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Aquaculture
America 2006 - Meeting Abstract
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59
Putting together a business plan
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Steeve
Pomerleau*
Aquaculture/Fisheries
Center
University of Arkansas at Pine
Bluff
P.O. Box 4912
1200 N. University Drive
Pine
Bluff, AR
71601
spomerleau@uaex.edu
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In
considering an aquaculture business venture, there are a
number of important decisions to be made. This presentation is
intended to help potential producers by describing the
components of a good business plan necessary to evaluate
feasibility, estimate operating capital and secure adequate
financing. A good business plan will include: 1) a description
of the proposed site and production system, 2) a marketing
plan, and 3) a financial analysis. The financial analysis
should include: a) enterprise budget, b) estimate of required
financing, c) farm appraisal, d) balance sheet, e) income
statement, f) cash flow budget, and g) personal financial
statements.
Aquaculture is capital
intensive and will often require million of dollars. A
successful application for a loan for an aquaculture operation
must be well documented. A good business plan will help secure
adequate financing especially when lenders are not familiar
with aquaculture. Besides, adequate planning for the business
may help avoid mistakes and minimize risks associated with the
market, production and financing.
The marketing plan is often the most overlooked
component of a business plan. Many growers focus on the
technical aspects of fish production and do not spend time
considering market opportunities. Decisions on species,
harvest size, and volume should be based on a market analysis.
The most successful aquaculture businesses are those that are
market-oriented, have diverse markets, and are committed to
their customers. Profits are made by selling fish, not
producing them.
The financial
analysis will help you determine if the business will generate
enough cash revenue when expenses are due and payable. A
feasible plan will indicate potential profits, but will the
level of profit make your efforts worthwhile? Fish farming is
a great way of life but requires a great deal of preparation
and planning. A business plan is the future of the business on
paper and a way to test dreams against expected challenges and
opportunities.
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2006 World Aquaculture Society All Rights
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