Business, Carps Cultivation

Small business in the sphere of production

In a market economy, there is no need to plan production.

Planning is organically integrated into the market mechanism of management and is an integral part of any enterprise, regardless of whether it is large or not, and also on the type of activity.

The market economy requires enterprises to increase production efficiency, overcome mismanagement, intensify entrepreneurship, and initiate initiatives.

Before you start any business, you need to study the market, that is, supply and demand, competition, sales, as well as production technology, etc. In small business, as in the large business, there is a need to compile a business plan that provides for:

1. Types of products
2. Number of products
3. Production costs
4. Pricing
5. Potential consumers of products
6. Financial results
7. Financial support of the project

Consider the possibility of organizing the cultivation of carp by an individual entrepreneur Kalugin IP In with. Sosnovka.

In the territory of this settlement there are ponds for the cultivation of fish, which have not been used for a number of years and are leased. The area of rented ponds is 14 hectares. The fish productivity (growth) from 1 ha is 250 kg, from the whole area - 3,500 kg. The lease term for ponds is 4 months, from May 15 to September 15.

Calculate the cost of growing carp:

1. Salary of attendants

During the period, the cultivation of carp is carried out under the agreement of a fish farmer with 0.5 tariff rates and 2 guards.

The monthly tariff rate is 8000 rubles.

Fund of payment for the whole period 8000 * 2.5 * 4 = 80 000 rub.

Payments to the pension fund - 16,640 rubles.

Total payment with deductions - 96,640 rubles.

1. The cost of renting ponds

The rent for 1 hectare is 1000 rubles per month. The total amount for the whole area for the whole period is 56,000 rubles

1. Cost of planting material

The norm of carp fry on 1 hectare is 50 kg, on 14 hectares - 700 kg.

The price of 1 kg is 150 rubles.

The total amount is 105,000 rubles.

Planting material is purchased in the hatchery.

1. Cost of feed

The need for compound feed per 1 ha per month - 125 kg.

Total demand for mixed fodder 125 * 4 * 14 = 7 000 kg.

The price for 1 kg of mixed fodder is 8 rubles

The total cost of feeds is 56,000 rubles.

Total costs for growing carp 96640 + 56000 + 105000 + 56000 = 313 640

Pricing

Capture of carp - 4200 kg (increase 3500 kg + planting material 700 kg)

The cost of 1 kg is 313640: 4200 = 74.68 rubles.

Prices for pond fish in the sales markets range from 110 to 130 rubles per 1 kg. For profit calculation we take the minimum price for 1 kg - 110 rubles.

Potential buyers

Preliminary contracts were concluded for the sale of live carp to the chain of stores "Stroganovsky" in the amount of 4200 kg at a price of 110 rubles per 1 kg for a total of 462,000 rubles.

Financial results

The amount of sales is 462,000 rubles

The production cost of products is 313,640 rubles

Expenses for the sale of 2 950 rubles

Interest for a loan 23 400 rubles

The tax is 1 265 rubles

The profit is 120 745 rubles

Profitability of 35.4%

To secure the project, a financial investment of 317,855 rubles is required. Of these, 56,000 rubles under the lease can be paid out of funds from carp sales. The tax is also paid after the sale of the products. For production activities, the lack of cash is 260 thousand rubles, for which a loan of 260 thousand rubles is issued. At 18% per annum for 6 months. Interest on the loan will be 23,400 rubles.

From the above calculations it follows that the cultivation and sale of pond fish as an environmentally friendly product is in demand, profitability is 35%.