BUSINESS PLAN

For

KENNY – FISH FARMING & SEAFOOD AQUACULTURE

PRESENTED
BY

KEHINDE MICHEAL OSITUGA

IN THE FACULTY OF SOCIAL SCIENCE

VENTURES
Kenny – Fish Farm S.A Ltd
16 Adeniji Road, Idumota, Lagos Island, Lagos State.
E-Mail: [email protected] | Telephone: +234 8068646992

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TABLE OF CONTENTS PAGES

COVER PAGE …………………………………………………………………………………1

CONTENTS …………………………………………………………………………………….2

1.0 KENNY FISH FARMING - BUSINESS DESCRIPTION ……………………….......4

1.1 Overview ……………………………………………………………………………......7

2.0 EXECUTIVE SUMMARY..............................................................................................8

2.1 Our Product offering ………………………………………………………………........10

2.2 Vision statement................................................................................................................11

2.3 Mission Statement.............................................................................................................11

2.4 Our Business Structure ………………………………………………………………….11

2.5 Roles and Responsibilities ………………………………………………………………12

3.0 KENNY FISH FARMING - BUSSINESS PLAN - (SWOT) ANALYSIS …………..17

3.1 Strength ………………………………………………………………………………....18

3.2 Weakness ………………………………………………………………………………..18

3.3 Opportunities ………………………………………………………………………........19

3.4 Threats …………………………………………………………………………………..19

4.0 KENNY FISH FARMING - MARKET ANALYSIS …………………………..….....19

4.1 Market Research and market trends ……………………………………………………19

4.2 Our Target Market ………………………………………………………………….......20

4.3 Our Competitive Advantage ………………………………………………………........21

5.0 KENNY FISH FARMING - SALES AND MARKETING STRATEGY…………....22

5.1 Sources of Income………………... ……..…………..…………………………………23

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5.2 Sales Forecast …….…………………………………………………..….......................24

5.3 Our Pricing Strategy …………………………………………………………………...25

6.0 KENNY FISH FARMING - PUBLICITY AND ADVERTISING STRATEGY …...27

7.0 KENNY FISH FARMING – FINANCIAL PROJECTION AND COSTING……….28

8.0 GENERATING FUNDING …………………………………………..……..………..30

9.0 SUSTAINABILITY AND STRATEGIC EXPANSION ANALYSIS……………….31

9.1 APPPENDIX MILESTONE …………………………………………………………...33

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1.0 KENNY FISH AND SEAFOOD AQUACULTURE LTD – BUSINESS

DESCRIPTION

One of the most widespread Agri-businesses in Nigeria is fish farming and for considerable

reasons. The days when the only way to get fish is to catch it in local rivers and ponds are gone,

today, modern methods of farming allow to grow fish on farms and monitor revenues. Fish

farming in Nigeria has great potential, and you can also engage in large-scale commercial

production. Fish production is a very dynamic type of business. Fish farming in Nigeria is a

lucrative business that is popular in various parts of the country. There's high demand for fish

products, such as Tilapia, Catfish, and Mackerel (salmon) in Nigeria that continually stimulates

sustainable growth and expansion of the industry.

Fish farming and Seafood farming in Nigeria is a very popular kind of business that one can start

on a small scale for fulfilling your daily family demands or for earning some extra cash with

your regular income because the demand for fish is increasing continuously!

Fish Farming has been in existence for a very long time and more people have found it a very

good means of livelihood. One of the unique things about the fish farming trade is that you have

the opportunity to rear fishes and watch them grow from tiny to big enough to be traded with.

This business isn’t so capital intensive, however it requires that one garners a good skill in the

trade so that one can apply expertise in the business and not lose money at a slightest mistake. 

Much more than the skills to be garnered there is the need for strategic planning, in order words

our draft business plan will help us to decipher how to really run our fish farm business that we

are set to do.

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Important requisites for Kenny fish farm to blossom in the scheme of things involves some of the

following factors;

1. Land

We would look out for a plot of land that satisfies our needs and buy or rent it.

2. Ponds

We would need to hire an experienced pond construction engineer or we can also go to

another fish farm to get specifications and design requirements. The plumbing work must be

done correctly by an expert to ensure its correct construction.

3. Wells

Good water supply is the lifeblood of fishing, and its absence can lead to disaster since water

needs to be regularly changed. Naturally available water sources, such as borehole and river

water, are the most suitable. Rainwater and tap water from a chemically treated source is not

recommended for growing fish. We must therefore make Provision for regular water

exchange to create a friendly environment. We would ensure to install an aboveground tank,

which will provide the convenience of supplying water to our ponds when necessary, and we

must also take into cognizance the water filtration system.

4. Fish

We would extensively plan our budgets for buying juvenile fishes on another farm. The most

popular species are Salmon and Catfish. We therefore have the responsibility to ensure that

the fishes we buy are healthy.

5. Knowledge

There is need for myself as the CEO of this enterprise and team of other colleagues to

become attached to a fish farm for proper apprenticeship. If we are to understudy this

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profession properly, we need at least two months to train on this. Visit other farms, surf the

Internet to learn about the market, read about fish farming. Remember that Kenny Fish Farm

investment isn’t unlimited, so we have to know exactly what we are doing. Since the fish

business gains more and more popularity in Nigeria, every businessperson tries to improve

his product to make more money and sometimes the methods are harmful to the fish and

people who eat it. We believe that a naturally grown healthy fish is the best product for

market.

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1.1 KENNY FISH AND SEAFOOD AQUACULTURE INDUSTRY - OVERVIEW

The agricultural industry of which Fish and Seafood Aquaculture business is a subset of is no

doubt among the leading industry in most countries of the world; it is the industry that produces

fish and seafood for the populace. Because of the significant role the agriculture sector plays, the

government of most countries ensures that they go all the way to subsidize seedlings, fertilizers,

and farming implements and machinery for farmers and also encourage entrepreneurs to go into

commercial farming (fish farming inclusive).

The Fish and Seafood Aquaculture industry comprises of businesses that farm aquatic animals or

plants in controlled aquatic environments. Businesses in this industry make use of some form of

intervention in the rearing process to enhance production, such as holding in captivity and

protecting from predators, pests and disease. It is important to state that this industry does not

include the fishing and harvesting of wild fish and shellfish especially on the high sea.

A study conducted by FISON (Fishery Society of Nigeria) shows that the Fish and Seafood

Aquaculture industry has indeed experienced slow growth over the last five years. Given that the

vast majority of the revenue generated in the industry is derived from sales of fish, mollusks and

crustaceans that will be processed into food products, this industry’s success is tied to levels of

seafood consumption.

Per capita seafood consumption in Nigeria has declined over the last five years, putting strain on

businesses in this industry. Nonetheless, increases in the price of seafood, combined with a

healthy export market, have boosted the revenue growth in this industry. The revenue generation

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from The Fish and Seafood Aquaculture industry is projected to grow at an annualized rate of 0.3

percent to ₦1.5 billion over the five-year period.

The Fish and Seafood Aquaculture industry is indeed a very large industry and pretty much

thriving in all parts of the world especially here in Nigeria, including developed countries such as

United States of America, Canada, United Kingdom, Portugal, Germany, Australia and the

Caribbean et al.

Statistics has it that in Nigeria alone, there are about 2,087 licensed and registered Fish and

Seafood Aquaculture companies directly responsible for employing about 10,440 employees /

Traders and indirectly responsible for employing roughly 1,339,900. The industry rakes in a

whooping sum of ₦1billion annually with an annual growth rate projected at 0.3 percent. It is

important to state that there are no establishments with a lion share of the available market in this

industry.

If you are looking towards leveraging on the agriculture industry to generate huge income, then

one of your best bet is to start a fish and seafood aquaculture business. One thing is certain about

starting fish and seafood aquaculture business, if you are able to conduct your market research

and feasibility studies, you are more likely not going to struggle to sell your fish and seafood

because there are always food processing companies and consumers out there who are ready to

buy from you.

2.0 KENNY FISH FARMING BUSINESS PLAN – EXECUTIVE SUMMARY

Kenny – Fish Farm S.A Ltd. is a world – class and licensed Fish and Seafood Aquaculture

Company that will be based in a riverine area in Idumota, Lagos Island – Nigeria. We have done

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our detailed market research and feasibility studies and we were able to secure a hundred

hectares of land to start our fish and seafood aquaculture business.

Our fish and seafood farm is going to be standard fish and seafood farm hence will be involved

in raising and harvesting finfish (e.g. catfish, trout, tilapia and minnows), raising and harvesting

shellfish (e.g. clams, oysters, crustaceans, mollusks and shrimp), raising and harvesting

ornamental fish (e.g. goldfish and tropical fish), raising and harvesting aquaculture species to

augment or replenish wild habitats, and raising and harvesting other aquaculture (e.g. seaweed,

alligators, frogs and turtles) et al.

We are in the Fish and Seafood Aquaculture industry because we want to leverage on the vast

opportunities available in the agriculture industry, to contribute our quota in growing the

Nigerian economy, in national food production, and also to export fish and seafood from Nigeria

to other countries and over and above to make profit.

Kenny – Fish Farm S.A Ltd. is well positioned to become one of the leading fish and seafood

farming business in Nigeria, which is why we have been able to source for the best hands and

machines to run the company with. We have put process and strategies in place that will help us

employ best practices when it comes to fish and seafood farming processes as required by the

regulating bodies in Nigeria.

At Kenny – Fish Farm S.A Ltd., our customer’s best interest will always come first, and

everything we do will be guided by our values and professional ethics. We will ensure that we

hold ourselves accountable to the highest standards by meeting our client’s needs precisely and

completely. We will cultivate a working environment that provides a human, sustainable

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approach to earning a living, and living in our world, for our partners, employees and for our

clients.

Kenny – Fish Farm S.A Ltd. is a private registered fish and seafood farming company that is

owned by Mr Kehinde Michael Osituga and his immediate family members. The fish and

seafood farm will be fully and single handedly financed by the owner – Kehinde Michael

Osituga and his immediate family members at least for a period of time. Kehinde M. Osituga

studied Fishery and he has well over 10 years of hands on experience in the fish and seafood

aquaculture industry.

2.1 OUR PRODUCT AND SERVICES OFFERINGS

Kenny – Fish Farm S.A Ltd. is a standard fish and seafood farming company that is committed

to raising fish and seafood for both Nigeria’s market and the global market. We are in the fish

and seafood to make profits and we are going to do all we can to achieve our business goals, aim

and objectives.

These are the areas we will concentrate on in our fish and seafood farming business;

 Raising and harvesting finfish (e.g. catfish, trout, tilapia and minnows)

 Raising and harvesting shellfish (e.g. clams, oysters, crustaceans, mollusks and shrimp)

 Raising and harvesting ornamental fish (e.g. goldfish and tropical fish)

 Raising and harvesting aquaculture species to augment or replenish wild habitats

 Raising and harvesting other aquaculture (e.g. seaweed, alligators, frogs and turtles)

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2.2 OUR VISION STATEMENT

Our Vision is to become one of the leading fish and seafood farm brands not just in Nigeria but

also on the global stage.

2.3 OUR MISSION STATEMENT

Kenny – Fish Farm S.A Ltd. is a world class and registered fish and seafood farming company

that is committed to raising fish and seafood for both the Nigerian market and the global market.

We want our fish and seafood to flood the nooks and crannies of this country and other countries

of the world.

2.4 OUR BUSINESS STRUCTURE

Kenny – Fish Farm S.A Ltd. is a privately owned and managed fish and seafood business that

intend starting small in fishing community in Lagos Island – Lagos state, but hope to grow big in

order to compete favorably with leading fish and seafood farming companies in the industry both

here in Nigeria and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture

of the kind of world class business we want to own. This is why we are committed to only hire

the best hands within our area of operations.

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At Kenny – Fish Farm S.A Ltd. we will ensure that we hire people that are qualified,

hardworking, and creative, result driven, customer centric and are ready to work to help us build

a prosperous business that will benefit all the stake holders (the owners, workforce, and

customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior

management staff and it will be based on their performance for a period of five years or more as

agreed by the board of trustees of the company. In view of the above, we have decided to hire

qualified and competent hands to occupy the following positions;

1. Chief Operating Officer

2. General Fish and Seafood Farm Manager

3. Human Resources and Admin Manager

4. Accountant / Cashier

5. Sales and Marketing Executive

6. Field Employees

7. Front Desk Officer

2.5 ROLES AND RESPONSIBILITIES

Chief Executive Officer – CEO:

 Increases management’s effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers; communicating values, strategies, and

objectives; assigning accountabilities; planning, monitoring, and appraising job results;

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 developing incentives; developing a climate for offering information and opinions;

providing educational opportunities.

 Responsible for providing direction for the business

 Creates, communicates, and implements the organization’s vision, mission, and overall

direction – i.e. leading the development and implementation of the overall organization’s

strategy.

 Responsible for signing checks and documents on behalf of the company

 Evaluates the success of the organization

General Fish and Seafood Farm Manager

 Responsible for the planning, management and coordinating all farm activities across the

various sections on behalf of the organization

 Supervises other section manager

 Ensures compliance during project executions

 Provides advice on the management of farming activities across all section

 Responsible for carrying out risk assessment

 Using IT systems and software to keep track of people and progress of the growth of fish

and seafood in our ponds

 Responsible for overseeing the accounting, costing and sale of fish and seafood farm

produce

 Represents the organization’s interest at various stakeholders meetings

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  Ensures that farming goals desired result are achieved, the most efficient resources

(manpower, equipment, tools and chemicals et al) are utilized and different interests

involved are satisfied.

 Responsible for preparing financial reports, budgets, and financial statements for the

organization

Human Resources and Admin Manager

 Responsible for overseeing the smooth running of HR and administrative tasks for the

organization

 Updates job knowledge by participating in educational opportunities; reading

professional publications; maintaining personal networks; participating in professional

organizations.

 Enhances department and organization reputation by accepting ownership for

accomplishing new and different requests; exploring opportunities to add value to job

accomplishments.

 Defines job positions for recruitment and managing interviewing process

 Carries out staff induction for new team members

 Responsible for training, evaluation and assessment of employees

 Oversees the smooth running of the daily office.

Accountant / Cashier:

 Responsible for preparing financial reports, budgets, and financial statements for the

organization

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  Provides managements with financial analyses, development budgets, and accounting

reports; analyzes financial feasibility for the most complex proposed projects; conducts

market research to forecast trends and business conditions.

 Responsible for financial forecasting and risks analysis.

 Performs cash management, general ledger accounting, and financial reporting for one or

more properties.

 Responsible for developing and managing financial systems and policies

 Responsible for administering payrolls

 Ensures compliance with taxation legislation

 Handles all financial transactions for Kenny – Fish Farm S.A Limited

 Serves as internal auditor for Kenny – Fish Farm S.A Limited.

Sales and Marketing Manager

 Manage external research and coordinate all the internal sources of information to retain

the organizations’ best customers and attract new ones

 Model demographic information and analyze the volumes of transactional data generated

by customer

 Identifies development opportunities; follows up on development leads and contacts;

participates in the structuring and financing of projects; assures the completion of

development projects.

 Writing winning proposal documents, negotiate fees and rates in line with organizations’

policy

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  Responsible for handling business research, market surveys and feasibility studies for

clients

 Responsible for supervising implementation, advocate for the customer’s needs, and

communicate with clients

 Develops, executes and evaluates new plans for expanding increase sales

 Creates new markets cum businesses for the organization

 Empowers and motivates the sales team to meet and surpass agreed targets

Field Workers / Contract Staff

 Responsible for feeding fish and seafood as instructed by the supervisor

 Responsible for cleaning the ponds and the entire fish farm environment

 Changes the water in the pond as instructed by the supervisor on a regular basis

 Handles fish and seafood farm implements and machines (hatchery) as instructed by the

section manager / supervisor

 Responsible for raising and harvesting finfish (e.g. catfish, trout, tilapia and minnows)

 Responsible for raising and harvesting shellfish (e.g. clams, oysters, crustaceans,

mollusks and shrimp)

 Responsible for raising and harvesting ornamental fish (e.g. goldfish and tropical fish)

 Responsible for raising and harvesting aquaculture species to augment or replenish wild

habitats

 Responsible for raising and harvesting other aquaculture (e.g. seaweed, alligators, frogs

and turtles)

 Carries out task in line with the stated job description

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  Assists in transport working tools and equipment from the fish and seafood farm and

back to the designated store room

 Handles any other duties as assigned my the line manager

Front Desk / Customer’s Service Officer

 Welcomes clients and potential clients by greeting them in person, online or on the

telephone; answering or directing inquiries.

 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the

client with a personalized customer service experience of the highest level

 Through interaction with clients on the phone, uses every opportunity to build client’s

interest in the company’s products and services

 Manages administrative duties assigned by the creative director in an effective and timely

manner

 Consistently stays abreast of any new information on the organizations’ products,

promotional campaigns etc. to ensure accurate and helpful information is supplied to

clients when they make enquiries

3.0 KENNY FISH AND SEAFOOD AQUACULTURE – SWOT ANALYSIS

Kenny – Fish Farm S.A Ltd do not intend to launch out with “trial and error” hence the need to

conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have

succeeded in creating the foundation that will help us build a standard fish and seafood farming

company that will favorably compete with leading players in the Fish and Seafood Aquaculture

industry in Nigeria and in the rest part of the world.

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We engaged the services of a core professional in the area of business consulting and structuring

to assist our organization in building a well – structured fish and seafood farming company that

can favorably compete in the highly competitive fish and seafood aquaculture industry in Nigeria

and the world at large.

Part of what the team of business consultant did was to work with the management of our

organization in conducting a SWOT analysis for Kenny – Fish Farm S.A Ltd. Here is a summary

from the result of the SWOT analysis that was conducted on behalf of Kenny – Fish Farm S.A

Ltd;

3.1 STRENGTH:

Our strength as a fish and seafood farming company is the fact that we have healthy relationships

with loads of major players (agriculture merchants) in the industry; both suppliers of fish and

seafood feeds and medications and buyers of fish and seafood within and outside of Nigeria.

We have some of the latest fish farming hatchery, tools and equipment that will help us raise and

produce fish and seafood in commercial quantities with less stress. Aside from our relationship

(network) and equipment, we can confidently boast that we have some of the most experienced

hands here in Lagos Island – Lagos state in our payroll.

3.2 WEAKNESS:

Our weakness could be that we are a new fish and seafood farming company in Nigeria, and

perhaps it might take us sometime to attract big time customers in the industry. We are aware of

this and from our projection will overcome this weakness with time and turn it to a major

advantage for the business.

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3.3 OPPORTUNITIES:

The opportunities that are available to us as a standard and world – class fish and seafood

farming company cannot be quantified, we know that there are loads of households, and

businesses such as hotels, eateries and fast food restaurants that can’t do without daily supply of

fresh water fish and seafood. We are well positioned to take advantage of this opportunity

3.4 THREAT:

Some of the threats and challenges that we are likely going to face when we start our own fish

and seafood farming company are global economic downturn that can impact negatively on

household spending, bad weather with natural disasters (draughts, floods, and epidemics),

unfavorable government policies and the arrival of a competitor within same location. There is

hardly anything you can do as regards this threats and challenges other than to be optimistic that

things will continue to work for your good.

4.0 KENNY FISH FARMING BUSINESS PLAN – MARKET ANALYSIS

4.1 MARKET TRENDS

The Fish and Seafood Aquaculture industry has greatly benefited from campaigns advertising the

health benefits of fish and seafood as a good source of protein. The vast majority of the revenue

generated in the industry is derived from sales of fish, mollusks and crustaceans that will be

processed into food products; this industry’s success is tied to levels of seafood consumption.

Per capita seafood consumption in Nigeria has declined over the last five years, putting strain on

businesses in this industry. Nonetheless, increases in the price of seafood, combined with a

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healthy export market, have boosted the revenue growth in this industry. The revenue generation

from The Fish and Seafood Aquaculture industry is projected to grow at an annualized rate of 0.3

percent to ₦1.5 billion over the five-year period.

As a matter of fact, one of the new trends is that with the recent advancement in technology, fish

and seafood farmers can now comfortably predict and produce the quantities of fish and seafood

they want to produce per time from their hatchery.

4.2 OUR TARGET MARKET

Naturally, the target market of those who are the end consumer of fish and seafood and also

those who benefits from the business value chain of the fish and seafood aquaculture industry is

all encompassing; it is far – reaching.

Every household consumes produce from fish and seafood farms be it finfish (e.g. catfish, trout,

tilapia and minnows), shellfish (e.g. clams, oysters, crustaceans, mollusks and shrimp),

ornamental fish (e.g. goldfish and tropical fish), and other aquaculture (e.g. seaweed, alligators,

crabs, frogs and turtles). So also almost all hotels and fast - food restaurants sell fish and seafood.

In essence a fish and seafood farmer should be able to sell his or her farm produce to as many

people as possible.

In view of that, we have positioned our business to attract consumers of fish and seafood not just

in Nigeria alone but also other parts of the world. We have conducted our market research and

survey and we will ensure that we meet and surpass the expectations we set for the business.

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Below is a list of the people and business that we will market our fish and seafood to;

 Households

 Individuals

 Hotels

 Restaurants

 Fast food eateries

 Agriculture merchants

4.3 OUR COMPETITIVE ADVANTAGE

It is easier to find entrepreneur flocking towards an industry that is known to generate consistent

income which is why there are increase number of fish and seafood farmers in Nigeria and of

course in most parts of the world.

For example, Statistics has it that there are 5 million farms in Nigeria, covering large acres of

land space. These goes to show that there are appreciable numbers of farmers in Nigeria but that

does not mean that there is stiffer competition in the industry.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial

farming with fish and seafood farming business. This is so because part of the success of any

nation is her ability to cultivate her own food and also export foods to other nations of the world.

Kenny – Fish Farm S.A Ltd. is fully aware that there are competitions when it comes to selling

fish and seafood all over the globe, which is why we decided to carry out thorough market

research so as to know how to take advantage of the available market in Nigeria and in other

parts of the world.

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We have done our homework and we have been able to highlight some factors that will give us

competitive advantage in the marketplace; some of the factors are effective and reliable fish and

seafood farming processes that can help us sell our produce at competitive prices, good network

and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have

healthy relationships with loads of major players (agriculture merchants) in the industry; both

suppliers of fish and seafood feeds and medications and buyers of fish and seafood within and

outside of Nigeria.

We have some of the latest fish and seafood farming hatchery, tools and equipment that will help

us raise fish and seafood in commercial quantities with less stress. Aside from our relationship

(network) and equipment, we can confidently boast that we have some of the most experienced

hands in Lagos Island – Lagos State in our payroll.

Lastly, all our employees will be well taken care of, and their welfare package will be among the

best within our category (start-ups fish and seafood farming companies in Nigeria) in the

industry. It will enable them to be more than willing to build the business with us and help

deliver our set goals and achieve all our business aims and objectives.

5.0 KENNY FISH FARMING – SALES AND MARKETING STRATEGY

We are quite aware that the reason why some fish and seafood farming companies hardly make

good profits is their inability to sell off their fish and seafood as at when due. Our sales and

marketing team will be recruited based on their vast experience in the fish and seafood

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aquaculture industry and they will be trained on a regular basis so as to be well equipped to meet

their targets and the overall business goal of Kenny – Fish Farm S.A Limited.

Over and above, we have perfected our sale and marketing strategies first by networking with

agriculture merchants and businesses that rely on daily supply of fish and seafood that are likely

to become our customers. In summary, Kenny Fish Farm S.A Limited will adopt the following

strategies in marketing our fish and seafood;

 Introduce our business by sending introductory letters alongside our brochure to stake

holders in the agriculture industry, households, hotels and restaurants and agriculture

produce merchant et al.

 Advertise our business in agriculture and food related magazines and websites

 List our business on yellow pages ads

 Attend related agriculture and food expos, seminars, and business fairs et al

 Leverage on the internet to promote our business

 Engage in direct marketing

 Encourage the use of word of mouth marketing (referrals)

5.1 SOURCES OF INCOME

Kenny – Fish Farm S.A Limited is in the fish and seafood aquaculture industry for the purpose of

maximizing profits hence we have decided to explore all the available opportunities within the

industry to achieve our corporate goals and objectives.

Below are the sources we intend exploring to generate income for Kenny – Fish Farm S.A

Limited;

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 1. Raising and harvesting finfish (e.g. catfish, trout, tilapia and minnows)

2. Raising and harvesting shellfish (e.g. clams, oysters, crustaceans, mollusks and shrimp)

3. Raising and harvesting ornamental fish (e.g. goldfish and tropical fish)

4. Raising and harvesting aquaculture species to augment or replenish wild habitats

5. Raising and harvesting other aquaculture (e.g. seaweed, alligators, frogs and turtles)

5.2 SALES FORECAST

From the studies and the survey conducted, we were able to discover that the sales generated by

a fish and seafood farming business depends on the size of the fish and seafood farm, the types

of fishes and seafood available in the fish and seafood farm and of course the size of their

marketing network.

We have perfected or sales and marketing strategies and we are set to hit the ground running and

we are quite optimistic that we will meet or even surpass our set sales target of generating

enough income / profits from the year of operations and build the business from survival to

sustainability with the shortest period of time.

We have been able to critically examine the fish and seafood aquaculture industry and we have

analyzed our chances in the industry and we have been able to come up with the following sales

forecast. The sales projection is based on information gathered on the field and some workable

assumptions as well with respect to the nature of fish and seafood farming business that we run.

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Below are the projections that we were able to come up with for the first three years of running

Kenny – Fish Farm S.A Limited;

S/NO Sales Forecast ( Year ) Sales Projections (Naira)

1 First Fiscal Year ₦ 2, 500,000

2 Second Fiscal Year ₦ 6, 000 000

3 Third Fiscal Year ₦9, 000 000

N.B: This projection is done based on what is obtainable in the industry and with the assumption

that there won’t be any major economic meltdown that can impact negatively on household

spending, bad weather with natural disasters (draughts, epidemics), and unfavorable government

policies

5.3 OUR PRICING STRATEGY

Some of the factors that will help you sell your farm produce at the right price that will guarantee

that you make profits are dependent on your strategy while some of the factors are beyond your

control. For example, if the climatic condition is unfavorable and if there is natural disaster in the

location where you have your fish and seafood farm, then it will directly affect the prices of your

fish and seafood.

Over and above, if you want to get the right pricing for your fish and seafood, then you should

ensure that you choose a good location for the fish and seafood farm, choose a good breed that

will guarantee bountiful harvest, cut the cost of running your fish and seafood farm to the barest

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minimum and of course try as much as possible to attract buyers to your fish and seafood farm as

against taking your fish and seafood to the market to source for buyers; with this, you would

have successfully eliminate the cost of transporting the goods to the market and other logistics.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of

customers for all our fishes and seafood is to sell them at competitive prices hence we will do all

we can to ensure that the prices of our fish and seafood are going to be what other fish and

seafood farmers would look towards buying.

One thing is certain; the nature of fish and seafood farming business makes it possible for fish

and seafood farmers to place prices for their fish and seafood based on their discretion without

following the benchmark in the industry. The truth is that it is one of the means of avoiding

running into loss.

5.4 PAYMENT OPTIONS

The payment policy adopted by Kenny Fish Farm S.A Limited is all inclusive because we are

quite aware that different customers prefer different payment options as it suits them but at the

same time, we will ensure that we abide by the financial rules and regulation of the Nigerian

State.

Here are the payment options that Kenny Fish Farm S.A Limited will make available to her

clients;

 Payment via bank transfer

 Payment with cash

 Payment via online bank transfer

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  Payment via check

 Payment via mobile money

 Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make

payment for farm produces purchase without any stress on their part. Our bank account numbers

will be made available on our website and promotional materials to clients who may want to

deposit cash or make online transfer for fishes and seafood.

6.0 KENNY FISH FARMING BUSINESS PLAN – PUBLICITY AND ADVERTISING

STRATEGY

Any business that wants to grow beyond the corner of the street or the city they are operating

from must be ready and willing to utilize every available means (conventional and non –

conventional means) to advertise and promote the business. We intend growing our business

which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and

to create a corporate identity for our fish and seafood farming business. Below are the platforms

we will leverage on to boost our fish and seafood farming brand and to promote and advertise

our business;

 Place adverts on community based newspapers, radio stations and TV stations.

 Encourage the use of word of mouth publicity from our loyal customers

 Leverage on the internet and social media platforms like; YouTube, Instagram,

Facebook ,Twitter, Google+  and other platforms to promote our business.

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  Ensure that our we position our banners and billboards in strategic positions all around

Lagos Island – Lagos state

 Distribute our fliers and handbills in target areas in and around our neighborhood

 Contact corporate organizations, households, landlord associations and schools by calling

them up and informing them of Kenny Fish Farm S.A Limited and the fish and seafood

we sell.

 Advertise our business in our official website and employ strategies that will help us pull

traffic to the site

 Brand all our official cars and trucks and ensure that all our staff members and

management staff wears our branded shirt or cap at regular intervals.

7.0 KENNY FISH FARMING – FINANCIAL PROJECTIONS AND COSTING

When it comes to calculating the cost of starting a fish and seafood farm, there are some key

factors that should serve as a guide. The different types of fishes and seafood to be raised in the

fish and seafood farms determine the total cost of setting up the business.

Besides, in setting up any business, the amount or cost will depend on the approach and scale

you want to undertake. If you intend to go big by renting / leasing a big facility, then you would

need a good amount of capital as you would need to ensure that your employees are well taken

care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and

aspirations for your business.

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The tools and equipment that will be used are nearly the same cost everywhere, and any

difference in prices would be minimal and can be overlooked. As for the detailed cost analysis

for starting a fish and seafood farming business; it might differ in other countries due to the value

of their money.

Below are some of the basic areas we will spend our start – up capital in setting up our fish and

seafood farm;

 The Total Fee for incorporating the Business (commercial farm) in Nigeria – ₦170 000.

 The amount needed to acquire / lease a fish farm land  – ₦5 000 000

 The amount required for preparing the farm land (fish ponds and fresh water supply et al)

– ₦3 000 000

 Legal expenses for obtaining licenses and permits as well as the accounting services

(software, P.O.S machines and other software) – ₦300 000.

 Marketing promotion expenses for the grand opening of Kenny Fish Farm S.A Limited is

the amount of ₦550 000 and as well as flyer printing (100 000 flyers at ₦70 per copy) for

the total amount of ₦7000 000.

 The total cost for hiring Business Consultant – ₦250 000.

 The total cost for payment of insurance policy covers (general liability, workers’

compensation and property casualty) coverage at a total premium – ₦1 200 000

 The amount required for the purchase of the first set of fishes and seafood (fingerlings) –

₦ 800 000

 The cost for acquiring the required working tools and equipment / machines / hatchery et

al– ₦10 000 000

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  Operational cost for the first 3 months (salaries of employees, payments of bills et al) –

₦600 000

 The Cost of Launching an official Website – ₦60 000

 Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) –

₦2,000 000

Going by the report from detailed research and feasibility studies conducted, we will need an

average of ₦30, 930 000, approximately 31M to start a standard fish and seafood farming

business here in Nigeria.

8.0 GENERATING FUNDING / STARTUP CAPITAL FOR KENNY – FISH AND

SEAFOOD AQUACULTURE LIMITED.

No matter how fantastic our business idea might be, if we don’t have the required money to

finance the business, the business might not become a reality. Finance is a very important factor

when it comes to starting a business such as commercial poultry or fish farming. No doubt

raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur

must go through.

Kenny Fish Farm S.A Limited is a family business that is solely owned and financed by Kehinde

Michael Osituga and his immediate family members. They do not intend to welcome any

external business partners, which is why he has decided to restrict the sourcing of the start – up

capital to 3 major sources.

These are the areas we intend generating our start – up capital;

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  Generate part of the start – up capital from personal savings

 Source for soft loans from family members and friends

 Apply for loan from my Bank

N.B: We have been able to generate about ₦10 000 000 (Personal savings ₦6 000,000 and soft

loan from family members ₦4 000 000) and we are at the final stages of obtaining a loan facility

of ₦21 000 000 from your bank. All the papers and document have been signed and submitted,

the loan has been approved and any moment from now we expect that our account is credited

with the amount.

9.0 KENNY FISH FARMING – SUSTAINABILITY AND EXPANSION STRATEGY

The future of a business lies in the numbers of loyal customers that they have, the capacity and

competence of the employees, their investment strategy and the business structure. If all of these

factors are missing from a business (company), then it won’t be too long before the business

shuts down.

One of our major goals of starting Kenny Fish Farm S.A Limited is to build a business that will

survive off its own cash flow without the need for injecting finance from external sources once

the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our

fishes and seafood a little bit cheaper than what is obtainable in the market and we are well

prepared to survive on lower profit margin for a while.

Kenny Fish Farm S.A Limited will make sure that the right foundation, structures and processes

are put in place to ensure that our staff welfare are well taken of. Our company’s corporate

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culture is designed to drive our business to greater heights and training and re – training of our

workforce is at the top burner.

As a matter of fact, profit – sharing arrangement will be made available to all our management

staff and it will be based on their performance for a period of six years or more. We know that if

that is put in place, we will be able to successfully hire and retain the best hands we can get in

the industry; they will be more committed to help us build the business of our dreams.

9.1 APPENDIX MILESTONE

1. Business Name Availability Check: Completed

2. Business Registration: Completed

3. Opening of Corporate Bank Accounts: Completed

4. Securing Point of Sales (POS) Machines: Completed

5. Opening Mobile Money Accounts: Completed

6. Opening Online Payment Platforms: Completed

7. Application and Obtaining Tax Payer’s ID: In Progress

8. Application for business license and permit: Completed

9. Purchase of Insurance for the Business: Completed

10. Leasing of farm land and building of standard fish ponds: In Progress

11. Conducting Feasibility Studies: Completed

12. Generating capital from family members: Completed

13. Applications for Loan from the bank: In Progress

14. Writing of Business Plan: Completed

15. Drafting of Employee’s Handbook: Completed

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16. Drafting of Contract Documents and other relevant Legal Documents: In Progress

17. Design of The Company’s Logo: Completed

18. Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In

Progress

19. Recruitment of employees: In Progress

20. Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office

appliances and CCTV: In progress

21. Creating Official Website for the Company: In Progress

22. Creating Awareness for the business both online and around the community: In Progress

23. Health and Safety and Fire Safety Arrangement (License): Secured

24. Opening party / launching party planning: In Progress

25. Compilation of our list of products that will be available in our store: Completed

26. Establishing business relationship with vendors – key players in the industry: In Progress

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