Do you want to start a crocodile farm and need to write a plan? If YES, here is a sample crocodile farming business plan template & FREE feasibility report.
If you have come across some of the strongest and long – lasting leather belts, wallets, handbags, purses and other leather products, then it means that you have seen the end products of crocodile and alligator farms. Indeed, this is one key business that has been in existence from time immemorial and has remain relevant over the years.
No doubt this is a very profitable and not too popular business, but it is important to state that starting a crocodile farming business comes with its own fair share of challenges and risks, but that does not rule out the fact that it is a business venture that is open to all and sundry.
A Sample Crocodile Farming Business Plan Template
1. Industry Overview
According to Wikipedia, a crocodile farm or alligator farm is an establishment for breeding and raising crocodilians in order to produce crocodile and alligator meat, leather, and other goods. Many species of both alligators and crocodiles are farmed internationally. In Louisiana alone, alligator farming is a $60 to $70 million industry.
Ranching, wild harvesting, and captive breeding are the three ways to obtain crocodilians recognized by the Convention on International Trade in Endangered Species (CITES) and the Crocodile Specialist Group (CSG). Alligators can be raised in captivity on farms or on ranches.
Alligator farms breed alligators, whereas ranches incubate and rear hatchlings collected from the wild. Farms do collect eggs from the wild but they also keep breeding adults in their facilities to produce their own eggs whereas ranches do not.
Farming and ranching operations typically return a certain percentage of juveniles to the wild at a size associated with a high survival rate, an approach that increases overall alligator survival rates from the low numbers of successful eggs and juveniles usually observed in the wild.
Crocodiles can be housed in a number of ways depending on the goals of the rearing facility. Large areas of a lake or marsh can be enclosed for many individuals or a smaller area can be created for fewer individuals. Due to the size and lifespan of the animals, adult crocodiles need a substantial amount of space.
Tourism can bring additional revenue to crocodile rearing facilities, but they must be made safe for the public and the crocodiles, while maintaining an aesthetically pleasing environment. This frequently depends on enclosures that can be easily cleaned without harming the animals. If closed to public viewing, facilities have fewer requirements and can have a more practical design.
The Crocodile and Alligator Farming industry is indeed a large industry and pretty much active in countries such as united states of America, Brazil, Argentine, India, China, Germany, Australia, New Zealand and Thailand et al. There is no single crocodile or alligator farming company that has dominate market share in the industry hence smaller crocodile or alligator farming business can successfully make profits.
Wikipedia also pointed out that a common misconception is that crocodilians are an easy source of revenue and not difficult to care for in captivity; however, few crocodilian businesses are successful in the developing world. To offset overhead costs and have a regular source of income, crocodilian facilities can add tourism; in this way alligator farming can assist native species and provide people with work.
One thing is certain about crocodile and alligator farming business, if you are able to conduct your market research and feasibility studies, you are likely not going to struggle to sell your crocodiles and alligators because industries make use of byproducts from crocodile and alligator farms in manufacturing their products.
There are few barriers to entry into the crocodile and alligator farming industry. Usually, all inputs are readily available since the business is located in water – logged and swampy areas. In the nearest future, players in this industry may face the highest costs associated with accessing technology, especially in relation to genetic modification engineering in crocodile and alligator farming.
So also, intellectual property rights protecting new inventions and technology may mean that new entrepreneurs coming into the industry will need to pay license fees and this of course will cause an increase in the startup fee of the business.
2. Executive Summary
Don Pedro® Crocodile Farming, LLC is a registered and licensed crocodile and alligator farming company that will be based in the outskirts of Rio Rancho, New Mexico – United States. We have done our detailed market research and feasibility studies and we were able to secure twenty acres of land to build our private crocodile ranch.
Our crocodile and alligator farming business is a going to be standard one hence will be involved in ranching, wild harvesting, and captive breeding as recognized by the Convention on International Trade in Endangered Species (CITES) and the Crocodile Specialist Group (CSG).
We will also be involved in breeding crocodile and alligators for tourism purposes which can bring additional revenue to our business. We will ensure that the facility is made safe for the public and the crocodiles, while maintaining an aesthetically pleasing environment.
In the nearest future, hopefully within the first five years of officially running Don Pedro® Crocodile Farming, LLC, we will start our crocodile and alligator meat and leather processing plant and also start exporting our products to other parts of the world.
Which is why aside from the fact that we’ve secured the required farm land for our crocodile and alligator farming business, we have also hired some key employees who are currently undergoing training so as to fit into the ideal picture we want to build.
We are in the crocodile and alligator farming business because we want to leverage on the vast opportunities available in the wildlife conservation industry to contribute our quota in growing the U.S. economy.
Don Pedro® Crocodile Farming, LLC is well positioned to become one of the leading crocodile and alligator farming business in the United States of America, which is why we have been able to source for the best hands and equipment to run the business.
We have put process and strategies in place that will help us employ best practices when it comes to crocodile and alligator farming.
Don Pedro® Crocodile Farming, LLC is a private registered crocodile and alligator farming company that is owned by Donald Pedro and his immediate family members. The company will be single handedly financed by Donald Pedro and his immediate family members, at least for a period of time.
Before starting Don Pedro® Crocodile Farming, LLC, Donald Pedro has worked with some of the leading livestock farms and wildlife conservatives in the United States of America. He has worked in the industry for over 20 years before resigning to start his own crocodile business.
3. Our Products and Services
Don Pedro® Crocodile Farming, LLC is a licensed crocodile and alligator farming business that is committed to producing games for both the United States’ market and the global market. We are in this line of business to make profits and we will ensure that we do all that is permitted by the law in south africa to achieve our business aim and objectives.
These are the areas we will concentrate on in our business. If need arises, we will definitely add more services to our list;
- Commercial breeding and sale of crocodiles and alligators
- Sale of processed and raw crocodile and alligator meats
- Sale of processed and raw crocodile and alligator leathers / skin.
- Tourism services
4. Our Mission and Vision Statement
- Our Vision is to become one of the top 5 crocodile and alligator farm brands not just in Rio Rancho – New Mexico, but also in the United States of America.
- Our mission is to sell our crocodiles and alligators, byproducts and processed crocodile and alligator meat in commercial quantities both locally, nationally and internationally.
- We want to build a crocodile and alligator farming business that can favorably compete with other leading farms in the United States of America.
Our Business Structure
Don Pedro® Crocodile Farming, LLC intends starting small in Rio Rancho – New Mexico, but hopes to grow big in order to compete favorably with leading businesses in the industry. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.
Which is why we are committed to only hire the best hands in and around Rio Rancho. At Don Pedro® Crocodile Farming, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions. Below is the business structure of Don Pedro® Crocodile Farming, LLC;
- Chief Operating Officer
- General Farm Manager
- Administrator/Accountant
- Crocodile and Alligator Ranch Manager / Supervisor
- Field Employees
5. Job Roles and Responsibilities
Chief Operating Officer:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
General Farm Manager
- Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
- Supervise other section managers
- Ensure compliance during crocodile and alligator breeding processes
- Providing advice on the management of farming activities across all section
- Responsible for carrying out risk assessment
- Using IT systems and software to keep track of people and progress of the growth of games
- Responsible for overseeing the accounting, costing and sale of alligators and crocodiles after harvest
- Represent the organization’s interest at various stakeholders’ meetings
- Ensures that farming goals desired result are achieved, the most efficient resources are utilized and different interests involved are satisfied.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversee the smooth running of the crocodile and alligator farming activities across the various farming sections.
Administrator/Accountant
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Responsible for financial forecasting and risks analysis.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Crocodile and Alligator Farm Manager/Supervisor
- Responsible for managing the commercial breeding of crocodiles and alligators
- Responsible for managing boarding services, breeding services, support services, crocodile and alligator health services, farrier services, et al.
- Work closely with the General Manager to achieve the organizations’ goals and objectives
Field Workers/Contract Staff
- Responsible for feeding the crocodiles and alligators as instructed by the supervisor
- Responsible for cleaning the crocodile and alligator ranch
- Assist in handling the breeding of crocodiles and alligators
- Carries out task in line with the stated job description
- Assist in the production and processing of leather from crocodiles and alligators
- Serves as security in the crocodile ranch and ensure that poachers are prevent from entering into the crocodile ranch.
- Handles any other duties as assigned by the farm manager
6. SWOT Analysis
Don Pedro® Crocodile Farming, LLC do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard crocodile and alligator farming business that will favorably compete with leading crocodile and alligator farming businesses in the United States of America.
As a crocodile and alligator farming business, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Don Pedro® Crocodile Farming, LLC;
- Strength:
Our strength as a crocodile and alligator farming business is the fact that we have healthy relationships with major players in the leather products manufacturing industry and wildlife merchants; both suppliers and buyers within and outside of the United States.
We have some of the latest tools and equipment that will help us breed our crocodiles and alligators in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in the business in our payroll.
- Weakness:
Our weakness could be that we are a new crocodile and alligator farming business in the United States and we may not have the required cash to import high yielding crocodiles and alligators outside of the United States of America for now. We are aware of this and from our projection will overcome this weakness with time.
- Opportunities:
Basically, original croc leather and meat prices dictate the returns for American crocodile and alligator ranches. Increased prices generate an increase in returns per head for crocodile and alligator farmers.
Consequently, higher returns generally encourage farmers to devote more resources to crocodile and alligator farming. The price of original crocodile leather and meat are expected to rise in the coming year, presenting the industry with a potential opportunity.
- Threat:
Some of the major threats and challenges that we will face revolves around the health and welfare of our crocodiles and alligators. Welfare concerns include the threat of crocodilian diseases such as caiman pox, adenoviral Hepatitis, mycoplasmosis, and chlamydiosis. Crocodiles suffer from stress in confined spaces such as farms, leading to disease outbreaks.
Most crocodilians keep a body temperature within 28 and 33 degrees Celsius. On farms, body temperatures can reach 36 degrees Celsius, which affects the animals’ immune system, and puts them at risk of various illnesses. Another concern is for the cleanliness of the water in enclosures.
7. MARKET ANALYSIS
- Market Trends
Despite the fact that commercial game rearing or better still crocodile and alligator farming operations has been in existence since time immemorial, that does not in any way make the industry to be over saturated; commercial game farm operations are exploring new technology to continue to improve crocodile and alligator rearing processes.
The fact that there is always a ready market for leather products and meats gotten from alligators and crocodiles makes the business evergreen. As a matter of fact, one of the new trends in crocodile and alligator farming industry is that with the recent advancement in technology, farmers can now improve the various breeds of the animals they are breeding.
As a matter of fact, it is now easier for businesses to import the breed of crocodile and alligator they want to breed from any country of their choice and also advancement in technology has made it easier to cross – breed different species.
8. Our Target Market
Almost every household consumes produce from crocodile and alligator farms be it meat, eggs, and the skin (leather) used for bags, belts and shoes production et al. So also, a large chunk of manufacturing companies depend on crocodile farming businesses for some of their raw materials.
In essence a crocodile and alligator farming business owner should be able to sell his or her farm produce. We will ensure that we position our business to attract consumers of crocodile meat, eggs and raw leather not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our produce.
Our Competitive Advantage
Don Pedro® Crocodile Farming, LLC is fully aware that there are competitions when it comes to selling crocodile and alligator meat, eggs and raw leather, which is why we decided to carry out thorough research so as to know how to take advantage of the available market.
We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable crocodile and alligator farming operations processes that can help us sell our crocodile and alligator meat, eggs and raw leather at competitive prices, good network and excellent relationship management.
Lastly, our employees will be well taken care of, and their welfare package will be amongst the best in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Don Pedro® Crocodile Farming, LLC is in the beef cattle farming industry for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.
Below are the sources we intend exploring to generate income for Don Pedro® Crocodile Farming, LLC;
- Commercial breeding and sale of crocodiles and alligators
- Sale of processed and raw crocodile and alligator meats
- Sale of processed and raw crocodile and alligator leather/skin.
- Tourism services
10. Sales Forecast
From the survey conducted, we were are able to discover that the sales generated by a crocodile farm depends on the size of the ranch and the network of the business.
We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income/profits from the year of operation and build the business from survival to sustainability.
We have been able to examine the crocodile farming business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the projections that we were able to come up with for the first three years of running Don Pedro® Crocodile Farming, LLC;
- First Fiscal Year (FY1): $280,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $800,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters, and unfavorable government policies.
- Marketing Strategy and Sales Strategy
We are quite aware that the reason why some crocodile and alligator farms hardly make good profits is their inability to sell off their produce to a larger market. In view of that, we decided to partner with some of the leading crocodile and alligator merchants to help us maximize profits.
In summary, Don Pedro® Crocodile Farming, LLC will adopt the following strategies in marketing our game;
- Introduce our business by sending introductory letters alongside our brochure to industries that rely on crocodile and alligator raw leather and key stake holders in the agriculture industry in and around Rio Rancho – New Mexico.
- Advertise our crocodile and alligator farms in agro – allied magazines and websites
- List our crocodile and alligator farming business on yellow pages ads (local directories)
- Attend related agriculture and food expos, seminars, and business fairs et al
- Leverage on the internet to promote our business
- Engage in direct marketing
- Encourage the use of Word of mouth marketing (referrals) for our tourism services
11. Publicity and Advertising Strategy
Any business that wants to grow must be ready to utilize every available means (both conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.
We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our crocodile and alligator farming business. Below are the platforms we want to leverage on to boost our crocodile and alligator farm and to promote and advertise our business;
- Place adverts on both print (newspapers and related agriculture magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
- Install our Billboards in strategic locations all around Rio Rancho – New Mexico
- Distribute our fliers and handbills in target areas to attract those interested in crocodile meat and egg and visiting as tourist
- List our commercial crocodile and alligator farms in local directories / yellow pages
- Advertise our game farm (commercial crocodile and alligator ranch) in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.
12. Our Pricing Strategy
Generally speaking, a game will cost between $2,000 and $5,000. The actual cost depends on the weight of the game, the gender, and the breed. Yearlings usually sell for between $800 and $1,500. Games will also differ in price based on whether or not they are leather generating game or strictly beef game.
We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers is to sell at competitive prices.
One thing is certain, the nature of crocodile and alligator farming business we are involved in makes it possible for farmers to place prices for their game based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your crocodiles and alligators when they are mature the better for your business.
- Payment Options
The payment policy adopted by Don Pedro® Crocodile Farming, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Don Pedro® Crocodile Farming, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via POS machines
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for their purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Below are some of the basic areas we will spend our startup capital in setting up our crocodile and alligator farming business;
- The total fee for incorporating the business in United States of America – $750.
- The budget for key insurance policies, permits and business license – $2,500
- The amount needed to acquire / lease a swampy farm land (crocodile and alligator ranch) – $150,000
- The amount required for preparing the farm land (for construction of crocodile and alligator ranch and cages / fencing et al et al) – $100,000
- The cost for acquiring the required crocodile and alligator leather processing and working tools and equipment / machines / fencing et al – $50,000
- The amount required for purchase of the first set of crocodiles and alligators, medications and feeds et al – $200,000
- The cost of launching an official website – $600
- The amount required for payment of workers for a period of 3 months – $100,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000
Going by the report from detailed research and feasibility studies conducted, we will need an average of seven hundred and fifty thousand dollars ($750,000) to start a standard crocodile and alligator farm in the United States of America.
Generating Funds/Startup Capital for Don Pedro® Crocodile Farming, LLC
Don Pedro® Crocodile Farming, LLC is a family owned business and it will be financed by Donald Pedro and his immediate family members. These are the areas where we intend sourcing for fund for Don Pedro® Crocodile Farming, LLC;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $250,000 (Personal savings $150,000 and soft loan from family members $100,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Don Pedro® Crocodile Farming, LLC is to ensure that we continue to make available matured crocodile and alligator meat, eggs and raw leather. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services.
Don Pedro® Crocodile Farming, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts : Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of swampy farm land in Rio Rancho – New Mexico: Completed
- Conducting Feasibility Studies: Completed
- Startup Capital Generation: Completed
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Building /construction of crocodile and alligator cages and fence et al: In Progress
- Purchase of the first set of crocodile, alligators, feeds and medications: Completed
- Purchase of the needed working tools, machines and equipment: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Farm land Treatment, Health and Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (leading crocodile and alligator meat, eggs and raw leather merchants, wildlife conservative operators and wild animal transporters/haulage): Completed