Bim Business Start Guide

8/12/2019 Bim Business Start Guide

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SO, YOU’VE DECIDED TO START

A SEAFOOD BUSINESS?

Ireland produces a wide range of high quality seafood products both

farmed and wild caught. Seafood demand and consumption is rising

across Europe and it has been predicted by the Food and Agriculture

Organization (FAO) to rise significantly in the coming years.



Running a seafood business can be enjoyable, challenging and rewarding. Seafood

has many unique characteristics that make it unlike any other product even other

food products.

This booklet has been produced with two specific types of business start ups in mind;

• Starting a Seafood Retail Business.

• Starting a Seafood Processing Business.

This booklet is intended to act as a step by step guide for the start up phase of a

new business; it provides you with information on the seafood sector, on the

“typical” Irish seafood consumer and the domestic seafood market.We shall show you how to access various supports for your new business such as

technical information, mentoring support and grant aid.

We will guide you through the steps that you must take and the relevant agencies

that you must work with in order to set up a seafood business.

BIM's role is to support commercial development in the seafood sector which

comprises of fisheries, aquaculture and seafood processing.

Bord Bia promote and market Irish seafood both domestically and internationally.

Teagasc may also be in a position to support seafood businesses through their

range of industry services and their provision of training courses.

The County Enterprise Boards also offer a range of supports to seafood businesses

within their geographic areas. The other agencies involved in the seafood sector are

the HSE and the Sea Fisheries Protection Authority (SFPA) who both have regulatory

and enforcement roles in the seafood sector. We will also provide you with a brief

introduction to the regulatory agencies and some of the issues associated with foodsafety and the proper handling of seafood in retail and processing situations.

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STARTING OFF –

YOUR BRIGHT IDEA!

Many people start their business with a simple idea of what they

want to do and what they want to achieve. The motivations to start

a business can vary, some people want to earn more money, some

want to be their own boss.

Essentially they all have a simple idea; that they can provide a product or service at

the right price and that they can be successful doing so.



It is important to test your idea and if necessary, alter it or even abandon it in favour

of something else. It is critically important that you take a systematic approach to

starting the business and that you pass certain milestones in the correct order, this

will make life easier for you in the longer term.

Start off with a simple outline of your idea, consider the following questions and

then write down your answers:

• What you want to do and why you want to do it?

• What is your product?

• How is it different or better than existing products?

• When do you intend to start your business and where?

• Who will run the business side and who will do the day to day work?

• What do you think it will cost you to start up and do you have these resources?

• What demand you think there will be for your product?

• Why you think your product can be successful?

These basic questions and answers will help you to identify the key points of your

proposed new business, you can then start drawing up a business plan.

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Market ResearchBefore you start your business you should carry out some simple market research.

This can be done as simply as noting product range and prices at fish counters at

supermarkets or by talking to your local fishmonger about what products are popular.

Visiting a fish auction (if there is one in your area) can be very informative regarding

the availability, wholesale prices and demand for locally caught or grown seafood.

Visiting seafood restaurants and looking at their menus will also provide you with

some very valuable information on prices and consumer preferences. You will quickly

notice trends such as the popularity of Salmon, Cod, Prawns and Mussels.

The next phase of your research can seek information from various sources such as

the internet, industry magazines, the media and the various state agencies such asBIM and Bord Bia. A list of useful websites is provided at the back of this booklet.

To help you with your research here are some key figures relating to the Irish

seafood industry.

712.35mTotal Irish seafood sales 2010

379mTotal Irish seafood exports 2010

Total Domestic Seafood Sales 2010 333.4m

Made up of Irish Food Service Sales 142m

Irish Retail Sales 191.4m

Irish Seafood Imports 2010 170m

(not included in other figures)

• The most popular seafood species sold on the Irish retail market are salmon, cod

and prawns.

• The average Irish shopper purchases seafood 24 times per year and the average

volume of seafood purchased per trip is 500g.

• Fresh fish accounts for just under 60% of total fish spend.



• Both fresh and frozen fish has increased in popularity, however, modern shoppers

tend to buy less fish (by weight) now than was the case previously, this may be

down to the purchase of fillets rather than whole fish or shoppers buying just

enough for a single meal etc.

• Pre-packed continues to increase value share of the fresh fish market and now

accounts for 69% of the overall market. (Pre-pack means packed fish in a

branded pack or packed fish prepared in-store, it does not include fish sold fresh

from a fish counter).

• The Irish retail market is seeing price decreases due to deflation and the increasing

sale of cheaper types of fish e.g. Pangasius (an imported Asian freshwater fish).

• Volumes purchased have declined due to promotions, decreases in pack size and

consumers purchasing less fish in terms of quantity and customers also buying

fish less often than before.

The age profile of retail seafood purchases is:

Under 34 years old: 30%

35 to 44 years old: 15%

45 years and older: 55%

• Friday remains the most popular day to buy fish in Ireland. This is followed by

Thursday and Saturday.

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Research Results1. Visited fish auction or Fisheries cooperative

Fish Prices /kg

2. Visited Fishmonger or local supermarket fish counter

Fish Prices /kg

3. Held discussions with Fishermen/Fishmonger regarding seasonality/availability of fish etc.

Fish Prices /kg

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WRITING YOUR BUSINESS PLAN

Once you’ve completed your research it is important that you

produce a business plan that will document the type of business you

wish to start.

It is very important that you have a well researched, detailed and thorough business

plan because when you try to start your business and if you need to get some help,

the first thing that many people will ask for is a copy of your business plan.

A good business plan is a critical step in showing others the potential of your idea

and getting their help in establishing and developing your business.



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You should draft your plan along the following lines;

1. IntroductionWrite a short introduction about yourself, your qualifications, experience, skills and

resources available to you (premises etc.) Do the same for any other directors or

partners in the business. It is very important to outline who will manage the business

and what type of structure the business will have, include details on who will be

responsible for the various tasks such as production, sales, logistics and finance.

2. Products and MarketsThis is a very important section, please outline in detail the

information that you have acquired about the products you

wish to produce, the markets you wish to target, raw

material costs, finished product costs, retail costs and

information on supply, demand and seasonality.

Describe who you expect your primary customers will be,

what they want and how you will provide them with the

product that they want.

Describe your products, what are they? Why you think

people will buy from you? What's unique or special about

your products?

Describe your proposed price structure, your proposed

production capacity (how much product can you produce in

a day / week / year) and your predicted sales capacity

(How much can you sell? How big is the market? Do youhave advance orders?)



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6. FinanceThe next step is to establish how much it will cost to start up your business and how

you will fund the start-up phase, start-up can be a difficult time as you may have to

spend considerable monies to buy equipment, prepare premises, hire staff, purchase

stock before you will be able to make any sales.

Describe the sources of funding that you propose to use to start your business,

describe if you have money in the bank, an offer of a bank loan or investors etc.

Describe how you will spend the monies and how much of a cash reserve you

maintain until you start achieving sales.

You must also prepare a cost of production, this means that you try to establishthe cost of running the business and then, based on how much you will produce,

a break-even cost per unit or kilo or tonne of the product that you intend to sell.

Once you’ve established your costs, then break down your costs and see what your week

to week costs are, this will give you a base from which you can calculate what your

weekly sales targets will be. It is important to try to produce accurate and viable projected

cash flow statements for the first three years of your business, because this will help youmanage debts and allow you to plan spending and investment at appropriate times.

• Rent of Premises

• Wages

• Commercial Rates

• Waste Disposal Charges

• Raw Materials• Water Charges

• Insurance

• Vehicle costs

• Shop fittings

• Protective clothing

• First aid materials

• Fire fighting Equipment

• Training• Boxes and packaging

• Pest control contract

• Consumables



Checklist

7. SummaryOne of the most important parts of a business plan is an overall summary.

When you have completed your plan, read over it and then summarise the whole

plan into a single page, there is no need to go into great detail such as product

pricing and costs when drafting the summary, it is more important that the nature

of the business proposal is discussed.

It is easier to draft the summary when the plan is completed, however, it's best to

place the summary at the beginning of the business plan to allow anyone reading

your business plan to quickly scan and understand the nature of your proposal.

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MAKING IT HAPPEN –

PUTTING YOUR BUSINESS PLAN

INTO ACTION!

Starting a business can be great fun, however, it can also be

difficult, costly, and very frustrating when things don’t quite work.

It is important that you make effective use of the support structures

that are available to you.

Once you have completed your business plan, you then have a platform to start

bringing on-board various people and agencies that can help you to get your

business off the ground.

When starting a seafood business you can seek help from Bord Iascaigh Mhara,

Bord Bia, Údarás na Gaeltachta or your local County Enterprise Board.



Bord Iascaigh MharaBIM is the Irish state agency with responsibility for developing the Irish Sea Fishing

and Aquaculture industries. BIM assist all manner of seafood businesses through

out Ireland, in terms of processors and retailers and we can assist you with technical

development, processing systems, seafood handling, consumer preference data,

new product innovation, industry contacts and advice on food safety and hygiene.

Bord BiaBord Bia is the state agency responsible for the market development and

promotion of Irish food, drink and horticulture. Its mission is to grow the success

of a world class industry through strategic market development, promotion and

information services. It is responsible for seafood promotion in domestic andinternational markets. This includes consumer and trade promotions and trade

shows. It is also responsible for developing market opportunities for the seafood

sector in domestic and export markets.

Údarás na GaeltachtaÚdarás na Gaeltachta is the regional authority responsible for the economic, social and

cultural development of the Gaeltacht. Údarás support economic development through

the provision of various services such as employment grants, capital investment grants

and training grants. The authority also has a portfolio of premises that may be madeavailable to industry when appropriate.

County Enterprise BoardThe County Enterprise Boards provide a wide range of services to start-up businesses

including grants for feasibility studies, employment grants for job creation, capital

grants for equipment and business mentoring and training.

TeagascThe Agriculture and Food Development Authority is the national body providingintegrated research, advisory and training services to the agriculture and food industry

and rural communities. Teagasc provide a wide range of industry support services

through their facilities at Ashtown, Co. Dublin and Moorepark, Co. Cork. Teagasc

provide an extensive range of training courses for the food industry. It may be prudent

to approach Teagasc after you have made some progress on developing your business.

IASC (Irish Association of Seafood Companies)IASC is a representative body for those involved in processing, wholesaling and

retailing seafood in Ireland. They are very helpful and are keen to encourage and

support entrepreneurs looking to enter the fish trade.

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Research ResultsContacted Development Agencies and identified potential support for new

business venture.



TRAINING

Training and skills are often overlooked by many entrepreneurs,

many feel they are too busy or that training is too expensive -

this is a false economy. Training is a vital part of developing any

successful business and there are many options open toentrepreneurs that are operating on limited budgets of time or

money. It is important that you look seriously at the skills and

experience that you have and see if there is a deficit.

In order to run a small business effectively you must have a wide range of skills,

food safety and hygiene, seafood handling and processing, managing quality,

book-keeping, accounting and credit control.

You should contact Bord Iascaigh Mhara, Bord Bia, the Food Safety Authority of

Ireland and your local Enterprise Board in order to establish if there are opportunities

for you to avail of training courses or financial support for training initiatives.

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Research ResultsIdentified potential training or skills development programme for new business venture.

Description of Training: Date:

Financial TrainingNo one expects that you will become an accountant! However, a financial training

course is one of the most important courses that you can take when starting off a

new business. It will equip you to manage your finances better so that you have a

good picture of how the business is progressing. It will also ensure that you don't

become over dependent on your accountant who will charge you for services.

Financial training should be seen as a supplement to the services of accountants but

not a replacement!

The trap that many entrepreneurs fall into is that they buy their raw material at oneprice, sell it for a profit and assume that they are making money. In order to run a

profitable business one must be able to calculate the total cost of producing the

product and must then sell it at a suitable margin. Simply selling something for

more than you buy it is not a guarantee of success, you can do this and still lose a

lot of money!



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Food Safety TrainingEnsuring food safety is the most important responsibility of any food business, it is

more important that customer service, sales or profit. Everyone running a seafood

business must ensure that their products and premises are in a fit state to protect

public health and no stone can be left unturned in ensuring that only the safest and

best quality products make their way into the hands of consumers.

You must acquire in-depth food safety training that will equip you to operate your

business properly and to protect public health. This is one of the first steps that

should be taken after you have decided to start a seafood business.

Investment in food safety training should be seen as one of the factors that will

reassure your customers and drive future sales and success. Food safety training

should never be seen as a burden or an inconvenience. There are numerous

avenues that can be pursued in order to acquire adequate food safety training.

BIM provide a number of training and seafood handling courses at various locations

and can also advise you on getting training from other sources. BIM may also be able

to advise you on accessing food safety training provided by other bodies or institutions.

Research ResultsIdentified financial training or skills development programme for new business venture.




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The Food Safety Authority of Ireland (FSAI) provides a wide range of instructional

materials and food safety guides, many are for free but some have a limited cost.

The FSAI also offer a business start-up pack that can be most useful for a new

seafood business.

Teagasc provide a wide range of training courses including food safety management

and HACCP. Many Teagasc courses would be applicable to a start up seafood

business. Teagasc courses are usually provided at quite reasonable costs.

The Sea Fisheries Protection Authority (SFPA) also have literature on food safety

issues such as shellfish bio-toxins, registration of your seafood processing plant and

export regulations.

Remember, food safety training, like every type of training should be seen as an

on-going process and not as a once off course to meet legal requirements for

training. Training methods, laws and food safety theory evolves, therefore refresher

courses should be taken at intervals to ensure that your business is being run to the

correct and most up to date standards.

Research ResultsIdentified potential Hygiene, Safety, HACCP or other training or skills development

programme for new business venture.




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Processing and Seafood Handling TrainingSeafood is a unique product which requires knowledge and care while being

processed. There are many different types of seafood, each with their own unique

characteristics, because of this there are numerous technical skills required to

handle seafood, these include: opening oysters, gutting whole fish, skinning and

filleting fish and the general handling and storage techniques that ensure quality

and make your product more presentable.

There is no single “right way” that can be used to handle all fish, many species

need to be handled in a particular manner, for example, cod and salmon cannot be

iced or packed in the same manner. If the wrong methods are used to handle fish

the quality of the fish will deteriorate.

When starting out in a fish processing business, you should seek advice from the

SFPA before making any significant decisions on investing in, or developing a

processing plant. You should also contact BIM to get advice on processing

techniques, fish handling, hygiene and packaging.

Research ResultsIdentified fish processing training provider for new business venture.




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RULES AND REGULATIONS

The production of safe food and the protection of public health is

a key responsibility of every food business. Businesses operating in

the seafood sector must deal with specific agencies according to

their operations.



The Role of the Food Safety Authority of IrelandThe activities of seafood businesses, like all other food businesses are primarily

regulated by the Food Safety Authority of Ireland (FSAI). The FSAI, with co-operation

from the Health Service Executive and the Sea Fisheries Protection Agency, regulate

and monitor seafood businesses and enforce legislation and when necessary,

instigate prosecutions. The Health Service Executive monitor food service and retail

businesses and the Sea-Fisheries Protection Authority inspect and monitor seafood

processing plants to ensure compliance with legislation.

The Food Safety Authority of Ireland (FSAI) provides a wide range of information on

food safety and hygiene; such as training requirements, labelling, food safety

legislation and HACCP. The FSAI also offers a business start-up pack that can bevery useful for a new seafood business. For more information visit www.fsai.ie or

www.facebook.com/FSAI.

The Role of the Sea Fisheries Protection Authority (SFPA)The Sea Fisheries Protection Authority (SFPA) has an important role in the seafood

processing sector. The SFPA monitor factories, fish processors and depuration facilities.

All establishments that handle or process fishery products and live bivalve molluscs

must be approved under Regulation (EC) No 853/2004.

Therefore anyone who intends to operate a seafood processing business should visit

the SFPA website at www.sfpa.ie and contact the SFPA to discuss commencing the

approval process.

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The Role of the Health Services Executive (HSE)The HSE has a critical role in the food industry in ensuring that food and food

premises are safe and operating in a manner that ensures maintenance of public

health. The HSE monitors retail businesses like fishmongers, restaurants, takeaways

and market stalls etc. The Environmental Health Officers (EHO) of the HSE may visit

your premises at any time, with no prior warning, to inspect the condition of your

products, premises and equipment to ensure that public health is protected.

It is strongly recommended that anyone wishing to start a new seafood retail

business, should contact their local EHO and seek their advice and guidance from a

very early stage. You can find more information on www.hse.ie.

The EHO can advise about the suitability of proposed premises - some premises may

never be suitable for a food business and it is better to be aware as soon as possible.

Research ResultsIdentified potential Hygiene, Safety, HACCP or other training or skills development

programme for new business venture.

Name: Agency Date:



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The Seafood Development CentreA dedicated Product Innovation Centre

The Bord Iascaigh Mhara Seafood Development Centre is the first dedicated

innovation facility for the Irish seafood sector. This state of the art facility will enable

companies to exploit and maximise the market potential for Irish seafood by

fostering and integrating innovation into feasible business strategies and thedevelopment of new products and processes for the seafood industry.

The centre is integrated with BIM's Business Development and Innovation Division

and the Fisheries and Aquaculture Division's to ensure Irish seafood companies are

equipped with all the necessary services to exploit market opportunities.

What is the BIM Seafood Development Centre (SDC)?The SDC has an overall space of 768 m2 and includes following facilities:

• Product processing (Wet fish area)

• Graduate area

• Product development kitchen

• Innovation and product concept room

• Business incubation units (2)

• Reception and administration

What can the BIM Seafood Development Centre do for your business?The overall aim of the SDC is to grow your business and to add sustainable,

profitable, competitive, value-added offerings that meet your end customers'

requirements. By working through a regional hub approach (North East, East and

South West) the SDC will provide an integrated service to the Irish Seafood Industry.



Customer and BIM Project Team

SeafoodValue-Adding Ideas

Capture andScreen Idea

Market Spot Check and Feasability with

BIM Specialists

Review

Business Plan ConceptDevelopment

StageGates

Route ToMarket

Pilot Marker Test

Review Process Developmentand Scaling Up

Review

Launch

Process for Development

of New Seafood Products

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Bord Iascaigh Mhara

Full contact details for various BIM staff are available at www.bim.ie.

The following staff work within the Business Development and Innovation Division.

DublinDonal Buckley

Business Development and Innovation ManagerBIM, P.O. Box 12, Crofton RoadDun Laoghaire, Co. DublinDirect: 01 2144272Email: [email protected]

Ian MannixBusiness Development ExecutiveBIM, P.O. Box 12, Crofton RoadDun Laoghaire, Co. DublinDirect: 01 2144105Email: [email protected]

North-WestDr. Michael GallagherBIM Office, The New Pier, Killybegs, Co. DonegalDirect: 074 9732605Email: [email protected]

Focus on supporting and integrating producer- processor and route to market structures in the pelagic, crab and prawn sectors.

WestMáirtín WalshBIM Office, New Docks Road, Galway

Direct: 091 539364Email: [email protected]

Focus on supporting and integratingaquaculture producer-processor and route tomarket structures.

South-WestJohn HackettBIM, Clogheen, Clonakilty, Co. CorkDirect: 01 2144100 (Switchboard)Email: [email protected]

Focus on supporting route to market structuresin the whitefish sector .

Seafood Development CentreSusan Steele

Innovation Co-ordinator SDCBIM, Clogheen, Clonakilty, Co. CorkDirect: 01 2144280Email: [email protected]

Innovation Co-ordinator for new product development at SDC.

John FaganSeafood Technologist,BIM, Clogheen, Clonakilty, Co. CorkMobile: 087 9045047Email: [email protected]

New Product Development assistance for all seafood companies, innovative packaging,ingredients, shelf-life and processing technologies, A-Z product development, troubleshooting and pilot scale product development.

Processing ServicesPaul WardProcessing Services ExecutiveBIM, Clogheen, Clonakilty, Co. CorkDirect: 01 2144125Mobile: 087 1332080

Email: [email protected] for developing programmes and services for the seafood processing sector including quality, troubleshooting, leanmanufacturing processes, advising oninvestments for capacity, new technologies and green initiatives.



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The FSAI is comprised of a number of specialised sections, more information on these specific sectionsis available at www.fsai.ie

Food Safety Authority of Ireland, Abbey Court, Lower Abbey Street, Dublin 1.FSAI advice line: 1890 33 66 77 Tel: 353 1 8171300 Fax: 353 1 8171301

Food Safety Authority of Ireland

You can find more information on the HSE at www.hse.ie. Information about your local HSE offices,

local Environmental Health Officers (EHO) and general information on Food Control issues can befound by using the search function.

Health Service Executive (HSE)

You can find more information on your local County Enterprise Board and the services and supportsthey provide at www.enterpriseboards.ie

County Enterprise Boards

Ashtown Food Research Centre, Ashtown, Dublin 15. Tel: 01 8059500 Fax: 01 8059550

Food Safety: Dr Geraldine Duffy Email: [email protected] Industry Development: Mr Pat Daly Email: [email protected] Foods: Dr Gerard Downey Email: [email protected] and Market Insights: Dr Maeve Henchion Email: [email protected]

More information is available at www.teagasc.ie

Teagasc

Clanwilliam Court, Lower Mount Street, Dublin 2

Tel: 353 1 6685155 Fax: 353 1 6687521 Email: [email protected] information is available at: www.bordbia.ie

Bord Bia

Clonakilty (HQ)SFPA, Park Road, Clogheen, Clonakilty, Co. Cork. Tel: 353 23 8859300 Fax: 353 23 8859720More information is available at www.sfpa.ie

Sea Fisheries Protection Authority

Co. Galway (Head Office)Údarás na Gaeltachta, Na Forbacha, Co. na Gaillimhe. Tel: 353 91 503100 Fax: 353 91 503101More information is available at www.udaras.ie

Údarás na Gaeltachta

10 Emlagh, Dingle, Co. Kerry. Tel: 087 2026420 Email: [email protected] Contact: Artie Clifford

Irish Association of Seafood Companies (IASC)



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1. Executive Summary – overall view of business and potential.

2. Background – people, description and rationale.

3. Management Structure – who and how the company is organised.

4. Market Research – analysis of market potential and dynamics.

5. Products and markets• Pricing strategy – price point will effect the image of the product and

service you are offering, and what margins you expect.

• Channels of distribution – the geographic area, selling directly to retail or

food service or through a wholesaler.

• Product – promotion, advertising, personal selling and sales promotion.

• Sales management – how will product be sold, how will customer

complaints be handled.

6. Competition – Identify main competitor(s) and define your advantage.

7. Operational details – description of premises and equipment.

8. Financial plan – how the business will be financed, cash flows and accounts.

Summary Template for Writing a Business Plan

Bim Business Start Guide

Documents

Transcript of Bim Business Start Guide