Revenue Projections:
Projected 3-Year Revenue
| Year | Production Cycle | Number of Fish Sold | Price per Fish (₦) | Revenue (₦) |
| Year 1 | 2 | 2790 x 2 | 4000 | 22,320,000 |
| Year 2 | 2 | 2790 x 2 | 4600 (4000 + 15%) | 25,668,000 |
| Year 3 | 2 | 2790 x 2 | 5290 (4600 + 15%) | 29,317,800 |
Profit/ Loss Statement:
3-Year Profit/Loss Statement
| Item | Year 1 (₦) | Year 2 (₦) | Year 3 (₦) |
| Revenue | 22,320,000 | 25,668,000 | 29,317,800 |
| Costs | |||
| – Feed | 1,350,000 | 1,552,500 | 1,785,375 |
| – Salaries | 6,240,000 | 7,176,000 | 8,252,400 |
| – Lease & Miscellaneous | 1,000,000 | 1,150,000 | 1,322,500 |
| – Marketing and Advertising | 500,000 | 575,000 | 661,250 |
| – Tools and Equipment | 250,000 | – | – |
| – Cost of Capital (33%) | 2,072,400 | 2,365,140 | 2,719,521.2 |
| Total Costs | 11,412,400 | 12,818,640 | 14,741,046.2 |
| Profit Before Tax | 10,907,600 | 12,849,360 | 14,576,753.8 |
| Tax (25%) | 2,726,900 | 3,212,340 | 3,644,188.45 |
| Net Profit | 8,180,700 | 9,637,020 | 10,932,565.35 |
Profitability Analysis:
Return on Investment (ROI)measures the profitability of an investment and is calculated as:
Calculations for Each Year:
- Total Investment (Initial Capital): ₦6,280,000
Year 1:
- Net Profit: ₦8,180,700
(8180700/6280000) x 100 = 130.31%
Year 2:
- Net Profit: ₦9,637,020
- ROI = 153.40\%
Year 3:
- Net Profit: ₦10,932,565.35
- ROI =174.06
Breakeven Analysis
The breakeven point is the point at which total revenues equal total costs, resulting in neither profit nor loss. It helps determine the minimum sales needed to cover costs.
Breakeven Formula:
Calculations:
Fixed Costs (per cycle):
- Lease: ₦500,000 (per year, so ₦250,000 per cycle)
- Marketing: ₦500,000 (per year, so ₦250,000 per cycle)
- Miscellaneous: ₦500,000 (per year, so ₦250,000 per cycle)
- Salaries (6 months): ₦3,120,000
Total Fixed Costs per Cycle: ₦3,870,000
Variable Costs (per unit):
- Fingerlings: ₦75
- Feed: ₦675,000 / 3000 = ₦225 per fish
- Cost of Capital (33% of initial investment): ₦2,072,400 / 3000 = ₦690.80 per fish
Total Variable Costs per Fish: ₦75 + ₦225 + ₦690.80 = ₦990.80
Selling Price per Fish: ₦4000
Break-even units = (3870000/(4000 – 990.80)) = 1151.37
So, we need to sell approximately 1152 fish per cycle to break even.
Summary:
- Year 1 ROI: 130.31%
- Year 2 ROI: 153.40%
- Year 3 ROI: 174.06%
- Breakeven Point per Cycle: Approximately 1152 fish
These calculations provide insights into the profitability and financial viability of our modern catfish production business over three years, as well as the sales required to cover costs.
This is Superb!!! Highly enlightening!!
Thanks, if you need anything please, don’t hesitate to ask.
This fish biz plan seems less detailed compared to the pig production. Also, how can I get in touch with you for I appreciate the wonderful work presented there and hoping for investment. Well done. Great teachers.
We are working on updating the fish business plan with the latest information based on experience we’ve had on the business. You can contact us through the contact form, except if you want direct consultation.
Thanks for this write up.
It is an eye opener and enlightening for me.
Thank you. Soon we will upload a cost calculator to assist you when starting up or expanding your business.
Please admin can we get a company balance sheet for the fish farming
Yes, we are rolling out spreadsheet templates to handle financial projections. By next week, we shall make available templates for cash flow and profit & loss, then the balance sheet will follow later.
Thank you.
What will be your fee for providing the technical know how of the business. Can you also be a reliable vendor to provide all the equipment needed for the business? I reside in Warri Delta State. I want to go into this business using this business plan.
Thank you, Joseph. We will assist you to any extent you want for a small consultation fee. It will be ideal for you to check around the Warri area for some of the items to reduce transport costs. For example, check if you can get who can construct a mobile pond of 1000 capacity and how much. We can ship one for you at N90,000, but you will bear the cost of transportation.
Any item you cannot get, let us know so we can assist you. By next week, we shall be publishing a cost calculator to assist you calculate the expected capital outlay depending on the quantity of stock you want, and the expected profit per batch. Please, use the contact form to itemize what you want us to help you do so we can calculate the administrative charges.
Thank you
I have sent you a mail. Pls read and reply. I didn’t know where to get the contact form. The contact phone number I saw and called, the recipient couldn’t say much. My phone number is also in the email I sent.
Good day, Thanks for the write-up, i’m confused in your sales of N2,000,000 for 6months, when you reared 1000 fingerlings sold @ N1000/KG, it seems the equation is missing somewhere, help me out . thanks
Good day,
Please, I want to know if the confusion is from the business plan or from the financial cost calculator. please, revert back so I can assist you. Meanwhile, N2million sales should be for one year. That is 1000 stock per six months. Remember that it is just an estimate. Use the financial calculator to get the approximate cost and profit of your proposed stock per batch. Get the calculator here: http://www.kmacims.com.ng/startup-cost-for-businesses/
Thanks
I’m referring to this sales Under Month 6 (N2M) also month 12 (N2M), where as you only reared 1000 fingerlings @ N1000/KG http://www.kmacims.com.ng/wp-content/uploads/2019/05/Cashflow-Fish-farm-biz-plan-min.png
Ok, I now understand. This is a typical cashflow statement for 12-month period. The stock for the cashflow is 2000 fingerlings @ 20 each. That gave you 40,000. However, as an estimate, you get 2,000,000 revenue for the 2000 mature fish. But note that mortality rate was not considered here. That is why we are creating a cash flow template that will take care of the mortality rate and give you the actual cash flow based on the number of stock you have per month. What we presented in this article is just an estimate.
Apologies for responding very late, I am just seeing this now.
Thank you.
Thank you for this enlightening plan.
Please where can I get affordable pelleting machine and dryer.
Can you please share good catfish meal formula and ingredients with me
Thank you very much
Thank you Olamilekan,
For now, we buy all our feeds from the market. We are not into feed mixture and production.
However, you can check the following links
1. Jiji – https://jiji.ng/farm-machinery-equipment/pellet
2. Afrimash – https://www.afrimash.com/shop/agricultural-equipment/outdoor-agricultural-equipment/motor-machines/feed-pelleting-machine/
Thanks.
Admin, well done. More power to your elbow. Please I need your contact.
Thanks, Tonychrys. You can use the contact link: http://www.kmacims.com.ng/contact.
Thank You.
Hi, you have businessplan for prawn,/shrimp farm indoir
No sir.
Thank you.