Detailed Business Plan for Fish Plant Urban Farms Project, MOD006960

This business plan outlines the strategy for launching Fish Plant Urban Farms, an aquaponic venture in London, aiming to address food scarcity and promote sustainable practices. The plan details the business overview, including the integration of aquaculture and hydroponics to create a resource-efficient system. It covers management structure, emphasizing team skills and recruitment. The target market focuses on local restaurants, hotels, and grocery stores. Marketing strategies include social media and direct selling. The plan includes operational and logistical considerations, a competitive pricing strategy, and financial projections, including cash flow statements and a three-year forecast. The business seeks seed capital to establish the farm, projecting revenue and profit based on initial production targets and marketing efforts. The plan concludes with a summary of key activities and the importance of efficient resource management in a competitive market.

Business Plan
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Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Business Plan Application form..................................................................................................3
Conclusion.......................................................................................................................................8
References......................................................................................................................................10
Appendix........................................................................................................................................11
Business Plan Template.............................................................................................................11
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Introduction
Business plan is quintessential to estimate success of a business model. It helps an
entrepreneur in estimating all the required activities that are needed to be undertaken (Burns and
Dewhurst, 2016). For this report, Scenario B is chosen, in which a new business start-up idea is
developed, to be proposed to government to obtain a loan of £40,000 to be used as seed-capital.
In the following report, a business plan of having an urban commercial aquaponic farm in
London is pitched. All the required information about the project, its operations, costing, target
market, marketing activities and estimated finances are projected.
Main Body
Business Plan Application form
Below mentioned is a detailed business plan for start-up:
Section 1: Business overview
Urban cities like London face two major problems – land shortage and growing
populations, which creates a deficiency in food availability and land available for growing food
crops. Therefore, it is necessary to develop resource-efficient ways of feeding local population.
On such way is developing aquaponic farms. Commercially developing these farms represent a
cost effective and environmentally sustainable business model. Aquaponic is a combination of
aquaculture and hydroponics. Aquaculture is fishes farming and hydroponics is growing plants in
a nutrient solution without soil. These two are combined to generate aquaponic technology
(Tomlinson, 2015). In it, waste water from fish tanks is pumped through hydroponic beds where
plants absorb waste nutrients from the water and clean the water for the fishes in the tank. This
system continually recirculates. This technology is pitched as a business model.
Business is proposed to be named as “Fish Plant Urban Farms”. London is chosen as
business location and for the business premise, a discarded industrial warehouse is proposed to
be hired where, whole mechanism or set up of aquaponic farm will be installed. Initially, cost-
effective structure is proposed to be created which is planned to be upgraded as business grows.
Major products that business will be offering are salad, herbs and fishes and initially, various
restaurants and hotels near farm will be targeted to sale the produce.
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Section 2: Management Structure
Management structure is all about the ways a venture organises its management
hierarchy. In the new venture that is Fish Plant Urban Farms, management will emphasis on
arranging production factor, assembling along with organising resources and integrating all
effectively with the hope of attaining identified objectives. In the venture, the staff size will
range from 10 to 15 which will be divided into different teams that are technology, marketing,
management, finance and so on. Size of staff or team have profound impacts on outcomes of
negotiation (Chen and et.al., 2017). Moreover, to make negotiation successful, team of the new
venture is required that two or more people should come together as well as hammer out an
agreement which is accepted by both. The key team negotiation skills that are significant to be
present are problem analysis skill, active listening skill, effective communication, problem
solving abilities, maintaining good relationships, ethics, decision making ability and
collaboration.
Leadership and management are essential for guiding and influencing staff to deliver
good services. In Fish Plant Urban Farms, leaders will devise long term vision, mission and
values for the venture together with communicate them to managers. Further, it will be
responsibility of management to recognise potential complexities as well as follow procedures
for dealing with them. Professional team skills that will help the venture to gain success in
limited period are time management, collaboration, critical thinking and communication skills.
Team members have multiple roles and responsibilities within a business (Baliga and
Rodrigues, 2015). In case with Fish Plant Urban Farms, common roles of members of team
belonging to different department includes action-oriented role that engrosses shaper,
implementer and complete finisher. At same time, other role is people oriented that covers
coordinator, team worker and investigator of resource. At last, thought oriented roles which
involves monitor evaluator, plant and specialist. Other than roles, there are key responsibilities of
team members that includes executing all operations as per schedule, participation in meetings,
implementing change initiatives and so on.
Management of Fish Plant Urban Farms are required to conduct a skill gap in
which they will recognise difference between skills which they want and the skills that is
within workforce. The skill analysis of employees are as follows:
Skills within employees Expected competence Existing competence
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Team working skill 10 7
Communication skill 10 9
Problem solving skill 10 8
IT skill 10 5
Creativity 10 7
Recruitment advert for job position of IT manager in Fish Plant Urban Farms is
below:
Recruitment advert for Fish Plant Urban Farms
Fish Plant Urban Farms is a newly established business at 295, Canterbury Industrial Estate,
London in which whole mechanism or set up of aquaponic farm is installed. The company
requires an IT manager who looks after all technologies related to the farming. Any interested
candidate can apply at [e-mail] on or before December 05, 2020.
Section 3: Market
Target Market
Target market refers to specific group of consumers for which the business is aimed
(Dewhirst and Lee, 2018). In context to Fish Plant Urban Farms, target market is set of
customers in serviceable available market within which the company aims its efforts along with
resources. It is a subset of total market for organisational offerings. Fish Plant Urban Farms is a
typical modern aquaponics company that is set for favoured fishes, leafy green along with herbs,
etc. The target market of the company is middle- and lower-income community members as well
as will sold its products to small grocery shops, restaurants and local surroundings of London. If
successful, then the venture will sell its products to higher income group, food retail outlets and
will feed growing city of citizens.
Competitive advantage/USP
Initially, the business is expected to produce a 2000 kg of salad and herb and 500 kg of
fish in the first year. Business has targeted nearby restaurants and hotels along with small
grocery shops as the initial target consumer. Hotels and restaurants in London prefer procuring
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produces from local producers. Fish Plant Urban Farms will provide fresh and quality of fish and
herbs and salad to the targeted population. If proved successful, then Fish Plant Urban Farms can
be future of the ways sustainably produces food for feeding the growing city of citizens. The
business will offer its products at relative prices that will be affordable by target audience.
Section 4: Marketing
Launch dates and why
The launch date of the venture which is Fish Plant Urban Farms is January 01, 2021 as it
a new Year and people will enjoy its offerings that are herbs and fishes of different breeds. On
this date, multiple people visit hotels and restaurants that will the reason for setting the date as
launch date. Also, effects of Covid-19 will subside by then and business environment will again
become conducive to start a new business which is unconventional and unpredictable in nature.
Detailed Information
Fish Plant Urban Farms will promote the business through different marketing techniques
and will distribute its products in packets that are based on different quantity. Moreover, the
venture will research properly about choices and awareness of target market and will analyse
what size system will fit into the space that are available with them. The total expense estimated
for marketing the venture is 500 pounds.
Market Research – primary and secondary – questions and why
Market research for Fish Plant Urban Farms will be conducted in tow forms. One is
primary research and second is secondary research. For primary research, marketing department
collects information about target population by using questionnaire that includes set of questions
that are to be responded by respondents (Mooi, Sarstedt and Mooi-Reci, 2018). The
questionnaire for Fish Plant Urban Farms is as follows:
Questionnaire for Fish Plant Urban Farms
Questions Frequency
1. Have you heard about the business of Fish Plant Urban Farms?
a. Yes 18
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b. No 32
2. Do you think the idea is viable and sustainable?
a. Yes 18
b. No 11
c. Maybe 21
Marketing strategies
To promote the business idea of Fish Plant Urban Farms, various marketing strategies
will be used. One is social media marketing users are provided with content that they find
valuable as well as prefers to share on their social networks (De Pelsmacker, Van Tilburg and
Holthof, 2018). Social media platforms including Facebook, Twitter and hence forth will be used
by marketers of Fish Plant Urban Farms to increasing viability. At same time, direct selling
strategy will also be used by Fish Plant Urban Farms in order to directly sell the products to
grocery stores, restaurants and nearby areas of London.
Section 5: Operations and logistics
This proposal is expected to raise £40,000 from government as loan which is going to be
used by business as seed capital. Other than this, both the partners are expected to bring £2000
per person as partner’s capital. This total capital of £44,000 will be used to hire venue. Discarded
industrial warehouse is targeted to be hired as it would be available for lesser rental charges and
a discarded place would be put to use again. Also, equipment for aquaponic structure would be
purchased and installed. Raw materials would be purchased and staff would be hired. Business is
not expected to gain any revenue in beginning months while incurring fixed monthly costs of
rental charges, salary charges, marketing and promotional expenses.
Although, business is expected to go on floor next year, it cannot be said untouched from
uncertainties laid upon the business processes and supply chain management by Covid-19
disruptions. Its effects are uncertain to predict now and it can only be hoped not to have
significant impact over business operations (Galai, Hillel and Wiener2016).
Section 6: Costs and pricing
Business is going to keep competitive pricing strategy in the beginning and will be
adopting average cost as price for the products in the beginning to attract customers and make a
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market for itself. As, the customers will grow, pricing is decided to kept at cost plus 8% mark-up
in margin.
Section 7: Financials
Projected Cash Flow Statement
Fish Plant Urban Farms
(for first year ending at 31/12/2021)
Particulars Amount
Opening Cash 0
Cash from operation
Add: Receipt from Customers 20000
Less: Inventory purchase
-
10000
Less: Salaries
-
35000
Less: Selling and promotional expenses -8500
Less: Tax -1500 -35000
Cash from Investing Activities
Cash paid for equipment -10000
Cash from financing activities
Add: Loan 40000
Add: Capital 4000
Less: Interest on loan (@6%) -2400 41600
Closing Balance -3400
3 years Forecast
Fish Plant Urban Farms
Particulars 2021 2022 2023
Sales Projection 20000 40000 60000
Advertising expenses 8500 11500 13000
Cash flow -3400 11500 45000
Profit/Loss -37400 -10000 15000
Conclusion
From the business plan, it is concluded that various activities are performed by a new
venture for getting launched in market. Effective management structure helps in providing
guidance and directions to all staff involved in business through laying out official reporting
relations which governs workflow of enterprise. Market research, strategies to promote venture,
operations and logistics, projections of cash flows and so on are essential elements of business
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plan. To gain success, huge efforts and resources and used in optimum manner by a new venture
in the competitive market.
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References
Books and Journal
Baliga, A.J. and Rodrigues, L.L., 2015. Business Plan-The secret to success. The International
Journal of Business & Management. 3(4). pp.210-214.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Chen, K. and Et. Al., 2017. Structure optimization of parallel air-cooled battery thermal
management system. International Journal of Heat and Mass Transfer. 111. pp.943-
952.
De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online
reviews and hotel performance. International Journal of Hospitality Management. 72.
pp.47-55.
Dewhirst, T. and Lee, W. B., 2018. Who is the target? Package health warnings and the role of
market segmentation.
Galai, D., Hillel, L. and Wiener, D., 2016. How to create a successful business plan: for
entrepreneurs, scientists, managers and students. World Scientific.
Mooi, E., Sarstedt, M. and Mooi-Reci, I., 2018. Market research. The process, data, and methods
using stata.
Tomlinson, L., 2015. Indoor Aquaponics in abandoned buildings: a potential solution to food
deserts. Sustainable Dev. L. & Pol'y. 16. p.16.
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Appendix
Business Plan Template
Company Name Fish Plant Urban Farms
Address 295, Canterbury Industrial Estate, London
Email address: [e-mail]
Company Details: Vision – to take aquaponic technique pan UK
Mission – to help generate food in sustainable manner
Values - quality, sustainability, eco-friendly, organic
Goal - To reach target production of 5000 kg of herbs and salad and
2000 kg of fishes in 5 years
- target sales of £50,000 within 2 years.
Target market – lower and middle-income people, small grocery
shops, restaurants and local surroundings of London.
Industry – Organic food industry
Legal structure – Limited Liability Partnership between Mr. John
Matthew and Mr. Ryan Nain
Product Details: Products - favoured fishes, leafy green along with herbs,
Present capacity of production - 2000 kg of herbs and salad and
500 kg of fishes
Unique feature – eco-friendly, organic, promotes recycling
Marketing Plan: Market research – relatively unexplored business model therefore,
has lots of growth opportunities
Barriers to entry – equipment set up cost and marketing cost
Place of promotion – Social media marketing, print and radio
advertisement, word-of-mouth, referrals, etc.
Promotional budget - £500 pre-launch and 5% of revenue every
year
SWOT: Strength – less competition, cost efficient, not high-priced products
Weakness – No industry benchmark, less investors
Opportunities – Increasing consumption of organic and eco-friendly
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products.
Threats – Unpredictability of market like instability caused
byCovid-19 lockdown
Competition: Local hydroponics, fish farm in London and home food producers
Positioning: Niche segment – restaurants and hotels favouring fresh farm produce
Pricing: Competitive pricing strategy. Initially, 5% lower than market rate and
provide trade discounts and vouchers to individual buyers.
Distribution channel: Wholesale, retail and direct sale
Sales forecast: Based on best case: £25,000 in first year
Based on worst case: £15,000 in first year
Organisational structure Flat structure
Operational Plan: Production – Organic food in hydroponic structure and fishes breed
in aquaculture
Legal compliances – All necessary licenses and regulatory
compliances will be duly complied before starting business and will
be regularly followed up.
Staff – team of 10 to 15 including IT expert, food expert,
hydroponics & aquaculture expert on per visit charges etc.
Inventory – raw materials of various seeds and fish food. Temporary
storage of finished harvest.
Suppliers – of seeds and fish food
Credit Policies: two-weeks credit payment policy and 15% trade
discount on immediate cash payment within 3-days.
Start-up Expenses Seed capital – Loan - £40,000
+ Partners’ capital - £4,000 = £44,000
Rent Charges - £500 per month
Production charges - £10000
Equipment charges - £10000
Promotional expenses - £500
Financial Plan Expected profit/loss – 1st year: (37,400)
2nd year: (10,000)
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3rd year: (15,000)
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