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Business Calculator: How to

startup cost for business calculator

The startup cost for a business calculator is a simple cost and profit projection for pig farming and fish farming businesses. We designed this calculator to assist those who are new to such businesses. The calculator will help them estimate the costs and profit of such business depending on the quantity of stock.

We designed it using current market prices within the eastern part of Nigeria, however, prices can change depending on time and location. Hence, we designed it to take care of price changes. Users can simply factor in the current market price of items required to get the estimated cost and profit outlay. Moreover, if you enter your expected stock, say, 500, you will get an estimate using our built-in prices.

How to use Startup Cost for business Calculator

To use the startup cost for a business calculator, you will first choose one of the two businesses. You can either estimate for a startup or expand an existing business.

Let us go through how you will get a reliable estimate for either startup or existing business.

  1. Choose which business you want to start or expand. [Click on the Pig Farming Calculator tab for piggery business or Fish Farming Calculator for fishery business]. The estimated cost and profit calculator for either will be displayed.

The startup cost for Pig farming business calculator

  1. Type in the quantity of pig you want. You can experiment with different stock levels.
  2. Choose your Stock Type. Your stock can be either Weaner or Grower. Weaners are cheaper than growers but have an expected maturity time of 5 to 6 months. Growers are more expensive but have a maturity time of 4 to 5 months depending on the species.
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  1. Type the expected selling price in the selling Price The selling prices usually depend on the size of the pig. Mature pigs can be sold between 18000 and 22000 naira depending on size, location, and season. We used 20000 naira, which you can change to reflect the prevailing market price in your location. Putting in the selling price will help the cost calculator to output the expected profit per batch of stock. Note that you can have 2 to 3 batches of stock depending on your stock type. If you choose a grower with 4-month maturity, you will have 3 batches, while the weaner will give you 2 batches. Profit per batch is the expected profit for each stock successfully sold after maturity.
  2. To factor in the mortality rate, we have two mortality levels – 5% and 10%. The death of pigs cannot be ruled out in any piggery business. You need to manage yours in such a way that the mortality rate will be at the bearest minimum. Choose either 5% or 10%. 5% means that you want to factor in 5 dead pigs out of 100, while 10% accommodates 10 dead pigs out of every 100 pigs.
  3. The Total Cost Outlay displays the total amount of investment required to start or expand the business.
  4. The Expected Profit displays the estimated profit after each batch of the pig is sold out. The profit level depends on the mortality rate.
  5. The Expected Turnover displays the estimated total amount of sales for each batch of the pig.
  6. NOTE: You can factor in actual costs into the calculator. To do this, expand the Direct Material Cost, Direct Expenses, and Startup/ Expansion Cost (Assets) Then fill in the current market prices in the boxes provided.
  7. Type in the textbox Cost of Pig the amount you will buy each pig. Prices can range from 5000 – 8000 naira depending on size and specie and on type of stock. Change the price to the actual market price.
  8. Palm Kernel Cake is sold per ton. Enter the amount you will buy each ton of PKC. Prices range from 35000 – 40000 depending on location and market demand. You will need between 15 and 16 tonnes for 100 pigs per batch. Just type in the textbox the amount for each ton.
  9. Blood Meal is required in pig production to boost the protein. It also helps in speeding up the growth of pigs. It is usually sold in 25liters container, but prices can range from 800 – 1200 naira per container. You may need about 100 – 120 containers for each batch of 100 pigs. All you need is to enter in the textbox the current market price for each 25liters container.
  10. Total Cost (Raw Materials) displays the total cost of raw materials required from the first month to maturity.
  11. The Direct expenses tab displays text boxes for salaries/ wages, water medication, and other sundry items. These are expenses that are directly required to rear your pig until maturity.
  12. How much salary will you pay your staff and yourself? Add up the monthly salary and multiply it by the number of months for each batch of the pig. For example, I pay myself N30,000, and two of my staff N10,000 each. Our monthly salary is N50,000. Therefore, salary for 5months is [5 x N50,000 = N250,000]. If this represents your scenario, enter N250,000 in the textbox. If you will have a staff that will receive N15,000 for a batch of 5months, then enter N75,000.
  13. Water is very essential, but the cost of water depends on your source of water. If you will own a borehole, the borehole will be an asset while the cost of pumping the water will be included here. If you buy water from a tanker, then the cost will be included here. Whichever is your source, the cost per pig should not exceed N1000. The price for water can range from 100 – 1000 naira only.
  14. To reduce the mortality rate, it is necessary that you vaccinate your pigs regularly. You may also seek the services of a Vet. doctor as the need may arise. The cost of medication can range from N100 – 2000 per pig, depending on whether you are fighting a disease outbreak or not. Simply enter an amount between 100 and 1000 if you cannot figure out the actual cost per pig.
  15. There are other expenses we do not capture. They include the cost of firewood for cooking blood meals, transportation costs, costs of telephone, and utility. Enter an amount to cover the above items in 4 – 6 months. How much will you spend on transportation, making calls, etc? You may not need to buy firewood, depending on your location, but firewood costs should be between 100 – 500 naira per week.
  16. Assets cost depends on whether you are a startup or an existing business. For startups, you will need to buy tanks for water reservoirs, build chambers to house your pigs, and buy equipment such as a wheelbarrow, head pans, shovels, etc.
  17. How much will tank(s) cost you? We recommend two 4000liters tank. At the time of writing the cost is N95000 each.
  18. How much will it cost you to build a chamber that will house at least 50 pigs? Chambers can house 30 – 200 pigs depending on size. It is better to build chambers that will not house more than 50 pigs so that it can help in disease control. With our estimate, it should cost about N150,000 to build a chamber that will contain 50 pigs.
  19. Finally, you will need other equipment to feed the pigs and clean the chambers. The cost of this equipment will depend on the number of pigs and equipment required. You can estimate N20,000 for a head pan, shovel, and wheelbarrow.

The startup cost for fish farming business

  1. Type in the quantity of fish you want. You can experiment with different stock levels.
  2. Choose your Stock Type. Your stock can be either fingerling or juvenile. Fingerling is cheaper than juvenile but has an expected maturity time of 6 months. Juvenile is more expensive but has a maturity time of 5 months.
Startup Cost For Business GIF - Find & Share on GIPHY
  1. Type the expected selling price in the selling Price The selling prices usually depend on the size of the fish. Mature fish usually weigh 1kg and can be sold between 1000 and 1200 naira depending on location and season. We used 1000 naira, which you can change to reflect the prevailing market price in your location.
  2. Select a mortality rate – 5% or 10%, and the stock type.
  3. The Total Cost Outlay displays the total amount of investment required to start or expand the business.
  4. The Expected Profit displays the estimated profit after each batch of fish is sold out. The profit level depends on the mortality rate.
  5. The Expected Turnover displays the estimated total amount of sales for each batch of fish.
  6. Expand the Direct Material Cost, Direct Expenses, and Startup/ Expansion Cost (Assets) Then fill in the current market prices in the boxes provided.
  7. Type in the textbox Cost per fish the amount you will buy each fingerling or juvenile. As at the time of writing, the current price of fingerling is N20 and juvenile N30.
  8. Enter the cost of each feed requirement from Month 1 to Month 6. Month 1 requires a 1.5mm feed if you stock fingerling. If you stock juvenile, month 1 expenses will not be required. Other feed requirements are specified with the current market price per bag. Adjust the prices if there is a change.
  9. Total Cost (Raw Materials) displays the total cost of raw materials required from the first month to maturity.
  10. Expand the direct expenses tab and enter the following:
  11. How much you will pay for salary If you will have a staff that will receive N15,000 for a batch of 5months, then enter N75,000.
  12. Water is very essential, but the cost of water depends on your source of water. If you will sink a borehole, the borehole will be an asset while the cost of pumping the water will be included here. The average cost of water per fish can be between N10 and N50.
  13. Deworming is very important in fish farming. The cost of deworming 1000 fish is about N25000, which is N25 per fish.
  14. There are other expenses we do not capture, please, put an estimated amount in the miscellaneous box.
  15. Assets cost depends on whether you are a startup or an existing business. The most important asset for a startup is the fish pond. You may need other equipment, especially for harvesting and drying. Specify the relevant amount in the spaces provided. We used an estimated amount of N70,000 for a mobile pond of about 1000 capacity.

We may not have factored in everything. You can tell us what essential items you want us to factor in when updating the cost calculator. Your input will be highly appreciated. Something is missing in this calculator, please tell us what it is!

 

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