Indoor Shrimp Farming business plan for starting your own business
Food is one of the businesses that can never be out of business, no matter what. So, if you want to start a business of your own, this indoor shrimp farm business plan can be a good starting point for you. You can start this business with relatively little capital and make a good amount of money while you are at it. For those who want to know how to start shrimp farming, this document will cover all there is to it. As a matter of fact, shrimp aquaculture has recently become a lucrative business. We are writing a strategic business plan for this startup that you can use to start the business for yourself. Many of the aspects of this business would be the same as those for oyster farming business plan.
2.1 The Business
Packard Shrimp Farm will be a registered and insured saltwater shrimp farming business in Tucson, Arizona. The business will provide fresh shrimp and other seafood to the area. We are starting a shrimp farm but will soon move to producing other types of seafood as well. Just like we did in the indoor shrimp farming business plan for farmers market, it is important that we have a solid management structure so that we can run the business successfully and effectively.
2.2 Management of Indoor Shrimp Farming Business
To answer the question how to set up a shrimp farm, the first thing that you need to do is to make a comprehensive management structure of the business that will look after various aspects of running the business.
You can use this business plan for investors telling them that the business will be headed by the owner, and they will hire three executives to take care of various aspects of the business on a daily basis.
2.3 Customers of Indoor Shrimp Farming Business
As shrimp is a delicacy enjoyed by everyone, the customers of this business will be from all fields of life and all social and economical classes of the society. The main customers of this business will include:
- Domestic customers who need the shrimp for personal use.
- Local supermarkets.
- Restaurants and hotels.
- Seafood retailers.
2.4 Business Target
The target of this business is to make money by capitalizing on the fact that not even a single service provider in the area is offering fresh shrimp. This target will be broken down into the following actionable goals:
- Becoming permanent suppliers for commercial customers.
- Providing fresh shrimp of the highest quality in the area.
- Matching production to the demand of the product in the area.
- Achieving and maintaining 100% customer satisfaction.
3.1 Company Owner
John Packard will be the owner of the business. There is no one on the seven continents who knows better than John how to raise saltwater shrimp. He has been working in the industry since the time he was 15 and knows the business inside out.
3.2 Why the Indoor Shrimp Farm is being started?
Before you can know how to start a shrimp farm freshwater, it is important to know why the business is being started. If we have a look at the supply of shrimp in the area, it can give us the answers we are looking for. There is not even a single service provider in the area who provides fresh shrimps. People are sick of the frozen shrimp in the market and want to buy the fresh stuff. This means that there is a lot of demand for the product in the market.
The other reason John is starting a shrimp farm business is that he has recently retired from his job and now wants to start something of his own and this is the only thing that he knows how to do.
3.3 How the Indoor Shrimp Farm will be started?
The next thing that is important to discuss in this indoor shrimp farming business plan is how the business will even be started. Here are the steps for that:
Step1: Market Assessment
The first thing that needs to be done to start this business is to see the demand for the product in the market. Having a clear idea of the demand for the product is of paramount importance in starting any business. John ran a thorough market need assessment and has come to the conclusion that there is a lot of demand for the product and the business can be a successful one.
Step2: Establishing the Farm
Once the market’s demand is known, the next step in answering the question how to start a indoor shrimp farm is to establish the farm in accordance to the demand of the market. This will be done by acquiring land, building the farm, and equipping it with all that is needed to run the farm efficiently.
Step3: Making A Retail Outlet
The next thing is to have a point of sale where the product will be sold from. This will be made in a prominent area of the city where we can easily get a lot of customers.
Step4: Going Online
In this day and age, everyone buys and searches for stuff online and that makes it immensely important to have an online presence. The farm and all its products will be advertised online and an online store will also be setup for marketing the product.
|Research and Development||$25,000|
|TOTAL START-UP EXPENSES||$389,100|
|Other Current Assets||$232,000|
|Start-up Expenses to Fund||$389,100|
|Start-up Assets to Fund||$1,265,000|
|TOTAL FUNDING REQUIRED||$1,654,100|
|Non-cash Assets from Start-up||$1,657,000|
|Cash Requirements from Start-up||$384,000|
|Additional Cash Raised||$52,000|
|Cash Balance on Starting Date||$39,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$48,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,654,100|
|Loss at Start-up (Start-up Expenses)||$400,900|
|TOTAL CAPITAL AND LIABILITIES||$2,132,000|
The next step towards starting an indoor shrimp farming business plan is determining the services that the farm will be providing. Just like a pig farming business plan, it is important that we have an idea of the services before starting the business because only then we can optimize the operations of the business. Everyone knows how to build a shrimp farm and yet shrimp farms fail. That is because the shrimp farm business plan people use lacks the services part.
The indoor shrimp farming business plan operations cannot be run the right way if you do not have an idea of the services the farm will be providing. So here’s how to start an indoor shrimp farming business plan according to the services the business will provide:
Fresh Shrimp Supply
The main service of the business will be the supply of fresh shrimp in the area.
All other kinds of seafood that are not available in the area will also be produced and supplied by the business.
Experimental Seafood Farming
A part of the business will be dedicated to experimentation for developing new and ore efficient ways of farming seafood.
Ready to Eat Seafood
The farm will also provide pre-cooked seafood that the customers can heat and eat.
Marketing Analysis of Indoor Shrimp Farm
Business Plan for Investors
If you want to know how to make a shrimp farm, one of the most important steps in the process is that of conducting the marketing analysis of the business. This might not look important, but it is immensely important in making the business a success. This is here that we look what is the feasibility of starting the business and how would the shrimp farm design so that it can generate the type of profit we want it to. This step includes having a look at the market trends and the marketing segmentations of the business.
5.1 Market Trends
If you want to know in detail how to start a shrimp farming business, you will have to have a look at the market trends of the business. The consumption of the product has steadily increased over the last few years, making the business a very profitable one for new entrants. Part of the profitability can be attributed to the easy shrimp farming process.
5.2 Marketing Segmentation
If you want to start shrimp farming indoors, you need to know the segments of market that you will be serving. The tentative marketing segmentation of shrimp farming will be the following:
5.2.1 Private Customers
People who enjoy shrimp and want to buy fresh product will be the main market segment for us.
5.2.2 Retail Businesses
Seafood retailers and supermarkets in the area will also be an important market segment for us.
5.2.3 Hotels and Restaurants
We will provide the shrimp and other seafood to the hotels and restaurants in the area.
Businesses that provide shrimp and other seafood to other businesses on a wholesale basis will also be one of the market segments for us.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Hotels and Restaurants||23%||22,000||23,000||25,000||27,000||28,000||10.00%|
5.3 Business Target
- To become the number 1 provider of shrimp in the area.
- To become the sole supplier of shrimp for local retail businesses.
- To become the major shrimp supplier for local restaurants.
- To make a credible brand around the business.
5.4 Product Pricing
The products will be sold at a premium price as there is no provider in the area that offers the product.
Just like cannabis business plan, even if you ware starting a small scale indoor shrimp farming business plan, you need to have a proper marketing strategy to make the business successful. Many indoor shrimp farming systems fail due to the lack of a proper sales and marketing strategy. Before we start to build indoor shrimp farm, it is important to formulate a sales strategy.
If you are going to start indoor shrimp farming business plan at home, here is the competitive analysis and sales strategy that you can use.
6.1 Competitive Analysis
- There is not even a single business in the area that provides fresh shrimp and other seafood.
- There is a lot of demand for indoor freshwater shrimp farming in the area.
- People are ready to buy the products of a shrimp farm at whatever price we might charge for it.
6.2 Sales Strategy
- We will make long-time contracts with local businesses and hotels.
- We will offer discounted rates in the start.
- We will make no compromises on the quality of the goods we supply.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Fresh Shrimp Supply||60,000||63,600||67,416|
|Experimental Seafood Farming||30,000||31,800||33,708|
|Ready to Eat Seafood||50,000||53,000||56,180|
|TOTAL UNIT SALES||210,000||222,600||235,956|
|Unit Prices||Year 1||Year 2||Year 3|
|Fresh Shrimp Supply||$47.00||$54.52||$63.24|
|Experimental Seafood Farming||$45.00||$52.20||$60.55|
|Ready to Eat Seafood||$39.00||$45.24||$52.48|
|Fresh Shrimp Supply||$2,820,000.00||$3,467,472.00||$4,263,603.57|
|Experimental Seafood Farming||$1,350,000.00||$1,659,960.00||$2,041,086.82|
|Ready to Eat Seafood||$1,950,000.00||$2,397,720.00||$2,948,236.51|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Fresh Shrimp Supply||$45.00||$53.00||$60.00|
|Experimental Seafood Farming||$45.00||$50.00||$57.00|
|Ready to Eat Seafood||$37.00||$42.00||$49.00|
|Direct Cost of Sales|
|Fresh Shrimp Supply||$2,700,000.00||$3,370,800.00||$4,044,960.00|
|Experimental Seafood Farming||$1,350,000.00||$1,590,000.00||$1,921,356.00|
|Ready to Eat Seafood||$1,850,000.00||$2,226,000.00||$2,752,820.00|
|Subtotal Direct Cost of Sales||$8,770,000.00||$10,600,000.00||$12,966,344.00|
Just like a mushroom farming business plan, this business needs a lot of manpower to run and for that reason making a proper personnel plan is of paramount importance in making an indoor saltwater shrimp farming business a success.
7.1 Company Staff
The following staff will be needed to run the indoor aquaculture shrimp farming business:
- John Packard will be the owner and CEO of the business.
- 3 managers will be hired to run the day to day affairs of the farm.
- 4 farm workers.
- 2 delivery drivers.
- 1 storekeeper.
- 1 cashier.
- 1 guard.
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
shrimp business for sale, indoor shrimp farming profits.
If you want to start shrimp farming, you can either buy a shrimp business for sale or start your own setup from start. To keep your indoor shrimp farming business plan profits at the highest level, it is important to invest the minimum amount and make the most profit. Here are the costs that will be involved in starting the business. You can notice the close resemblance of the costs with those in the indoor shrimp farming business plan for a fish farm.
- Cost of real estate.
- Money spent on civil works to start the farm.
- Cost of advertisement.
- Money for buying farm and delivery vehicles.
- Salaries of employees.
- Recurring costs for the time before the farm starts making profits.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.28%||8.22%||8.26%|
|Long-term Interest Rate||8.41%||8.47%||8.52%|
8.2 Break-even Analysis
|Monthly Units Break-even||5344|
|Monthly Revenue Break-even||$131,500|
|Average Per-Unit Revenue||$235.00|
|Average Per-Unit Variable Cost||$0.66|
|Estimated Monthly Fixed Cost||$163,490|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$8,770,000||$10,600,000||$12,966,344|
|TOTAL COST OF SALES||$8,770,000||$10,600,000||$12,966,344|
|Gross Margin %||3.94%||5.58%||6.07%|
|Sales and Marketing and Other Expenses||$128,000||$133,000||$140,000|
|Total Operating Expenses||$287,300||$305,950||$327,810|
|Profit Before Interest and Taxes||$72,700||$320,298||$509,641|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$78,000||$85,020||$91,822|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|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||$78,000||$86,000||$92,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$61,000||$66,000||$70,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$61,000||$65,880||$71,150|
|Net Cash Flow||$19,000||$21,000||$22,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$286,000||$320,320||$360,040|
|TOTAL LONG-TERM ASSETS||$25,000||$28,000||$31,500|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$20,000||$22,400||$25,178|
|TOTAL LIABILITIES AND CAPITAL||$302,600||$333,760||$375,480|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.10%||2.33%||2.58%||2.40%|
|Total Current Assets||151.00%||152.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.80%||96.33%||99.03%||97.80%|
|Profit Before Interest and Taxes||43.00%||44.16%||45.40%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||75.00%||75.04%||75.00%|
|Pre-tax Return on Assets||94.60%||99.33%||104.30%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.20%||34.23%||35.29%||N.A.|
|Return on Equity||54.68%||56.38%||58.12%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$237,000||$250,272||$264,287||N.A.|
|Assets to Sales||0.86||0.87||0.87||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
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