business ideas: Freshwater aquarium fish breeding business plan

* The calculations use the average data for the World

1. SUMMARY OF THE PROJECT

This business plan considers a project for breeding freshwater aquarium fish at home with a view to their subsequent implementation in a city with a population of more than 1 million people and profit. Private aquarists, as well as pet shops, aquarium shops, etc. will become sales channels. Fish will be sold both through an online store and through a non-stationary outlet in the bird market.

To implement the project, it will be necessary to purchase aquariums of various sizes and other equipment necessary to ensure their livelihoods, to purchase fish, as well as food for several months. The advantage of the project is the absence of expenses for rental and repair of the premises, the need for hiring staff and special education. In fact, the business will have a family format and represent a source of additional income.

The volume of investments in the project is 468.9 thousand rubles. The payback period is 23 months. The preparatory period before the start of sales will take 4 months, which are necessary for growing fish for sale.

2. DESCRIPTION OF THE INDUSTRY AND COMPANY

Freshwater aquarium is a popular hobby among people of different ages. The demand for aquarium fish is highest in the United States and European countries, where the aquarium fish trade industry is well developed. One of the main industry trends that has been noted by aquarists in recent years is the trend for marine aquariums. However, in Russia it is less pronounced due to the lower awareness of amateurs and the unwillingness to raise sea fish. Often, instead of exotic, the majority of the population prefers small and widespread freshwater species of ornamental fish, which do not require any serious efforts to service them.

Due to the fact that the cultivation of aquarium fish in Russia for the most part is a shadow business, which is often a way of additional income for the population, it is difficult to provide any reasonable statistics on it. According to the Federal State Statistics Service, as of July 10, 2016, 2139 firms were registered for OKVEDs related to fish farming in general, of which 201 companies chose OKVED on 08/18/2019 “Reproduction of fish and aquatic biological resources by non-agricultural producers”. However, these figures are unlikely to reflect the actual number of those involved in the cultivation of aquarium fish.

We can only talk about the number of Russians who have aquarium fish at home, only approximately. According to surveys of VTsIOM (2010), Levada Center (2014) and NAFI (2016), about 4%, 6% and 3% of the population, respectively, have aquarium fish as “pets”. That is, according to various sources, there are fish at home from 4.4 to 8.8 million Russians. Aquarium fish are in the greatest demand in such cities as Moscow, St. Petersburg and in other million-plus cities with the largest number of solvent audiences.

This project consists in organizing a business for breeding freshwater aquarium fish at home with a view to their subsequent implementation in a city with a population of more than 1 million people and profit. Aquarium fish farming will be a family business and a source of additional income. The main responsibilities will be assigned to the initiator of the project, registered as an individual entrepreneur and previously having experience in the aquarium industry. Support work will be carried out by family members of the initiator.

Aquarium fish farming will be organized in one of the rooms of a private home, for which aquariums of various sizes and the necessary equipment will be purchased. Distribution channels will be private aquarists, as well as pet stores, aquarium shops, etc. Fish are planned to be sold through an online store, as well as through a non-stationary outlet in the bird market.

To implement the idea you will need to go through the following steps:

to acquire equipment and compactly organize a space for activities;
make installation of aquariums;
to get fish and food supply;
create an online store;
post information about yourself on the Internet and social networks;
fish farming for stable sales organization;

The preparatory period will be 4 months. The preparatory period does not take into account the professional training of the project initiator (taking aquarium courses, reading specialized literature and so on), since it is assumed that the experience of breeding aquarium fish in small volumes was carried out earlier.

The volume of starting investments will amount to 468.9 thousand rubles. Items of initial costs are set out in Table. 1 business plan. Return on payback is expected for 23 months of work. The start of sales is scheduled for September 2017. Thus, the advantages of the project include: the absence of expenses for rental and repair of the premises, the absence of the need to hire personnel in connection with the family format of the business, as well as the receipt of special education or any qualifications.

Table 1. Investment costs of the project

No.	NAME	AMOUNT, rub .
Equipment
one	Purchase of aquariums and equipment	347350
2	Purchase of plants and soil	41100
Intangible assets
3	Website creation	30000
Current assets
four	Aquarium fish purchase	40500
five	Feed purchase	10, 000
Total:		468950

3. DESCRIPTION OF GOODS AND SERVICES

For breeding, the most popular fish will be selected. When choosing the assortment, the demand in the city’s pet stores was analyzed and the most popular types were identified. The company will operate in the middle price segment. In Tab. 2 of the business plan presents an indicative price list for all types of fish planned for implementation (retail). In the future, the store’s assortment can be expanded by selling rarer fish species, as well as providing services for cleaning aquariums, producing algae, invertebrates, live food, etc.

Table 2. Price list

No.	KIND OF AQUARIUM FISH	Cost, rub.
Cichlids
one	Libidochromeis Yellow	220
2	Nimbochromis Venustus	180
3	Marmalade Zebra	120
four	Aulonokara multicolor	150
five	Aulonocara Orchid	130
6	Pseudotrophyus demasoni	100-280
7	Pseudotrophyus Zebra Orange	100-280
eight	Haplochromis cornflower blue	150-460
9	Aulonocara Bensha yellow	150-460
ten	Angelfish	110
eleven	Nannakara Neon	110
12	Parrot fish	250-900
13	Apistogram Ramirezi	140
Somiki
14	Antsistrus	90
15	Speckled corridor	70
sixteen	Golden corridor	60
17	Platidoras striped	160
18	Taracatum	80
Loach
20	Botsia clown	310
21	Botsia Lokahata	160
Viviparous
22	Guppy	60
23	Mollynzia	50
24	Red pecilia	60
25	Swordsman Red	70
26	Black swordsman	110
Characin, tetra, analysis
27	Neon blue	40
28	Neon red	70
29th	Neon black	50
thirty	Terence	50
31	Rhodostomus	70
32	Tetra firefly	55
33	Cardinal	45
34	Cuneiform parsing	65
Iris
35	Iriaterina Werner	120
36	Glossolepis Red	300
37	Boesman rainbow	150-310
38	Neon iris	60-90
Labyrinth
39	Gourami pearl	70
40	Cockerel	180
41	Marble gourami	60
42	Lyalius	120
Barbuses, danios, labeos, goldfish
43	Shark Ball	140
44	Oranda	90
45	Veiltail	80
46	Sumatran barbus	55
47	Barbus chinese green	55
48	Fire barbus	65
49	Cherry Barbus	50
50	Labeo Bicolor	130
51	Danio leopard	50
52	Danio pink	thirty

When fulfilling orders through the online store, all the necessary transportation requirements will be taken into account, taking into account the specific features. Before shipping, the fish will be packed in plastic bags with water, where special preparations will be added, air, oxygen or air-oxygen mass will be pumped. Then the bags will be packed in foam boxes, which will help maintain the desired temperature inside. For shipping in the winter, special heating bags will be placed in the boxes.

4. SALES AND MARKETING

The largest number of potential customers live in cities with over one million people. If the audience is rather motley in terms of age and sex, then in terms of income these are people with a level of earnings of “average” and “above average”. As noted in the Levada Center, aquarium fish are mainly brought up by entrepreneurs (11%), employees, pupils and students (10% each) and, in general, Russians under the age of 25 (11%), with high consumer status (10%) and Muscovites (12%). This can be explained by the fact that the presence of their own aquarium is perceived by people as an indicator of stability and well-being. Most often, people who have their own housing and are not going to move out of it decide to buy an aquarium and fish. The same can be said of companies that decide to start an aquarium with fish in their office: they are bought by firms that are firmly on their feet.

If we proceed from the polls given in paragraph 2 of the business plan, then in a city with a population of more than 1 million people there are more than 30-60 thousand owners of aquarium fish. Most of the population (about 42% according to surveys on specialized sites) usually prefers to breed fish in small aquariums up to 60 liters, the remaining 36% and 18% are in aquariums with volumes of 80-180 liters and more than 180 liters, respectively. Aquarium fish will be sold directly to private aquarists and through intermediaries - pet stores, aquarium shops, etc. Fish will be sold both through the online store, and with the help of a non-stationary outlet in the bird market of the city. When selling fish to wholesale customers, prices will depend on the volume of purchases.

Particular attention will be paid to the competent presentation of information about yourself on the Internet and the creation of an online store with high conversion. Due to the fact that private aquarists often look for any specific type of fish for their aquarium, their name, cost, indication of presence / absence at the moment, as well as a photograph of each species will be clearly indicated. It is planned to advertise on free classified sites and on aquarium forums, conduct groups on social networks.

There are 6 main competitors in the city market. An analysis of their strengths and weaknesses is given in table. 3 of this business plan. It is worth noting that this type of business has a seasonality with a decline from March to August and growth from August to December.

Table 3. Competitor analysis

Competitor	Price segment	Strengths	Weak sides
"Live fish"	Average	A wide selection, the presence of exotic species of fish, crayfish, shrimp, newts, amphibians, frogs, snails + sale of feed, decorations, plants, equipment, drugs, the ability to pay by card, shipping in Russia	Distance from the city, a site with incomprehensible navigation
"Tailed trifle"	Below the average	A wide selection of popular fish species, the presence of our own stationary store, aquarium cleaning services	Seller complaints and service
"Gold fish"	Average	Good promotion, quality design print ads	Narrow assortment, emphasis on several types of fish
"Fish base"	Below the average	Wide range of	Bad reputation in the market, inconsistency of information on the site with real prices
"Aqua Monsters"	Tall	Rare fish species for sale, talented website, central location	Explicitly high prices, calculation for the premium segment and one-time sales
“Aquariumu Mystic”	Average	A wide range, extensive experience in the market, the presence of regular wholesale customers, blogging by the business owner	Claims for high fish mortality in shipping

5. PRODUCTION PLAN

For breeding aquarium fish will be used one of the premises with an area of 30 square meters. meters of private private home area. The room is heated, there is electricity and water sources. For breeding aquarium fish, it will be necessary to purchase aquariums of various volumes for the maintenance of various species, including aquariums for young animals and spawning aquariums, as well as appropriate equipment. The cost of the required is given in Table. 4 of this business plan.

Table 4. List of equipment

No.	Name	Cost, rub.
one	Aquariums, volume 250 liters.	106000
2	Aquariums of medium and small volumes (for spawning, young stocking)	24000
3	Compressors (200-300 liters)	8000
four	Compressors (up to 100 l.)	2750
five	External filters (up to 100l)	23500
6	External filters (for 200 l and more)	95000
7	Lamps	18000
eight	Lamps	3500
9	Temperature controllers	22000
ten	Temperature controllers	7500
eleven	Thermometers	3600
12	Curbstones, view 1 (metal frame)	17000
12	Curbstones, view 2 (metal frame)	6500
14	Other	347350
Total:		347350

In addition to the above, you will need soil (25, 200 rubles) and plants (15, 900), necessary for the normal existence of the biosystem. Fish will be placed taking into account species features and species compatibility among themselves. In fig. 1 shows the compatibility table of freshwater aquarium fish. Details on the financial component of the project are in clause 7 and Appendix 1 of the business plan.

Figure 1. Compatibility of freshwater aquarium fish

6. ORGANIZATIONAL PLAN

Aquarium fish farming will be a family business and a source of additional income. The main responsibilities will be assigned to the initiator of the project, registered as an individual entrepreneur. Support work (cleaning aquariums, feeding, etc.) will be carried out by members of the initiator's family. In this regard, there is no need for hiring staff.

7. FINANCIAL PLAN

The volume of investments in the project will amount to 468 950 rubles. Starting cost items are given in Table. 1. In the calculations in this business plan, it was decided to proceed from the pessimistic forecast of sales: in a monthly volume of 40, 000 rubles. during the first year of work (from 4 months), 50, 000 rubles. - in the second year of work, 65, 000 rubles. - in the third year of work. Fixed costs are given in Table. 7. The variable costs will include selling expenses, including packaging, transportation, etc. Financial calculations are given in Appendix 1. The payback period in this case will be 23 months.

Table 7. Fixed costs of the enterprise

No.	NAME	Amount in months, rub .
one	Electricity (with 12 hours of operation of devices with a total power of 2261 W and a price of 1 kW - 3.5 rubles)	5700
2	Rent a trading place	3000
four	Leading a group in social networks, website hosting	1500
five	Stern	1500
Total:		11700

8. RISKS AND WARRANTIES

Possible risks of the aquarium fish breeding project are given in Table. 9 business plan.

Table 9. Possible risks and ways to prevent them or their consequences

Risk factor	Probability of occurrence	Severity of consequences	activity
Low profitability	average	low	Conducting this business as an additional source of income, maintaining social networks, website development, expanding sales markets and product range
Financial loss due to high fish mortality	average	high	Creation of all conditions for a stable life of the biosystem (temperature, water purity, oxygen level, etc.), the study of specialized literature, the correct selection of fish neighbors, taking into account the natural mortality of fry (above 20-30%)
Losses of fish during transportation	high	average	Compliance with transportation requirements taking into account specific features