FISH FARMING BUSINESS PLAN GUIDE
The fish farming business is a very profitable one, yet, it is not very capital-intensive. Fish farming is a subset of the agriculture industry.
This business chiefly focuses on the raising of various species of fish, as well as other kinds of seafood.
Here is a comprehensive business plan for fish farming.
Do you want to start up a catfish farm? The catfish farming business is a very lucrative one, especially if you have the insider knowledge to succeed. In this article, you will get to realize the various steps you must consider before you can start a catfish farm.
There is so much potential in the catfish farming business which you as an entrepreneur could take advantage of.
Catfish also are known as “Siluriformes” has so many species. There are more than 300 hundred catfish species.
Guide: Crawfish Farming Manual
If you are so keen on starting this catfish farming business, then let us proceed straight to the steps you will have to undertake.
This is probably one of the first steps you will have to take in starting your catfish farm. You must first and foremost decide which species of catfish you want to rear. There are various species of catfish, and the catfish species you decide upon will depend on the size of your pond, your target market, and the way you operate your farm.
You cannot go into the catfish farming business and just hope to succeed without having some in-depth knowledge about the catfish farming business beforehand. Before you venture out into that catfish farming business, take your time to go work on a catfish farm and know all that there is to know about the business before starting up on your own.
READ: Koi Fish Farming Guide
If you are not going to be paid working on a catfish farm, you could decide to work for them for free.
If you cannot work in a catfish farm, then you must get yourself someone, preferably a mentor in the catfish farming business to give you all the business insider details. If you do not know anyone who is into the catfish farming business that could give you the needed information, then you must search for one.
It is even much important that you seek this insider information from catfish farmers in faraway places because they will be very much comfortable disseminating trade secrets to you than a catfish farmer in your area who may consider you a potential competitor.
- Determine the Scale you want to Operate
Now is the time you have to decide upon the scale you want to operate. Do you have the resources to startup a large – scale catfish farming business, or a medium – scale or small – scale catfish farming business?
The scale you decide upon the will, however, depend upon the resources you have, how much startup capital you have to start with, how big the land for your catfish pond is.
- Choose Target Market
This is where you will have to decide who you want to sell your catfishes to. It is at this stage that you will have to do a critical market analysis to know the people who truly need catfish. Most people indeed eat fishes, especially Africans, but you just cannot startup your catfish farm without knowing exactly who your target market is.
You must define your target because fish is not a durable product, hence you will incur losses in the long run by keeping grown fishes for too long in your pond.
- Acquire Land
Of course, you must acquire suitable land for your catfish farm. The location of the land you acquire will depend on several factors such as nearness to the target market; nearness to clean, adequate and quality water supply; nearness to good road, etc.
Also, the size of the land will depend upon your goal for the business. If you intend to start a catfish farming business as a side business, you may not require a large size of land. You may only need to have your pond at the back of your house.
- Consult Experts to Build your Pond
This is where the knowledge you have acquired working in a catfish farm will be of immense benefit. You cannot just go ahead and build your catfish pond all by yourself without knowing the standards that are required of a catfish pond.
There are standards that the pond must be built according to. You must seek the assistance of nearby catfish farmers if you do not have the needed knowledge and experience required to build a catfish pond.
- Obtain the Needed Permits and Licenses
Before you can go and obtain the required permits and licenses, first you must go and get a good business name for your catfish business and get it registered with the relevant authorities in your country.
You must make inquiries as to the necessary licenses and permits you will require to operate your catfish farming business in your location. Seek the assistance of other catfish farmers. You could also employ the services of a consultant to help you get all the paper works done. You will have to pay the consultant a small fee for his services anyway.
- Write a Fish Farming Business Plan
You will now have to write a business plan for your catfish farming business. If you cannot write one, you could employ the services of a legal practitioner whom you will have to pay.
The business plan should contain all your expenses and startup capital. It should also contain your business goals and objectives; market analysis and who your competitors are. Several things should be contained in a good business plan, but it must nonetheless contain the essential elements of your catfish farming business.
- Maintain Source of Feed and Water, and Watch out for Diseases
This is very important in the course of running your catfish farming business. Catfish is a freshwater animal, and as such, you cannot afford to grow your catfishes in the water of poor quality. The best water for your catfishes is water that is gotten from untreated sources.
Also, you must make sure you have a pH meter to always check the level of acidity of the water. You must make sure the water is not acidic at any time since acidic water is very bad for your catfishes.
Also, make sure you provide the right feed for your catfishes. The feed must contain vital nutrients.
Lastly, you must watch out for catfish diseases. Whenever you observe any symptoms such as loss of color, bloated body, open sores, frayed fins, skin inflammation, etc you must take proper measures because it could be the sign of bacteria attack.
Also, not just bacterial infections, you should be wary of fungal and parasitic fish infections that might threaten your catfishes.
Do you need a free business plan for fish farming? This free guide can be used as a template when setting up your farm.
SUMMARY
Mission Statement of Business
State clearly in 2-3 sentences what you intend to do in business.
a) Description of your proposed business
1) describe your product or business
2) support with diagrams, illustrations, or pictures (if available)
b) Summary of your proposed marketing plan- design ponds or tanks to a size that all the fish produced
could be marketed in one day.
1) describe the market you’re aiming for- look for value-added, niche markets for catfish or tilapia.
2) outline the way you plan to reach your market – The fish farmers should seek to reach buyers through as
many approaches as possible to provide the best profit, such as direct sales at the farm as well as through
retailers.
c) Summary of your financial estimates
1) state the total sales you aim to reach in each of the first three years
2) state the estimated profit for each of the first three years
3) state the estimated starting capital you’ll need
2.Statement of objectives
a) Statement of the desirability of your product or service
1) describe the advantages your product or service has, its improvements over existing products or services
2) state the long-range objectives and the short-range objectives of your proposed business
3) describe your qualifications to run the business
4) describe the ‘character’ you want for your business, the image you’d like your customers to see, such as hygienic conditions of the highest standard, live fish sales with cleaning and dressing of fish as per customer preference. For example, samples of cooked fish could be given to customers along with recipes.
3.Background of the proposed business
a) A summary of existing conditions in the type of ‘industry’ you’re intending to enter
1) where the product or service is now being used
2) how the product or service is now being used
b) A detailed explanation of your place in the industry
1) describe the projections and trends for the industry
2) describe competition you face
3) state your intended strategy for meeting competition
4) describe the special qualities of your product or service that make it unique
SAMPLE BUSINESS PLAN FOR A FISH POND BUSINESS
4.Marketing strategy
a) A description of your fish marketing strategy
1) design the farm with different sizes of ponds to meet different market demands and be able to sell all fish
harvested from a particular pond.
2) describe the market you plan to reach
3) keep production cost low with the feeding of quality fish feeds by a feed manager who feeds by feeding response
4) underprice the competition and make a profit by tight management and low costs with the lowest Feed
Conversion Ratios.
5) describe in detail how you plan to distribute your product or service (retail shops, door to door, etc.)
6) describe the share of the market you expect to capture
5. Selling tactics
a) An outline of the activities to be used in selling the product or service
1) state the methods you expect to use to promote your product or service (word of mouth, radio,
newspapers, etc.)
2) include a sample brochure or other promotional literature
3) present any data which supports your ability to meet your sales goals (i.e. actual orders, potential
customers, etc.)
4) explain the margins of safety you’ve allowed in your sales forecasts
b) Propose entering different fish markets as in the North and SE, where prices remain high.
6.Plan of operation
a) Description of the proposed organization
1) show an organization chart describing the needed business functions and relationships
2) describe the key positions and identify the persons to fill them
3) list equipment or facilities and space and location required
b) Farm pond operations
1) stagger pond stocking to allow one pond to be harvested per month, to maintain cash flow
2) manage to maintain low feed conversions and best management practices.
3) plan to purchase fingerlings and stock ponds every month to assure regular harvests
4) maintain proper storage of fish feeds without pests and moisture
5) practice proper sanitation program of sterilizing tanks and liming ponds before restocking.
7. Supporting data
a) Information required to support the major points in the business plan
1) a set of drawings of the product(s) to be made or a detailed description of the service to be offered
2) show a list of the equipment you’ll require for your business and estimates of the cost of that equipment
3) List the capital equipment you’ll need and its estimated cost.
4) List a price schedule for your product line or service
5) Include your market survey data (perhaps from your focus group)
6) supply the following financial data:
– projected statement and balance sheet for the first two years by the month
– Income statement for two years
– cash flow projection for two years
8. Conclusions and summary
a) statement of the proposed approach in starting the new business
1) state the total capital you’ll need and the safety factor you’ve used
2) state how much profit you expect and when you expect to show it
3) decide what percentage of ownership you want for yourself and your partners
4) indicate the total capital you’ll need and how it’s to be made up:
– your share of the starting investment
– how much you’ll need from others and when you’ll need the money
– state what share of the business you’ll give to investors or lenders
5) state your planned schedule for starting your business
Download: 15 Practical E-books on Starting a Fish Farm
Taking everything into account, I need to state completely that catfish cultivating is an undiscovered goldmine. If you need a fish farming business plan with a 3-year financial plan to secure funding, contact me at 08032176523.
