Business planning for abalone aquaculture

In the past, abalone farming has been perceived as high risk, often inhibiting investment. Potential investors may be reluctant to become involved because they may have little understanding of the farming process, or of the financial implications and potential risks. Provision of a comprehensive business plan may help to increase confidence in the venture. Such a plan would need to cover all aspects of the operation, from initial construction right through to marketing the product. This chapter outlines the main categories of costs that might be expected, and suggests possible timelines for financial inputs. It includes a hypothetical cash flow model for the first 3 years of operation, expressed in a series of spreadsheets. It suggests that, for an abalone farm, a business plan would need to extend for considerably longer than 3 years, at least until the first crop is available to harvest.