EXECUTIVE BACKGROUND

Business Name and Proposed Business Logo

Streamline Tilapia Aquafarm

Fish farming has taken the world by storm as a sustainable way of rearing
fish. Whether you’re raising ornamental fish or producing fish for the market,
you’ll need a memorable business name that hooks the attention of your
customers. The word “Streamline” refers to the nature of a freshwater fishery and
the efficiency of the business.

Figure 1: Streamline Tilapia Aquafarm Logo

Description of the Industry

Tilapia species have been introduced in a number of Pacific countries at

different times and for different purposes in the last 50 years. Tilapia fisheries
originated in Africa and the Levant. The accidental and deliberate introductions of
tilapia into South and Southeast Asian freshwater lakes have inspired outdoor
aquaculture projects in various countries with tropical climates, including
Honduras, Papua New Guinea, the Philippines, and Indonesia. Tilapia farm
projects in these countries have the highest potential to be “green” or
environmentally friendly. (FOSCARINI R. & LAL S.N. Introduction of Tilapia
Species and Constraints to Tilapia Farming in Fiji).

1
 Mozambique tilapia was introduced into the Philippines from Thailand in
1950. It was not well accepted by consumers in the 1950s and 1960s due to its
dark colour, small size and poor image. In the early 1970s the introduction of Nile
tilapia (Oreochromis niloticus), a species light in colour, enhanced the image of
tilapia and boosted commercial production. In the late 1970s and early 1980s,
commercial tilapia production was advanced by the development of technologies
for the breeding of Nile tilapia in floating net enclosures and the production of
Nile tilapia in floating cages with feeding. (P ALANCA-TAN R. 2018. Aquaculture,
Poverty and Environment in the Philippines.)

Tilapia are among the easiest and most profitable fish to farm due to their
omnivorous diet, mode of reproduction, tolerance of high stocking density, and
rapid growth. In addition to earning profits, aquaculture can improve the
livelihoods and nutrition of the resource-poor rural people in the region.

Global tilapia production grew by 3.3 percent in 2020 to top 6 million tons
for the first time, despite the impact of Covid-19. The new data, based on the
GAA’s latest survey of tilapia producers from around the world, were presented
by Rabobank’s Gorjan Nikolik at the GOAL 2020 conference, which is taking
place virtually this week. They included a breakdown of the key tilapia producing
countries, providing provisional figures for 2019-2021. Tilapia is a very good
growth sector – it grew from around 3 million tons to over 6 million [since 2010] at
a growth rate of just above 7 percent. Expectation is for lower growth, but still
positive in 2020 and some more growth returning in 2021. (FLETCHER R. 2020.
Tilapia Production Figures Revealed).

Description of the Project

Tilapia production is a small scale farming of freshwater fish specifically Nile

Tilapia (Oreochromis niloticus). It is accessible at Barangay Mabagon Hindang,
Leyte. The area of the farm is approximately 400 square meters The farm will
also have three ponds. The size of each pond is 5 meters width, 4 meters length

2
and 1.4 meters depth. For starting, the farm will have 3000 pieces of fingerlings
that will increase 10% quarterly and 15% annually.

The tilapia will be fed a combination of organic feeds like algae and
duckweeds, synthetic food pellets like starter, grower and finisher floater. The 3
months old tilapia that will weights approximately 240 kilos will be harvested and
sold in Hindang public market and possibly distributed to the nearby
municipalities.

Tilapia production offers live and fresh tilapia that can be sold within the
local municipality and other markets. Due to the sudden rise of the price of
saltwater fish, tilapia is a good alternative to saltwater fish because it is very
affordable. Fast-growing tilapia is environment friendly and easy to grow for both
small and large-scale farmers. It is an affordable options for the masses specially
those who are from low income Households and can help them meet their dietary
requirements.

Location of the Project

The project is located at purok Rambotan Brgy. Mabagon Hindang, Leyte.

The dimension of the lot intended to be the location of the project approximately
400 square meters which situated 50 meters away from the main road. The
location is an agricultural land that is accessible via mabagon road en route to
Brgy. Katipunan. The lot is owned by Mr. Nardito Baldo. The land features
includes easy access to a water supply which is very useful in maintaining
oxygen supply of water the the farm. The location is surrounded with trees that is
useful to maintain shed for the pond for maintaining good temperature for
tilapias. This location is ideal because it is accessible with a wide and well-
constructed road that is not far from the market and other major landmarks of the
Municipality.

3
 Figure 2: Location of the Project

Research Methods

Research Respondents

This research is administered to 100 random Hindang resident who

represent their own household. This research is aimed to household that is under
the lower socioeconomic bracket.

Sampling Technique

The survey conducted is a random sampling of 100 out of 20,924

residents of Hindang. In order to gauge the willingness capability and tendency to
buy fresh tilapia for there daily consumption.

Data Gathering Procedure

The survey is conducted via a pen and paper interview that takes 2 to 3
minutes to complete. This is done to random market goer because are the only
one who decide and buy there weekly groceries. The opinion will be benchmark
in gauging the size of the market demand.

4
Research Instruments

The instruments and tools utilized in this research and survey are cellular
phone used for documentation of both audio and visual observation. The pen and
paper survey utilized two pages of printed questionnaire and handful of sterile
and sanitized ball point pen.

Statistical Method

The statistical methods that is utilized in this research through conducted

survey are inferential statistics, associative statistics and descriptive statistics in
order to analysed in create meaning through mathematical study of the data
gathered in order to gauge the willingness in the financial capability of people
from lower socio-economic bracket to consume fresh tilapia fish on a consistent
basis.

5
 MARKET STUDY

Introduction
Demand for fish as a natural protein has become prominent over the last
decade. Tilapia is a very light in color and a very mild taste. The flesh is firm, and
says unchangeable in the preparation and cooking. The flesh has a medium fat
content, but has very high protein content. Unlimited health benefits of freshwater
fish such as strengthening heart and bone health, improving brain functions,
keeping weight in check.

For the business to prosper, it should be given time and effort. The
proponent of this business must have the desired creativity so as to be able to
provide quality product to its customers. The fulfillment of the needs and wants of
its customers or target market must be the key objective of the recommended
business. In every project, feasibility marketing aspect is well-thought-out the
most important since it requires inconspicuous analysis of the business total
demand and supply.

Objectives:

 To provide and introduce a total quality system in our operations to help

boost the reputation of the tilapia fish farming industry.
 To provide affordable alternative high protein fish to the customer.
 To produce quality and nutritious tilapia.

Description of Market

The tilapia fish will be sold in neighbouring households, hindang, Leyte

Public Market and even to the nearest municipal of Hindang, Leyte. Hindang
Public Market is situated nearby to Hindang Commercial Area, and close to San
Miguel Multipurpose Cooperation.

6
Market Segmentation

The information below is based from the data that was gathered from the
interview.
60% of household we interviewed said that they would like to buy tilapia
21% of them preferred to buy other goods rather than tilapia
14% is undecided
5% no idea

MARKET PERCEPTION
WANTED TO BUY TILAPIA

DON’T WANT TO BUY TILAPIA

PREFERRED OTHER MEALS

UNDECIDED

NO IDEA

Figure 3: Market Perception

People who Estimated the Price of Tilapia/Kilo

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
60% people who wants to buy tilapia

100-199/kilo 200 above/kilo

Figure 4: Price Perception

7
64 % of people who wants to buy tilapia estimated the price of tilapia per kilo

47 % of them said that the estimate price of tilapia would be 100 – 199 pesos per
kilo.
17 % of them said that the estimate price of tilapia would be 200 above.

Study of Demand

Past Demand

40
%

60
%

Have already buy and tasted tilapia and are willing to buy
Haven't bought and consumed tilapia fish

Figure 5: Past Demand

The graph above shows the past demand for tilapia fish. Based on our
survey, out of the 4,994 total household of Hindang, 60% (2,996 households)
have already buy and tasted tilapia and are willing to buy if there is available fish.

8
 Future Demand

21%

5%
19%

60% 14%

Have already buy and tasted tilapia and are willing to buy

Not interested in buying or trying tilapia

Have tasted tilapia but uncertain of buying tilapia

Willing to buy but haven't tasted tilapia

Figure 6: Future Demand

The graph above shows the future demand for tilapia fish. Based on our
survey approximately 19% (949 households) Hindanganon are the potential
market. In which, out of the 19%, 5% of them haven’t tasted tilapia but willing to
buy while the remaining 14% have already tasted but uncertain of buying tilapia.
It is expected that there is a 32% growth in demand after we implemented our
marketing plan.

9
Study of Supply

Past Supply
(Yield in Kilograms)
3000

2500

2000

1500

1000

500

0
Binog Tilapia Farm

2017 2018 2019 2020 2021

Figure 7: Past Supply

The graph above shows the Binog Tilapia Farm yield in kilogram from the
year 2017 to 2021. Binog Farm is a farm of tilapia and koi fish located at Tagbibi
Hindang, Leyte. On the average of fully grown tilapia, it weighs 200 grams. So, in
fully grown tilapia there are 5 pieces in one kilo. Binog Farm has 1200 pieces
tilapia for their starting in the year 2017 and eventually increase 500 pieces
tilapia every year. When the 1200 pieces of tilapia became fully grown after 3
months it weights approximately 240 kilos. Binog Tilapia Farm harvest tilapia with
a span of 3 months, therefore they harvest 4 times a year and they harvest 960
kilograms in the year 2017 fully grown matured tilapia annually. Binog Tilapia
Farm sells tilapia 160 pesos per kilo. Every harvest they can gain ₱38,400 out of
240 kilos and they can gain ₱153,600 annually [4 times a year].

10
 Future Supply
(Yield in Kilograms)
6000

5000

4000

3000

2000

1000

0
Binog Tilapia Farm Streamline Tilapia Aquafarm

2023 2024 2025 2026 2027

Figure 8: Future Supply

The graph above shows that their will be two tilapia farm that will exist in
the market which is the Binog Tilapia Farm and the Streamline Tilapia
Aquaculture. The Streamline Tilapia Aquafarm has 3000 pieces of tilapia in the
first quarter of the year which will increase 10% quarterly, a total of 2,784.6 kilos
in the year 2023. Assume that Binog farm will increase 500 pieces of tilapia every
year while STF will increase 10% quarterly and 15% annually.

Demand and Supply Analysis (GAP)

Unsatisfied
Year Projected Demand Projected Supply Demand/Excess Supply
2023 7890 kg. 2784.6 kg. -5105.4 kg.
2024 8284.5 kg. 3202.29 kg. -5082.21 kg.
2025 8698.73 kg. 3682.63 kg. -5016.10 kg.
2026 9133.67 kg. 4235.03 kg. -4898.64 kg.
2027 9590.35 kg. 4870.28 kg. -4720.07 kg.
Table 1: Demand and Supply Analysis

11
 The table above shows the demand and supply gap of tilapia in the year
2023-2027. The data that was gathered shows that their will be a 19% additional
to the 60% potential buyers of tilapia, a total of 79%. Out of the 4994 households
in Hindang 79% or 3945 households are the potential customers. The data that
was gathered also estimated that in every household consumes minimum of 2
kilos of tilapia. The will demand will increase 5% every year.

Expected Market Share

Market Share

Binog Tilapia Farm

Streamline Tilapia Aquafarm
48%
52%

Figure 9: Expected Market Share

In year 2027, Binog Farm will sell 4560 kilos of tilapia while Streamline
Aquafarm will sell 4870.28 kilos of tilapia, a total of 9430.28 kilos in Hindang,
Leyte. Binog Farm will have a share of 48% in the market and 52% share for the
Streamline Aquafarm. The data shows that Streamline Tilapia Aquafarm has
more percentage share than Binog Tilapia Farm in the market.

12
Costing

Direct Costing

Particular Cost
Tilapia ₱1.25 x 3000 fingerlings 3,750.00
Feeds 9,000.00
Fertilizer 250.00
TOTAL ₱13,000.00
Table 2: Total Direct Cost

Indirect Costing

Particular Cost
Labor cost: Caretaker
121.875/day (3hrs. work daily) x 90 days (3 21,937.50
months) x 2 workers
Labor Cost: Harvester
325/day (8hrs. work) x 1 day x 1,300.00
4 workers
Electricity (400/month x 3 months consumption) 1,200.00
Transportation 1,500.00
TOTAL ₱25,937.50
Table 3: Total Indirect Cost

Production Costing

Particular Cost
Total Direct Cost 13,000.00
Total Indirect Cost 25,937.50
TOTAL ₱38,937.50
Table 4: Total Product Cost

13
Estimated Pricing

Particular Cost
Product Cost / 600 kilo produce in harvest ₱107
30% mark up of 107 pesos ₱32
TOTAL ₱139/kilo
Table 5: Estimated Price/kilo

Pricing of the tilapia product will be based on what is currently established

price in the market which is 160 pesos per kilo. The business will make sure that
the customers will get a quality tilapia fish.

Projected Sales

Total Harvest Price Total Sales

Year Annually (Kgs.) Per Kilo (Annually)
2023 2784.6 ₱160 ₱445,536
2024 3202.29 ₱160 ₱512,366.4
2025 3682.63 ₱160 ₱589,221.36
2026 4235.03 ₱160 ₱677,604.56
2027 4870.28 ₱160 ₱779,245.24
Table 6: Projected Sales

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Marketing Programs/Promotions

For the promotion of the product, we will use flyers (shows in figure 10), street
signages (shows in figure 11), and social media such as Facebook page (shows
in figure 12).

Items Quantity Unit Cost Total Cost

Flyers 30 10 300
Signages 2 80 160
TOTAL ₱460
Table 7: Marketing Promotion Cost

Streamline Tilapia

Figure 10: Streamline Flyers

Figure 11: Streamline Signage

15
 Figure 12: Streamline Tilapia Aquafarm

SWOT(Strengths, Weaknesses, Opportunities and Threads) Analysis

The focus is smaller scale, low input, and output aquaculture. For many of
the adopters of this kind of aquaculture, it is a secondary activity, providing a
supplement of incomes and a source of extra food.

Strengths Weaknesses

 Home operated business  Low technical skill

 Low production cost  It requires attention
 Low cost of labor  Lack of knowledge on the
 Fish seen as a healthy source industry
of protein  Excess food, faces, cage
 Inexpensive product material, and antibiotics can
 Fast growing pollute the water source
 New Tilapia recipe discover  Limited expertise and
professionals

16
 Opportunities Threats

 Local demand  Competition from marine fish

 Direct sales at farm  Predators
 Growing demand for an  Flooding
affordable protein source  Theft
 Shortage in traditional  Parasites & disease outbreak
fisheries products
 Investment opportunities

Table 8: Streamline Tilapia Aquafarm SWOT Analysis

17
 TECHNICAL STUDY

Description of the Product

Tilapia is a very light in color and a very mild taste. The flesh is firm, and
says unchangeable in the preparation and cooking. The flesh has a medium fat
content, but has very high protein content. Unlimited health benefits of freshwater
fish such as strengthening heart and bone health, improving brain functions,
keeping weight in check. Tilapia is a fast growth, firm and tasty flesh, resistance against
harsh conditions and ease production of fingerlings under captivity.

Business Operation Procedures

Site selection

Select a site where water is accessible throughout the year. It should be

well exposed to sunlight, which hastens the growth and multiplication of small
aquatic plants called algae (“lumot”), which serve as food for the tilapia. More
important, it should not be flooded during rainy season.

Pond preparation

The size of each pond is 5 meters width, 4 meters length and 1.4 meters
depth. For starting, the farm will have 3000 pieces of fingerlings.

Pond fertilization

Apply fertilizer to the pond, since it is newly constructed. This will be done
one week before stocking. Apply chicken manure on the pond bottom with water
depth of about 6 centimeters at the rate of one kilo for every 10 square meters.
Fertilize the pond once a month to insure good production of algae.

Securing fish fingerlings

18
 Obtain your first supply of young tilapia from any reliable fishpond owner.
The supply of the fingerlings will be at Binog Tilapia Farm which is located at
Tagbibi Hindang, leyte.

Stocking the pond

Before stocking the pond with tilapia, be sure to drain it thoroughly and
remove the weeds and unwanted fish that may be present. Allow your pond to
dry up until it cracks before refilling with fresh, clean water. Fertilize the pond one
week before stocking. Allow the water in the pond to mix gradually with the water
in the fish container before putting the fish into the pond.

Care and maintenance

- Feed daily during morning (6:00 am) and afternoon (5:00 pm).
- Maintaining a water level depth of 1-1.5 meters.
- Plant “kangkong” and “gabi” at one portion to provide shade for the fish during
hot weather and to serve as growing media for natural fish food.
- Prevent seepages and leakages by patching them with muds. Clear the pond
dikes of weeds.

Harvesting

Harvest tilapia by using a dip net or a lift net. Lower the net down to the
bottom of the pond and spread a small amount of feed on the water just above
the net. Lift the net as fast as possible to prevent the escape of the tilapia. After
harvesting, stock the pond again.

19
Plant Layout

River

Hatchery STOCK POND 1

ROOM

POND 3 POND 2

4meters by 5meters by 1.4meters

Length Width Depth

Figure 13: Plant Layout

Streamline Tilapia Aquafarm has an area of 400 square meters. There are
three (3) ponds, one (1) hatchery and one (1) stockroom which would be made in
concrete. The size of each pond is 5 meters width, 4 meters length and 1.4
meters depth.

20
Fixed Asset

Pond and Building Requirements

The farm requires these facilities to operate.

Unit Cost Total Cost Life Span Annual

Item Quantity (Php) (Php) (Years) Depreciation
Pond
Construction 3 20,000 60,000 12 5,000
Hatchery
Construction 1 5,000 5,000 12 416.67
Stockroom
Construction 1 12,000 12,000 10 1,200
TOTAL 37,000 77,000 6,616.67
Table 9: Building Requirement

The ponds are used for growing the tilapia, they hold and exchange water,
receive fertilizer or feeds, and allow for holding, receiving, and harvesting of fish.
The hatchery on the other hand is the facility where the tilapia is breed and
raised. Lastly, the stockroom is a place where the feeds, tools and warehouse
equipment are stored.

Tools, Machineries and Equipment Requirements

Unit Cost Total Cost Life Span Annual

Item Quantity (Php) (Php) (Years) Depreciation
Water
Pump
1 5,000 5,000 5 1,000

Air Pump 1 250 250 3 83.33

Mesh Wire 120m 125 10,000 8 1,250
Lift Net 2 750 1,500 4 375
Plastic

21
 Bucket 2 64 128 2 64
Rope 2 165 330 1 330
Foam
Container 6 456 2,736 5 547.2
TOTAL 6,810 19,944 3,649.53
Table 10: Tools, Equipment, and Machineries Requirement

The table below shows the tools, machineries and equipment that are
going to be used in starting tilapia farming. Water pump is used in the ponds to
have stable running water for oxygen. Air pump is for the hatchery in order for
fingerlings to survive. Mesh wire is for the fence to keep other animals from
entering the farm and for security. These are some of the machineries needed in
our tilapia farming.

22
 Rope

Lift Net Mesh Wire

Plastic Bucket

Air pump Wat

Figure 14: Tools, Equipment, and Machineries

Direct Material

Item Quantity Unit Cost Total Cost

(Php) (Php)
Tilapia Fingerlings
3,000 1.25 3,750
Feeds (Floater
Pellet) 6 sack 1,500 9,000
Fertilizer 1 pack 250 250
TOTAL ₱13,000
Table 11: Direct Material

23
 Tilapia Fingerlings Feeds (Floater Pellets)

Fertilizer

Figure 15: Direct Material

Direct Labor

Position Number Daily Rate No. of Working Monthly

(Php) Days Salary
Full-time 121.875 (3hrs
Caretaker 2 work) 90 ₱21,937,50
Part-time
Harvester 4 325 1 ₱1,300.00
TOTAL ͢₱ 23,237.50

Table 12: Direct Labor

Overhead Cost

Item Monthly Total Months Total Cost

Consumption Consumption
Electricity 400 3 ₱1,200

24
 Transportation ₱1,500
Total ₱2,700
Table 13: Overhead Cost

Administrative Expense

Item Quantity Unit Cost Total Cost

Office Supplies
Calculator 1 250 ₱250
Pen 1 box 60 ₱60
Bond paper 1 ream 180 ₱180
Chair 2 230 ₱460
Table 1 349 ₱349
Plastic Bag 5 50 ₱250
Promotional Cost ₱460
TOTAL ₱ 2,009
Table 14: Administrative Expense

Source of Prices

 Construction and hardware stores

 Aquatic feeds store
 Online Shops

Waste Disposal Management

Pond culture systems are static and have no special means of water
treatment. The pond system relies mainly on internal processes, where solid
wastes settle at the bottom of the pond and accumulate over time (Yeo et al.,
2004). The microbes in the system act on the settled waste and convert it to less
toxic material. However, if the settled waste has accumulated over time, any
natural activities, such as erosion, can cause mixing of the highly nutritious pond
bottom and may lead to algal blooms. The only way of removing solid waste from

25
the pond culture is by desilting, which is done after two or more fish culture
rounds.

Total Project Cost

Cost
Fixed Asset ₱96,944.00
Direct Material ₱13,000.00
Direct Labor ₱23.237.50
Overhead Cost ₱2,700.00
TOTAL ₱135,881,50
Table 15: Total Project Cost

MANAGEMENT STUDY

Vision

To include our high nutritional tilapia fish in consumer’s diet in the

community.

Mission

To provide nutritional high quality tilapia fish thus meeting consumer’s

health needs.

Goals

 To expand our production

 Develop a new marketing strategy
 To have sustainable tilapia product

26
Type of Business Organization

The type of business ownership will be a partnership; in which partners

pool money, skills, and other resources, and share profit and loss in accordance
with the terms of the partnership agreement. In the absence of such agreement,
a partnership is assumed to exit where the participants in an enterprise agree to
share the associated risks and rewards proportionately. Complementary skills
and addition contacts of each pattern can lead to the achievement of greater
financial results together than would be possible apart. Mutual support and
motivation are needed for the business to last longer.

Organizational Structure

Streamline Tilapia Aquafarm will be made possible by the investment of

the following people.

27
 Owners
Elie Rose Capiones Marisol Tudio
Enrix Gabronino Nardito Baldo
Kobe Aberilla Jeremias Dekit III
Rhino Abedejos Ericson Abrantes
Janswaren Bañez Leslie Cavite
Renielle Companion Manuel Senita

Manager

2 Caretakers 4 Harvesters

Figure 16: Organizational Structure

Shown in figure 16 is the organizational structure of Streamline Tilapia

Aquafarm, the top management are the owners or the investors and at the same
time acts as the manager in shift. The works inside the farm are divided to the
owners in order to save money for manpower. Under are the employees who are
suitable for this type of industry having two (2) full-time caretaker and four (4)
part-time harvesters.

Staffing Requirements

Position No. Qualification Functions

Full-time  Have an  Feeding and grading fish,
Caretaker experience

28
 2 working in a fish and monitoring their growth
farm  Assisting with farm layout
 Fit enough to do and constructing nets
physical work  Checking and looking after
equipment and fish
housing
 Operating pumps and other
equipment
 Testing and checking on
water quality
 Removing dead and dying
fish
 Restocking ponds with
juvenile fish
Part-time  Physically fit  Harvesting fish
Harvester 4  Sorting Fish
 Packing for transportation
Table 16: Staffing Requirements

Salary/wages and Compensation

The full-time workers which are the caretakers and the part-time workers
like the harvesters are the only persons who will be compensated (refer to the
table 14 Labor Cost for their wages). Those working owners like the manager will
receive their compensation through their partnership drawings.

Procedure in Recruitment, Selection and Hiring Process

29
 Job Receive Perform a
Announcement Applicant Background
Check

Onboard Interview
New Hire Candidates

Figure 17: Hiring Process

The hiring process is just simple but to make sure that the employees are
effective, they will have a proper training and seminar to have additional
knowledge about the farm.

Legal Requirements

Register the business to the SEC.

Partnerships must be registered with the Securities and Exchange

Commission (SEC).

Obtain a business permit.

Head to the local government unit of the place you intend to operate your
business in. Secure a business or mayor’s permit.

Register with the Bureau of Internal Revenue (BIR).

30
 After obtaining the necessary documents and permits, register the
business with the Bureau of Internal Revenue (BIR).

Register with the SSS, PhilHealth, and Pag-IBIG Fund

The hired employees will be register them with the necessary government
programs.

Additional requirement

For businesses that sell food products, register with the Bureau of Food
and Drugs (BFAD).

Organizational Policies

Avoid absenteeism

Make sure to secure the farm

Observe safety and cleanliness in the farm

Be reliable and responsible

Employee Benefits

Social Security System (SSS)

Is a social insurance program that collects the monthly contribution of

employees, along with the share of their employer. The SSS gives employees
health and retirement benefits from their monthly contributions, along with a
variety of small loans. An SSS membership is mandatory for all employees who
are 60 years old and below.

Philippine Health Insurance Corporation (PhilHealth)

31
 Is another government agency that requires monthly contributions from
the employee and the employers.

Home Development Mutual Fund (Pag-IBIG Fund)

It provides a variety of housing loans to employees. Monthly contributions

are deducted from the salary of the employee.

Benefits Monthly Quarterly No. of Total Cost

Employees
SSS 88.92 266.76 2 533.52
PhilHealth 191.97 575.91 2 1,151.82
Pag-IBIG 219.39 658.17 2 1,316.34
TOTAL 3,001.68

Code of Ethics

Confidentiality about the company, activities, and projects.

The use of communication devices or social media during work hours.

Intoxication on the job.

32
 Project Schedule

2022 2023
Activities Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan
1.Conducting of
Feasibility Study
2.Accumulate funds
3.Process License
for Operation
4.Preparation of the
building of plant
5.Acquisition of
machineries
6.Hiring of Employees
7.Purchase raw
materials
8.Start of the
operation
Table 17: Gantt Chart

33
 FINANCIAL STUDY

Major Assumptions

1. Sales will increase 10% quarterly.

2. Cost of product is 13.54% of the sales every quarter.
3. Administrative expenses will increase 5% annually.
4. Contingency cost is 3% of the gross income every quarter.
5. Tax is paid based on Net Income.
6. Annual sales will increase by 15%.
7. Annual Partnership Drawings will start at year 2 with ₱300,000.00.

Total Cost of Investment

Cost
Fixed Asset 96,944.00
Direct Material 13,000.00
Direct Labor 23,237.50
Overhead Cost 2,700.00
TOTAL ₱135,881.50

Capitalization

Asset Liabilities 0.00

Cash 70,056.00
Inventory 13,000.00 Owner’s Equity
Fixed Asset 96,944.00 Capital 180,000.00
Total Liabilities
Total Asset 180,000.00 and Owner’s 180,000.00
Equity
Table 18: Streamline Tilapia Aquafarm Capital

34
 Owners Invested Amount Share
Elie Rose Capiones 16,363.64 8.34
Marisol Tudio 16,363.64 8.34
Manuel Senita 16,363.64 8.34
Kobe Aberilla 16,363.64 8.34
Leslie Cavite 16,363.64 8.34
Enrix Gabronino 16,363.64 8.34
Jeremias Dekit III 16,363.64 8.34
Janswaren Bañez 16,363.64 8.34
Erikson Abrantes 16,363.64 8.34
Rhino Abedejos 16,363.64 8.34
Renielle Companion 16,363.64 8.34
Nardito Baldo The land of the farm 8.34
Total 180,000.00 100%
Table 19: Sharing of Profit and Loss

Projected Income Statement

Streamline Tilapia Aquafarm
For the year 2023
Particulars Assumptions Quarter 1 Quarter 2 Quarter 3 Quarter 4
Sales will
Sales increase 10% 96,000.00 201,600.00 317,760.00 445,536.00
Less Cost of
Product Sold 13.54% 13,000.00 27,296.64 43,024.70 60,325.57
Gross Income 83,000.00 174,303.36 274,735.30 385,210.43
Less Expenses
Administrative
Expenses 2,009.00 2,009.00 2,009.00 2,009.00
Salaries and Wages 23,237.50 46,475.00 69,712.50 92.950.00
Overheads 2,700.00 5,400.00 8,100.00 10,800.00
Employee Benefits 3,001.68 6,003.36 9,005.04 12,006.72
Business License 15,755.00 15,755.00 15,755.00 15,755.00
Depreciation 2,566.55 5,133.10 7,699.65 10,266.20
Contingency 3% 2,490.00 5,229.10 8,242.06 11,556.31
Total Expenses 51,759.73 86,004.56 120,523.25 155,343.23
Net Income Before
Tax 31,240.27 88,298.80 154,212.05 229,867.19
Tax Rate 0.00
Net Income After
Tax 31,240.27 88,298.80 154,212.05 229,867.19
Table 20: Projected Quarterly Income Statement

35
 Statement of Cash Flow
Streamline Tilapia Aquafarm
For the year 2023
Cash Flows Quarter 1 Quarter 2 Quarter 3 Quarter 4
Equity 180,000.00 180,000.00 180,000.00 180,000.00
Sales 96,000.00 201,600.00 317,760.00 445,536.00
Total Cash Flows 276,000.00 381,600.00 497,760.00 625,536.00
Cash Out Flow
Fixed Asset 96,944.00 96,944.00 96,944.00 96,944.00
Cost of Product 13,000.00 27,296.64 43,024.70 60,325.57
Administrative
Expense 2,009.00 2,009.00 2,009.00 2,009.00
Salaries and Wages 23.237.50 46,475.00 69,712.50 92,950.00
Overheads 2,700.00 5,400.00 8,100.00 10,800.00
Employee Benefits 3,001.68 6,003.36 9,005.04 12,006.72
Business License 15,755.00 15,755.00 15,755.00 15,755.00
Contingency 2,490.00 5,229.10 8,242.06 11,556.31
Tax 0.00
Total Cash Out Flows 159,137.18 205.112.10 252,792.30 302,346.60
Net Cash Flow 116,862.82 176,487.90 244,967.70 323,189.40
Projected Balance Sheet
Streamline Tilapia Aquafarm
For the year 2023
Particular Quarter 1 Quarter 2 Quarter 3 Quarter 4
Asset
Cash 116,862.82 176,487.90 244,967.70 323,189.40
Fixed Asset 96,944.00 96,944.00 96,944.00 96,944.00
Less: Accumulated
Depreciation 2,566.55 5,133.10 7,699.65 10,266.20
Total Asset 211,240.27 268,298.80 334,212.05 409,867.20
Liabilities: 0.00 0.00 0.00 0.00
Owner's Equity
Capital 180,000.00 180,000.00 180,000.00 180,000.00
Add: Net Income 31,240.27 88,298.80 154,212.05 229,867.19
Owner's Equity Total 211,240.27 268,298.80 334,212.05 409,867.20
Total Liabilities
Owner's Equity 211,240.27 268,298.80 334,212.05 409,867.20
Check 0.00 0.00 0.00 0.00
Table 21: Projected Quarterly Cash Flow

Table 22: Projected Quarterly Balance Sheet

Income Statements
Streamline Tilapia Aquafarm

36
 Year 2023-2027
Particular Year 1 Year 2 Year 3 Year 4 Year 5
Sales 445,536.00 512,366.40 589,221.36 677,604.56 779,245.24
Less: Cost of Product 60,325.57 69,374.41 76,311.85 83,943.04 92,337.34
Gross Income 385,210.43 442,991.99 512,909.51 593,661.52 686,907.90
Less: Expenses
Administrative Expenses 2,009.00 2,069.27 2,131.35 2,195.29 2,261.15
Salaries and Wages 92.950.00 97,597.50 102,477.38 107,601.25 112,981.31
Overheads 10,800.00 10,800.00 10,800.00 10,800.00 10,800.00
Employee Benefits 12,006.72 12,006.72 12,006.72 12,006.72 12,006.72
Business License 15,755.00 3,200.00 3,200.00 3,200.00 3,200.00
Depreciation 10,266.20 10,266.20 10,266.20 10,266.20 10,266.20
Contingency 11,556.31 12,134.13 12,740.84 13,377.88 14,046.77
Total Expenses 155,343.23 148,073.82 153,622.49 159,447.34 165,562.15
Net Income Before Tax 229,867.20 294,918.17 359,287.02 434,214.18 521,345.75
Tax 0.00 10,876.98 23,805.35 41,060.14 62,918.26
Net Income After Tax 229,867.20 284,041.19 335,481.67 393,154.04 458,427.49
Statement of Cash Flow
Streamline Tilapia Aquafarm
Year 2023-2027
Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5
317,496.7
Cash Beginning 0.00 323,189.40 9 363,244.66 466,664.90
180,000.0
Equity 0
445,536.0 589,221.3
Sales 0 512,366.40 6 677,604.56 779,245.24
625,536.0 906,718.1
Total Cash Flows 0 835,555.80 5 1,040,849.22 1,245,910.14
Cash Out Flow
Fixed Asset 96,944
Cost of Product 60,325.57 69,374.41 76,311.85 83,943.04 92,337.34
Administrative Expense 2,009.00 2,069.27 2,131.35 2,195.29 2,261.15
102,477.3
Salaries and Wages 92,950.00 97,597.50 8 107,601.25 112,981.31
Overheads 10,800.00 10,800.00 10,800.00 10,800.00 10,800.00
Employee Benefits 12,006.72 12,006.72 12,006.72 12,006.72 12,006.72
Business License 15,755.00 3,200.00 3,200.00 3,200.00 3,200.00
Contingency 11,556.31 12,134.13 12,740.84 13,377.88 14,046.77
Tax 0.00 10,876.98 23,805.35 41,060.14 62,918.26
300,000.0
Partnership Drawings 0.00 300,000.00 0 300,000.00 300,000.00
302,346.6 543,473.4
Total Cash Out Flows 0 518,059.01 9 574,184.32 610,551.55
Cash Ending 323,189.4 317,496.79 363,244.6 466,664.90 635,358.59

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 0 6
Table 23: Yearly Income Statements Projection

Table 24: Yearly Cash Flows Projection

Balance Sheet
Streamline Tilapia Aquafarm
Year 2023-2027
Particular Year 1 Year 2 Year 3 Year 4 Year 5

Asset
466,664.9
Cash 323,189.40 317,496.79 363,244.66 0 635,358.59
Fixed Asset 96,944.00 96,944.00 96,944.00 96,944.00 96,944.00
Less: Accumulated
Depreciation 10,266.20 20,532.40 30,798.60 41,064.80 51,331.00
522,544.1
Total Asset 409,867.20 393,908.39 429,390.06 0 680,971.59
Liabilities 0.00 0.00 0.00 0.00 0.00
Owner's Equity
429,390.0
Owner's Equity Beginning 180,000.00 409,867.20 393,908.39 6 522,544.10
393,154.0
Add: Net Income 229,867.20 284,041.19 335,481.67 4 458,427.49
Less: Annual Partnership
300,000.0
Drawing 0.00 300,000.00 300,000.00 0 300,000.00
522,544.1
Owner's Equity Ending 409,867.20 393,908.39 429,390.06 0 680,971.59
Total Liabilities and
522,544.1
Owner's Equity 409,867.20 393,908.39 429,390.06 0 680,971.59

Check 0.00 0.00 0.00 0.00 0.00

Table 25: Yearly Balance Sheet Projection

38
Return of Investment

Net Income
ROI = x 100
Investment

239,073.92
= x 100
180,000.00

=1.3281844 x100

= 132.82%

Share per Investor = 16,363.64 x 132.82%

= ₱21,734.19

Conclusion

Referring to table 20, Streamline Tilapia Aquafarm has a projected income

of ₱239,073.92 in the last quarter of the year 2023. In the first year of the
production, there is still no tax that is payable. The sales every quarter is
assumed to increase by 10% and will increase by 15% annually. The cost of
product is 13.54% of the total sales, by which the sales increases so does the
cost of product. Contingency cost is 3% multiplied by the gross income for
unforeseen expenses for every quarter. And administrative expenses will
increase annually.

39
 Annual partnership drawings will start at the second year of the operation
that was agreed to be ₱300,000.00. (Shown in table 24). This study concludes
that this business if profitable if the plan is thoroughly followed. With the
investors’ share of 8.34% and the partnership drawings that will annually start at
the second year agreed upon the amount of ₱300,000.00. They will get a shore
of profit for the amount of ₱25,000.00 each.

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 SOCIO-ECONOMIC STUDY

Introduction

The chapter includes the socio-economic benefits if the proposed project.

The proposed project aims to help our localities and farmers of the country and to
give healthy lifestyle to the people. Nowadays, it is important that small
entrepreneurs should realize the worth innovating and starting a business that
would largely contribute to the socio-economic development of the country.

Government

Streamline Tilapia Aquafarm is expected to give a great contribution to the

government in the form of taxes. The tax payment from the business would help
the localities as well as the economy in its future projects especially for people
that will benefit.

Society

This business (Streamline Tilapia Aquafarm) can give nutritious and

healthy food with a high quality animal protein at low cost for the consumers.
Creating new economic niches by generating employment in areas where there
are few alternate job choices, by providing local sources of high quality food.

Environment

The business is environmentally friendly. No anti-biotics are required to

grow tilapia because it is hardy and resistant to disease. Farmed tilapia is
sustainable alternative to fragile fish stocks and they are adaptable to many
environments. Fish has a lower carbon footprint than beef and pork. That is why
tilapia is an environmentally friendly.

41