Act as a Business Consultant and Provide Counsel on this Issue

[Davidvictorson]

A client comes to me with a potential business idea - Fishery. She has conducted her market research. It is a viable business. She has written down her business plan and the rest of them. Here is are the main issues:-

a) Experience - She lacks the experience in fishery. All she knows about the potential business is hearsay, her research both online and offline, and the Facebook groups she joined. She claims she's going to have a guide from a friend who has done the business in the past.

b) Funding -  She has no funding or rather, she has less than 10% of the funds needed to kick-start the business. She is therefore considering debt financing.

Furthermore, according to her, this is going to be a side-hustle for the main time as he already has a job that brings in income every one. When I quizzed her on how she intends to pay the debts she said from her main job.

I want you to act as a financial analyst and provide advice to her. Should she go ahead with the business, since she said it is serving as a side hustle or should she not even venture into it considering that she has no experience and even though she may be able to pay off the debt from her main job, her lack of experience may cause the business to fail ?

[P2PECS]

Should she go ahead with the business, since she said it is serving as a side hustle or should she not even venture into it considering that she has no experience and even though she may be able to pay off the debt from her main job, her lack of experience may cause the business to fail ?

Of course she shouldn't. In other words, she wants to do it backwards from the way it should be done. She does not know the market and has no financing, so the most likely scenario is the busines won't work. On top of that, if you say that she has debts, although you don't specify, I imagine that they will be consumer debts. If she came to ask me for money, I wouldn't give her a penny.

Business, even if it is a side hustle, should be done just the opposite way. Do it on something that you not only know very well, but that you are passionate about, and if possible start with very little capital from your own pocket and little by little as the business is running you grow more and more.

[Adbitco]

First fishery is not just a common business that one should venture into without experience, then going to add it as side hustle may not bring any yielding results because there will be less attention given to the business, or let's say you wanna employ a worker who would take care of the business while she focused on her job is not a welcomed idea because every business needs nurturing and grooming.
Besides fishery is a very hard business for one to venture without a total experience or haven't worked with someone who have the idea before she could finally go into it.

Here are my little suggestions or conclusion;
1. first she shouldn't venture into such business.
2. Since is a start up business, borrowing money isn't that encouraging.
3. She needs an experience to start such business in other to be able rear fish.
4. The business may not grow well since is a side hustle rather than main focused of business. Meaning this fishery should be her main business in other to succeed.

[Zaguru12]

Firstly Pisciculture or Fish Farming isn’t a very hard thing to venture into since she has read a thing or about it and also has an experience person to guide her then it is good to go into it because the experience would come from her venturing into it.

The problem now is the funding, because businesses that involves live stock rearing are very risky that I wouldn’t advise some to venture into. This fishes also have some cases of mortality rate and some of the times it gets one into loss, so loaning findings to start up the business is way too big of a risk. Since she is having a side hustle then i will rather advise her to save up some money and start up even with a single pond. This little start will keep her away from taking loan and also gain experience through this period. And as times goes on she could go bigger after the first harvest which normally around 4 to 5 months.

Aside the funding there is nothing wrong for her to go into it because fish farming doesn’t need you to be there 24hours all week. She could do the changing of the water (if it is an artificial pond) on are work free day and then instruct someone to just throw their feeds to them in the afternoon when she is away. The morning feeding can be done by her before going to work and that of the evening when she is at home

[franky1]

most CEO's have no experience in the product. they have business skills of delegating workers and accounting
elon musk is not a rocket scientist, nor is bezos

as long as she is employing experienced workers that can do the job then it can work, even if it is part time. fish usually look after themselves. you just throw a bucket of feed in the winter months when natural vegetation is lower.. which is a half an hour job a day.
usually call in a vet once in a while to check for any disease. its not really a task that requires 24/7 labour

as for the repayments. obviously it takes a few month to let the fish grow/reproduce and so the first few months are not going to yield income and so having a back up of other income to make the monthly payments until harvest is a good idea.

what should be asked is has she calculated all costs. such as land, water, vets, labour.. is the pond/tank predator proof or is she just wanting to dig a ditch and fill it with water. has she secured it with clean water supply and netting to avoid losses of fish before harvest

.. has she got a list of merchants/fish mongers willing to take the fish. in most cases people are planning fish needs ahead of harvest. so she should have an idea of how much demand there is, pricing of demand and expectation of results to know how much fish to have initially to meet objectives. are the customers nearby, or does she just dream/hope to travel miles and hope to find someone at harvest time

if the business plan is just 'buy some fish, get them to mate and procreate, sell some fish" where there is no numbers or costs attached. then she has not planned well.. but if she has done the number and there is enough profit margin/buffer to account for any unforeseen bad events and still break eve/profit then she should go about it

dont think that just because she said part-time/side hustle, that it means it will fail. becasue certain businesses dont require 24/7 operation

.. other advice is.
dont be so much in a rush taking out a large loan and instantly be committed to making repayments for years.
even if you know you can afford repayments. dont rush

instead. delay the loan and project. and continue on main income job but put aside a couple months worth of loan payment amounts in to savings. as a buffer. (bad harvest fund)
then when you take the loan your not living paycheque to paycheque where by losing your job also instantly causes issues for the side business. because you have another couple months of payments saved up to keep you going until harvest

but do look into if she has done the math of cost vs potential income

[jrrsparkles]

I would suggest go for it even with loan but the sector we are talking is the only barrier because fishery can't be successful without experience so if she really interested then first to get some experience on the field cause we know the potential but we may not sure whether we are capable of reaching the potential or not.

[Casdinyard]

A client comes to me with a potential business idea - Fishery. She has conducted her market research. It is a viable business. She has written down her business plan and the rest of them. Here is are the main issues:-

a) Experience - She lacks the experience in fishery. All she knows about the potential business is hearsay, her research both online and offline, and the Facebook groups she joined. She claims she's going to have a guide from a friend who has done the business in the past.

b) Funding -  She has no funding or rather, she has less than 10% of the funds needed to kick-start the business. She is therefore considering debt financing.

Furthermore, according to her, this is going to be a side-hustle for the main time as he already has a job that brings in income every one. When I quizzed her on how she intends to pay the debts she said from her main job.

I want you to act as a financial analyst and provide advice to her. Should she go ahead with the business, since she said it is serving as a side hustle or should she not even venture into it considering that she has no experience and even though she may be able to pay off the debt from her main job, her lack of experience may cause the business to fail ?

Fisheries and other forms of husbandry like setting up a small to medium-scale poultry farm is never going to be counted as a side hustle. The daily maintenance alone would already cover someone's day, and judging by the way this person looks at it, is something that she will not be capable of committing. Furthermore, there is no substantial information nor experience on her part. Hearsays could only get you so far, and echo chambers like Facebook and Twitter wouldn't do her any good as most of them rely on quack medicine and unscientific practices which would not only harm her business but her community too, environmentally and health-wise.

Issue with funding could be overlooked as loans can be taken in the bank to supplant the lack of capital, but the other points of interest must be examined with great focus, and thus, if I was her financial advisor, I would severely disagree with her plan. It's messy, dangerous, and a massive commitment that I don't think she could take.

[Dalib]

A client comes to me with a potential business idea - Fishery. She has conducted her market research. It is a viable business. She has written down her business plan and the rest of them. Here is are the main issues:-

a) Experience - She lacks the experience in fishery. All she knows about the potential business is hearsay, her research both online and offline, and the Facebook groups she joined. She claims she's going to have a guide from a friend who has done the business in the past.

b) Funding -  She has no funding or rather, she has less than 10% of the funds needed to kick-start the business. She is therefore considering debt financing.

Furthermore, according to her, this is going to be a side-hustle for the main time as he already has a job that brings in income every one. When I quizzed her on how she intends to pay the debts she said from her main job.

I want you to act as a financial analyst and provide advice to her. Should she go ahead with the business, since she said it is serving as a side hustle or should she not even venture into it considering that she has no experience and even though she may be able to pay off the debt from her main job, her lack of experience may cause the business to fail ?

In my opinion, she should not continue with the business. If she wants to continue, she needs to pay attention to the following 4 issues.

1. Gain experience
Working for an established fishing company or seeking out a mentor who can provide guidance and support.

2. Secure funding
She should explore all funding options, including grants, loans, and equity financing. However, it is important to have a solid business plan and financial projections in place before approaching potential investors or lenders.

3. Evaluate the market
She should conduct a thorough market analysis to determine the demand for her product, the competition, and the potential profitability of the business.

4. Consider the time commitment
Starting a business, even as a side hustle, requires a significant time commitment. She should carefully consider whether she has the time and energy to devote to the business while also maintaining her main job

[Smartvirus]

The world of business is an entirely different environment and operates under elements that demands your all to take shape and maintain that shape through the lifespan of the business and instead of a decrease, you gind a way for an increase.

The theoretical part of every business is always simple and seems like an easy execution but, the part where you've got to put the plans in action and have it run concurrently with the dynamics of the society us where you would find very tricky.

Here we have a start up business by an inexperienced individual, having just 10% of funds with plans of taking a loan (debit funding) you call it, to run a lucrative business where you've got some serious competitions and still, the individual have got little time to give to the business? It wouldn't take very long before frustration sets in.

Start ups are always very demanding of you and most you and not just your resources but your time as well.
You can't hope to run a business with no experience or having to requite professional advice from someone with little expert and you hope for it to survive long. I assume its catfish farming the individual would want to go into and I would like that individual to note that, there are more to it than just having these theories play out in her head.

These are marine organisms and as such, any tragic event can run on a large scale as, they evidently live in a single body of water. A simple pH change could lead to rupturing of the fishes body and that would lead to cannibalism, over population in the pound can have same result as per wounded fish as they swim along, competition for food leads to malnutrition of some fish and not having to sort them according to there sizes could spell tragedy for such fish and more. That's just on them fish side.

How about human?
The human part has more to do with siting, what security you could provide for your fish to avoid burglary and some competition related ills that could lead to tank poisoning and you've got to feed them fish to ensure they gain weight and be competitive in the market.
How about sourcing out potential customers,
Who are the targets, how may have you got or are potential clients to be at the end of your production chain.
How about animal predation...

It goes on and on but, I'll like to stop here. I don't want to discourage this individual but, am saying, if she's got less time to give to this business at a start up age, its better she keeps her calm as, those that would be funding the other 90% don't need no stories but results. Tqt isn't something that comes with you giving the business that haven't got a structure less time. You've got to build a frame for the business to thrive on.

[tabas]

No experience - then that means that she has come to you for your counsel as she thinks that you may help her from this business. That's okay, she's willing to take a step ahead on this business and willing to ask people what they can suggest and learn from their opinions.
No funding - well, honestly someone who wants to start a business don't really have to put all in on such business. They can put a bit on it and then let it grow eventually until more funds come to them for expansion if it's viable. On this case, the risk that will be taken should mainly come from her and the idea of taking a financing must come from her. But then when she said that this is just gonna be a side hustle, there will be someone that should take a look on it as if it's a full time thing.

[palle11]

I want you to act as a financial analyst and provide advice to her. Should she go ahead with the business, since she said it is serving as a side hustle or should she not even venture into it considering that she has no experience and even though she may be able to pay off the debt from her main job, her lack of experience may cause the business to fail ?

Non of the challenges that you have listed should stop her or non will stop a committed business investor. One thing is important which is her focus and resolve to survive in the business giving the prospect of the business and fishery is a good and viable business. It is lucrative because of its customer base.

My suggestion proper regarding the challenges of experience and fund are, there are consultants in fishery business that can help her through it. Those people are experienced people in the business, they can guide her. To funds, I understand that loans are not easy to get but she has to endeavour to get a loan. Finally, she doesn't have to give up the dream of being a fishery farmer.

[bosede1]

My advice for her will be to be patient for a year or six months and what will she be doing then two things. One, she will work together or learn from her friend that is already in the business and ask questions where necessary, while doing this she will save from her main job for this new business, even if she gets 50% and now loan the other 50% is better than the 10% she has earlier

[Mr.right85]

most CEO's have no experience in the product. they have business skills of delegating workers and accounting
elon musk is not a rocket scientist, nor is bezos

as long as she is employing experienced workers that can do the job then it can work, even if it is part time. fish usually look after themselves. you just throw a bucket of feed in the winter months when natural vegetation is lower.. which is a half an hour job a day.
usually call in a vet once in a while to check for any disease. its not really a task that requires 24/7 labour

This is something I don't see the individual been related in the OP doing. I mean, she's trying to start a business on a loaned money and she can't pay her staff should she employ any off a loaned money and that rules employments out. Perhaps a partnership but that too isn't sure to work out well as, you've got loans to pay not to talk of settling your partner in the long run on a business that is yet to get a life of it's own.

The good thing is, she has a paid job already and as such, she should focus on raising at least 50% of her needed capital to ensure her loaned amount would be something she could pay up with little stress and be gully independent.

Truths be told, she's not going to find it easy in the first year but, if she could get it going, she might some day own a business of her own.

Owning your own thing is always worth more than working for some firm and so if she could make things work in this, it would be very good for her. In 3months interval, she could have stocks to sell in the market and that depends on the fish specie she chooses to breed.

[lionheart78]

A client comes to me with a potential business idea - Fishery. She has conducted her market research. It is a viable business. She has written down her business plan and the rest of them. Here is are the main issues:-

a) Experience - She lacks the experience in fishery. All she knows about the potential business is hearsay, her research both online and offline, and the Facebook groups she joined. She claims she's going to have a guide from a friend who has done the business in the past.

b) Funding -  She has no funding or rather, she has less than 10% of the funds needed to kick-start the business. She is therefore considering debt financing.

Furthermore, according to her, this is going to be a side-hustle for the main time as he already has a job that brings in income every one. When I quizzed her on how she intends to pay the debts she said from her main job.

I want you to act as a financial analyst and provide advice to her. Should she go ahead with the business, since she said it is serving as a side hustle or should she not even venture into it considering that she has no experience and even though she may be able to pay off the debt from her main job, her lack of experience may cause the business to fail ?

Don't forget about passion.  If she has a passion for fisheries then there is a higher chance of success because she will be handling this matter with dedication. 

Experience wise I can say she barely pass the assessment even though it is known that no one born as an expert but this is a serious matter and she needed funding in a business in where she has little experience.  So I would advise here to try it small as an starter.  She can try building small fisheries that does not require huge amount of capital.  She can continue her job while taking fishiries as part time or she can hire helpers.  Whether the small fisheries succeed or not, at least she kept the risk of losing fund at a minimum while gaining experience from that venture.  If she is successful then there is no need for her to borrow money because the income from that small establishment can be used to expand his business.  It may take some time but it worth it.  There is no good result in rushing things out.

[Dr.Bitcoin_Strange]

Well, I have experience in fish farming, and speaking from experience, fish farms really require proper care and handling; if not, the farm owner will be seeing his or her fish die regularly at a particular stage.

So imagine if she is not so capable of handling the farm properly, and before it is ready to harvest, she may have suffered a significant loss due to the fish that died. While she has wasted money to buy the fish feed, pay for a good water supply, and construct the pond, depending on whether it's a concrete pond, a plastic pond, or an earthing pond. It usually costs a significant amount to construct those ponds. So if she ventures into it and encounters a big loss, then it is just going to be a waste of time, effort, and money.

She can't take fish farming as a side hustle unless she will have to also sacrifice a good time to handle the farm or she will hire people that can do the job for her, which she will need to pay these guys to properly handle the farm for the interval of about five to six months that the farm will be due for harvest, which means she needs the funds to pay up salaries.

So, either she employs people who can properly handle the farm for her or she should be there to do it herself; it's her final decision to make.

[Davidvictorson]

Thanks. Your response is very robust. Allow me to take some few minutes to throw more light on the points I earlier.

as long as she is employing experienced workers that can do the job then it can work, even if it is part time. fish usually look after themselves. you just throw a bucket of feed in the winter months when natural vegetation is lower.. which is a half an hour job a day. usually call in a vet once in a while to check for any disease. its not really a task that requires 24/7 labour

Her workers would be her siblings who would follow the instructions of her friend who is already into the business. Her sibling are inexperienced but hopefully with the guidance from her friend, they can garner some experience. So, they'll help with feeding, cleaning the farm, general welfare of the fish and other as the case may be. And yes, it is part time.

what should be asked is has she calculated all costs. such as land, water, vets, labour.. is the pond/tank predator proof or is she just wanting to dig a ditch and fill it with water. has she secured it with clean water supply and netting to avoid losses of fish before harvest

From her business plan, she seems to have calculated the cost. For example ,  the land where the fish pond would be situated is her own. Just at her backyard. She is going to start with a Tarpaulin Pond first because she intends to start small and watch how the business goes for the year and after which she will erect a concrete pond. She has her own water tank/borehole that would supply her with clean water to the pond. The place she will spend money most is on buying the Tarpaulin and net.

.. has she got a list of merchants/fish mongers willing to take the fish. in most cases people are planning fish needs ahead of harvest. so she should have an idea of how much demand there is, pricing of demand and expectation of results to know how much fish to have initially to meet objectives. are the customers nearby, or does she just dream/hope to travel miles and hope to find someone at harvest time

From our conversation, her friend who has been into the business would introduce her to her network of customers. She's also working on creating or getting her own customers. Her potential customers to sell to at maturity are restaurants, at the local fish market, family and friends.

if the business plan is just 'buy some fish, get them to mate and procreate, sell some fish" where there is no numbers or costs attached. then she has not planned well.. but if she has done the number and there is enough profit margin/buffer to account for any unforeseen bad events and still break eve/profit then she should go about it

Well, it looks to me that she has done her home work on  it and the numbers look okay. I hope that at the end of the season she is able to break even and then decide if she should expand(that is, erect a concrete pond) or not. Anyways, I will discuss this with her and allow her to make the final decision.

[Smartprofit]

In my country, many are engaged in subsidiary farming, that is, they raise poultry (chickens, ducks), rabbits, pigs, etc.  for sale.  

However, they have neither special knowledge nor the corresponding specialized education. All skills and abilities are acquired through practice.  

If your friend owns a land plot and there is an opportunity to equip a pond for growing fish on this plot, if she has relatives who have expressed a desire to participate in this business, then, in my opinion, it is advisable for this woman to participate in this business.  

Most likely, she will succeed and after some time she will receive the first profit.

[Zilon]

If the capital were hers, employing an experienced expert in that line of business to oversee the business while she come in when chanced to take note of how the business is progressing would have been my suggestion. But since she lacks the experience and capital, taking a loan for a business she is considering to run as a side hustle might make her pay more. Because definitely one side of her income source will have to suffer, it is either her job suffers set back or the business suffers set back.

If she feels she needs to boast her income source and taking a loan is the last option then quitting her job will be the best option so she can focus on her new venture and ensure she properly accounts for the money borrowed else she might end up paying the debt through the salary gotten from her job.

[CarnagexD]

A client comes to me with a potential business idea - Fishery. She has conducted her market research. It is a viable business. She has written down her business plan and the rest of them. Here is are the main issues:-

a) Experience - She lacks the experience in fishery. All she knows about the potential business is hearsay, her research both online and offline, and the Facebook groups she joined. She claims she's going to have a guide from a friend who has done the business in the past.

b) Funding -  She has no funding or rather, she has less than 10% of the funds needed to kick-start the business. She is therefore considering debt financing.

Furthermore, according to her, this is going to be a side-hustle for the main time as he already has a job that brings in income every one. When I quizzed her on how she intends to pay the debts she said from her main job.

I want you to act as a financial analyst and provide advice to her. Should she go ahead with the business, since she said it is serving as a side hustle or should she not even venture into it considering that she has no experience and even though she may be able to pay off the debt from her main job, her lack of experience may cause the business to fail ?

A business should be established with one main goal, that is to provide value while making money. However with her story, business doesn't evolve in that way. She more seems like wants to make  a business because of boredom.
1. A business without commitment and taken only as a side hustle won't be able to survive in the long run.
2. Proper funds and finance is a must. If it is dependent to her job, she will be tied to it just to run her business.
3. Even without experience, proper research is a must but well of course experience will be an advantage.

There's a lot of idea. She probably already aware of it and have the solution for every problem she might encounter. Once it is settled, a business will be sound and ready to venture to provide value.

[Latviand]

If she doesn't have the financing and she plans to treat it like a side hustle then she's probably not going to break even and she should consider saving money from her job salary little by little to then try to make the loan much smaller as much as possible. The experience part though, she has risk doing it even if all she hears about it are from second-hand experience.