Do you want to start a pearl farm and need to write a business plan? If YES, here is a sample pearl farming business plan template & FREE 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 because you can successfully start a pearl farming business.
Interestingly, all shelled mollusks can, by natural processes, produce some kind of “pearl” when an irritating microscopic object becomes trapped within its mantle folds, but the great majority of these “pearls” are not valued as gemstones.
Nacreous pearls, the best-known and most commercially significant, are primarily produced by two groups of molluskan bivalves or clams. A nacreous pearl is made from layers of nacre, by the same living process as is used in the secretion of the mother of pearl which lines the shell. Pearl farming business is indeed a big business because it requires moderate capital base and technical skills to be able to start and manage it
A Sample Pearl Farming Business Plan Template
1. Industry Overview
Wikipedia define pearl has a hard, glistening object produced within the soft tissue (specifically the mantle) of a living shelled mollusk or another animal, such as fossil conulariids. Just like the shell of a mollusk, a pearl is composed of calcium carbonate (mainly aragonite or a mixture of aragonite and calcite) in minute crystalline form, which has been deposited in concentric layers.
The ideal pearl is perfectly round and smooth, but many other shapes, known as baroque pearls, can occur. The finest quality of natural pearls has been highly valued as gemstones and objects of beauty for many centuries. Because of this, pearl has become a metaphor for something rare, fine, admirable and valuable.
Fine quality natural pearls are very rare jewels. The value of the pearls in jewelry is determined by a combination of the luster, color, size, lack of surface flaw and symmetry that are appropriate for the type of pearl under consideration.
Among those attributes, luster is the most important differentiator of pearl quality according to jewelers. All factors being equal, however, the larger the pearl the more valuable it is. Large, perfectly round pearls are rare and highly valued. Teardrop-shaped pearls are often used in pendants.
Pearl farming business is niche idea in the Fish and Seafood Aquaculture industry and this 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 include 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 sales 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 companies 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 shares of the available 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 pearl farming business.
One thing is certain about starting pearl farming business, if you are able to conduct your market research and feasibility studies, you are not going to struggle to sell your pearls because there are always jewelry manufacturers, garden pool and aquarium builders and sellers out there who are ready to buy from you.
2. Executive Summary
Precious Jewels® Pearl Farms, LLC is a world – class and licensed Fish and Seafood Aquaculture Company with strong bias for pearl farming and will be based in a riverine area in Clearwater Beach – Florida. We have done our detailed market research and feasibility studies and we were able to secure twenty hectares of aquatic land with fresh water to start our pearl farming business.
Precious Jewels® Pearl Farms, LLC is well positioned to become one of the leading pearl farming businesses 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 processes and strategies in place that will help us employ best practices when it comes to pearl farming as required by the regulating bodies in the United States of America.
At Precious Jewels® Pearl 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.
Precious Jewels® Pearl Farms, LLC is a private registered pearl farming company that is owned by Sharon Anthony and her immediate family members. The pearl farming business will be financed by Sharon Anthony and her immediate family members at least for a period of time. Sharon Anthony has a degree in Fishery and over 8 years of hands on experience in the fish and seafood aquaculture industry and also in the jewelry making industry.
3. Our Products and Services
Precious Jewels® Pearl Farms, LLC is a standard pearl farming company that is committed to raising shelled mollusk and fossil conulariids for the purpose of producing pearls for both the United States’ market and the global market.
We are in the business 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, aim and objectives. These are the areas we will concentrate on in our pearl farming business;
- Raising shelled mollusk and fossil conulariids and harvesting pearls
- Supplying different types and sizes of pearls
4. Our Mission and Vision Statement
- Our Vision is to establish Precious Jewels® Pearl Farms, LLC as the premier pearl farming business in Clearwater Beach, Florida while maintaining an unwavering dedication to our customers, workforce, partners, values and principles.
- Precious Jewels® Pearl Farms, LLC is a world class and registered pearl farming company that is committed to raising shelled mollusk and fossil conulariids and producing pearls for both the United States’ market and the global market. We want our pearls to flood the nooks and crannies of the United States and other countries of the world.
Our Business Structure
Precious Jewels® Pearl Farms, LLC is a privately owned and managed pearl farming business that intends starting small in Clearwater Beach – Florida, but hope to grow big in order to compete favorably with leading pearl farming companies in the industry both in the United States and on a global stage. 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 Precious Jewels® Pearl 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 Pearl Farm Manager
- Human Resources and Admin Manager
- Accountant/Cashier
- 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 Pearl Farm Manager
- Responsible for the planning, management and coordinating all pearl farm activities
- Supervise other section manager
- Ensure compliance during project execution
- Providing advice on the management of farming activities across all section
- Responsible for carrying out risk assessment
- Using IT systems and software to keep track of people and progress of the growth of shelled mollusk and fossil conulariids in our ponds
- Responsible for overseeing the accounting, costing and sale of the pearl farming produce
- Represent the organization’s interest at various stakeholders’ meetings
- Ensures that farming goals desired result are achieved, the most efficient resources 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.
Accountant/Cashier:
- 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 contacts
- 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
- Develop, execute and evaluate new plans for expanding increase sales
- 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 feeding shelled mollusk and fossil conulariids as instructed by the supervisor
- Responsible for cleaning the ponds and the entire pearl farming environment
- Handles pearl farming implements and machines (hatchery) as instructed by the section manager/supervisor
- Responsible for harvesting pearls as at when due
- Handles any other duties as assigned by the line manager.
Front Desk/Customer’s Service Officer
- Welcomes/receive clients by greeting them in person or on the telephone; answering or directing inquiries.
- 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
Precious Jewels® Pearl Farms, LLC do 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 pearl farming company that will favorably compete with leading players in the Fish and Seafood Aquaculture 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 pearl farming company with strong bias in pearl farming that can favorably compete in the highly competitive fish and seafood aquaculture industry in the United States.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Precious Jewels® Pearl Farms, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Precious Jewels® Pearl Farms, LLC;
- Strength:
Our strength as a pearl farming company is the fact that we have healthy relationships with loads of major players within and outside of the United States of America.
We have some of the latest hatchery, tools and equipment that will help us raise and produce pearls 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 Clearwater Beach – Florida on our payroll.
- Weakness:
Our weakness could be that we are a new pearl farming company in the United States, and perhaps it might take us sometime to attract big time customers who are major contractors. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business.
- Opportunities:
The opportunities that are available to us as a standard and world – class fish and seafood farming company with strong bias for pearl farming cannot be quantified, we know that there are loads of jewelry and crown makers, and businesses such as interior decorators and aquarium construction and sales companies that can’t do without daily supply of pearls. We are well positioned to take advantage of this opportunity
- Threat:
Some of the threats and challenges that we are likely going to face when we start our own pearl farming company are global economic downturn that can impact negatively on industrial spending, bad weather cum natural disasters, unfavorable government policies and the arrival of the production of imitation pearls (artificial pearls) within same location.
7. MARKET ANALYSIS
- Market Trends
Pearl farming business has steadily remained relevant over the years as jewelry makers depends heavily on the supply of different types of pearls from pearl farmers to produce their jewelries. So also, interior decorators and those that are in the business of manufacturing ponds and garden pools usually make use of colorful pearls to decorate the ponds.
Another notable trend in the industry is that with the recent advancement in technology, pearl farms cum fish and seafood farmers can now comfortably predict and produce the quantities of pearls they want to produce per time. Lastly, there is a rise of imitation (artificial) pearls in recent time.
Some imitation pearls (also called shell pearls) are simply made of mother-of-pearl, coral or conch shell, while others are made from glass and are coated with a solution containing fish scales called essence d’Orient. Although imitation pearls look the part, they do not have the same weight or smoothness as real pearls, and their luster will also dim greatly.
8. Our Target Market
In the United States of America and of course in most countries of the world, people make use of jewelries that are made from pearls and people also keep colorful pearls as collections in decorating their house of offices. This goes to show that if a pearl farming business is well positioned, then they will continue to sell their products to a wide range of clients on a regular basis.
In view of that, we have positioned our pearl farming business to supply to businesses and the residents of Clearwater Beach – Florida. We have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to sell and supply different colors, sizes and shapes of pearls to;
- Jewelries and crowns manufacturing companies
- Interior decorators/companies
- Schools (For biology labs)
- Aquariums and Garden Pools construction companies
Our Competitive Advantage
It is easier to find entrepreneurs flocking towards an industry that is known to generate consistent income which is why there are increase number of pearl farmers in the United States of America.
Precious Jewels® Pearl Farms, LLC is fully aware that there are competitions when it comes to selling pearls, 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.
Another competitive advantage that we are bringing to the industry is the fact that we have healthy relationships with loads of major players that are into the construction and sale of aquariums, garden pools and merchants; both suppliers of fish and seafood feeds and medications and buyers of pearls within and outside of the United States of America.
We have some of the latest shelled mollusk and fossil conulariids farming hatchery, tools and equipment that will help us raise and produce ornamental fishes 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 Clearwater 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
- Sources of Income
Precious Jewels® Pearl Farms, LLC is in the fish and seafood aquaculture 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 Precious Jewels® Pearl Farms, LLC;
- Raising shelled mollusk and fossil conulariids and harvesting pearls
- Supplying different types and sizes of pearls
10. Sales Forecast
From the studies and the survey conducted, we were able to discover that the sales generated by a pearl farming business depends on the size of the pearl 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 year of operation and build the business from survival to sustainability within 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 Precious Jewels® Pearl Farms, LLC, it is based on the location of our pearl farm and of course the different colors, sizes and shapes of pearls that we will be cultivating;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $550,000
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.
- Marketing Strategy and Sales Strategy
Our sales and marketing team will be recruited based on their vast experience in the fish and seafood 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 Precious Jewels® Pearl Farms, LLC.
We have perfected our sale and marketing strategies first by networking with pearl merchants and businesses that rely on daily supply of pearls who are likely to become our customers. In summary, Precious Jewels® Pearl 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 jewelry industry, aquariums and garden pools construction companies and pearl merchants et al.
- Advertise our business in jewelry, interior decoration and aquariums related magazines and websites
- List our business on yellow pages ads
- Attend related pearl farming 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 ornamental fishes and aquariums
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 pearl 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, Pinterest, Google+ and other platforms to promote our business.
- 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 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 loads of customers for our pearls is to sell them at competitive prices hence we will do all we can to ensure that the prices of our pearls are going to be what other pearl farmers would look towards beating.
One thing is certain, the nature of pearl farming business makes it possible for pearl farmers to place their price 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.
We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both smaller and big – time jewelry companies means that we will have different price range for different category of clients. 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 Precious Jewels® Pearl 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 Precious Jewels® Pearl 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 our pearls without any stress on their part.
13. Startup Expenditure (Budget)
Below are some of the basic areas we will spend our startup capital in setting up our fish and seafood farm;
- The total fee for incorporating the business in United States of America – $750.
- The amount needed to acquire/lease a aquatic farm land – $50,000
- The amount required for preparing the farm land (fish ponds and fresh water supply et al) – $30,000
- 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 Precious Jewels® Pearl 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 shelled mollusk and fossil conulariids (fingerlings), feeds and medications – $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 four hundred and fifty thousand dollars ($450,000) to start a standard pearl farming business in the United States of America.
Generating Funds/Startup Capital for Precious Jewels® Pearl Farms, LLC
Precious Jewels® Pearl Farms, LLC is a family business that is solely owned and financed by Sharon Anthony and her immediate family members. They do not intend to welcome any external business partners which is why she 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 my 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 $300,000 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 Precious Jewels® Pearl Farms, LLC is to ensure that we continue to make available different sizes, shapes, colors and types of pearls, deliver quality after sales 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. Precious Jewels® Pearl 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 retraining 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.
Check List/Milestone
- 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 aquatic farm land and building of standard shelled mollusk and fossil conulariids 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 shelled mollusk and fossil conulariids hatchery, pearl harvesting tools, pond construction 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 jewelry and crown manufacturing industry, aquariums and garden pools construction companies and pearl merchants et al.: In Progress