Do you want to start a trout farm and need to write a business plan? If YES, here is a sample trout farming business plan template & feasibility report.
If you live around coastal regions or in a location that is blessed with lakes and rivers and you are looking towards starting a business, you need not look further as you can successfully start a fresh water fish farming business. Trout are fishes that are usually found in cool (50–60 °F or 10–16 °C), clear streams and lakes, although many of the species have anadromous strains as well. Young trouts are referred to as troutlet, troutling or fry.
Beyond the general knowledge of fish farming, you would need to study the process of farming trout if you want to become successful with the business. You have to learn the process of hatching trout eggs and grooming them to maturity.
There are two basic methods of farming trout fish, you could make use of the open net – cages in the ocean or you could make use of freshwater ponds/containers.
If you don’t have enough space to install bigger freshwater ponds, open net – cages in the ocean is your best bet if you want your trout fish to grow to their full capacity and if you want to accommodate enough fish. Open net – cages can hold over 500,000 trout fish in an enclosure that is four times the size of a football field.
A Sample Trout Fish Farming Business Plan Template
Table of Content
- 1. Industry Overview
- 2. Executive Summary
- 3. Our Products and Services
- 4. Our Mission and Vision Statement
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 8. Our Target Market
- 9. SALES AND MARKETING STRATEGY
- 10. Sales Forecast
- 11. Publicity and Advertising Strategy
- 12. Our Pricing Strategy
- 13. Startup Expenditure (Budget)
- 14. Sustainability and Expansion Strategy
1. Industry Overview
Trout is the common name for a number of species of freshwater fish belonging to the genera Oncorhynchus, Salmo and Salvelinus, all of the subfamily Salmoninae of the family Salmonidae. The word trout is also used as part of the name of some non-salmonid fish such as Cynoscion nebulosus, the spotted seatrout or speckled trout.
Because of their popularity, trout are often raised on fish farms and planted into heavily fished waters, in an effort to mask the effects of overfishing. Farmed trout and char are also sold commercially as food fish. Trout is sometimes prepared by smoking.
As a group, trout are somewhat bony, but the flesh is generally considered to be tasty. The flavor of the flesh is heavily influenced by the diet of the fish. The Fish and Seafood Aquaculture industry that trout fish farming business is subset of is no doubt among the leading industry in most countries of the world.
Because of the significant role the agriculture sector plays, the government of most countries ensure that they subsidize seedlings, fertilizers, and farming implements and machinery for farmers and also encourage entrepreneurs to go into commercial farming (fish farming inclusive).
The Fish and Seafood Aquaculture industry comprises of businesses that farm aquatic animals or plants in controlled aquatic environments. Businesses in this industry make use of some form of intervention in the rearing process to enhance production, such as holding in captivity and protecting from predators, pests and disease.
It is important to state that this industry does not including the fishing and harvesting of wild fish and shellfish especially on the high sea. A study conducted by IBISWORLD shows that the Fish and Seafood Aquaculture industry has indeed experienced slow growth over the last five years.
Given that the vast majority of the revenue generated in the industry is derived from sale of fish, mollusks and crustaceans that will be processed into food products, this industry’s success is tied to levels of seafood consumption. Per capita seafood consumption in the united states has declined over the last five years, putting strain on businesses in this industry.
Nonetheless, increases in the price of seafood, combined with a healthy export market, have boosted the revenue growth in this industry. The revenue generation from The Fish and Seafood Aquaculture industry is projected to grow at an annualized rate of 0.3 percent to $1.5 billion over the five-year period.
Statistics has it that in the United States of America alone, there are about 2,087 licensed and registered Fish and Seafood Aquaculture company directly responsible for employing about 10,440 employees and indirectly responsible for employing roughly 1,339,900.
The industry rakes in a whooping sum of $1 billion annually with an annual growth rate projected at 0.3 percent. It is important to state that there are no establishments with a lion share of the market in this industry. If you are looking towards leveraging on the agriculture industry to generate huge income, then one of your best bets is to start your own trout fish farming business.
One thing is certain about starting fish and seafood aquaculture business, if you are able to conduct your market research and feasibility studies, you are likely not going to struggle to sell your fish because there are always food processing companies and consumers out there who are ready to buy from you.
2. Executive Summary
New Breed® Fish Farms, LLC is a licensed Fish and Seafood Aquaculture Company with strong bias for trout fish farming and it will be based in a riverine area in Palm Beach – Florida. We have done our detailed market research and feasibility studies and we were able to secure 25 hectares of aquatic land to start our trout fish farming business.
New Breed® Fish Farms, LLC is well positioned to become one of the leading fish farming business in the United States of America, which is why we have been able to source for the best hands and machines to run the company with. We have put process and strategies in place that will help us employ best practices when it comes to fish farming processes.
At New Breed® Fish Farms, LLC, our customer’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
New Breed® Fish Farms, LLC is a private registered fish and seafood farming company that is owned Tony Mark and his immediate family members. The trout fish farm will be financed by Tony Mark at least for a period of time. Tony Mark has a degree in Fishery and over 8 years’ hands on experience in the fish and seafood aquaculture industry.
3. Our Products and Services
New Breed® Fish Farms, LLC is a standard fish and seafood farming company that is committed to the farming of trout fish. We are in the fish and seafood industry to make profits and we are going to do all that is permitted by the law in the United States of America to achieve our business goals and objectives.
These are the areas we will concentrate on in our fish and seafood farming business;
- Raising and harvesting different species of trout fish such as (Brook trout, Cutthroat trout, Bull trout, Golden trout, Rainbow trout and Lake trout)
- Cultivation of trout fish feed
4. Our Mission and Vision Statement
- Our Vision of establishing New Breed® Fish Farms, LLC is to be seen as the face of trout fishing line of business not just in the United States of America but also on the global stage.
- New Breed® Fish Farms, LLC is a registered fish and seafood farming company that is committed to raising trout fish and feed for both the United States and the global market.
- We want our trout fish to flood the United States.
Our Business Structure
New Breed® Fish Farms, LLC is a privately owned and managed fish and seafood business that intends starting small in Palm Beach – Florida, but hopes to grow big in order to compete favorably with leading fish and seafood farming companies 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.
At New Breed® Fish Farms, LLC, we will ensure that we hire people that are qualified, hardworking, and creative, result driven, 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 board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Operating Officer
- General Fish and Seafood Farm Manager
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Field Employees
- Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- 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
- Creating, communicating, and implementing 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
- Reports to the board
General Fish and Seafood Farm Manager
- Responsible for the planning, management and coordinating all fish farm activities
- Supervise other section managers
- Ensure compliance during project executions
- Providing advice on the management of farming activities across all sections
- Responsible for carrying out risk assessment
- Using IT systems and software to keep track of people and progress of the growth of tout fish and feed
- Responsible for overseeing the accounting, costing and sale of fish
- Represent the organization’s interest at various stakeholders’ meetings
- Ensures that farming goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- 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
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contact
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
Field Workers/Contract Staff
- Responsible for cleaning the ponds and the entire fish farm environment
- Change the water in the pond as instructed by the supervisor
- Handles fish and seafood farm implements and machines (hatchery) as instructed by the section manager
- Assist in transport working tools and equipment from the fish and seafood farm and back to the designated store room
- Handles any other duties as assigned by the line manager.
Front Desk/Customer’s Service Officer
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives parcels/documents for the company and distribute mails in the organization
- Handles any other duties as assigned by HR and Admin Manager
6. SWOT Analysis
New Breed® Fish Farms, LLC does 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 fish farming company that will favorably compete with leading players in the industry in the United States of America.
We engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured fish and seafood farming company with strong bias in trout fish farming. Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for New Breed® Fish Farms, LLC.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of New Breed® Fish Farms, LLC;
Our strength as a fish and seafood farming company is the fact that we have healthy relationships with loads of major players in the industry; both suppliers of fish and seafood feed and medications and buyers of fish and seafood within and outside of the United States of America.
We have some of the latest trout fish hatchery, tools and equipment that will help us raise trout fish and feed 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 Palm Beach – Florida on our payroll.
Our weakness could be that we are a new fish and seafood farming company in the United States, and perhaps it might take us sometime to attract big time customers in the industry. We are aware of this and from our projection, we will overcome this weakness with time and turn it to a major advantage for the business.
According to the British Nutrition Foundation, trout contains one of the lowest amounts of dioxins (a type of environmental contaminant) of all oily fishes hence making it one of the most sought after fish. We know that there are loads of households, and businesses such as hotels and fast food restaurants that can’t do without fish and seafood. We are well positioned to take advantage of this opportunity
Some of the threats and challenges that we are likely going to face when we start our own fish and seafood farming company are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters, unfavorable government policies and the arrival of a competitor within same location.
7. MARKET ANALYSIS
- Market Trends
The Fish and Seafood Aquaculture industry has greatly benefited from campaigns advertising the health benefits of fish and seafood as a good source of protein.
The vast majority of the revenue generated in the industry is derived from sale of fish, mollusks and crustaceans that will be processed into food products, this industry’s success is tied to levels of seafood consumption. Per capita seafood consumption in the united states has declined over the last five years, putting strain on businesses in this industry.
Nonetheless, increases in the price of seafood, combined with a healthy export market, have boosted the revenue growth in this industry. The revenue generation from The Fish and Seafood Aquaculture industry is projected to grow at an annualized rate of 0.3 percent to $1.5 billion over the five-year period.
Another notable trend in the industry is that with the recent advancement in technology, fish and seafood farmers can now comfortably predict and produce the quantities of fish and seafood they want to produce per time from their hatchery.
8. Our Target Market
The end consumers of fish and seafood and also those who benefit from the business value chain is all encompassing; it is far – reaching. In view of that, we have positioned our business to attract consumers of trout fish not just in the United States of America alone but also other parts of the world.
We have conducted our market research and survey and we will ensure that we meet and surpass the expectations we set for the business. Below is a list of the people and business that we will market our trout fish and trout fish feeds to;
- Fast food eateries
- Fish and seafood merchants
- Operators of smaller fish ponds (B2B)
It is easier to find entrepreneur flocking towards an industry that is known to generate consistent income which is why there are increase number of fish and seafood farmers in the United States of America.
New Breed® Fish Farms, LLC is fully aware that there are competitions when it comes to selling fish, which is why we decided to carry out thorough market research so as to know how to take advantage of the available market in the United States.
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 fish and seafood farming processes that can help us sell our produce at competitive prices, good network and excellent relationship management.
Another competitive advantage that we are bringing to the industry is the fact that we have healthy relationships with loads of major players in the industry; both suppliers of fish and seafood feeds and medications and buyers of fish and seafood within and outside of the United States of America.
We have some of the latest fish and seafood farming equipment that will help us raise fish 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 Palm Beach – Florida in our payroll.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
We are quite aware that the reason why some fish and seafood farming companies hardly make good profits is their inability to sell off their fish as at when due. Our sales and marketing team will be recruited based on their vast experience in the aquaculture industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of New Breed® Fish Farms, LLC.
Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and businesses that rely on daily supply of fish who are likely to become our customers. In summary, New Breed® Fish Farms, LLC will adopt the following strategies in marketing our fish and seafood;
- Introduce our business by sending introductory letters alongside our brochure to stake holders in the food processing industry, households, hotels and restaurants and fish and seafood merchants et al.
- Advertise our business in agriculture and food related magazines and websites
- List our business on yellow pages ads
- 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)
- Join local chambers of commerce and industry to network and market our produce
Sources of Income
New Breed® Fish Farms, LLC is in the fish and seafood 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 New Breed® Fish Farms, LLC;
- Sale of different species of trout fish
- Sale of trout fish feed
10. Sales Forecast
From the studies and the survey conducted, we were able to discover that the sales generated by a fish farming business depends on the size of the fish farm, the types of fishes available in the farm and of course the size of their marketing network.
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 first year of operation and build the business from survival to sustainability with the shortest period of time.
We have been able to examine the fish and seafood aquaculture industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for New Breed® Fish Farms, LLC, it is based on the location of our fish farm and of course the wide range of trout fishes and feeds that we will be cultivating;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $600,000
- Third Fiscal Year (FY3): $900,000
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. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available 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.
Below are the platforms we will leverage on to boost our fish and seafood farming brand and to promote and advertise our business;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Palm Beach – Florida
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
We are quite aware that one of the easiest means of penetrating the market and acquiring customers for fish is to sell them at competitive prices hence we will do all we can to ensure that the prices of our trout fishes and feeds are going to be what other farmers would look towards beating.
One thing is certain, the nature of fish and seafood farming business makes it possible for farmers to place prices 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. As the business grow, we will continue to review our pricing system to accommodate a wide range of clientele.
- Payment Options
The payment policy adopted by New Breed® Fish Farms, 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 New Breed® Fish Farms, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via credit cards
- Payment via check
- Payment via mobile money
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of trout fishes and trout fish feeds without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
When it comes to calculating the cost of starting a fish farm, there are some key factors that should serve as a guide. The different types of fishes and seafood to be raised determines the total cost of setting up the business. Below are some of the basic areas we will spend our startup capital in setting up our fish farm;
- The Total Fee for incorporating the Business (commercial fish and seafood farm) in United States of America – $750.
- The amount needed to acquire / lease a fish farm land – $50,000
- The amount required for preparing the farm land (fish ponds and fresh water supply et al) – $100,000
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of New Breed® Fish Farms, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring Business Consultant – $2,500.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
- The amount required for the purchase of the first set of trout fishes and trout fish feeds, medications and troutlet, troutling or fry – $50,000
- The cost for acquiring the required working tools and equipment / machines / hatchery et al – $50,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The Cost of Launching an official Website – $600
- 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 three hundred and fifty thousand dollars ($350,000) to start a standard fish and seafood farming business with bias in trout farming in the United States of America.
Generating Funds/Startup Capital for New Breed® Fish Farms, LLC
New Breed® Fish Farms, LLC is owned and financed by Tony Mark and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain New Breed® Fish Farms, LLC is to ensure that we continue to make available different sizes and species of tout fishes and feeds, deliver quality services, improvise on how to do things faster and cheaper. 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 and the products they want to see in our store.
We will not waste time in adopting new technology, best practices and diversifying our services. New Breed® Fish Farms, 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 re – training of our workforce is at the top burner. 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.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money 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 farm land and building of standard fish ponds: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed fish hatchery, fish harvesting tools, and other tools and equipment: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with vendors – key players in the industry: In Progress
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