Are you looking to start a shrimp farming business? here is a complete guide to starting a shrimp farming business with no money or experience .
Ok, so we’ve provided you with an example of a detailed business plan for shrimp. We also took it a step further by analyzing and writing a sample shrimp farm marketing plan backed by actionable guerrilla marketing ideas for shrimp farm businesses. In this article, we will cover all the requirements for starting a shrimp farming business. So put on your entrepreneur hat and let’s move on.
Why start a shrimp business?
If you’ve ever tried boiled, smoked, or grilled shrimp, you’ll agree that shrimp are a great addition to any culinary adventure. Shrimp is known as one of the healthiest seafood in the world and is eaten on every continent around the world. Its antioxidant and anti-inflammatory content makes it particularly desirable for people concerned about their cholesterol intake. The shrimp is classified as a sea creature and is easy to find, especially in coastal areas and along the river.
Shrimp farming is known to be a lucrative business that has grown from a small industry in most countries to a global industry. Countries like the United States, China, Japan, Thailand, and even countries in South America have been cultivating shrimp on a large scale for a long time.
If you want to get into seafood production, the good news is that you can’t go wrong with shrimp; especially if you live in coastal areas. It’s easy to get started, inexpensive to maintain, and it takes less time to get a good return on your investment if you know what to do.
Starting a shrimp farming business comes with its own challenges, but that doesn’t preclude the fact that it is indeed a lucrative business venture. A budding entrepreneur can set up a large or small scale shrimp farm, depending on their financial situation. If you want to start a shrimp farming business, check out this article.
Starting a shrimp farming business
- Industry overview
Companies in this industry grow shrimp in a controlled aquatic environment. Industrial operators use some form of intervention in the breeding process to increase production, such as capturing them and protecting them from predators, pests and disease. Ideally, shrimp farms should have temperatures above 25 ° C during production seasons.
Fish and seafood aquaculture, of which shrimp farming is a part, has developed slowly over the past half century. In fact, the vast majority of the industry’s income comes from the sale of fish, shellfish and crustaceans that will be processed into food.
The success of this industry is tied to the level of seafood consumption. Per capita seafood consumption in the United States has recently declined, putting pressure on fish and seafood producers. However, given the recent rise in seafood prices coupled with a healthy export market, industry revenues are expected to increase accordingly.
The fish and seafood aquaculture industry is growing very fast and very active in countries like United States of America, Australia, Japan, China, Germany, Singapore, etc. market in the industry, so that small fish and seafood / shrimp companies can profit from it.
Statistics show that in the United States of America alone there are around 2,807 registered and licensed fish and seafood farms (including shrimp farms) employing around 10,440 people and generating a whopping $ 1 billion. in industry per year. The industry is expected to grow by 0.3% per year.
A recent report published by IBIS World shows that the fish farming and seafood industry generated 27.4% of the income from farm-produced seafood products (including shrimp) in 2016. Shrimp are one of the popular forms of seafood eaten in the United States.
The report states that they are also relatively easy and inexpensive to grow, with little damage to the environment in which they are grown. They are primarily grown in Mississippi, Louisiana, and other parts of the Deep South, where they have been grown on farms since the 2060s.
When it comes to growing seafood shrimp and seafood shrimp, you can be sure that you are able to do some market and feasibility research and you probably won’t have a hard time selling your products. agricultural products (shrimp) because there are always food processing companies and consumers ready to buy from you
Some of the factors that motivate entrepreneurs to start their own shrimp farm may be that the business is easy to set up and they can easily get government support; in fact, you can set up your own shrimp farm in your resort if you live in a rural or farming community. All you have to do is buy your first set of shrimp, buy some shrimp farming tools, and then build your ponds.
Despite the fact that shrimp farms have been around since time immemorial, this in no way makes the industry oversaturated; Shrimp farmers are learning new technologies to continue to improve the breeding process. The fact that there is always a ready market for shrimp and other seafood makes the business even greener.
Other than that, there are few barriers to entry into the shrimp industry. Usually all input data is readily available. In the near future, players in this industry may face the highest costs associated with access to technology, especially with regard to the development of genetic modifications in seafood farming.
Start of market studies for the shrimp farming activity and feasibility studies
- Demography and psychography
The demographic and psychographic makeup of those who consume shrimp is not limited to a group of people. People of different races and cultures consume shrimp, so the market covers it all.
So if you want to define the demographics of your shrimp farming business, you have to cover it all. It should include households, hotels, restaurants and businesses that depend on shrimp supplies.
List of niche business ideas you can specialize in
There is no niche in the shrimp farming industry, everyone in the industry only grows shrimp, but some may decide to go into the processing and packaging of shrimp rather than sell them directly to grocery stores or farmers markets.
So if you want to start your own shrimp farming business, you need to clearly define your market so that you know how to get your shrimp to them.
Level competition in the fish and seafood industry
No matter what industry you decide to pitch your tent in, you will always be competing with others in the same industry and prawn farming. is no exception.
The level of competition in the shrimp industry depends to some extent on the location of the facility and, of course, the capacity of your shrimp farm. If you successfully add shrimp processing and packaging to your shrimp farming business, you probably won’t face little or no competition.
For example, if you are the only shrimp farm in your area that process and package shrimp, you may be successful in monopolizing the market for a long time before competitions start.
It is also important to note that competition in the shrimp industry depends on the scale of your shrimp. The United States has shrimp farms that compete with global shrimp farms, and the United States has shrimp farms that can only compete locally.
List of famous brands in Shrimp Farm
In all sectors, there are always brands that perform better or are better perceived by buyers and the general public than others. Some of these brands are the ones that have been in the industry for a long time and are therefore known for it, while others are mainly known for the way they treat their customers.
These are some of the major shrimp farms in the United States of America and around the world;
- Blue Ridge Aquaculture, Inc.
- Woods Fisheris Port St. Joe, Florida
When you start a shrimp farming business, you just need to do the right economic cost analysis if you want to start a for-profit business, grow your business and eventually grow your business and start exporting processed and packaged shrimp in. your country and other countries around the world.
When doing a cost estimate and an economic analysis of your shrimp farming business, all you need to do is critically examine these key factors; market access, access to cheap labor and, of course, good weather conditions. In fact, you will need to regularly review these key factors when running a shrimp farming business. As a shrimp farm owner, you just need to have a good competitive landscape if you are to truly maximize profits and be at the forefront of the industry.
It is important to note that medications / treatments and the cost of feed are one of the most important factors in the overall value of a shrimp farming business and should be considered a major factor in your cost analysis. and the economy.
Start your shrimp farming business from scratch or buy a franchise
When it comes to starting a business like this, you have to pay from scratch rather than buying a franchise. In addition, according to the available research, there is no fully operational shrimp farm in the United States of America that is franchised; most of the players in this direction adopt strategies that will help them sell their shrimp outside of the city, state or country where their farms are located in other parts of the world, rather than selling a franchise.
Also, it is easier to start and run a zero to profit shrimp farm without using a well-known brand name. People will patronize your shrimp based on availability and price rather than relying on the brand name. Note that most of the large, successful shrimp farms started from scratch and were able to build a strong business brand. Success in business requires dedication, hard work and determination.
Threats and potential challenges you will face when starting a shrimp farming business
If you decide to start now, in your own shrimp farming business, one of the main challenges you are likely to face is having well established farms in your target market. The only way to avoid this problem is to create your own market; focus on households, individuals and small restaurants and hotels that need shrimp.
The global economic downturn, which can negatively impact household spending, inclement weather including natural disasters (droughts, epidemics), adverse government policies and arrivals, are other threats and challenges you may be facing. faced when starting your own shrimp farming business. a competitor (a shrimp farm or even a fish and seafood farm that also grows shrimp) in the same location. There is hardly anything you can do when faced with these threats and challenges, other than being optimistic that everything will continue to work for you.
Take legal action in the field of shrimp farming
- Best Legal Entity To Use In A Shrimp Farming Business
When considering setting up a standard shrimp farming business, the entity chosen will go a long way in determining the scale of development of the business.
Usually, you can choose one of them. a limited liability partnership, a limited liability partnership commonly known as LLC or a sole proprietorship for a business such as Shrimp. Usually, the sole proprietorship should have been the ideal business structure for small scale farming, especially if you are starting out with moderate start-up capital. But people prefer a limited liability company for obvious reasons.
In fact, if you are planning to expand your business and sell shrimp across the United States of America, choosing a sole proprietorship is not an option. for you. A limited liability company, LLC, or even a general partnership will do this for you.
LLC training protects you from personal liability. If something is wrong with the business, only the money you invest in the limited liability company is at risk. This is not the case for the sole proprietorship and the general partnership. Limited liability companies are simpler and more flexible to manage, and you don’t need a board of directors, shareholder meetings or other management formalities.
Eye-catching business name ideas suitable for a shrimp farming business
As a general rule, when it comes to choosing a name for your business, you have to be creative, because whatever name you choose, choosing your business will go a long way in creating a perception of what it is. ‘business. It’s usually normal for people to follow a trend when naming their business.
If you are thinking of starting your own shrimp farming business, here are some catchy names you can choose from;
- Zach Brownstone Shrimp Farms Ltd
- Cross Kent Krevet Farms, LLC
- Dallas Sons Seafood, Inc.
- Victor Acapus Shrimp Farms Ltd.
- Richard Dabber® Prawn Farms, LLC
- Yodel Nest Shrimp Farms Ltd.
- Agnes West Seafood, Inc.
- R Samson Shrimp Farms, Inc.
- Mike Townsend Seafood, Inc.
- Gateway Shrimp Farms, LLC.
In the US and most countries around the world, you can’t run a business without some of the basic insurance policies required by the industry you want to work in. As such, it is imperative to create an insurance budget and possibly consult an insurance broker to help you choose the best and most suitable insurance policies for your shrimp farming business.
Here are some of the basic insurance policies that you should consider when buying if you want to start your own shrimp farming business in the United States of America;
- General insurance
- Health insurance
- Liability insurance
- Animal mortality insurance
- Insurance of agricultural equipment and vehicles
- Commercial agri-food insurance
- Workers compensation
- General disability insurance
- Group insurance for business owners
- Payment protection insurance
Protection of intellectual property / trademark
If you are planning to start your own shrimp farming business, you generally will not need to apply for IP / Trademark protection. This is because the nature of the business allows you to successfully run your business without any reason to challenge anyone in court for illegal use of your business intellectual property.
But if you just want to protect your company logo and other documents or software that are unique to you, or even manufacturing concepts, you can file for intellectual property protection. If you want to register your trademark, you must begin the process by filing an application with the USPTO. Final approval of your trademark is subject to legal review as required by the USPTO.
Do i need professional certification to run a shrimp farming business?
You should strive to obtain all the required certifications in your area of specialization. We strongly recommend that you obtain professional certification, as it will show your commitment to the business.
Here are some of the certifications you can look for if you want to run your own shrimp farming business. ;
- ASC certification
- Membership of the Society of Aquaculture Professionals (SAP)
Note that the average local suburban shrimp farmer in the United States is not certified, which in no way prevents them from growing their shrimp farms to enviable heights.
List of legal documents required to run a shrimp business
The essence of having the necessary documentation before starting a business in the United States of America cannot be overstated. It is a known fact that you cannot conduct a successful business in the United States without proper paperwork. If you do, it won’t be long before the long guns of the law catch you.
Here are some basic legal documents you need to have in place if you want to legally operate your own shrimp farming business in the United States of America.
- Business and liability insurance
- Commercial vehicle operator registration for a distribution truck
- Appropriate driving license for drivers
- Assistant licenses for assistants
- Medical examination certificate
- Proof of ownership, correct identification and license of the vehicle
- taxpayer ID
- Fire certificate
- Registration certificate
- Business license
- Business plan
- Non-disclosure agreement
- Employment contract (letters with proposals)
- Employee Handbook
- Operating Agreement for LLC
- Agricultural agreement
- Operating Agreement for LLC
- Insurance policy
Financing a shrimp business
Setting up a standard, well-equipped shrimp farm can be critical, especially if you decide to run a large shrimp farm with the capacity to supply shrimp outside of your immediate community. Securing large farmland, building well-protected ponds and providing food, purchasing your first set of prawn and juvenile shrimp farming tools / equipment is some of what will require a significant chunk of your start-up capital, but if you decide to start small, you may not need to find a source of funding to fund the business.
Without a doubt, when it comes to financing a business, one of the first and perhaps the main factors to consider is writing a good business plan. If you have a good, achievable business plan document, you might not have to work hard before convincing your bank, investors, and friends to invest in your business.
Here are some of the options you can explore when finding seed money for your shrimp business;
- collect money from personal savings and sell personal stocks and property
- raise funds from investors and business partners
- Sale of shares to interested investors
- Apply for a loan from your bank / banks
- Submit your business idea and apply for business grants and seed funding from government and donor organizations. and angel investors
- Source of loans on favorable terms from your family and friends.
Choosing the right location for your shrimp farming business
Starting a shrimp farming business comes with its own challenges; it is a business that cannot be located anywhere that you choose. In fact, you will not be allowed to open a shrimp farm in a residential complex in the United States of America, Canada, United Kingdom, and Australia. You can only allow the installation of a shrimp farm in an area dedicated to shrimp farms, and generally around coastal or marshy areas.
It cannot be overstated that the location you choose to build your shrimp pond is key to the success of the business, so contractors are ready to rent or lease a facility in a visible location; a location where the demographics are people with the requisite purchasing power and a location with minimal predators and suitable climates for the types of shrimp you intend to breed.
If you’ve made the mistake of renting or leasing farmland for your shrimp farm in a predation-prone location and poor climates just because it’s cheap, then you should be prepared to spend more to protect your shrimp and welcome potential customers. …
Getting started on a peasant farm Information on technical staff
When it comes to setting up a standard shrimp farm, you need to build both safe and standard ponds (indoor or outdoor), provide enough water, buy shrimp pickers, multi-functional shrimp pump and other tools. shrimp / seafood. This equipment can be purchased as fair use if you are on a tight budget.
When it comes to choosing between leasing and leasing land for your shrimp farm, the size of the shrimp farm you want to own and yours The overall budget of a business should influence your choices. have enough capital to run a fairly large and well-equipped shrimp farm then you should consider a long-term lease or an appropriate purchase of farmland; When you lease or buy farmland, you will be able to work with long term planning, structuring and expansion.
When it comes to how many employees you’re supposed to start a business with, you’ll need to consider your finances before making such a decision. On average, when it comes to a large-scale start-up of a standard shrimp farm, you will need the services of the following specialists; COO (you can take this position), farm general manager, accountant / cashier, sales and marketing manager, field staff, cleaners and security guards.
Additionally, you will need at least 5-10 key employees to effectively run a medium to standard sized shrimp farming business. Please note that there will be times when you will need to be able to hire experts to help you with certain job responsibilities. If you are just starting out, you may not have the financial capacity or the business structure to retain all of the professionals expected to work with you, so you should plan to partner with the veterinary clinics around you.
Service process in shrimp farming process
When it comes to operating a shrimp farm, the process is simple and straightforward; in fact, a shrimp farm can operate successfully on autopilot with little or no owner supervision.
Basically, when the ponds and necessary conditions have been established and the young shrimp have been placed inside, then every morning, evening and possibly after lunch the shrimp are fed and once in a certain period the pond water is changed.
Once the shrimp are ripe, they are harvested using the shrimp. harvesters and then sold to buyers, or they are sent to farmers’ markets or hotels and restaurants, etc. as requested.
Create a shrimp farm
- Marketing ideas and strategies
As a shrimp farmer, you need to prove that you have the ability not only to operate a shrimp farm, but also to supply shrimp in commercial quantities. and on an ongoing basis. So, if you are planning to start your own shrimp farming business, you will need to build your capacity first before looking for shrimp suppliers for large hotels or food processing and packaging companies that need shrimp. from shrimp farms.
The fact that the barrier to entry to starting a small-scale shrimp farming business is low means there must be more players in the industry no matter where you choose your location. Basically, you have to find creativity and innovation if you need to create a market for yourself in the market available in your community, city, state, or country.
So, when developing marketing plans and strategies for your shrimp farming business, make sure you create an attractive personal and business profile. In addition to your qualifications and experience, it is important to be clear about what you have been able to accomplish in the meantime, regarding the industry in which you are going to start your business. This will help you increase your chances in the market when selling shrimp.
Please note that in most cases when offering a supply of shrimp from hotels or food processing and packaging companies that need shrimp, you will be encouraged to defend your proposal and therefore you should be very careful. good at presentations.
Here are some of the platforms you can use to promote your shrimp farm and its products;
- Introduce your business by sending cover letters with your brochure to households, hotels, restaurants, food processors and food businesses that use shrimp, grocery stores and related businesses in the United States (if you are just starting out , you may want to focus on startups and small businesses).
- Effectiveness of tendering for shrimp supply contracts, etc.
- Open a shrimp farm with a batch to attract the attention of the residence, which are your first goals
- From time to time take roadshows to targeted communities to sell your shrimp.
- Promote your shrimp in community newspapers, local TV and radio stations.
- List your business and products in the yellow page classifieds (in local directories).
- Take advantage of online leverage to promote your shrimp farm.
- Involved in direct marketing, advertising and sales.
- Encourage the use of word of mouth (referrals) marketing.
- Use the internet to promote your business (When you blog regularly on key business issues, people will see you as an expert in this area.
- Join local chambers of commerce around you for the primary purpose of networking and marketing your products; Most likely, you will receive referrals from these networks.
- Use the services of marketing managers and business developers to do direct marketing for you.
Strategies to Boost Shrimp, Build Brand Awareness and Strengthen Your Business Identity
No matter what industry you belong to, the truth is that the market is dynamic and requires continuous brand awareness and promotion to continue to attract your target market. Your corporate identity has a lot in common when it comes to building a profitable and sustainable business.
Here are the platforms you can use to build your brand awareness and brand identity for your shrimp farming business;
- Place advertisements both in print media (newspapers and magazines) and on electronic media platforms
- sponsor relevant social events / programs
- use on the Internet and social networks such as; Instagram, Facebook, Twitter, YouTube, Google +, etc. To promote your business
- Set up bulletin boards at strategic locations in the city or state
- From time to time take part in roadshows in targeted areas
- Distribute leaflets and flyers in targeted areas
- Contact households, hotels, restaurants, food processors and producers who use shrimp, grocery stores and related businesses in your area. target areas by calling them and letting them know about your shrimp farm
- List your shrimp farm in local directories / yellow pages
- Promote your shrimp farms on your official website and implement strategies that will help drive traffic to your site.
- Make sure all of your employees wear your branded shirts and have your company logo and more on all of your cars and trucks.