emerging

new business to be acknowledge and known in a certain area of an any market place.

Additionally, advertising is now seen as one of the most important tactics for marketing

in keeping the business alive since in this modern time has been promoting a fast-moving

environment especially in business arena.

K-Siete Tilapia Farm will utilize different platforms to promote and advertise the

business. Social media promotion like Facebook page will utilize to reach a large

audience of market and also to penetrate to the new possible customers. This is to make a

heads-up to raise awareness to the potential clients to let them know that the business is

existed, liquid operating and accessible. On the other hand, the K-Siete Tilapia Farm will

advertise their products and services to the public just like in radio stations or in a display

advertising just like posters to be able to showcase their fresh and delicious Tilapia fish

and other variety of Tilapia products that will be able to serve suitable demand of

different kinds of customers to be able to predict the different kinds of clients by market

segmentation. The farm will make use of a marketing strategy that includes pricing that is

in line with consumer demand, a product that satisfies customer needs and wants, an

easily accessible location for the items to be sold, as well as promotions and advertising

that targets prospective customers.

3.4 Prospected Location

 A good business location aims to provide an advantage to K-Siete Tilapia Farm

business because it creates a balance among the ventures operational costs or the daily

costs incurred of running the business, potential revenue and the target customers.

K-Siete Tilapia Farm places its business with an accessible farm to market road,

high-visibility location, in Barangay Kalaisan in Kidapawan City. This location is the

best area for the farm because it is not too far from the city center and it is near to the

different subdivisions in the city. Moreover, road is fully cemented and the geographical

location doesn’t have high ground therefore it offers good vehicular accessibility.

3.5 Distribution

K-Siete Tilapia Farm will be found and accessible best to the retailers whose

business is selling of fish or products made of fish. The farm will distribute the products

through its retailers; they will buy in bulk from the farm and sells the products to the

customers. Retailers have a large role in promoting sustainable consumption and

production, occupying a unique position in the lifecycle chain of products as a

'gatekeeper' between producers and consumers. They can potentially play a big role in

furthering the sustainability of consumption and production of the K-Siete Tilapia Farm.

The K-Siete Tilapia Farm can also distribute the product to its valued customers

provided for a reasonable fee applied agreed by the customers right after placing their

order/s. The delivery is arranged given that the orders are placed ahead of time.

Additionally, the payment of the orders will be upon the delivery date or after the

customer placed the order via different platforms by paying it though E-money like

Gcash and bank transfers.

 CHAPTER IV

THE ECONOMICS OF THE BUSINESS

4.1 Gross and Operating Margins

In business, gross margin measures the return on the sale of goods and services. It

is derived by subtracting the costs of direct labor, direct materials, and factory overhead

from sales. It is designed to track the relationship between product prices and the costs of

those products, and is closely watched to see if product margins are eroding over time.

The operating margin subtracts operating expenses from the gross margin. This

means that all selling, general and administrative expenses are deducted from the cost of

goods sold, which leaves the profit or loss generated by the core operations of a business.

In essence, the operating margin is designed to track the impact of the supporting costs of

an organization on its gross margin.

K-Siete Tilapia Farm example of how these margins is calculated, K-Siete Tilapia

Farm business has 100,000 pesos of sales in a month, a cost of K-Siete Tilapia Farm sold

of 40,000 pesos, and operating expenses of 50,000 pesos. Based on this information, K-

Siete Tilapia Farm gross margin is 60% and the K-Siete Tilapia Farm operating margin is

10%.
 OCTOBER NET PROFIT

Sales 100,000

Cost 40,000

Operating Expenses 50,000

Gross Margin 60%

Operating Margin 10%

Table 4.1 The Gross and Operating Margins of K-Siete Tilapia Farm

To make it short, the Income Statement takes service income and subtracts all the

expenses to get the net income or profit. The result would divide by the service income

and multiply by 100 percent to get the net profit margin.

4.2 Profits Potential and Durability

Profit potential is often called income potential that describe the potential for a

product or services like the K-Siete Tilapia Farm business that plan to make money. This

computation is sometimes called a risk versus profit assessment in which, the assessment

does is to note the costs and risks associated with production and sales for a product or

business. It then weighs these outgoing expenses against the estimated revenue from sales

projections to decide if the product will result in a profit. For example, refer to the tables

below:
Base on Monthly Computation

Table 4.2 The Monthly Revenue Computation of K-Siete Tilapia

Products Demand Product Price Revenue

Fresh Tilapia 1,500 156/kl. 234,000

Total Revenue 234,000

Table 4.3 The Monthly Expenses Computation of K-Siete Tilapia Farm

Products Demand Revenue Expenses

Fresh Tilapia 1,500 234,000 100,000

Total Expenses 100,000

 CHAPTER V

DESIGN AND DEVELOPMENT PLANS

5.1 Development Status and Staff

K-Siete Tilapia Farm is a business venture that falls under partnership which is a

small business ventures that is capable of gaining out from income by offering variety of

fresh Tilapia and other product out from Tilapia fish unto their valued customers. K-Siete

Tilapia Farm has a great income potential since it caters the customer by offering

different kinds fresh Tilapia fish and other Tilapia product to their valued clients of

Kidapawan City. It is a kind of business where it can maximize the given products,

services and income value because of its fresh Tilapia and the other delicious Tilapia

product produced from the Tilapia farm plus, their accessible location, reasonable prizes

given and excellent services offered by K-Siete Tilapia Farm.

To better understand the foreseen future plan of K-Siete Tilapia Farm, attached

below is the Projected Income Statement of the business.

Table 5.1 The K-Siete Tilapia Farm Potential Income Statement

Development Staff

K-Siete Tilapia Farm business knows that the staff or employees is one of the

backbones of the business to progress and prosper. Staff development known as the

process of which the employees, with the support of their employer, go through

professional training or pursue learning opportunities to improve their skills and grow

their knowledge and careers. K-Siete Tilapia Farm is willing to support each of the staff

to have trainings and seminars to be able to be more efficient to their customer service

that is very important to this kind of business. The staff will utilize their expertise

towards the knowledge in handling customers to offer the best of their services to each of

their clients.
5.2 Difficulties and Risks

It is acknowledged that there are risks and issues involved with development in

starting a business. K-Siete Tilapia Farm is not an exception to that, and it is important to

include assumptions regarding these aspects to be included in the business strategy. The

K-Siete Tilapia Farm business may encounter the following difficulties and risks:

Locations: The location is the first to be mindful of while operating the K-Siete

Tilapia Farm. This is the place where the business is located. It is risky because it is

somehow located in a place that might at stake the water sources to keep the Tilapia

ponds lacking out of water when the hot season strikes.

Health Issues: Another risk to be concerned about is the health. To begin,

pandemic is still present and K-Siete Tilapia Farm business offer services to customers

face-to-face. The risk is high whenever the Covid-19 pandemic will not be eradicated

which means our product and services offered to the customers in this industry are at

stake. Another consideration is the health and safety protocol that will apply to the

customers depending on the status of health and safety during this pandemic time.

The Weather Condition: It has been known that the weather here in the

Philippines is already unpredictable, many reasons came out in the surface that might be

the biggest risk of fish industry. The weather condition definitely is one of the factors of

its risk. Too much hotness can affect the Tilapia fishes and the water sources of the ponds

and too much rain can also affect the fishes in the ponds. Either way can greatly give the

business a huge effect of risk.

Non/Slow adoption of Aquaculture practices and technologies:

In the business strategy of K-Siete Tilapia farm it is important to consider practices and

technologies to be use in the operations. It is a difficulty and a risk if that given practices
need to perform is not easy to do in terms of growing the Tilapia fishes, and the

technologies to be used is hard to use especially in that technology that is not familiar to

the employees. If these risk will continue it may lead to the decrease of the revenue of K-

Siete Tilapia Farm.

Quality Source of Breeders and fry- The K-Siete Tilapia Farm major product is

Tilapia, it is important to consider the quality of the breeders and fry. It is a risk for we

don’t know the quality of the sources we get until it will be tested.

Survival rate of Tilapia – The Freshwater tilapia has a low survival rate which is

55% in a typical freshwater grown-out farm compared to a modern farm.

5.3 Services Improvement and New Services

The K-Siete Tilapia Farm business is always ready for improvement especially

when it talks about the proper handling and proper preparation of the Tilapia Fishes

which is the business focus and mainstream of giving their quality of services. In this

phase, the company will conduct researches that will help the company able to

materialize and cater what the market demands in terms of Tilapia products that K-Siete

Tilapia Farm business will able to sustainably exist in the market and for the years to

come by always bringing fresh and clean Tilapia and other Tilapia products on the table

and their superb services to its most potential by innovating and creating new products,

improve the company’s services, the marketing plan and the marketing strategies to get

new customers and to how to keep the old and valued customers as well. The business

will keep its momentum by never let the business behind each and every competitor they

have. The company will also ensure that K-Siete Tilapia Farm will be a trendsetter in the

market.
5.4 Supplies

K-Siete Tilapia Farm supplies that are needed in the operation to start are listed

below:

Table 5.2 The K-Siete Tilapia Farm Supplies

QUANTITY COST TOTAL COST
Tilapia Fingerlings 9,000 3 27,000
Tilapia Feeds 5 1,400 7,000
Water Supply 20,000
Packaging Tools 5 dozen 1,000 5,000
Land 1,000,000
Building 500,000
TOTAL 1,559,000

5.5 Materials and Equipment

K-Siete Tilapia Farm Materials and Equipment needed in the operation.

Table 5.3 The K-Siete Tilapia Farm Materials and Equipment

 CHAPTER VI

MANUFACTURING AND OPERATIONS PLAN

6.1 Operating Cycle

In business, operating cycle is vital to be able for the owner’s simply determines if the K-

Siete Tilapia Farm company's efficient or in other words, if the company is really in progress

same as K-Siete Tilapia Farm Company’s Business. Also, operating cycle is useful because it

helps the K-Siete Tilapia Farm companies to estimate the amount of working capital that

their company will be needing in order to maintain or grow the K-Siete Tilapia Farm

company's business

CAPITAL FROM
COLLECT CASH
PARTNERSHIP PURCHASING
FROM THE
SUPPLIES
CUSTOMERS

SELL THE PRODUCE VARIETY

PRODUCTS OF TILAPIA

Figure 6.1 The K-Siete Tilapia Farm Operation Cycle

6.2 Waste Management and Disposal

A waste management business plan of K-Siete Tilapia Farm company's is

essential because it specifies the intricacies required in waste management. This includes

the method, the system used, the services provided, and the estimated costs. Not only

that, but obtaining a permit assures that everything is done legally. And everything is in

accordance with the rules.

The K-Siete Tilapia Farm companies will manage its disposals like the left over

or unsold Tilapia fishes by producing it to new product called Dried Tilapia, this is to

generate another income out from the unsold fresh Tilapia. In K-Siete Tilapia Farm,

nothing is actually a waste because the company will make sure that everything has its

value.

6.2 Geographical Location

Figure 6.2 The Geographical Location of K-Siete Tilapia Farm

The geographical location of K-Siete Tilapia Farm plays a huge role in attracting

and retaining the best employees and customers of the company because it is very

accessible. It is certainly kept a close eye on where it is based in order to optimize work-

life balance for the employees furthermore, this good location is a decision that can
significantly boost the company's long-term performance for income and profit

potential.

6.4 Facilities and Improvement

The K-Siete Tilapia Farm purchased their supplies and equipment locally here in

the Philippines particularly in Davao City since the city offers quality and affordable

supplies and equipment. The company ensures the Tilapia and other Tilapia products are

fresh and clean to serve to the customers. The K-Siete Tilapia Farm was uniquely

designed to be suited to cater the different types of customers that will make them feel

even more welcome and special. The K-Siete Tilapia Farm really ensures the safety and

comfort of each customer as they follow health protocols for both of the staff and their

clients. The K-Siete Farm set the goal of becoming one of the best Tilapia Farm in

Kidapawan City not only for its products and services but also for the improvement of the

accommodation of huge number of customers.

6.5 Strategy and Plans

K-Siete Tilapia Farm focus and eager to hit the goals of the company such as to

continue providing their customer the comfort, accessible and fast purchasing experience

for a reasonable yet very satisfactory price, second is to expand the business, thirdly is to

increase the total income of 10% over the next two years and lastly, is to open new

branches to meet the demand of the larger number of customers. In order to hit the goals

of the K-Siete Tilapia Farm business, the strategy of getting it is to continue giving

outmost excellent customer service to the riding clients plus serving the freshest Tilapia
by maintaining good, fresh, tasty and clean Tilapia which means that the K-Siete Tilapia

Farm itself is not just delicious, has a convenient Tilapia Farm but also the safest K-Siete

Tilapia Farm with a very reasonable prices.

When it comes to the elevating the company, the K-Siete Tilapia Farm planned to

purchase at least two newest food processors for every after 6 months to keep the high

demand of the customers and to cope with the fast-moving innovations when it comes to

Tilapia products produced by the farm because the company is planning to bring the K-

Siete Tilapia Farm business to the next level of making new product that will be included

in the new product menu of which also become an edge of the company to keep the

customers in patronizing the foods and services that the K-Siete Tilapia Farm is going to

offer so that the K-Siete Tilapia Farm will not stay behind among of its other competitors.

6.6 Regulatory and Legal Issues

In business, making registration activities is subjected to the law, and establishing

procedural rules and regulations is essential for the efficient management operation and

maintenance of CRVS (Civil Registration and Vital Statistics support) systems of any

kind of businesses because the legislation helps to ensure the completeness of registration

and to improve the accuracy of information of a certain business existed like the K-Siete

Tilapia Farm that should held in the civil record.

Below are the needed regulatory and legalities that the K-Siete Tilapia Farm

business complied:

Table 6.1 The K-Siete Tilapia Farm Permits and Licenses

PERMITS AND LICENSES COST
DTI Registration 530
Barangay Clearance 150
Mayor's Permit 2470
BIR Registration 500
Bureau of Fire Protection Permit 100
 CHAPTER VII

MANAGEMENT TEAM

7.1 Organization

K-Siete Tilapia Farm is an organization of young entrepreneurs or group of three

business minded individuals which coordinated and provided allocations of their

resources or funds in terms of capitalization for a common goal or objective to their

partnership business. K-Siete Tilapia Farm is also a business owned and managed by the

partners of the business itself that offer their clients a clean and fresh Tilapia Fish for a

reasonable price. It transacts from the variety of customers in the City of Kidapawan and

also the customer that comes from other municipalities.

Form of Organizational Obligation

This business will be managed by three young entrepreneurs in a partnership form

of business venture. Each of the entrepreneurs will combine their talents, expertise, and

knowledge to create high-quality customer service by the K-Siete Tilapia Farm business.

All partners are equally accountable for the business obligations and liabilities in

this basic type of partnership. Individuals are directly responsible for the partnership's

debts. Profits are also dispersed fairly. Profit sharing details will almost definitely be

spelled out in writing in a partnership agreement. To guarantee that the partnership runs

properly, partners must commit a large amount of time and effort to keep the company of

hitting the set goals. And partners should oversee the business’ day to day operations as

well as its full activity, including managing the company’s total investment and financing

obligation.
7.2 Organizational Chart

Operational Manager

Production Personnel Marketing Personnel

Figure 7.1 The Organizational Chart of K-Siete Tilapia Farm

7.3 Key Management Personnel

The Operational Manager – He/She accomplishes the department objectives by

managing the staff, planning and evaluating department activities. He/She also maintains

staff by recruiting, selecting, orienting, and training employees, ensures a safe, secure,

and legal work environment, and develops personal growth opportunities.

The Production Personnel - To generate the necessary supply for the day to service the

customer, he or she performs the operation at the operation site, the one who maintains

production by monitoring product.  They work on an assembly line, maintaining and

cleaning, and carefully assembling products in compliance with all safety regulations.
They serve as the first point of contact for clients and customers and work to ensure that

customers are happy with the products they receive.

The Marketing Personnel - Create marketing strategies and budgets, manage the

production of marketing content and materials, and carry out any other relevant duties

required for increasing the company's sales. The one who engages customers, informs

them of the goods or services, and aids them in the decision-making process.

Furthermore, it supports the development and maintenance of demand, relevance,

reputation, and competition. Additionally accountable for making the tilapia deliveries to

the consumers who made the orders.

7.4 Management Compensation and Ownership

The K-Siete Tilapia Farm management team own shares in this partnership

business. The owners of this partnership business are also the manager and department

head of the company. Three partners share in K-Siete Tilapia Farm venture. The manager

and the department heads have no outstanding no-compete agreements with previous

employers as well.

Table 7.1 The K-Siete Tilapia Farm Key People Salary

KEY PEOPLE/ WORK FORCE JOB DESCRIPTION DAILY RATE WORKING DAYS MOTHLY SALARY
AMEEJOY BATUCAL OPERATIONAL MANAGER 500 30 15,000
ERNESTO INTONG JR PRODUCTION PERSONNEL 400 30 12,000
CHERYL-AN DECOLONGON MARKETING PERSONNEL 400 30 12,000
HARVESTER HARVESTER 350 30 10,500
DELIVERY PERSONNEL DELIVERY PERSONNEL 350 30 10,500
MONTHLY SALARY COST 60,000
7.5 Salaries, Wages and other Benefits

The K-Siete Tilapia Farm yearly salary for the Key People in the business for

Operations manager range 180,000 pesos. While the production personnel and marketing

personnel will have a yearly salary compensation of 144,000 pesos, and the harvester and

delivery personnel will have 126,000 pesos each. That is aside from the other benefits

such as the 13th month pay and the employee’s share that the K-Siete Tilapia Farm is

giving to their employees.

Table 7.2 The K-Siete Tilapia Farm Monthly and Annual Employee’s Shares
KEY PERSONNEL MONTHLY SHARE ANNUAL SHARE
OPERATIONAL MANAGER 450 5,400
PRODUCTION PERSONNEL 450 5,400
MARKETING PERSONNEL 450 5,400
HARVESTER 450 5,400
DELIVERY PERSONNEL 450 5,400
TOTAL 2250 27,000

Furthermore, the K-Siete Tilapia Farm will compute the wages of each key people

in the organization by dividing the monthly salary to 30 days by 8 hours per day. The

figure below will further give clearer understanding of the wages of each key people in

the organization.
Table 7.3 The K-Siete Tilapia Farm Wages
KEY PERSONNEL WAGE/HOUR DAILY RATE
OPERATIONAL MANAGER 62.5 500
PRODUCTION PERSONNEL 50 400
MARKETING PERSONNEL 50 400
HARVESTER 43.75 350
DELIVERY PERSONNEL 43.75 350
TOTAL 250 2000

7.6 Employment and other Agreement Plans

The K-Siete Tilapia Farm business has a contract of employment, or employment

contract. It is an agreement or term of hired personnel that is extended from an employer

to an employee to set the terms and conditions in a written document about the whole

employment and its coverage.

K-Siete Tilapia Farm is a contractual term when in terms of their hired personnel

that will help their business grow. These personnel are subjected to renew their contract

every after six months as oriented with their said job specification or positions.
 CHAPTER VIII

OVERALL SCHEDULE

The table below highlighted the most crucial aspects of starting a business. It is a

flow of actions that is required for K-Siete Tilapia Farm business in order for the business

to be monitored as well as to see the success of the strategy exerted of the partnership of

T K-Siete Tilapia Farm business. It started on the first week in the month of September

2022- February 2023.

Table 8.1 The Ghantt Chart of K-Siete Tilapia Farm

K-SIETE TILAPIA FARM AS O F 2022
ACTIVITY WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6 WEEK 7 WEEK 8 WEEK 9 WEEK 10 WEEK 11 WEEK 12
BUSINESS PLANNING
BUSINESS PLAN OPERATION
LEGALIZATIO N AND REGISTRATION
EQUIPM ENT INSTALLATUON
PURC HASING OF SUPPLY
START OF OPERATION

AC TIVITY WEEK 13 WEEK 14 WEEK 15 WEEK 16 WEEK 17 WEEK 18 WEEK 19 WEEK 20 WEEK 21 WEEK 22 WEEK 23 WEEK 24
BUSINESS PLANNING
BUSINESS PLAN OPERATION
LEGALIZATIO N AND REGISTRATION
EQUIPM ENT INSTALLATUON
PURC HASING OF SUPPLY
START OF OPERATION

8.1 Organization

K-Siete Tilapia Farm is an organization of young entrepreneurs or group of three

business minded individuals which coordinated and provided allocations of their

resources or funds in terms of capitalization for a common goal or objective to their

partnership business. K-Siete Tilapia Farm is also a business owned and managed by the

partners of the business itself that offer their clients a clean and fresh Tilapia Fish for a
reasonable price. It transacts from the variety of customers in the City of Kidapawan and

also the customer that comes from other municipalities.

The table below shows the capital-sharing method of the business partners of K-

Siete Tilapia Farm business.

Table 8.2 The Partner’s Capital Share of K-Siete Tilapia Farm

8.2 Organizational Chart

Operational Manager

Production Personnel Marketing Personnel

Figu

re 8.1 The Organizational Chart of K-Siete Tilapia Farm

8.3 Key Management Personnel

The Operational Manager – He/She accomplishes the department objectives by

managing the staff, planning and evaluating department activities. He/She also maintains

staff by recruiting, selecting, orienting, and training employees, ensures a safe, secure,

and legal work environment, and develops personal growth opportunities.

The Production Personnel - To generate the necessary supply for the day to service the

customer, he or she performs the operation at the operation site, the one who maintains

production by monitoring product.  They work on an assembly line, maintaining and

cleaning, and carefully assembling products in compliance with all safety regulations.

They serve as the first point of contact for clients and customers and work to ensure that

customers are happy with the products they receive.

The Marketing Personnel - Create marketing strategies and budgets, manage the

production of marketing content and materials, and carry out any other relevant duties

required for increasing the company's sales. The one who engages customers, informs

them of the goods or services, and aids them in the decision-making process.

Furthermore, it supports the development and maintenance of demand, relevance,

reputation, and competition. Additionally accountable for making the tilapia deliveries to

the consumers who made the orders.

8.4 Management Compensation and Ownership

The K-Siete Tilapia Farm management team own shares in this partnership

business. The owners of this partnership business are also the manager and department

head of the company. Three partners share in K-Siete Tilapia Farm venture. The manager
and the department heads have no outstanding no-compete agreements with previous

employers as well.

Table 8.3 The K-Siete Tilapia Farm Key People Salary

KEY PEOPLE/ WORK FORCE JOB DESCRIPTION DAILY RATE WORKING DAYS MOTHLY SALARY
AMEEJOY BATUCAL OPERATIONAL MANAGER 500 30 15,000
ERNESTO INTONG JR PRODUCTION PERSONNEL 400 30 12,000
CHERYL-AN DECOLONGON MARKETING PERSONNEL 400 30 12,000
HARVESTER HARVESTER 350 30 10,500
DELIVERY PERSONNEL DELIVERY PERSONNEL 350 30 10,500
MONTHLY SALARY COST 60,000

8.5 Salaries, Wages and other Benefits

The K-Siete Tilapia Farm yearly salary for the Key People in the business for

Operations manager range 180,000 pesos. While the production personnel and marketing

personnel will have a yearly salary compensation of 144,000 pesos, and the harvester and

delivery personnel will have 126,000 pesos each. That is aside from the other benefits

such as the 13th month pay and the employee’s share that the K-Siete Tilapia Farm is

giving to their employees.

Table 8.4 The K-Siete Tilapia Farm Monthly and Annual Employee’s Shares
KEY PERSONNEL MONTHLY SHARE ANNUAL SHARE
OPERATIONAL MANAGER 450 5,400
PRODUCTION PERSONNEL 450 5,400
MARKETING PERSONNEL 450 5,400
HARVESTER 450 5,400
DELIVERY PERSONNEL 450 5,400
TOTAL 2250 27,000
 Furthermore, the K-Siete Tilapia Farm will compute the wages of each key people

in the organization by dividing the monthly salary to 30 days by 8 hours per day. The

figure below will further give clearer understanding of the wages of each key people in

the organization.

Table 8.5 The K-Siete Tilapia Farm Wages

KEY PERSONNEL WAGE/HOUR DAILY RATE
OPERATIONAL MANAGER 62.5 500
PRODUCTION PERSONNEL 50 400
MARKETING PERSONNEL 50 400
HARVESTER 43.75 350
DELIVERY PERSONNEL 43.75 350
TOTAL 250 2000

8.6 Employment and other Agreement Plans

The K-Siete Tilapia Farm business has a contract of employment, or employment

contract. It is an agreement or term of hired personnel that is extended from an employer

to an employee to set the terms and conditions in a written document about the whole

employment and its coverage.

K-Siete Tilapia Farm is a contractual term when in terms of their hired personnel

that will help their business grow. These personnel are subjected to renew their contract

every after six months as oriented with their said job specification or positions.
 CHAPTER IX

THE FINANCIAL PLAN

9.1 Statement of Comprehensive Income

A financial plan helps to determine the K-Siete Tilapia Farm business if the

business idea is sustainable, and keeps the business on track to its financial health as K-

Siete Tilapia Farm business matures. It is also an integral part to an overall business plan.

The K-Siete Tilapia Farm projected 9,000, 10,000, and 11,000 fingerlings per

month for the years 2023, 2024, and 2025, respectively. The quantity of fingerlings each

piece will be multiplied to obtain the overall cost, which will then be multiplied by 12 to

obtain the annual cost of the fingerlings per year. The table below shows the K-Siete

Tilapia Costing for Fingerlings:

Table 9.1 K-Siete Tilapia Farm Projected Costing for Fingerlings

FINGERLINGS COSTING
QUANTITY PRICE PER PC X MONTHS TOTAL COST
2023 9,000 3 12 324,000
2024 10,000 3 12 360,000
2025 11,000 3 12 396,000

The revenue a company projects generating in the future is represented by its

projected sales. To get the total kilo, divide the annual quantity of fingerlings required by

6; the firm estimates that there will be 6 pieces per kilo. After that, the projected annual

sales will be multiplied by the fresh tilapia per-kilo price. The table below shows the

projected sales of K-Siete Tilapia Farm:

Table 9.2 The Projected Sales of K-Siete Tilapia Farm

PROJECTED SALES OF K-SIETE TILAPIA FARM
2023 2024 2025
Annual Cost of Fingerlings 324,000 360,000 396,000
Quantity 108,000 120,000 132,000
/ (6 pcs per kilo) 18,000 20,000 22,000
Projected Sales ( 156 per kilo) 2,808,000 3,120,000 3,432,000
 The direct cost of producing a company's goods is known as cost of goods sold. It

is a crucial line on income statement that can reveal a lot K-Siete Tilapia Farm efficiency,

profitability, and financial performance. The table below shows the cost of goods sold of

K-Siete Tilapia Farm:

Table 9.3 K-Siete Tilapia Farm Cost of Goods Sold

2023 2024 2025
Beginning Inventory 500,000 600,000 700,000
Add: Purchases 186,000 210,000 256,325
Available for sale 686,000 810,000 956,325
Less: Ending Inventory 80,000 100,000 120,000
Cost of Goods Sold 606,000 710,000 836,325

The table below shows the K-Siete Tilapia Farm Statement of Comprehensive

Income:

Table 9.4 The Statement of Comprehensive Income of K-Siete Tilapia Farm

K-Siete Tilapia Farm
PROJECTED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR 2023-2025
2023 2024 2025
SALES 2,808,000.00 3,120,000.00 3,432,000.00
COST OF GOODS SOLDS 606,000.00 710,000.00 836,325.00
GROSS INCOME 2,202,000.00 2,410,000.00 2,595,675.00
LESS: OPERATING EXPENSE
PERMIT AND LICENSES 3,465.00 5,520.00 7,485.05
SALARIES AND WAGES 420,000.00 479,000.00 530,000.00
 RENTAL EXPENSE 150,000.00 200,000.00 300,000.00
REPAIR AND MAINTENANCE 33,000.00 43,126.02 53,045.00
OFFICE SUPPLIES 30,503.00 38,129.32 45,189.36
UTILITY EXPENSE 28,013.00 39,654.51 40,005.05
TOTAL OPERATING EXPENSE 691,371.00 837,479.85 1,016,749.46
OPERATING INCOME 1,510,629.00 1,572,520.15 1,578,925.54
22,500.00 25,125.12 30,050.36
1,488,129.00 1,547,395.03 1,548,875.18

9.2 Statement of Changes in Equity

A statement of change in equity or also referred to as statement of retained

earnings, is a business' financial statement that measures the changes in owners' equity

throughout a specific accounting period.

Table 9.5 The Statement of Changes in Equity of K-Siete Tilapia Farm

K-SIETE TILAPIA FARM
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR 2023
PARTNER 1 PARTNER 2 PARTNER 3
Beginning Balance 500,000.00 500,000.00 500,000.00
Add: Income 496,043.00 496,043.00 496,043.00
Less: Withdrawals 55,000.00 50,000.00 60,000.00
Ending Balance 941,043.00 946,043.00 936,043.00

K-SIETE TILAPIA FARM

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR 2024
PARTNER 1 PARTNER 2 PARTNER 3
Beginning Balance 941,043.00 946,043.00 936,043.00
Add: Income 515,798.34 515,798.34 515,798.34
Less: Withdrawals 60,000.00 60,000.00 60,000.00
Ending Balance 1,396,841.34 1,401,841.34 1,391,841.34
Table 9.6 Summary of K-Siete Tilapia Farm Statement of Changes in Equity
K-SIETE TILAPIA FARM
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR 2023-2025
2023 2024 2025
Beginning Balance 1,500,000.00 2,405,688.30 3,351,754.49
Add: Income 1,488,129.00 1,547,395.02 1,548,875.19
Less: Withdrawals 165,000.00 180,000.00 80,000.00
Ending Balance 2,823,129.00 3,773,083.32 4,820,629.68

9.3 Statement of Cash flow

The purpose of the cash flow statement is to provide a detailed picture of what

happened to a business's cash specifically the K-Siete Tilapia Farm during a specific

period or the accounting period. The sample below will give a better picture of the

projected cash flow of the business for the year 2023-2025.

Table 9.7 The Statement of Cash Flows of K-Siete Tilapia Farm

K-SIETE TILAPIA FARM
PROJECTED STATEMENT CASH FLOW
FOR THE YEAR 2023-2025
YEAR BEGINNING 2023 2024 2025
CASH FLOW FROM OPERATING ACTIVITIES:
Cash Inflow from Operating Activities
Cash ollected from sale of goods 1,488,129.00 1,547,395.03 1,548,875.18
Total Cash Inflow from Operating Activities 1,488,129.00 1,547,395.03 1,548,875.18

Cash Outflow From Operating Activities

Payment for employees 420,000 479,000.00 530,000.00
Payment for taxes 22,500.00 25,125.12 30,050.36
Cash Outflow from Financing Activities

Gross and Operating Margins

The Income Statement takes service income and subtracts all the expenses to get

the net income or profit. The result would divide by the service income and multiply by

100 percent to get the net profit margin.

Table 9.8 The Net Profit Margin of K-Siete Tilapia Farm

NET PROFIT 2023 2024 2025
NET INCOME 1,488,129.00 1,547,395.02 1,548,875.19
SALES 2,808,000.00 3,120,000.00 3,432,000.00
NET PROFIT MARGIN 0.53 0.50 0.45
9.4 Statement of Financial Position

The K-Siete Tilapia Farm business balance sheet is important because it serves as

an indicator of the company's financial status because it is used to cover short term

obligations of the company's operations. The figure below is the K-Siete Tilapia Farm

statement of financial position.

Table 9.9 The Statement of Financial Position of K-Siete Tilapia Farm

K-SIETE TILAPIA FARM
PROJECTED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR 2023-2025
PRE- OPERATION 2023 2024 2025
ASSETS
CURRENT ASSETS
CASH 1,140,000.00 2,004,829.00 2,851,208.91 3,742,983.73
INVENTORY 200,000.00 400,000.00 600,000.00
TOTAL CURRENT ASSETS 1,140,000.00 2,204,829.00 3,251,208.91 4,342,983.73
NON-CURRENT ASSETS
BUILDING 1,000,000.00 1,000,000.00 1,000,000
EQUIPMENT 360,000.00 360,000.00 360,000.00 360,000.00
ACCUMULATED DEPRECIATION 15,000.00 25,000.00 35,000.00
TOTAL NON-CURRENT ASSETS 360,000.00 1,345,000.00 1,335,000.00 1,325,000.00
TOTAL ASSETS 1,500,000.00 3,549,829.00 4,586,208.91 5,667,983.73

LIABILITIES
ACCOUNTS PAYABLE 186,000.00 250,000.00 305,256.30
SALARIES PAYABLE 125,000.00 152,663.36 155,036.78
9.5 Financial Ratios

A financial ratio involves taking one number from a company's financial

statements and dividing it by another. The resulting answer will give a metric that the K-

Siete Tilapia Farm can use to compare and evaluate their investment opportunities.

To get the financial ratio, divide the net profit by net assets, and multiply by 100

to compute the ROA (return on assets). Find net profit on the income statement, and use

the balance sheet to compute net assets by taking total assets minus total liabilities. The

higher the ratio, the more efficiently your company is generating profits from its

resources.
Table 9.6 The Summary of Financial Ratio for K-Siete Tilapia Farm
Formula 2023 2024 2025
PROFITABILITY MEASURES:
Percent Return on Net Profit 1,488,129.00 1,547,395.03 1,548,875.18
Net Assets Net Revenue 2,808,000.00 3,120,000.00 3,432,000.00
0.53 0.50 0.45

Ratio of Gross Profit to Net Gross Profit 2,202,000.00 2,410,000.00 2,595,675.00

Sales Net Revenue 2,808,000.00 3,120,000.00 3,432,000.00
0.78 0.77 0.76

Percent Return on Assets Net Profit 1,488,129.00 1,547,395.03 1,548,875.18

Employed Total Assets 3,549,829.00 4,586,208.91 5,667,983.73
0.42 0.34 0.27

Percent Return on Shareholders Net Profit 1,488,129.00 1,547,395.03 1,548,875.18

Equity Equity 3,136,767.64 4,071,788.45 5,088,147.59
0.47 0.38 0.30
LIQUIDITY MEASURES:
Current Ratio Current Assets 2,204,829.00 3,251,208.91 4,342,983.73
Current Liabilities 413,061.36 514,420.46 579,836.14
5.34 6.32 7.49

Quick Ratio Cash 2,004,829.00 2,851,208.91 3,742,983.73

Current Liabilities 413,061.36 514,420.46 579,836.14
4.85 5.54 6.46
ACTIVITY MEASURES:
Inventory Turnover Cost of Goods Sold 606,000.00 710,000.00 836,325.00
Inventory 200,000.00 400,000.00 600,000.00
3.03 1.78 1.39

Inventory to Working Capital Inventory 200,000.00 400,000.00 600,000.00

Ratio Inventory- Accounts 14,000.00 150,000.00 294,743.70
Payable 14.29 2.67 2.04

OPERATING MEASURES:
Break-even point Total Operating Expensese 691,371.00 837,479.85 1,016,749.46
NOTES AND ASSUMPTION

GROSS INCOME

PRODUCTS KILO/DAY PRICE MOTHLY INCOME YEARLY INCOME

FRESH TILAPIA 50 156 234,000 2,808,000
DRIED TILAPIA 20 160 96,000 1,152,000
COST OF GOODS SOLD
PRODUCT SALT PACKAGING MARK UP
FRESH TILAPIA 10 1.36
DRIED TILAPIA 4 4 1.26

SALARIES AND WAGES

JOB DESCRIPTION DAILY RATE WORKING DAYS MONTHLY SALARY
OPERATIONAL MANAGER 500 30 15,000
PRODUCTION PERSONNEL 400 30 12,000
MARKETING PERSONNEL 400 30 12,000
HARVESTER 350 30 10,500
DELIVERY PERSONNEL 350 30 10,500

BENEFITS

EMPLOYEES NO. OF WORKERS PHILHEALTH SSS PAG- IBIG

OPERATIONAL MANAGER 1 100 236.25 100
PRODUCTION PERSONNEL 1 100 236.25 100
MARKETING PERSONNEL 1 100 236.25 100
HARVESTER 1 100 236.25 100
DELIVERY PERSONNEL 1 100 236.25 100
TOTAL 5 500 1181.25 500
EMPLOYEES SHARE

OPERATIONAL MANAGER 450 5,400 180,000

PRODUCTION PERSONNEL 450 5,400 144,000
MARKETING PERSONNEL 450 5,400 144,000
HARVESTER 450 5,400 126,000
DELIVERY PERSONNEL 450 5,400 126,000
TOTAL 2250 27,000 720,000

PERMITS AND LICENSES

PERMITS AND LICENSES COST
DTE REGISTRATION 530
BARANGAY CLEARANCE 150
MAYOR'S PERMIT 2470
BIR REGISTRATION 500
BFP PERMIT 100
HEALTH CARDS FOR EMPLOYEES 50
PHILHEALTH AND SSS REGISTRATION 600
TOTAL 4400

UTILITIES EXPENSE
DESCRIPTION MONTHLY ANNUALLY
Electric Bill 3,500 42,000
Water Bill 1,500 18,000
Internet Bill 1,699 20,388
Total 80,388

RENOVATION EXPENSE
RENOVATION EXPENSE QUANTITY PRICE TOTAL
Marine Plywood 2 Pieces 1,000 2,000
Electric Cable 1 roll 1,000 1,000
Nails 1kg 100 100
Floor Mat 1 roll 750 750
Sink 2 pieces 500 1,000
Door Knob 2 pieces 160 320
Design Materials 3,000
TOTAL 8,170
FURNITURE AND FIXTURE

Particulars Quantity Unit Price Total Amount

Table and Chairs 2 Pcs 3,950.00 7,900.00
Storage Cabinet 1 Pcs 4,000.00 4,000.00
Toilet bowl & sink 1 Pcs 4,799.00 4,799.00
Exhaust fan 1 Pcs 1,501.00 1,501.00
Light Bulb 5 Pcs 62 310
Sink 2 Pcs 2,000.00 4,000.00
Total 22,510.00

ASSUMPTIONS

GROSS INCOME

Fresh Tilapia= 50 kilos per day x 156 pesos each kilo x 30 days = 234,000 Monthly

Sales

If we can serve 50 kilos of fresh Tilapia a day multiplied by 156 pesos/kilo equal

to 7,800 daily income multiply it by 30 days is equal to 234,000 our monthly sales.

Dried Tilapia = 20 kilos per day x 160 pesos x 30 days = 96,000

If we can serve a 20 kilos of Dried Tilapia a day multiplied by 160

pesos/kilo equal to 3,200 daily income multiply it by 30 days is equal to 96,000 our

monthly sales.
SALARIES AND WAGES

Daily Income X Working Days = Monthly Salary

Monthly Share X 12 = Annual Share + Annual Salary Expense = Annual Salary Expense

Operational Manager 500 X 30 = 15,000 Monthly Salary

15,000 X 12 = 180,000 + 5,400 Annual Share = 185,400 Annual Salaries Expense

Production Personnel 400 X 30 = 12,000 X 12 = 144,000 + 5,400 Annual Share =

149,400 Annual Salary Expense

Marketing Personnel 400 X 30 = 12,000 X 12 = 144,000 + 5,400 Annual Share =

149,400 Annual Salary Expense

Harvester 350 X 30 = 10,500 X 12 = 126,000 + 5,400 Annual Share = 131,400 Annual

Salary Expense

Delivery Personnel 350 X 30 = 10,500 X 12 = 126,000 + 5,400 Annual Share = 131,400

Annual Salary Expense

TOTAL ANNUAL SALARIES EXPENSE 747,000

 CHAPTER X

CAPITAL REQUIREMENTS AND FUNDING

The capital requirement is the sum of funds that the K-Siete Tilapia Farm

company needs to achieve like the company’s goals or how much money the partnership

business like K-Siete Tilapia Farm need until the business is up and running. This can

calculate the capital requirements by adding founding expenses, investments and start-up

costs together.

Table 10.1 The K-Siete Tilapia Farm Capital Requirement and Funding

10.1 Desired Financing

The K-Siete Tilapia Farm desired financing is a clear statement of how the capital

will be obtained which stated that each partner of the business venture the K-Siete Tilapia

Farm will contribute five hundred thousand pesos (₱500,000) each fair share capital with

the terms of fair share of expenses and profit sharing accordingly.

10.2 Capitalization
 This partnership business of K-Siete Tilapia Farm which fairly allotted capital of

500,000 pesos each from the owners in the name of Ameejoie G. Batucal, Ernesto Intong

and Cheryl-An Decolongan is to ensure that every owner will get the same shares, gains

and even expenses in their ventured business and that everyone is accountable for the K-

Siete Tilapia Farm accordingly.

Table 10.2 The Fair Capital Shares of the K-Siete Tilapia Farm Partnership
Business

10.3 Use of Funds

The K-Siete Tilapia Farm use of funds indicates the important usage of funds out

from the business sources of funds including the share capital, bonds, equity, deposit

interest directly poured to the fund uses like business expenses, bond interest, bond fees

and legal business taxes. This is for the business gains as the business continue to

operate.

Table 10.3 The Uses of Funds of K-Siete Tilapia Farm

 Moreover, the uses of funds may also be allocated to the business renovation

expenses that might be needed for the business to offer the customer a better physical

dine-in experience to better serve the customers dement and meet the customers’

expectations.

Table 10.4 The Renovation Expenses of K-Siete Tilapia Farm

RENOVATION EXPENSE QUANTITY PRICE TOTAL
Marine Plywood 2 Pieces 1,000 2,000
Electric Cable 1 roll 1,000 1,000
Nails 1kg 100 100
Floor Mat 1 roll 750 750
Sink 2 pieces 500 1,000
Door Knob 2 pieces 160 320
Design Materials 3,000
TOTAL 8,170

Additionally, the uses of funds also can be use or allocate payments for the

business utility expenses like the electric bill, water bill, internet bill and gasoline

expenses monthly and annually.

Table 10.5 The utility Expenses of the K-Siete Tilapia Farm

DESCRIPTION MONTHLY ANNUALLY
Electric Bill 3,500 42,000
Water Bill 1,500 18,000
Internet Bill 1,699 20,388
Total 80,388