February 15-18, 2009 Washington State Convention Center Seattle ...

PUTTING TOGETHER A BUSINESS PLAN
Steeve Pomerleau
Aquaculture/Fisheries Center
University of Arkansas at Pine Bluff
Mail Slot 4912
1200 North University Drive
Pine Bluff, AR 71601 USA
spomerleau@uaex.edu
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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