Aquarium Services Business Plan

EcoAquatics is a high-school sophomore’s hobbyist business. Its main goal is to turn an interesting hobby into a small part-time business, providing economic benefits similar to other part-time jobs.

EcoAquatics will manage saltwater aquariums, offering services ranging from setup and cleaning to maintenance and feeding. Clients can choose to go step by step with us or simply enjoy the finished product.

Our service is customizable for a range of needs, from first-time aquarium owners who require step by step help to experts with limited time. We prioritize honesty and ensure clients receive suitable fish for their tank’s environment.

Initially, services will be offered to family and friends, with later expansion to small businesses in the Eugene, Oregon area. Start-up expenses for this small hobbyist business are minimal, funded through an interest-free loan from a family friend. Repayment will occur in year three.

Presently, EcoAquatics is registered with the state of Oregon and has maintained its first client’s aquarium for four months.

Aquarium Services Business Plan Example

1.1 Mission

EcoAquatics is a hobbyist business that aims to develop environmentally-sound aquariums, taking into account the potential ecological dangers of the aquarium hobby worldwide, on a small scale suitable for a high school student. It should be fun, rewarding, educational, and beneficial for both the clients and the owner.

1.2 Keys to Success

  1. Maintain the vision of a part-time hobbyist business, gradually expanding.
  2. Stay updated on the environmental impact of home and office aquariums.

1.3 Objectives

  • In the short term, the main objective is to extend my aquarium hobby by building and maintaining a few aquariums outside my home with selected close clients who will work with me in a friendly manner. This is not intended to be a full-time business with conventional business motivations.
  • In the long term, develop this into a business that can support me through high school and college, generating a part-time income from an endeavor that combines vocation with avocation.

Company Summary

EcoAquatics is starting small, with the intention of growing later on, with a few key reference clients.

2.1 Start-up Summary

We have the advantage of a simple start-up. No equipment, rent, or phone line is needed. Since we are focusing on just a few clients who are friends and family, there is no need for sales literature. The only cost is registration with the State of Oregon.

Aquarium Services Business Plan Example

Start-up Funding

Start-up Expenses to Fund: $50

Start-up Assets to Fund: $0

Total Funding Required: $50

Assets

Non-cash Assets from Start-up: $0

Cash Requirements from Start-up: $0

Additional Cash Raised: $0

Cash Balance on Starting Date: $0

Total Assets: $0

Liabilities and Capital

Liabilities

Current Borrowing: $0

Long-term Liabilities: $0

Accounts Payable (Outstanding Bills): $0

Other Current Liabilities (interest-free): $0

Total Liabilities: $0

Capital

Planned Investment

Self investment from savings: $50

Other: $0

Additional Investment Requirement: $0

Total Planned Investment: $50

Loss at Start-up (Start-up Expenses): ($50)

Total Capital: $0

Total Capital and Liabilities: $0

Total Funding: $50

Start-up

Requirements

Start-up Expenses

Legal: $50

Expensed Equipment: $0

Other: $0

Total Start-up Expenses: $50

Start-up Assets

Cash Required: $0

Other Current Assets: $0

Long-term Assets: $0

Total Assets: $0

Total Requirements: $50

2.2 Company Ownership

EcoAquatics is registered in the State of Oregon, Lane County, as a fictitious business name. The business is owned and operated entirely by Megan Berry, who turned 15 a couple months before it was founded.

Services

EcoAquatics will manage saltwater aquariums for its clients. We will help every step of the way, from setting up the aquarium, to cleaning it, maintaining it, and feeding the fish. Depending on the client, they can go step by step along with us, or simply enjoy the finished product.

We will help clients make choices that will not harm the environment. Our main goal is to promote reef-friendly inhabitants and educate our clients about the impact of their choices.

Clients will purchase equipment, supplies, and inhabitants directly from the supplier, using their credit cards or accounts with local retailers. We will not act as a middleman for purchases.

We will focus exclusively on saltwater tanks, as they offer more opportunities for visual enhancements and are in line with our expertise. However, we can also accommodate freshwater tanks if desired.

We will customize the aquarium to fit the client’s budget. Our priority is to ensure compatibility between the tank inhabitants, size, and equipment. We will provide advice on the best equipment and find the best deals to meet the client’s expectations.

During the start-up process, we will visit the client’s location four days a week, and then once or twice a week thereafter. Our services include cleaning equipment, feeding fish, monitoring health, caring for corals, trimming macroalgae, checking water quality, and cleaning glass.

We will take care of acquiring the necessary equipment and creatures for the client. All they need to do is set up an account with local retail or provide a credit card for online orders. Our service is suitable for novices who need step-by-step guidance as well as busy experts who require assistance.

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Market Analysis Summary

Although our immediate market consists of friends and family, our potential long-term market includes businesses in Eugene. We are primarily targeting Chamber of Commerce members and University of Oregon offices. However, we are also open to serving school rooms, private homes, and non-Chamber of Commerce businesses.

Market Segmentation

Although our immediate market consists of friends and family, our potential long-term market includes businesses in Eugene. We are primarily targeting Chamber of Commerce members and University of Oregon offices. However, we are also open to serving school rooms, private homes, and non-Chamber of Commerce businesses.

Aquarium Services Business Plan Example

Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
1,350 1,350 1,350 1,350 1,350 0.00%
400 400 400 400 400 0.00%
50 50 50 50 50 0.00%
1,800 1,800 1,800 1,800 1,800 0.00%

3.1.2 Target Market Segment Strategy

We don’t have immediate capacity to serve more than one or two clients initially. For now, we focus on word-of-mouth clients, reachable through friends and family. We will utilize the Chamber of Commerce as a marketing tool later, when we require more sales.

3.1.3 Service Business Analysis

Aquarium maintenance and design is a small business with many individual competitors. In Eugene, there are two aquarium stores offering these services, but only one advertises in the Yellow Pages.

3.1.3.1 Competition and Buying Patterns

Competition exists, but we believe it does not limit this small hobbyist business. We prioritize friends and family and maintain low capacity to align with our objectives.

Strategy and Implementation Summary

The key to my strategy is maintaining clear objectives. I want this business to be part-time and provide pocket money and confidence, similar to other part-time jobs for high school kids. I want the satisfaction of earning my own money while focusing on my passion for the aquarium business.

Therefore, I will proceed cautiously, starting with one friends-and-family client and only expanding to three clients once I can drive.

4.1 Competitive Edge

  • Being young and a good student gives me a competitive edge in this business. People will respond positively to a young person running her own business when I need to attract new clients.

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4.2 Marketing Strategy

  1. Start with friends and family companies to establish a track record and reference site.

4.3 Sales Strategy

Our selling will rely solely on word of mouth initially. We will build a website for future use. When we feel confident to expand the business, joining the Chamber of Commerce will be sufficient. Attending their gatherings and participating in occasional forums will help us generate more business.

4.3.1 Sales Forecast

We will maintain a single client throughout the first year before considering expansion. We need to establish a history with one client and maintain the constraints of being a single hobbyist business. In the following year, once we have a driver’s license, we can expand to three clients.

Aquarium Services Business Plan Example

Aquarium Services Business Plan Example

Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Sales
Initial client $2,400 $7,200 $9,000
Other $0 $0 $0
Total Sales $2,400 $7,200 $9,000
Direct Cost of Sales Year 1 Year 2 Year 3
Unbilled minor accessories, testing supplies, etc. $48 $144 $180
Other $0 $0 $0
Subtotal Direct Cost of Sales $48 $144 $180

Milestones

4.4 Milestones

The plan involves two additional clients for the summer of 2003, and then a transition during late 2004 in preparation for me to be able to leave clients to attend college.

Aquarium Services Business Plan Example

Milestones:

Milestones
Milestone Start Date End Date Budget Manager Department
Client 1 tank established 6/15/2002 6/30/2002 $0 Megan Overall
Client 1 maintenance 6/1/2002 5/31/2004 $0 Megan Overall
Marketing additional clients 5/1/2003 6/30/2003 $0 Megan Overall
Client 2 and 3 installation 7/1/2003 8/31/2003 $0 Megan Overall
Client 2 and 3 maintenance 9/1/2003 1/15/2003 $0 Megan Overall
Transition 5/1/2004 5/31/2004 $0 Megan Overall
Totals $0

Web Plan Summary

EcoAquatics addresses the long-term interest in environmentally sound aquarium hobbies.

5.1 Website Marketing Strategy

Low-key marketing focuses mainly on the informational value of the EcoAquatics site, for placement at Yahoo! and search results in Google.

5.2 Development Requirements

EcoAquatics is a personal project, much like my present and former site at citruscoolkids.com, using Cold Fusion and Flash.

Management Summary

This is a one-person hobbyist business. I plan to pay myself 90% of the billings as salary.

6.1 Personnel Plan

The personnel plan is to pay myself 90% of the billings for services. This leaves some room for the purchase of books, testing supplies, etc.

Personnel Plan
Year 1 Year 2 Year 3
Owner $1,800 $5,400 $6,750
Other $0 $0 $0
Total People 0 0 0
Total Payroll $1,800 $5,400 $6,750

Financial Plan

The main financial problem is working capital for the first few months before business clients pay, and I support that by not paying myself. I don’t foresee the kind of client relationships that will cause long-term problems getting paid, but I also have to be able to support their occasional delays because this won’t be important to them.

7.1 Important Assumptions

The following table outlines the general assumptions for EcoAquatics.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

7.2 Break-even Analysis

The break-even is based on a realistic assessment of the present hobbyist nature of this business.

Aquarium Services Business Plan Example

Break-even Analysis

Monthly Revenue Break-even: $201

Assumptions:

– Average Percent Variable Cost: 2%

– Estimated Monthly Fixed Cost: $197

7.3 Projected Profit and Loss

The Profit and Loss table shows a small hobbyist business with minimal expenses. The website hosting is estimated, as it may be free.

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Aquarium Services Business Plan Example

Aquarium Services Business Plan Example

Aquarium Services Business Plan Example

Aquarium Services Business Plan Example

Pro Forma Profit and Loss:

| Year 1 | Year 2 | Year 3 |

|——–|——–|——–|

| Sales | $2,400 | $7,200 | $9,000 |

| Direct Cost of Sales | $48 | $144 | $180 |

| Other Costs of Sales | $0 | $0 | $0 |

| Total Cost of Sales | $48 | $144 | $180 |

| Gross Margin | $2,352 | $7,056 | $8,820 |

| Gross Margin % | 98.00% | 98.00% | 98.00% |

| Expenses | | | |

| Payroll | $1,800 | $5,400 | $6,750 |

| Sales and Marketing and Other Expenses | $200 | $300 | $300 |

| Depreciation | $0 | $0 | $0 |

| Website hosting | $360 | $400 | $500 |

| Utilities | $0 | $0 | $0 |

| Insurance | $0 | $0 | $0 |

| Payroll Taxes | $0 | $0 | $0 |

| Other | $0 | $0 | $0 |

| Total Operating Expenses | $2,360 | $6,100 | $7,550 |

| Profit Before Interest and Taxes | ($8) | $956 | $1,270 |

| EBITDA | ($8) | $956 | $1,270 |

| Interest Expense | $0 | $0 | $0 |

| Taxes Incurred | $0 | $287 | $381 |

| Net Profit | ($8) | $669 | $889 |

| Net Profit/Sales | -0.33% | 9.29% | 9.88% |

7.4 Projected Cash Flow:

The cash flow involves a loan from founders, equivalent to not paying myself for the first two months, plus a smaller loan from parents to support working capital requirements. Otherwise, I would show a negative balance.

Aquarium Services Business Plan Example

Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales $0 $0 $0

Cash from Receivables $2,007 $6,413 $8,705

Subtotal Cash from Operations $2,007 $6,413 $8,705

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabilities (interest-free) $500 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $2,507 $6,413 $8,705

Expenditures

Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $1,800 $5,400 $6,750

Bill Payments $478 $1,167 $1,342

Subtotal Spent on Operations $2,278 $6,567 $8,092

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $500

Long-term Liabilities Principal Repayment $0 $0 $0

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $2,278 $6,567 $8,592

Net Cash Flow $228 ($154) $113

Cash Balance $228 $74 $187

7.5 Projected Balance Sheet

The balance sheet is acceptable for a low-key hobbyist business. The loans carried are mainly the first two months of sacrificed compensation to myself.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Assets

Current Assets

Cash $228 $74 $187

Accounts Receivable $393 $1,180 $1,475

Other Current Assets $0 $0 $0

Total Current Assets $622 $1,254 $1,662

Long-term Assets

Long-term Assets $0 $0 $0

Accumulated Depreciation $0 $0 $0

Total Long-term Assets $0 $0 $0

Total Assets $622 $1,254 $1,662

Liabilities and Capital

Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $130 $93 $112

Current Borrowing $0 $0 $0

Other Current Liabilities $500 $500 $0

Subtotal Current Liabilities $630 $593 $112

Long-term Liabilities $0 $0 $0

Total Liabilities $630 $593 $112

Paid-in Capital $50 $50 $50

Retained Earnings ($50) ($58) $611

Earnings ($8) $669 $889

Total Capital ($8) $661 $1,550

Total Liabilities and Capital $622 $1,254 $1,662

Net Worth ($8) $661 $1,550

7.6 Business Ratios

My guess is that what I am doing is not equivalent to the kinds of real businesses whose numbers were contained in the financial databases shown in the rightmost column here. Furthermore, I am not seeking a bank loan or investment.

Ratio Analysis

Year 1 Year 2 Year 3 Industry Profile

Sales Growth 0.00% 200.00% 25.00% 8.79%

Percent of Total Assets

Accounts Receivable 63.28% 94.09% 88.75% 28.12%

Other Current Assets 0.00% 0.00% 0.00% 44.18%

Total Current Assets 100.00% 100.00% 100.00% 76.27%

Long-term Assets 0.00% 0.00% 0.00% 23.73%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 101.29% 47.28% 6.73% 38.61%

Long-term Liabilities 0.00% 0.00% 0.00% 13.60%

Total Liabilities 101.29% 47.28% 6.73% 52.21%

Net Worth -1.29% 52.72% 93.27% 47.79%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 98.00% 98.00% 98.00% 100.00%

Selling, General & Administrative Expenses 98.33% 88.71% 88.12% 82.68%

Advertising Expenses 0.00% 0.00% 0.00% 1.66%

Profit Before Interest and Taxes -0.33% 13.28% 14.11% 1.37%

Main Ratios

Current 0.99 2.12 14.86 1.59

Quick 0.99 2.12 14.86 1.22

Total Debt to Total Assets 101.29% 47.28% 6.73% 60.22%

Pre-tax Return on Net Worth 100.00% 144.59% 81.92% 3.09%

Pre-tax Return on Assets -1.29% 76.23% 76.41% 7.76%

Additional Ratios

Net Profit Margin -0.33% 9.29% 9.88% n.a

Return on Equity 0.00% 101.21% 57.35% n.a

Activity Ratios

Accounts Receivable Turnover 6.10 6.10 6.10 n.a

Collection Days 57 40 54 n.a

Accounts Payable Turnover 4.69 12.17 12.17 n.a

Payment Days 27 36 27 n.a

Total Asset Turnover 3.86 5.74 5.41 n.a

Debt Ratios

Debt to Net Worth 0.00 0.90 0.07 n.a

Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios

Net Working Capital ($8) $661 $1,550 n.a

Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios

Assets to Sales 0.26 0.17 0.18 n.a

Current Debt/Total Assets 101% 47% 7% n.a

Acid Test 0.36 0.13 1.67 n.a

Sales/Net Worth 0.00 10.89 5.81 n.a

Dividend Payout 0.00 0.00 0.00 n.a

Appendix

Sales Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Sales

Iniital client 0% $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Direct Cost of Sales

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Unbilled minor accessories, testing supplies, etc. $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4

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Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4

Personnel Plan

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Owner 75% $150 $150 $150 $150

Reviewing the provided text, it appears to be a financial report. However, there are several redundant phrases and repetitive ideas that can be eliminated to improve the clarity and conciseness of the content.

General Assumptions:

Plan Month: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12

Current Interest Rate: 10.00%

Long-term Interest Rate: 10.00%

Tax Rate: 30.00%

Other: 0

Pro Forma Profit and Loss:

Sales: $200

Direct Cost of Sales: $4

Other Costs of Sales: $0

Total Cost of Sales: $4

Gross Margin: $196

Gross Margin %: 98.00%

Expenses:

Payroll: $150

Sales and Marketing and Other Expenses: $0

Depreciation: $0

Website hosting: $30

Utilities: $0

Insurance: $0

Payroll Taxes: $0

Other: $0

Total Operating Expenses: $180

Profit Before Interest and Taxes: $16

EBITDA: $16

Interest Expense: $0

Taxes Incurred: $0

Net Profit: $16

Net Profit/Sales: 8.00%

Pro Forma Cash Flow:

Cash Received:

Cash from Operations:

Cash Sales: $0

Cash from Receivables: $0, $7, $200, $200, $200, $200, $200, $200, $200, $200, $200, $200, $200

Subtotal Cash from Operations: $0, $7, $200, $200, $200, $200, $200, $200, $200, $200, $200, $200, $200

Additional Cash Received:

Sales Tax, VAT, HST/GST Received: 0.00%

New Current Borrowing: $0

New Other Liabilities (interest-free): $200, $150, $150, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0

New Long-term Liabilities: $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0

Sales of Other Current Assets: $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0

Sales of Long-term Assets: $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0

New Investment Received: $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0

Subtotal Cash Received: $200, $157, $350, $200, $200, $200, $200, $200, $200, $200, $200, $200, $200

Expenditures:

Expenditures from Operations:

Cash Spending: $150

Bill Payments: $1, $34, $34, $34, $34, $34, $34, $34, $34, $34, $34, $37, $134

Subtotal Spent on Operations: $151, $184, $184, $184, $184, $184, $184, $184, $184, $184, $184, $187, $284

Additional Cash Spent:

Sales Tax, VAT, HST/GST Paid Out: $0

Principal Repayment of Current Borrowing: $0

Other Liabilities Principal Repayment: $0

Long-term Liabilities Principal Repayment: $0

Purchase Other Current Assets: $0

Purchase Long-term Assets: $0

Dividends: $0

Subtotal Cash Spent: $151, $184, $184, $184

Pro Forma Balance Sheet

Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Cash $0 $49 $22 $188 $204 $220 $236 $252 $268 $284 $300 $312 $228
Accounts Receivable $0 $200 $393 $393 $393 $393 $393 $393 $393 $393 $393 $393 $393
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $0 $249 $415 $581 $597 $613 $629 $645 $661 $677 $693 $706 $622
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $0 $249 $415 $581 $597 $613 $629 $645 $661 $677 $693 $706 $622
Liabilities and Capital
Current Liabilities
Accounts Payable $0 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $130 $130
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $200 $350 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Subtotal Current Liabilities $0 $233 $383 $533 $533 $533 $533 $533 $533 $533 $533 $630 $630
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $233 $383 $533 $533 $533 $533 $533 $533 $533 $533 $630 $630
Paid-in Capital $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Retained Earnings ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50)
Earnings $0 $16 $32 $48 $64 $80 $96 $112 $128 $144 $160 $76 ($8)
Total Capital $0 $16 $32 $48 $64 $80 $96 $112 $128 $144 $160 $76 ($8)
Total Liabilities and Capital $0 $249 $415 $581 $597 $613 $629 $645 $661 $677 $693 $706 $622
Net Worth $0 $16 $32 $48 $64 $80 $96 $112 $128 $144 $160 $76 ($8)

Aquarium Services Business Plan Example

Business Plan Outline

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