Aquaculture Business

[PDR]

I'll be upfront about it, I want to start an aquaculture business.

Now before anyone rains on my parade, I know it is an incredibly difficult job that has a high rate of failure. I have spent the last 3 years (past 12 months seriously) researching and considering this. I have been studying what has and has not worked for others over the years.

At this time I only have plans to propagate coral. My passion is soft coral, (especially zoas and shrooms) but I am open to growing other kinds as well. My plan is to grow 100% of everything I sell in house.

That being said, I still have a long way to go and I have plenty of questions.

The first thing I would like to know is what are you looking for in an aquaculture business? What practices, policies, selection, etc. are you looking for when purchasing from a vendor?

I encourage any comments/feedback anyone may have.

Thanks!

 

[JonPhillips]

Do not spend a dime on this.

 

[PDR]

Do not spend a dime on this.

Care to elaborate?

 

[Phelipe's Ocean]

This is a really tought buisness for a number of reasons. Growing only soft coral is even harder because of the low value they have other than few select groups(zoas,shrooms). It can be succesfull but you can’t expect any profits for a while. Many corals are also very “trendy” a coral that was sold for 2 grand 8 months ago can be bought for 500 now. Its very difficult to keep up. Tidal Gardens is an excellent example of a thriving coral farm though.

 

[PDR]

This is a really tought buisness for a number of reasons. Growing only soft coral is even harder because of the low value they have other than few select groups(zoas,shrooms). It can be succesfull but you can’t expect any profits for a while. Many corals are also very “trendy” a coral that was sold for 2 grand 8 months ago can be bought for 500 now. Its very difficult to keep up. Tidal Gardens is an excellent example of a thriving coral farm though.

Thanks for the reply! I am aware of the challenges related to this business. Like I said, I have been doing pretty extensive research for quite some time. I totally understand the issue with trendy corals. It seems to me that the only people who really profit off of such trends are the ones who start the trend. For the most part I tend to stay out of super trendy corals.

I probably should have worded my first post better, so I want to clarify a couple of things:

1. I do not intend to only grow soft coral, it's just what I like the most. On a side note, there are several large vendors who have stated that their best selling coral is actually Xenia. Probably not their most profitable, but still interesting considering how it is viewed by many reefers.

2. This is not something I intend to do full time, but I do plan to make a profit at some point. I own/run a small home based business as my primary income, but due to the nature of the business I tend to have a lot of free time and would like to explore other home based methods for producing income in my spare time.

Thanks!

 

[Phelipe's Ocean]

Thanks for the reply! I am aware of the challenges related to this business. Like I said, I have been doing pretty extensive research for quite some time. I totally understand the issue with trendy corals. It seems to me that the only people who really profit off of such trends are the ones who start the trend. For the most part I tend to stay out of super trendy corals.

I probably should have worded my first post better, so I want to clarify a couple of things:

1. I do not intend to only grow soft coral, it's just what I like the most. On a side note, there are several large vendors who have stated that their best selling coral is actually Xenia. Probably not their most profitable, but still interesting considered how it is viewed by many reefers.

2. This is not something I intent to do full time, but I do plan to make a profit at some point. I own/run a small home based business as my primary income, but due to the nature of the business I tend to have a lot of free time and would like to explore other home based methods for producing income in my spare time.

Thanks!

In that case I think you should start with a large frag tank. You could work with that and toy around with what sells, how long this or that takes to grow, how many frags u can produce a month etc. and post them up on forums and ebay. If everything goes well you can expand. If not at least you didnt throw in a ton of money you wont get back.

 

[PDR]

In that case I think you should start with a large frag tank. You could work with that and toy around with what sells, how long this or that takes to grow, how many frags u can produce a month etc. and post them up on forums and ebay. If everything goes well you can expand. If not at least you didnt throw in a ton of money you wont get back.

That's essentially exactly what I plan to do. I have a medium size frag tank I have been experimenting with over the last few months. I am still in the growout phase but my plan is to reinvest any profit I make into upgrading my systems. When I ran some tentative numbers, it would be about 5 years before I'm done with the major (initial) investments and start to actually pocket any of the profit.

From a lot of my research, success and failure in this business seems to be determined more by motivation/dedication more than any other factor. This is something I have wanted to do for years, and have spend a good deal of time considering, so I hope that won't be an issue

 

[cracker]

Good luck ! start small something You can afford yourself . Don't borrow money yet !

 

[PDR]

Good luck ! start small something You can afford yourself . Don't borrow money yet !

Thanks! No, not planning to borrow any money for this. I could see myself getting in trouble if I did that...


Also if anyone has time, I still wouldn't mind some feedback on the question asked in my original post.

Thanks!

 

[cracker]

well I don't order anything so I can'r help You at that end. It would be difficult to figure what new trends are up & coming. My guess is why Your asking.

 

[PDR]

well I don't order anything so I can'r help You at that end. It would be difficult to figure what new trends are up & coming. My guess is why Your asking.

Oh I didn't mean to give the impression I was asking for new trends. I'm looking more for information from a policy and practice standpoint. Basically since I haven't really started yet, I figured I could try and implement the practices and policies that are important to people.

 

[tiggs]

So if you want to do this, I think the best option is to start with a single, inexpensive frag tank. Zoo Med makes a nice frag tank for $100. Plumb it yourself, make an inexpensive DIY sump, grab a used light, egg crate frag racks, etc. When it comes to stocking it, don't go nuts buying a bunch of stuff at once. Just pick up an extra frag or two every so often and throw it in there. Look for good deals on mini colonies that people are dumping for cheap. Find those "getting out of the hobby" sales locally. Dip EVERYTHING before it goes into this tank. Then, just let everything grow out for a bit and get your systems down pat. The most crucial and hardest part of this is whole thing is getting your system to remain stable while producing good coloration and growth rates. At this point, the coral in this tank are cattle, not pets. You'd be surprised how many people try to go this route, only to realize later that growing coral to sell is a lot harder, is a lot more expensive, and takes a lot longer than they thought it would.

After your stuff has grown out a bit and you can comfortably frag some stuff, you're ready to become a Craigslist hustler. At any given time, we can look on Craigslist and find some guy selling frags out of his garage. IMO, this is a very important first step into the retail coral sales world, because it gives you a chance to build clientele and get back some of your investment, while still operating with minimal overhead. Once you start turning a profit at this, you can think about a second frag tank and some local inexpensive frag swaps, social media, etc. The one thing I can't stress enough is to make sure you're able to turn a profit at these softer avenues while you still have minimal overhead prior to going full-blown aquaculture operation. This gives you a chance to grow your business slowly and more importantly, deal with increased overhead at a much slower pace. Once you're turning a profit at all of these things and you can't keep stuff on the shelf, that's the best time to decide if you want to do this for real. By then, you have a good taste of what's involved, what your expenses would be, what your profit margins are, and most importantly, you'll have a better idea if this is something you want to do full time.

I apologize for the ear full and I'm sure I didn't answer your questions fully, but figured I'd would share some info I've picked up over the years, mostly from seeing people jump in head first and end up losing their backside in the process. I've seen many people go this route over the last 18 years and the only ones that were successful or were able to decide it wasn't for them and escape with minimal losses are the the ones that went slow. This is definitely one of those "stick your toes in the kiddie pool before diving into the deep end" type of things. Good luck

 

[PDR]

So if you want to do this, I think the best option is to start with a single, inexpensive frag tank. Zoo Med makes a nice frag tank for $100. Plumb it yourself, make an inexpensive DIY sump, grab a used light, egg crate frag racks, etc. When it comes to stocking it, don't go nuts buying a bunch of stuff at once. Just pick up an extra frag or two every so often and throw it in there. Look for good deals on mini colonies that people are dumping for cheap. Find those "getting out of the hobby" sales locally. Dip EVERYTHING before it goes into this tank. Then, just let everything grow out for a bit and get your systems down pat. The most crucial and hardest part of this is whole thing is getting your system to remain stable while producing good coloration and growth rates. At this point, the coral in this tank are cattle, not pets. You'd be surprised how many people try to go this route, only to realize later that growing coral to sell is a lot harder, is a lot more expensive, and takes a lot longer than they thought it would.

After your stuff has grown out a bit and you can comfortably frag some stuff, you're ready to become a Craigslist hustler. At any given time, we can look on Craigslist and find some guy selling frags out of his garage. IMO, this is a very important first step into the retail coral sales world, because it gives you a chance to build clientele and get back some of your investment, while still operating with minimal overhead. Once you start turning a profit at this, you can think about a second frag tank and some local inexpensive frag swaps, social media, etc. The one thing I can't stress enough is to make sure you're able to turn a profit at these softer avenues while you still have minimal overhead prior to going full-blown aquaculture operation. This gives you a chance to grow your business slowly and more importantly, deal with increased overhead at a much slower pace. Once you're turning a profit at all of these things and you can't keep stuff on the shelf, that's the best time to decide if you want to do this for real. By then, you have a good taste of what's involved, what your expenses would be, what your profit margins are, and most importantly, you'll have a better idea if this is something you want to do full time.

I apologize for the ear full and I'm sure I didn't answer your questions fully, but figured I'd would share some info I've picked up over the years, mostly from seeing people jump in head first and end up losing their backside in the process. I've seen many people go this route over the last 18 years and the only ones that were successful or were able to decide it wasn't for them and escape with minimal losses are the the ones that went slow. This is definitely one of those "stick your toes in the kiddie pool before diving into the deep end" type of things. Good luck

I really appreciate the time you took to reply. This is something I definitely plan to take slow and my overall plan is very similar to what you described. I am having pretty good results with my current frag tank but it is starting to get crowded. I do really like the zoomed tanks for the size/price.

 

[JonPhillips]

Care to elaborate?

The “slow roll” as people are describing is one way to go about it. Do a bunch of soft launches to see if people like your product, etc. Another way is to run a “blitz”. Do take out loans. Buy everything and anything you need, put together a massive business plan and grow like crazy. Get everything you can get your hands on from people who are getting out of the biz. Rent a big sustainable shop away from your home and dive deep deep into it. Separate the tanks from your personal life. You’ll thank yourself. Running a blitz is the only way to not burn out. Hire staff before you need them. You can’t do it all.


My personal first step, if I was going after this, wouldn’t be to tinker around in the garage with a frag tank. It would be to travel, meet, and develop rapport with everyone and anyone in the industry. Start the company and network like a mad man. Contacts. Contacts. Contacts. From the LFS owners all the way down to people who drive the shipping trucks. Along the way, you might even find a floundering (pun intended) business that you can buy on sale and just be that much further with some kind of customer base.


To me, if profit isn’t your number one goal, it’s not worth a dime because it’s just a hobby. Which is totally OK. If your approaching this because you just love coral, that doesn’t make you a business owner, you’re a hobbyist.


Social media, Craigslist, yada yada yada. So much of this convo has almost absolutely nothing to do with growing coral and everything to do with owning your own business. You could grow the bombest coral and have no way to reach people and, yet, you could grow mediocre coral and sell the lights out of the stuff because you’re a wise businessman. Maybe take some business classes. Connect with some marketing peeps. Make some polls on R2R about what people are looking for. This site seems pretty solid in building your reputation in terms of word traveling fast, good or bad.


Not too long ago I read a long thread of a guy on here just growing nems. All bubble tips all day long. Massive grow site massive inventory. He’s wasn’t dabbling and he was sticking to one thing. Wholesale.


If you want it, put the coral and gear on the back burner and go talk to people who are actually doing what you want to accomplish and your plan will write itself, or don’t and have fun tinkering. Just don’t go halfway and burn yourself on the fence thinking why didn’t this work. You’re in or you’re out, but either way, you win! Run that blitz.


Best of luck!

 

[Flatlandreefer]

I think the first step would be to prove that you can actually grow your corals fast enough to have a supply to sustain an actual business. After you prove the concept of your Buisness I think you need to crunch the numbers and figure out what exactly is profitable, account for all of your expenses and see what the true margin is on coral. Just like any other business there are a lot of stories of failure but there are also a lot of success stories. I would think that a lot of failures come from individuals remaining in the hobby mindset while they are actually running a Buisness.

If you can make the numbers work I think there is definatly a need for a softie forward vendor, provided those softies are something you can't find just anywhere else. Other than generic anwsers to your question of "what are you looking for in an aquaculture business", I think what will make you succeed/stand apart is discovering a need/attribute that most hobbyists don't currently realize they desire. Just my 2 cents

 

[PDR]

The “slow roll” as people are describing is one way to go about it. Do a bunch of soft launches to see if people like your product, etc. Another way is to run a “blitz”. Do take out loans. Buy everything and anything you need, put together a massive business plan and grow like crazy. Get everything you can get your hands on from people who are getting out of the biz. Rent a big sustainable shop away from your home and dive deep deep into it. Separate the tanks from your personal life. You’ll thank yourself. Running a blitz is the only way to not burn out. Hire staff before you need them. You can’t do it all.


My personal first step, if I was going after this, wouldn’t be to tinker around in the garage with a frag tank. It would be to travel, meet, and develop rapport with everyone and anyone in the industry. Start the company and network like a mad man. Contacts. Contacts. Contacts. From the LFS owners all the way down to people who drive the shipping trucks. Along the way, you might even find a floundering (pun intended) business that you can buy on sale and just be that much further with some kind of customer base.


To me, if profit isn’t your number one goal, it’s not worth a dime because it’s just a hobby. Which is totally OK. If your approaching this because you just love coral, that doesn’t make you a business owner, you’re a hobbyist.


Social media, Craigslist, yada yada yada. So much of this convo has almost absolutely nothing to do with growing coral and everything to do with owning your own business. You could grow the bombest coral and have no way to reach people and, yet, you could grow mediocre coral and sell the lights out of the stuff because you’re a wise businessman. Maybe take some business classes. Connect with some marketing peeps. Make some polls on R2R about what people are looking for. This site seems pretty solid in building your reputation in terms of word traveling fast, good or bad.


Not too long ago I read a long thread of a guy on here just growing nems. All bubble tips all day long. Massive grow site massive inventory. He’s wasn’t dabbling and he was sticking to one thing. Wholesale.


If you want it, put the coral and gear on the back burner and go talk to people who are actually doing what you want to accomplish and your plan will write itself, or don’t and have fun tinkering. Just don’t go halfway and burn yourself on the fence thinking why didn’t this work. You’re in or you’re out, but either way, you win! Run that blitz.


Best of luck!

Thank you for the reply, I appreciate the thought and time you took. I do want to add and clarify some things.

From the business side of things. I have a business degree and have run a small business out of my home for the past 6 years. I encounter many hobbyists turn "business men" in my field, so I feel I have a really good view on what separates a business from a hobby. I have seen first hand the type of issues they run into and why customers keep turning to me for help.

I have found that being passionate about your field is actually an obstacle to overcome and can be detrimental if you do not recognize it as such. There is a balance that must be struck to ensure exceptional product and service. Too little passion and your product (and eventually your reputation) is garbage, too much passion and while your product may be great, you struggle to make the hard decisions that will be best for the business.

I think the plan you described would be perfect if I was planning on reselling imported coral. Early connections would be vital to the success of the business and having a large system up and running right away would probably be the best way to do it.

Since I plan to do 100% aquaculture I really do think learning how to properly grow and maintain a sustainable population of the coral I am wishing to sell is the most important factor this early in the game.

I'm not sure if I was clear before, but I do plan to make a profit with this business. I am not looking to do it full time and have it support my family, but I aim to make a profit nonetheless.

Your post did help me to decide to go ahead and contact several of the companies and individuals I look up to. I have also started several threads looking to gather information on several topics so I do appreciate the recommendations.

Thanks again!

 

[chefjpaul]

Go for it. Only live once.
Keep it simple, make some money, live happy.

 

[Servillius]

I'll be upfront about it, I want to start an aquaculture business.

Now before anyone rains on my parade, I know it is an incredibly difficult job that has a high rate of failure. I have spent the last 3 years (past 12 months seriously) researching and considering this. I have been studying what has and has not worked for others over the years.

At this time I only have plans to propagate coral. My passion is soft coral, (especially zoas and shrooms) but I am open to growing other kinds as well. My plan is to grow 100% of everything I sell in house.

That being said, I still have a long way to go and I have plenty of questions.

The first thing I would like to know is what are you looking for in an aquaculture business? What practices, policies, selection, etc. are you looking for when purchasing from a vendor?

I encourage any comments/feedback anyone may have.

Thanks!

I’ll add one thought. Before I got into this as a business of any sort, I’d want to prove I could set up a successful SPS tank. Then tear it down or set up a new one successfully. Possibly do it a third time. I’d want to be really sure when I set up a tank it works.

 

[JonWalter]

Starting any kind of business needs knowledge and experience in the related field. If you are new to the fishing business, It might be a good idea to start small and gather experience as you progress. Managing a business requires many of the administrative skills, be it fish farming or any other business. It also means that you will not have a boss to give you directions and you will have to make all your decisions on your own, if you do not have any partners.

 

[cjvilla]

Hi PDR, please excuse me if I'm being too forward. I was reading the thread and was curious on how everything is going with your business. Is it as difficult as you expected, or easier? Were there any challenges that you did not foresee? Or did you decide it wasn't for you? Thanks in advance for sharing your experiences.