Oyster Farm Business Plan Template

Oyster Farm business plan for starting your own business

If there is a business that can never go out of business, it is that of food. That’s why we have brought this oyster farming business plan for you. If you want to know how to start oyster farming, this business plan details all aspects of that. This business is a lucrative due to the relatively less investment needed and the high profit margin.

If you want to start your own oyster farm, you need to start by writing a strategic business plan for the business and only then can it be a successful one. The basics of this business plan will be same as those of a fish farming business plan as both of the businesses are more or less the same.

Oyster Farm Business Plan Summary

2.1 The Business

Jennifer’s Oysters will be a registered, licensed oyster farm located in Detroit, Michigan. The farm will provide all species of oyster and some of the sea fish that can be farmed with oyster. All the products will be supplied all over the state. As there was no oyster farm business for sale in the area, a farm will be started from scratch.

2.2 Management of Oyster Farm

Jennifer Freeman will be the owner of the oyster farm. She will hire 3 managers to run the farm. The managers will be responsible for operations, sourcing, and sales. All matters of the farm will be decided by the managers and the important financial matters will be brough under the notice of Jennifer.

2.3 Customers of Oyster Farm

If you want to know how to write a business plan for bank loan for starting an oyster farm, you need to have a clear picture of the customers you will be serving. This aspect of this business plan will be the same as that for an agriculture fruit farm business plan.

The customers of Jennifer’s Oysters will be:

• Individual/Domestic Customers

People looking to buy fresh oysters for personal/domestic use will fall into this category. These customers will be large in number but will buy small amounts.

• Restaurants

These will be the repeat and regular customers of the business and will bring most of the sales.

• Retailers

Retail stores in the area will also be among the list of customers of the oyster farm.

• Frozen Food Providers

Processed frozen food providers in the area will also be among the leading customers of the business.

2.4 Business Target

The targets of Jennifer’s Oysters will be:

• To become number 1 suppliers of oysters in the area.
• To start making $23.7k per month in profits by the end of year 2.
• To expand to at least three cities

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

 Company Summary

3.1 Company Owner

The owner of the oyster farm will be Jennifer Freeman. She has a 10-year experience of marine farming and knows how to oyster farm more than anyone else. She is thinking of shifting to her own business from the job and knows quite well how do oyster farms work making her the perfect owner of the business.

3.2 Why the Oyster Farm is being started?

The next important thing in this oyster farm business plan is discussing why this business is being started. The reason behind this has two parts. For one, Jennifer has incredible experience in this field and has recently got her inheritance, meaning she has the money and the experience to start this business.

Secondly, there is no oyster farm in the vicinity and the oyster farm profit will be pretty high if the business is done right.

3.3 How the Oyster Farm will be started?

Step1: Planning

The first thing to do, for starting an oyster farm is planning. In this step, everything from the location of the farm to the customers and services will be finalized. It is this step where all the expenses and other aspects will be determined and a strong strategy for opening and running the farm will be made.

Step2: Making a Brand

The next thing to do, after the plan is finalized and before the farm is made, is to establish a brand for our business. This is one of the most important steps. Having an established, reputable brand that people trust is cardinally important in making any business successful.

Step3: Establish Physical & Web Store

We need to sell the product and in order to get to the most customers, it is important to have a physical outlet as well as an online store for the customers to buy the product from us.

Step4: Promotion and Marketing

Last, but not the least, promoting and marketing the farm is one of the most important things to make the business successful.

Start-up Expenses
Legal	$244,000
Consultants	$0
Insurance	$32,000
Rent	$40,000
Research and Development	$29,000
Expensed Equipment	$55,000
Signs	$4,000
TOTAL START-UP EXPENSES	$404,000
Start-up Assets	$322,000
Cash Required	$360,000
Start-up Inventory	$50,000
Other Current Assets	$207,000
Long-term Assets	$231,000
TOTAL ASSETS	$1,170,000
Total Requirements	$1,574,000
START-UP FUNDING
Start-up Expenses to Fund	$404,000
Start-up Assets to Fund	$1,170,000
TOTAL FUNDING REQUIRED	$1,574,000
Assets
Non-cash Assets from Start-up	$1,542,000
Cash Requirements from Start-up	$340,000
Additional Cash Raised	$55,000
Cash Balance on Starting Date	$40,000
TOTAL ASSETS	$1,977,000
Liabilities and Capital
Liabilities	$30,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$47,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$77,000
Capital
Planned Investment	$1,574,000
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,574,000
Loss at Start-up (Start-up Expenses)	$326,000
TOTAL CAPITAL	$1,900,000
TOTAL CAPITAL AND LIABILITIES	$1,977,000
Total Funding	$1,574,000

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Services of Oyster Farm

Just like a liquor store business plan template, we need to define the services we will be providing before we can move forward with this business plan. This is not necessary in a business plan for oyster farm  so we need to define the services in detail.

• Fresh Sea Food Provision

We will offer fresh sea food as one of our major services from the oyster farm.

• Fishing Pools

We will rent out the ponds in the season for people to come and fish. This will be one of the side businesses for the farm.

• Marine Life Research

We will establish a lab and offer it for use to PhD scholars to do research on the most modern equipment.

• Water Sports

In the summers, part of the farm can be offered to people as a water sports arena.

 Marketing Analysis of an Oyster Far

Business Plan for Investors

Marketing analysis is one of the most important things to be done before starting any business and that’s why it is the most important part of this oyster farming business plan. This is the part where we analyze various aspects of the market with respect to the business in order to devise such a strategy as can make the business successful.

If we need to open an oyster business, we need to do the marketing analysis the first thing before starting an oyster farm.

Just like an organic fertilizers business plan it is cardinally important to know all the forces at play before we learn how to farm oysters at home.

5.1 Market Trends

Before you learn how to become an oyster farmer, it is important to have a look at the market trends of the industry you are about to enter. According to the latest stats, there are 2,807 oyster farms in the US which employ above 10,000 people and have a collective turnover of a whopping $1 billion.

The promising thing is that the popularity of seafood is increasing in the country and the market for oyster farms is going to get bigger with the passage of time. Now is the right time to enter this market.

5.2 Marketing Segmentation

Market trends are not the only thing to consider when starting a business. You need to know the subdivisions of the market that you are about to enter. In case of an oyster farm, the market segmentation will be the following:

5.2.1 Domestic Consumers

People who like oyster and want to buy it for their own use will make up the set of customers with the largest number. We will offer special prices and discounts for these customers at the start.

5.2.2 Restaurants

Surveys have revealed that the local restaurants serve oysters as a premium dish and are always in the need of fresh oysters. We will make long-term agreements with these customers to supply them the product.

5.2.3 Retailers

Local retail stores and supermarkets will also be a major market segment that we will be focusing.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Domestic Consumers	44%	48,000	49,000	51,000	53,000	54,000	10.00%
Restaurants	35%	37,000	39,000	40,000	41,000	42,000	10.00%
Retailers	21%	19,000	22,000	24,000	26,000	27,000	11.00%
Total	100%	104,000	110,000	115,000	120,000	123,000	10%

5.3 Business Target

The targets of this oyster farming business are to:

• Eventually become the leading supplier of seafood in the area.
• Expand to other states and gradually the whole US.
• Provide grade A oysters and other seafood.

5.4 Product Pricing

We will keep the prices of our product at a level above the competition. This is because there is no one supplying fresh oysters in the area and the demand is high. This will earn us good customers even if we have a price higher than the existing market.

 Marketing Strategy of Oyster Farm

Marketing strategy is also one of the most important parts of any oyster farm business plan and needs to be taken seriously. This oyster farm business plan covers this aspect too. Just like a garden nursery business plan, we will focus on providing fresh food.

6.1 Competitive Analysis

We have conducted thorough competitive analysis and have determined that:

• No competitor in the area is offering fresh oysters in the area.
• The oyster available in the area is imported and is often out of stock.
• Oyster rates are too high for people to afford.
• People are not happy with the oyster dishes in the local restaurants due to the unavailability of fresh oyster.

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6.2 Sales Strategy

Our sales strategy will be to

• Keep the prices low at the start to attract more customers.
• Ask prominent local figures and some celebrities to endorse out product.
• Offer discounts to bulk customers like restaurants and retailers to make our name known to the people of the area.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Fresh Sea Food Provision	59,000	62,540	66,292
Fishing Pools	39,000	41,340	43,820
Marine Life Research	12,000	12,720	13,483
Water Sports	44,000	46,640	49,438
TOTAL UNIT SALES	154,000	163,240	173,034
Unit Prices	Year 1	Year 2	Year 3
Fresh Sea Food Provision	$55.00	$63.80	$74.01
Fishing Pools	$58.00	$67.28	$78.04
Marine Life Research	$40.00	$46.40	$53.82
Water Sports	$41.00	$47.56	$55.17
Sales
Fresh Sea Food Provision	$3,245,000.00	$3,990,052.00	$4,906,167.94
Fishing Pools	$2,262,000.00	$2,781,355.20	$3,419,954.35
Marine Life Research	$480,000.00	$590,208.00	$725,719.76
Water Sports	$1,804,000.00	$2,218,198.40	$2,727,496.75
TOTAL SALES	$7,791,000.00	$9,579,813.60	$11,779,338.80
Direct Unit Costs	Year 1	Year 2	Year 3
Fresh Sea Food Provision	$53.00	$59.00	$69.00
Fishing Pools	$56.00	$64.00	$74.00
Marine Life Research	$38.00	$43.00	$48.00
Water Sports	$38.00	$43.00	$50.00
Direct Cost of Sales
Fresh Sea Food Provision	$3,127,000.00	$3,689,860.00	$4,574,175.60
Fishing Pools	$2,184,000.00	$2,645,760.00	$3,242,709.60
Marine Life Research	$456,000.00	$546,960.00	$647,193.60
Water Sports	$1,672,000.00	$2,005,520.00	$2,471,920.00
Subtotal Direct Cost of Sales	$7,439,000.00	$8,888,100.00	$10,935,998.80

Personnel plan

The next thing this oyster farming business plan needs to talk about is the people needed to run the business. Just like a mushroom farming business plan, this is a labor-intensive business and will need a considerable workforce to run.

7.1 Company Staff

Jennifer Freeman will be the owner and CEO of the farm. She will hire the following staff:

• 3 Managers for procurement, operations, and sales.
• 1 Accountant.
• 7 Farm workers.
• 1 Security guard.
• 2 Shopkeepers.
• 1 Social media marketer.

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Operations Manager	$14,000	$15,400	$16,940
Procurement Manager	$9,000	$9,900	$10,890
Sales Manager	$8,000	$8,800	$9,680
Accountant	$8,000	$8,800	$9,680
Farm Workers	$53,000	$58,300	$64,130
Security Guard	$17,000	$18,700	$20,570
Shopkeepers	$9,000	$9,900	$10,890
Social Media Marketer	$17,000	$18,700	$20,570
Total Salaries	$135,000	$148,500	$163,350

Financial Plan

We know that oyster farming profitability mainly depends on the financial plan that we make for the business. This financial plan needs to cover everything from the starting expenses of the farm to the running costs and other costs of business involved in running this business. Just like a pig farming business plan, the investment here is relatively higher than other businesses.

We need to have money for the following at the time of starting the business:

• The cost of establishing the farm.
• The cost of setting up the retails outlet.
• Marketing and promotion costs of the business.
• Salaries of the staff until the farm starts breaking even.
• Cost of the farm equipment needed to run the farm.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.07%	8.14%	8.21%
Long-term Interest Rate	8.27%	8.42%	8.45%
Tax Rate	23.88%	24.60%	25.34%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5345
Monthly Revenue Break-even	$132,400
Assumptions:
Average Per-Unit Revenue	$234.00
Average Per-Unit Variable Cost	$0.68
Estimated Monthly Fixed Cost	$163,010

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$7,791,000	$9,579,814	$11,779,339
Direct Cost of Sales	$7,439,000	$8,888,100	$10,935,999
Other	$0	$0	$0
TOTAL COST OF SALES	$7,439,000	$8,888,100	$10,935,999
Gross Margin	$352,000	$691,714	$843,340
Gross Margin %	4.52%	7.22%	7.16%
Expenses
Payroll	$135,000	$148,500	$163,350
Sales and Marketing and Other Expenses	$135,000	$145,000	$155,000
Depreciation	$2,540	$2,400	$2,300
Leased Equipment	$0	$0	$0
Utilities	$3,000	$3,100	$3,200
Insurance	$2,000	$2,100	$2,130
Rent	$3,700	$4,000	$4,300
Payroll Taxes	$28,000	$30,000	$32,000
Other	$0	$0	$0
Total Operating Expenses	$309,240	$335,100	$362,280
Profit Before Interest and Taxes	$42,760	$356,614	$481,060
EBITDA	$42,760	$356,614	$481,060
Interest Expense	$0	$0	$0
Taxes Incurred	$8,552	$71,323	$96,212
Net Profit	$34,208	$285,291	$384,848
Net Profit/Sales	0.44%	2.98%	3.27%

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 Sales	$55,000	$59,400	$64,152
Cash from Receivables	$19,000	$20,520	$22,162
SUBTOTAL CASH FROM OPERATIONS	$74,000	$80,660	$87,113
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	$74,000	$81,000	$88,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$40,000	$42,000	$43,000
Bill Payments	$23,000	$24,000	$26,000
SUBTOTAL SPENT ON OPERATIONS	$63,000	$66,000	$69,000
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
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$63,000	$68,040	$73,483
Net Cash Flow	$15,400	$17,000	$18,000
Cash Balance	$28,900	$30,000	$31,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$288,000	$322,560	$354,816
Accounts Receivable	$25,000	$28,000	$31,472
Inventory	$4,000	$4,480	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$302,000	$338,240	$380,182
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$20,400	$22,848	$25,704
TOTAL LONG-TERM ASSETS	$22,400	$25,088	$28,224
TOTAL ASSETS	$304,000	$340,480	$383,040
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$22,100	$24,752	$27,821
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$15,400	$17,248	$19,387
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$33,000	$32,000	$33,000
Retained Earnings	$54,000	$58,860	$64,746
Earnings	$230,000	$250,700	$275,770
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$340,480	$383,040
Net Worth	$291,000	$317,190	$348,909

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.06%	7.82%	8.67%	3.00%
Percent of Total Assets
Accounts Receivable	9.24%	10.24%	11.34%	9.80%
Inventory	5.40%	5.98%	6.63%	9.90%
Other Current Assets	2.10%	2.33%	2.58%	2.40%
Total Current Assets	148.00%	151.00%	152.00%	158.00%
Long-term Assets	11.45%	11,89%	11.93%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.61%	4.65%	4.69%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.36%	7.42%	7.49%	7.38%
NET WORTH	100.80%	101.61%	102.54%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.05%	96.59%	99.29%	99.00%
Selling, General & Administrative Expenses	93.44%	95.96%	98.65%	97.80%
Advertising Expenses	1.60%	1.64%	1.69%	1.40%
Profit Before Interest and Taxes	40.77%	41.87%	43.04%	33.90%
Main Ratios
Current	37	38	38	32
Quick	32	33	33.825	33
Total Debt to Total Assets	0.22%	0.19%	0.18%	0.40%
Pre-tax Return on Net Worth	75.02%	75.64%	76.20%	75.00%
Pre-tax Return on Assets	93.46%	98.13%	103.04%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	32.34%	33.34%	34.38%	N.A.
Return on Equity	56.01%	57.75%	59.54%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.9	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	34.01	N.A.
Accounts Payable Turnover	16.22	16.4	16.54	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.4	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.03	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$245,000	$258,720	$273,208	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.81	0.83	0.87	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	27.7	28.12	29	N.A.
Sales/Net Worth	2.1	2.1	2.2	N.A.
Dividend Payout	0	0	0	N.A.

 

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