ketutu
TRANSCRIPT
INTRODUCTION
KETUTU TRADING SDN. BHD is an aquaculture business located in the town of
Bandar Baharu district, Pulau Pinang. It is based on the believe that the Malay people can
be successful in the business field like the foreigner and the simplest example is the
Chinese people that is said to monopoly the economic growth in Malaysia. By supporting
the Malaysia’s government to realize the 2020 vision of being a highly developed nation
in all field including the aquaculture field.
In the year 2020, the fish price will increase and the demand for fish all over the world
will increase. To ensure the fish demand in Asian market especially in Malaysia can be
fulfill, we have developed a plan to open a fish farm in the district of Bandar Baharu to
overcome this problem. From the analysis that had been done by the World fish Center
and the International Food Policy Research, the shortage of fish will be catastrophic for
over 1 million people around the world.
With the support of government agency like FAMA, we had gain knowledge on how to
open a fish farm and how to ensure that the fish farm is successful and reach our goal.
The fish farm that we plan to run will bread fresh water fish like the ‘keli’, ‘toman’,
‘ketutu’, ‘haruan’ and ‘patin’ that has high market interest in and out of the country like
China, Singapore and Taiwan. We had done a few researches on the fishes to ensure
maximum profit.
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Fish farm in Pulau Pinang in year 2005
Fish quantity depending on district of Pulau Pinang in year 2005
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EXECUTIVE SUMMARY
Our company is involved in the aquaculture field which is breeding of fresh water fish,
where as the protein base food supplier or manufacturers are still low. We establish this
company because the competition in this country is not so fierce and the product is food
based which will always have a market. Other than that, the encouragement from the
government to the Malay people to get active in the economic sector especially in the
aquaculture field. The government support includes capital loan, and advice from related
agency like FAMA.
The name of the company, KETUTU TRADING SDN. BHD is taken from a name of a
fish that we breed. The company consists of four CEO in a partnership. All of the CEO
can make decision but by vote. Our company breeds and sells a variety of fish like the
fresh water catfish, Goby, River Catfish. All of these fishes that we breed has high market
price in Malaysia and oversea. Among the country that will be our target market are
Taiwan, China and Singapore. The reasons why we choose these country is because the
majority of it people eat fish that we will breed everyday.
The capital is collected from the loan from the bank and money collected from the entire
partner. We choose Bank Pertanian Malaysia because it provides loan for entrepreneurs
that want to start business in the agriculture and aquaculture field. The interest is low and
the terms and regulation are not of a burden. The entire partners have to give at least
RM40, 000 to RM50, 000 each as the capital. The shyer is determined by the capital
given by each partner.
The technique that we use is to take the egg from the male fish and the it is injected into
the female fish. This method is chosen because the percentage for the egg to be
successfully fertilized is very high. This will ensure the fish will never be out of stock.
This method is used for all the fish species. The fish are feed with standard fish food and
will be given vitamin once a week.
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By the helped of FAMA agency, we will be guided along our work to ensure the product
that we produce will have high quality and can be marketable. The agency also helps us
in determining the kind of fish that we will breed and the market price for it. Beside from
our own researches on the market out side of this country, we will be helped by another
company that runs similar business in Kedah.
FAMA and Tali Air unlimited will also help us in the setup of our company like the kind
of food for the fish, the natural environment of each fish and how long does it take to
breed the fish. After a discussion between all the shyer member and comparing the data
we have, the breeding center will have about 30 fish pond and 6 pond for each 5 species
of fish. The pond will be setup according to the natural habitat of the fish.
The company will be managed by the shyer holder. Around 8 worker is needed to
manage all the pond and maintaining the quality of the fish. The entire worker will be
given a basic of RM 700 a month depending on the post. They will also be a hostel
complete with the gas, water and electricity.
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PURPOSE OF A BUSINESS PLAN
LOAN APPLICATION
-To get enough capital to start our business other than from own saving, we will apply for
a loan of RM 50,000. We choose Bank Pertanian Malaysia because we plan to apply for
long term payment plan.
NEW PROJECT PLAN
-We plan to open a new branch after 3 year at a new area like Pahang because the area
has not been explored yet. By doing so, the company’s profit will increase an estimated
20 percent.
GUIDENCE FOR PROJECT MANAGEMENT
-For managing the company, we will be helped by a government agency called FAMA.
They will help us by supplying us with the information needed to manage the farm such
as the fish health, environment and market price.
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BUSINESS BACKGROUND
Company name : KETUTU TRADING SDN .BHD
Address. : 1080, Sungai Kerian, 11700 Bandar Baru,
Kedah
Registered no : A 326534
Business status : Partnership
Registered date : 1 July 2007
Tel no/Fax : 04-6854744
: 04-6854743
Email : KETUTU@ STREAMYX. COM
Bank information : Bank Pertanian Malaysia
Vision
To expand business to other states of Malaysia and other country.
To have customers that came from different type of races.
Mission
To give the best services to the customers
To have income up to RM 50,000 per month.
To be able to perform in excellence to both parties, either to suppliers or
customers.
To ensure that the qualities of the appliances sold are at the same par with the
prices provides.
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LOGO
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PARTNERS BACKGROUND
Partner’s 1
Name : Mohd Azri hafie bin Mohd Azaha,Bh
Ic no : 690314-06-5173
D.O.B : 14.03.1969
Age/gender : Male
Tel no : 013 9701468
Academic qualification : B.H Management
Courses Attended : business study in UUM
Skills : can communicate with people
Working Experience : worked as assistance manager at Jaya Holding for 5 years,
work at FELDA agency as the manager for 7 years.
Partner’s 2
Name : Shahhir bin Ya’acob
Ic no : 830326-08-5841
D.O.B : 26/03/83
Age/gender : male
Tel no : 013-4902782
Academic qualification : diploma in aquaculture at UM
Courses Attended : fish breading at UKM
Skills : can communicate in English language
Working Experience : worked for 2 years at FAMA Agency
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Partner’s 3
Name : Ahmad Saifuldin bin Abdul Ghani
Ic no : 730529-08-6465
D.O.B :29.05.1973
Age/gender : Male
Tel no : 017-5600294
Academic qualification : B.B.A Bussiness Study
Courses Attended : Management
Skills : Line leader
Working Experience : Worked for JetSet Trading 4 years
Partner’s 4
Name : Shamsul Rizal Bin Aminudin
Ic no : 851031-06-5719
D.O.B : 31/10/1979
Age/gender : 28 / male
Tel no : 017-4517787
Academic qualification : Bachelor in Business Adminitration
Courses Attended : Business administration
Skills : accounting
Working Experience : works 3 years at MARDI
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ADMINISTRATION PLAN
Organization chart & structure
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Marketing managerShahir
Production manager
Ahmad Saifuldin
AdministrationManager
Shamsul Rizal
PresidentMohd Azri Hafie
Quality ControlYusoff
SalesZulhisham
FinanceKamarul
Promotion advertising
Latipah
PurchasingAsyraf
Shipping/ receivingSiti Sarah
Function & responsibility
1. President:
head of a company
Making sure the company is stabile
Have the power to execute thing in a company
2. Production manager:
Making sure the production went well
Control the raw material
a) Quality Control:
Monitor the quality of the product
3. Marketing Manager:
Find the market
Find a way to increase market
a) Sales:
Making sure the sale increase
Increase the market
1. Promotion/advertising
Promoting the product
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4. Administration manager:
Controlling he money flow in the company
Controlling the admistration of the company
Making sure the company runs smoothly
1. Finance
Control company acount
Control asset
Control company liability
2. shipping/receiving
control all the thing about ligistics
3. Purchasing
Control all the thing about purchasing and selling goods to the customer
Management strategy
1. To achieve company’s product in short term and long term.
2. Make sure our customers are satisfied with company’s product.
3. Increasing quality product follow the customer needed.
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MARKETING PLAN
The marketing strategy was designed on the basis of personal interviews
conducted with customers and fish monger in Malaysia and most of the Asian
country which represents our target market. These interviews indicated that the
individual preferred buy local like the fresh water catfish, Goby, River Catfish
and other types of fishes that are easier to breed in Malaysia but not in other
country. The majority of these individuals commented that they prefer Malaysia’s
fishes because they can be found all around the year and it has more nutrition.
We planned to open our headquarter in Selayang, Selangor because it is near the
international airport and near port Klang. This way we can deliver the goods
faster and can provide option to the customer on the goods transportation. The
main reason is because most of the fish monger is located there and we can sell
the fish to the growing hotel industry around the headquarter as a potential
customer.
MARKETING GOAL
To meet the growing needs of a target market defined o the basis of geography,
demographics, lifestyle, and buyer attention.
To evaluate the competitive environment and continue to establish a differential
advantages.
To establish an effective and profitable marketing mix of place, price and
promotion.
MARKETING OBJECTIVE
To establish a customer base of 10 percent of the defined target market in the first
year.
To generate RM 100 000 in sales for the first year.
To increase sales by 10 percent annually for the first three years.
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To expand at least two new locations by the end of the first three years.
Workers managing one of fish pond
Adult fish pond
feeding time
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SIZE OF MARKET
According to our researches, our target markets are at the capital of China, Malaysia,
Taiwan and Singapore where the density of people are about 1 million and above.
From this 1 million of these people, about 80 percent of these individual match our
target market.
On the basis of the above information, it is estimated that the potential market is
between 500,000 and 800,000 people. Our objective is to reach 10 percent of the
primary market and 5 percent of the secondary market.
No of people : 10,000 people
Cost estimated : RM 20/KG
Market size : 10,000 × 20
: RM 200,000.
MARKET SHARE
Competitor : 10
Market size : 200,000 ÷ 10
: 20,000
Market share : 20,000/200,000 × 100%
: 10 percent
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FORCASE CHART
PRICE
Pricing strategy is based on the type and weight of the fish. This strategy was
determined from an evaluation of Tali Air Unlimited, a similar business located in
Ulu Yam, Kedah, as well as marketing research study of the market. The price will be
based on the amount of fish and types as well as the transportation method. Air
transport will be priced higher than the water transport because the time gap is
smaller than using a ship.
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PRODUCT VS CUSTOMER
1. To fulfill the need of the customer, we have planned to breed a variety of
fishes following the market trend.
2. We also provide catalog of types of fish that is breed in our pond.
3. Provide fresh fish and also processed fish according to customer needs.
STRENGTH
We provide a variety of fishes for the customer to choose and our variety of fish are
different from others company doing the same business. Other than that, we provide fresh
fishes to the customers because of our strategic delivery plan. We can supply needed fish
stock throughout the year because of the breeding method that we use ensure the fish will
breed throughout the year.
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Variety of fish as our product
WEAKNESS
Because our product is aquaculture base, we cannot control the natural disaster like flood
and diseases but we can take preventive measure like building a dam and intensive care
of the product by giving the fish vitamins and antibiotics. The market is also a weakness
to us because it is not fixed. The market price is determined by the customer it self.
OPPORTUNITIES
Because the aquaculture is still new I this country, there is still not much competitor in
the market. Even throe there is a few fierce competitor, they are still not strong in the
market. If our company develops a strategic promotional plan like maintaining a good
relationship with the customers and some improvement along the way, we will become a
strong competitor in this new field. We also have support from the government that
realizes the profitable field of aquaculture to the country and individual.
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THREAT
The main threat in this business is natural disaster because the insurance company does
not cover for natural disaster. The politic also concern us because we export our good to
other country. If the connection between the two countries is not good, there is a chance
that our product will not be marketable in that country.
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RESEARCH AND DEVELOPMENT (R&D)
We have collaborated with the FAMA agency to find the best breeding method and have
made the decision to use bromen. By using this technique, the productivity of the fish
will increase to the maximum limit and disease like fungus infection will be reduced. We
also did researches on the breading
Marketing strategy
Advertising will include newspaper ads, radios sports, an internet Web page, and direct-
mail brochures. All four will precede start-up. A series of ‘teaser’ newspaper ads will be
run prior to start-up, announcing a revolution in fish breading. A start-up, the new paper
ads will have evolved into actually introducing the product, and radio spots will begin as
well. A heavy advertising schedule will be used during the first four weeks of business.
After start-up, a direct mailing will detail the descriptions of the quantity and types of
fish.
Newspaper ads aimed at the target markets will be placed in entertainment and business
section. Radio sport will be geared to station most appealing to the target market .since
the company is new, it may be possible to do interviews with newspaper and obtain free
publicity.
Sales promotion will offer large discounts to first-time customer .these promotion will be
continuing for first six months of operation. The fishes will be priced according to the
types and weight and also how large the quantity is.
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MARKETING BUDGET
All the decision will be made by meeting with all the CEO’s. The budget will include the
budget for the promotion expenses, packaging method and delivery and also the
inventory budget.
MARKETING STRATEGY
The marketing strategy is taken from Tali Air Unlimited, a company involved in the fish
breeding business for 3 years. The strategy was to produce high quality fish in large
quantity but the varieties of fish are limited. We take the same principle and implement it
according to our need. Instead of keeping the same variety of fish, we change the type of
fish and add the variety of fish to avoid competition. We also try to introduce new species
of fish to the market.
The fish that inspire the company name
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OPERATION PLAN
Our fish breeding center is located Kedah. It is located near the Kerian River. This is
because we can use the natural resource there like the river water. By using the river
water, we plan to create a natural environment for the breeding ground. From the
information given by the FAMA, the fishes will reproduce and grow faster if it is in the
natural habitat. Because all the fishes are fresh water fish, this is an advantage for us to
choose the location. By doing so, the productivity of the product will be higher.
MANUFACTURING OPERATION
1. The first step is to meet with the supplier of the fish food.
2. then, the new fish will be release into the breeding place according to its species
3. The fish will be monitor for the first 2 weeks.
4. half of the fish will be transfer to the adult pond for breeding
5. another half will be ready to be process and sell according to the customer needs
6. The finish product will be transfer to the customer place.
7. When the fish in the breeding pond has laid their eggs, the fish will be transfer to
be process and sell.
8. After a week, the egg will hatch.
9. The newly hatch fish will be monitor constantly for a few weeks and then they
will be transfer to the adult pond.
10. The cycle will be repeated until the fish is process and delivered to the customers.
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RAW MATERIALS
1. fish food
2. fish breed
EQUIPMENT
1. cage fish’s
2. water pump
3. cutter fish
4. office equipment (computer, pens paper, file and other equipment)
5. scales weight
6. net fish’s
LABOR SKILLS
1. SUPERVISOR
2. CO-WORKER
3. QUALITY CONTROL
SPACE
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FINANCIAL PLAN
KETUTU TRADING SDN BHD expects to raise RM200, 000 of its own capital, and to
borrow RM50, 000 guaranteed by the BANK PERTANIAN as a three-year loan. This
provides the bulk of the current financing required.
BREAK-EVEN ANALYSIS
KETUTU TRADING SDN BHD Break-even Analysis is based on the average of the
first-year figures for total sales by units, and by operating expenses. These are presented
as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make
for a more accurate estimate of real risk. KETUTU TRADING SDN BHD should break
even by the fourth month of its operation as it steadily increases its sales.
BREAK-EVEN ANALYSIS
Break-even Analysis
Monthly Units Break-even RM17,255
Monthly Revenue Break-even RM38,336
Assumptions:
Average Per-Unit Revenue RM2.22
Average Per-Unit Variable Cost RM0.35
Estimated Monthly Fixed Cost RM32,343
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PROJECTED PORFIS AND LOSS
As the Profit and Loss table shows, KETUTU TRADING SDN BHD expects to continue
its steady growth in profitability over the next three years of operations.
Profit and Loss
Pro Forma Profit and Loss
2008 2009 2010
Sales $455,000 $550,000 $680,500
Direct Costs of
Goods$68,950 $82,555 $98,200
Other $0 $0 $0
------------ ------------ ------------
Cost of Goods Sold $68,950 $82,555 $98,200
Gross Margin $386,050 $467,445 $582,300
Gross Margin % 84.85% 85% 85.57%
Expenses
Payroll $151,200 $220,000 $257,032
Sales and
Marketing and
Other Expenses
$25,000 $35,200 $40,460
Depreciation $60,000 $69,000 $70000
Utilities $2,000 $2200 $2,323
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Payroll Taxes $40,000 $41,076 $42,000
Other $0 $0 $0
------------ ------------ ------------
Total Operating
Expenses$278,200 $367,476 $411815
Profit Before
Interest and Taxes$107,850 $99,969 $170,485
EBITDA $86,130 $127,083 $149,175
Interest Expense $10,000 $9,500 $8,250
Taxes Incurred $3,111 $12,146 $15,650
Net Profit $13,019 $36,437 $45,925
Net Profit/Sales 2.65% 6.43% 7.01%
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PROJECTED CASH FLOW
The cash flow projection shows that provisions for ongoing expenses are adequate to
meet KETUTU TRADING SDN BHD needs as the business generates cash flow
sufficient to support operations.
CASH
Cash Flow
Pro Forma Cash Flow
2008 2009 2010
Cash Received
Cash from
Operations
Cash Sales $455,000 $550,000 $680,500
Subtotal Cash from
Operations$455,000 $550,000 $680,500
Additional Cash
Received
Sales Tax, VAT,
HST/GST
Received
$0 $0 $0
New Current
Borrowing$0 $0 $0
New Other
Liabilities (interest-
$0 $0 $0
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free)
New Long-term
Liabilities$0 $0 $0
Sales of Other
Current Assets$0 $0 $0
Sales of Long-term
Assets$0 $0 $0
New Investment
Received$0 $0 $0
Subtotal Cash
Received$455,000 $550,000 $680,500
Expenditures 2008 2009 2010
Expenditures from
Operations
Cash Spending $260,800 $273,840 $287,532
Bill Payments $143,607 $186,964 $237,731
Subtotal Spent on
Operations$404,407 $460,804 $525,263
Additional Cash
Spent
Sales Tax, VAT,
HST/GST Paid Out$0 $0 $0
Principal
Repayment of
Current Borrowing
$0 $0 $0
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Other Liabilities
Principal
Repayment
$0 $0 $0
Long-term
Liabilities Principal
Repayment
$0 $10,000 $15,000
Purchase Other
Current Assets$0 $0 $0
Purchase Long-
term Assets$0 $20,000 $20,000
Dividends $0 $0 $0
Subtotal Cash
Spent$404,407 $490,804 $560,263
Net Cash Flow $86,593 $76,301 $94,744
Cash Balance $156,593 $232,894 $327,637
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BALANCE SHEET
The following is a projected Balance Sheet for KETUTU TRADING SDN BHD.
Balance Sheet
Pro Forma Balance Sheet
2008 2009 2010
Assets
Current Assets
Cash $156,593 $232,894 $327,637
Other Current
Assets$12,000 $12,000 $12,000
Total Current
Assets$168,593 $244,894 $339,637
Long-term Assets
Long-term Assets $65,000 $85,000 $105,000
Accumulated
Depreciation$60,000 $129,000 $208,350
Total Long-term
Assets$5,000 ($44,000) ($103,350)
Total Assets $173,593 $200,894 $236,287
Liabilities and
Capital2008 2009 2010
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Current Liabilities
Accounts Payable $14,574 $15,438 $19,907
Current Borrowing $0 $0 $0
Other Current
Liabilities$0 $0 $0
Subtotal Current
Liabilities$14,574 $15,438 $19,907
Long-term
Liabilities$100,000 $90,000 $75,000
Total Liabilities $114,574 $105,438 $94,907
Paid-in Capital $110,000 $110,000 $110,000
Retained Earnings ($64,000) ($50,981) ($14,544)
Earnings $13,019 $36,437 $45,925
Total Capital $59,019 $95,456 $141,381
Total Liabilities and
Capital$173,593 $200,894 $236,287
Net Worth $59,019 $95,456 $141,381
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BUSINESS RATIOS
The following table represents key ratios for the fish breading company. These ratios are
determined by the Standard Industry Classification (SIC) Index code 531, aquaculture
field.
Ratios
Ratio Analysis
2008 2009 2010AQUAQULTUR
Profile
Sales Growth 0.00% 15.50% 15.50% 7.60%
Percent of
Total Assets
Other Current
Assets6.91% 5.97% 5.08% 35.60%
Total Current
Assets97.12% 121.90% 143.74% 43.70%
Long-term
Assets2.88% -21.90% -43.74% 56.30%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current
Liabilities8.40% 7.68% 8.42% 32.70%
Long-term
Liabilities57.61% 44.80% 31.74% 28.50%
Total Liabilities 66.00% 52.48% 40.17% 61.20%
Net Worth 34.00% 47.52% 59.83% 38.80%
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Percent of
Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 84.37% 84.37% 84.37% 60.50%
Selling,
General &
Administrative
Expenses
74.74% 71.43% 71.39% 39.80%
Advertising
Expenses0.49% 1.76% 6.87% 3.20%
Profit Before
Interest and
Taxes
5.32% 10.24% 10.66% 0.70%
Main Ratios
Current 11.57 15.86 17.06 0.98
Quick 11.57 15.86 17.06 0.65
Total Debt to
Total Assets66.00% 52.48% 40.17% 61.20%
Pre-tax Return
on Net Worth27.33% 50.90% 43.55% 1.70%
Pre-tax Return
on Assets9.29% 24.18% 26.06% 4.30%
Additional
Ratios2007 2008 2009
Net Profit
Margin2.65% 6.43% 7.01% n.a
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Return on
Equity22.06% 38.17% 32.48% n.a
Activity Ratios
Accounts
Payable
Turnover
10.79 12.17 12.17 n.a
Payment Days 27 29 27 n.a
Total Asset
Turnover2.83 2.82 2.77 n.a
Debt Ratios
Debt to Net
Worth1.94 1.10 0.67 n.a
Current Liab. to
Liab.0.13 0.15 0.21 n.a
Liquidity Ratios
Net Working
Capital$154,019 $229,456 $319,731 n.a
Interest
Coverage2.61 6.11 8.46 n.a
Additional
Ratios
Assets to Sales 0. 0 0. n.a
Current
Debt/Total
10% 10% 10% n.a
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Assets
Acid Test 11.57 15.86 17.06 n.a
Sales/Net
Worth8.32 5.94 4.63 n.a
Dividend
Payout0.00 0.00 0.00 n.a
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CONCLUSION
For this planned business, we hope to improve in the marketing and financing. If the
planned to be successful, we will further our effort to grow bigger and stronger. We plan
to collaborate with another company either in the same field or in another field. In three
years time, we plan to open at least two more breeding center, one in Malaysia and
another one in a foreign country. We will also try to expand our export capability by
exporting to a new country like Switzerland. To ensure our fish breeding center is manage
successfully we plan to hire more experience worker that has the skilled and knowledge
in the field of aquaculture.
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