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 2

hectares 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. There are 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%.

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

Sales 100,000

Cost 40,000

Operating Expenses 50,000

Gross Margin 60%

Operating Margin 10%

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 3,000 156/kl. 468,000

Dried Tilapia 2,000 160/kl. 320,000

Total Revenue 788,000

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

Products Demand Revenue Expenses

Fresh Tilapia 3,000 468,000 180,000

Dried Tilapia 2,000 320,000 160,000

Total Expenses 340,000

 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.

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

K-SIETE TILAPIA FARM SUPPLIES

SUPPLY QUANTITY COST TOTAL COST
Tilapia Fingerlings 9,000 3/pc 27,000
Tilapia Feeds 5 1,400/sack 7,000
Water Supply 20,000 20,000
Salt 10 350/sack 3,500
Drying Trays 1 5,000 5,000
Packaging Tools 5 dozen 1,000 5,000
TOTAL 67,500

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’sBusiness.

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
PARTNERSHIP
PURCHASING

SUPPLIES FROM
COLLECT CASH
THE SUPPLIERS
FROM THE
CUSTOMERS

PRODUCE VARIETY

SELL THE OF TILAPIA

PRODUCTS PRODUCTS TO SELL

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
Health Cards for Employees 50
Philhealth and SSS Registration 600
TOTAL 4400
 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 OF 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
LEGALIZATION AND REGISTRATION
EQUIPMENT INSTALLATUON
PURCHASING OF SUPPLY
START OF OPERATION

ACTIVITY 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
LEGALIZATION AND REGISTRATION
EQUIPMENT INSTALLATUON
PURCHASING 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

Figure 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
 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
INSURANCE EXPENSE 26,390.00 32,050.00 41,025.00
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
INCOME TAX EXPENSE 22,500.00 25,125.12 30,050.36
INCOME AFTER TAX 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

K-SIETE TILAPIA FARM

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR 20235
PARTNER 1 PARTNER 2 PARTNER 3
Beginning Balance 1,396,841.34 1,401,841.34 1,391,841.34
Add: Income 516,291.73 516,291.73 516,291.73
Less: Withdrawals 30,000.00 20,000.00 30,000.00
Ending Balance 1,883,133.07 1,898,133.07 1,878,133.07

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
Payment for other operating expense 15,800.00 16,890.00 17,050.00
Total Cash Outflow from Operating Activities 458,300 521,015.12 577,100.36
TOTAL CASH FLOW FROM OPERATING ACTIVITIES 1,029,829.00 1,026,379.91 971,774.82

CASH FLOW FROM INVESTING ACTIVITIES:

Cash Outflow from Investing Activities
Purchase of equipment 360,000.00
Total Outflow from Investing Activities 360,000.00
TOTAL CASH FLOW FROM INVESTING ACTIVITIES(DECREASE) 360,000.00

CASH FLOW FROM FINANCING ACTIVITIES:

Cash Inflow from Financing Acctivities
Initial Investment 1,500,000.00
Total Cash Inflow from Financing Activities 1,500,000.00

Cash Outflow from Financing Activities

Withdrawals 165,000.00 180,000.00 80,000.00
Total Cash Outflow From Financing Activities 165,000.00 180,000.00 80,000.00
TOTAL CASH FLOW FROM FINANCING ACTIVITIES (DECREASE/INCREASE) 1,500,000.00 165,000.00 180,000.00 80,000.00

TOTAL CASH FLOW 1,140,000.00 864,829.00 846,379.91 891,774.82

ADD: CASH BEGINNING 1,140,000.00 2,004,829.00 2,851,208.91
CASH BALANCE AT THE END OF THE PERIOD 1,140,000.00 2,004,829.00 2,851,208.91 3,742,983.73
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
UTILITIES PAYABLE 86,905.00 90,012.00 92,658.00
INCOME TAX PAYABLE 15,156.36 21,745.10 26,885.06
TOTAL LIABILITIES 413,061.36 514,420.46 579,836.14
PARTNER'S EQUITY
PARTNER'S CAPITAL 1,500,000.00
TOTAL PARTNER'S EQUITY 1,500,000.00 3,136,767.64 4,071,788.45 5,088,147.59

TOTAL LIABILITIES AND EQUITY 1,500,000 3,549,829.00 4,586,208.91 5,667,983.73

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
Average Gross Margin 2,202,000.00 2,410,000.00 2,595,675.00
0.31 0.35 0.39
SUFFICIENCY RATIOS:
Cash to Working Capital Cash 2,004,829.00 2,851,208.91 3,742,983.73
Current Assets- Current 1,791,767,64 2,736,788.45 3,763,147.59
Liabilities 1.12 1.04 0.99
EFFICIENCY RATIOS:
Cash Flow to Sales Cash Flow From Operations 1,029,829.00 1,026,379.91 971,774.82
Sales 2,808,000.00 3,120,000.00 3,432,000.00
0.37 0.33 0.28

Cash Flow Return on Assets Cash Flow from Operations 1,029,829.00 1,026,379.91 971,774.82
Total Assets 3,549,829.00 4,586,208.91 5,667,983.73
0.29 0.22 0.17
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