Revolutionizing

Aquaculture with
Smart Technology

Inspired by E-Fishery's success, our new venture aims to transform

the aquaculture industry through innovative technology solutions. By
leveraging automation, data analytics, and artificial intelligence, we
seek to empower fish farmers to optimize their operations, reduce
costs, and promote sustainability. Our journey begins with applying
Bill Aulet's 24 Steps of Disciplined Entrepreneurship to build a solid
foundation for our business and create lasting impact in the global
aquaculture sector.
by Wellington T. Vitorino
Market Segmentation: Identifying
Our Initial Target
Our initial market segment focuses on small to medium-scale fish farmers in
developing countries with high demand for fish products. These farmers often struggle
with inefficiencies and high operational costs, making them ideal candidates for our
technological solutions. By targeting this segment, we can make a significant impact
on productivity and sustainability in regions where aquaculture plays a crucial role in
food security and economic development.

1 Research Market
Conduct extensive research on aquaculture practices in developing countries

2 Identify Pain Points

Determine common challenges faced by small to medium-scale fish farmers

3 Define Segment
Clearly outline the characteristics of our initial target market segment
Adjacent Market Segments: Expanding Our
Reach
While our primary focus is on small to medium-scale farmers, we've identified large-scale commercial
fish farms as an adjacent market segment. These operations, often highly mechanized, seek cutting-
edge solutions to further enhance efficiency, sustainability, and cost reduction. By addressing the needs
of this segment, we can diversify our customer base and scale our technology to meet more complex
requirements.

Small to Medium Farms Large Commercial Farms Future Segments

Potential expansion into related

Focus on basic automation and Advanced solutions for aquaculture sectors
cost reduction optimization and sustainability
End User Persona: Meet João, the Fish Farmer
João, 45, owns a fish farm in rural Brazil with 50 tanks. His main challenge is reducing feed waste, which represents his largest
operational cost. Environmentally conscious, João seeks sustainable practices that meet industry standards. He's tech-savvy enough to
adopt new solutions but requires user-friendly interfaces. João's goals include increasing profitability, ensuring fish health, and
minimizing environmental impact.

1 Demographics 2 Challenges
45-year-old male, fish farm owner in rural Brazil High feed costs, inefficient operations, environmental concerns

3 Goals 4 Tech Adoption

Increase profitability, ensure fish health, minimize Open to new technology, prefers user-friendly solutions
environmental impact
Total Addressable Market:
Sizing the Opportunity

To calculate our total addressable market (TAM), we'll estimate the

number of small and medium-sized fish farms in Brazil and other
priority markets. We'll assess what percentage of these farmers are
likely to adopt technology to automate operations and reduce costs.
This analysis will involve gathering data on aquaculture production,
farm sizes, and technology adoption rates in our target regions.
Region Number of Farms Potential Adopters

Brazil 50,000 15,000

Southeast Asia 100,000 30,000

Africa 30,000 9,000

Buyer Persona: Decision Makers in Aquaculture

While João represents both the user and buyer in his small farm, larger operations have different decision-making structures. In
medium to large farms, the decision maker is often the operations manager or farm owner. These individuals prioritize ROI,
operational efficiency, and compliance with industry standards. They're typically more experienced in aquaculture and may
require more detailed technical information before making purchasing decisions.

Farm Owner Operations Manager Aquaculture Specialist

Final decision maker, focuses on long- Evaluates technical aspects and Advises on biological and environmental
term profitability implementation feasibility impacts
Mapping the Buying Process: From Awareness to Purchase
Understanding the buying process is crucial for effective marketing and sales strategies. For our aquaculture technology, the process typically involves: 1) Problem identification
(high feed waste, fish mortality), 2) Solution research (automated products), 3) Vendor comparison, 4) ROI calculation, 5) Trial or pilot implementation, and 6) Full-scale adoption.
Each stage requires tailored communication and support to guide potential customers towards purchase.

1 Problem Identification
Farmer recognizes inefficiencies in current operations

2 Solution Research
Exploration of available automated aquaculture technologies

3 Vendor Comparison
Evaluation of different providers and solutions

4 ROI Calculation
Assessment of potential returns on technology investment

5 Trial Implementation
Pilot testing of chosen solution

6 Full Adoption
Complete integration of technology into farm operations
Crafting a Compelling Value Proposition

Our value proposition must address the core needs of fish farmers while highlighting the
unique benefits of our technology. We propose: "Reduce operational costs by up to 30%
annually through smart aquaculture solutions that minimize feed waste, optimize growing
conditions, and improve fish health. Our user-friendly automation and monitoring systems
empower farmers to increase productivity while promoting sustainable practices."

Cost Reduction
Up to 30% annual savings on operational expenses

Efficiency
Optimized feeding and environmental control

Sustainability
Reduced environmental impact through smart resource management

User-Friendly
Intuitive interfaces for easy adoption and management
Defining the Core: Our Product's Essence
At the heart of our offering is an integrated system combining hardware and software to revolutionize aquaculture
management. The core product includes: 1) Smart feeders that dispense precise amounts of feed based on fish behavior and
environmental conditions, 2) Water quality sensors that continuously monitor key parameters, and 3) A central control platform
that analyzes data and provides actionable insights to farmers.

Smart Feeders Water Quality Sensors Control Platform Mobile App

Automated dispensing Data analysis and insight Remote monitoring and
based on real-time data Continuous monitoring of generation control for farmers
critical parameters
Quantifying the Value
Proposition: ROI for Farmers

To make our value proposition tangible, we'll quantify the benefits for a
typical fish farm. Assuming a medium-sized operation with annual costs of
$500,000, our solution could provide: 1) 20% reduction in feed costs ($60,000
savings), 2) 15% improvement in fish health, reducing losses ($30,000
saved), 3) 10% increase in production efficiency ($50,000 additional
revenue). Total benefit: $140,000 per year, representing a 28% improvement
in profitability.
Benefit Category Annual Savings/Revenue

Feed Cost Reduction $60,000

Reduced Fish Losses $30,000

Increased Production $50,000

Total Benefit $140,000

Defining the Minimum Viable
Business Product (MVBP)
Our Minimum Viable Business Product (MVBP) will focus on addressing the most
critical pain point: feed waste reduction. The MVBP will include: 1) A smart feeder
with basic sensors, 2) A simple control unit for programming feeding schedules, and
3) A mobile app for monitoring and adjusting feeding remotely. This core offering
allows us to deliver immediate value to customers while gathering data for future
enhancements.

1 Smart Feeder
Automated dispensing with basic environmental sensors

2 Control Unit
Simple interface for setting feeding schedules

3 Mobile App
Basic remote monitoring and control capabilities

4 Data Collection
Gathering insights for future product improvements
Identifying Key Assumptions: What We Need to
Validate
To ensure our business model is viable, we must validate several key assumptions: 1) Fish farmers are willing to
adopt new technology to reduce costs, 2) Our solution can consistently deliver 20-30% cost savings, 3) The initial
investment is acceptable for our target market, 4) Farmers can easily integrate our system into existing
operations, 5) Local regulations support the adoption of automated feeding systems. These assumptions will
guide our initial market research and pilot programs.

Technology Adoption Cost Savings

Farmers' willingness to embrace new solutions Ability to deliver consistent 20-30% reduction in expenses

Investment Acceptance Integration Ease

Target market's capacity to fund initial system costs Seamless incorporation into existing farm operations
Designing Experiments: Testing Our Assumptions
To validate our key assumptions, we'll conduct a series of experiments: 1) Survey 100 fish farmers to gauge interest in automated feeding systems, 2) Run a
3-month pilot program with 10 diverse farms to measure actual cost savings, 3) Offer different pricing models to assess willingness to invest, 4) Conduct
usability tests to ensure ease of integration, 5) Review regulations in target markets and consult with local authorities on compliance requirements.

1 Market Survey
Gauge interest among 100 fish farmers

2 Pilot Program
3-month test with 10 diverse farms

3 Pricing Model Tests

Assess willingness to invest

4 Usability Testing
Ensure ease of integration

5 Regulatory Review
Consult authorities on compliance
Defining the Customer: Ideal Early Adopters

Our ideal early adopters are progressive fish farmers who: 1) Operate medium-sized farms (20-100 ponds), 2) Are
tech-savvy and open to innovation, 3) Face significant challenges with feed costs and waste, 4) Have a strong focus
on sustainability, 5) Possess the financial capacity for initial investment. These early adopters will provide valuable
feedback and serve as case studies for future marketing efforts.

Medium-Sized Farm
20-100 ponds or tanks

Tech-Savvy
Open to innovative solutions

Cost-Conscious
Seeking to reduce feed waste and expenses

Sustainability-Focused
Committed to environmentally friendly practices
Estimating the Total
Addressable Market (TAM)

To calculate our Total Addressable Market (TAM), we'll focus on key

aquaculture regions. Assuming 200,000 eligible farms across Brazil,
Southeast Asia, and Africa, with an average potential annual spend of
$50,000 per farm on technology solutions, our initial TAM is estimated at
$10 billion. This calculation considers factors such as farm size, current
technology adoption rates, and regional economic conditions.
Region Eligible Farms Avg. Spend TAM

Brazil 50,000 $50,000 $2.5B

Southeast Asia 100,000 $50,000 $5B

Africa 50,000 $50,000 $2.5B

Total 200,000 - $10B

Calculating the Lifetime Value of an
Acquired Customer
To determine the Lifetime Value (LTV) of a customer, we'll consider: 1) Initial system cost, 2)
Annual subscription fees, 3) Upgrades and additional services, 4) Average customer
lifespan. Assuming an initial purchase of $30,000, annual fees of $5,000, and an average 7-
year relationship, the basic LTV is $65,000. Factoring in potential upgrades and additional
services, the total LTV could reach $80,000-$100,000 per customer.

Initial Purchase
$30,000 for hardware and installation

Annual Fees
$5,000 for software and support

Upgrades
$15,000 over lifetime (estimated)

Total LTV
$80,000 - $100,000 per customer
Mapping the Customer Acquisition Process
Our customer acquisition process will follow these steps: 1) Awareness generation through targeted digital marketing and industry events, 2) Lead capture via website and trade show interactions, 3)
Educational content delivery through webinars and case studies, 4) Personal outreach and farm visits by sales representatives, 5) Product demonstrations and ROI calculations, 6) Proposal and
negotiation, 7) Pilot program implementation, 8) Full system deployment and ongoing support.

1 Awareness
Digital marketing and industry events

2 Lead Capture
Website forms and trade show interactions

3 Education
Webinars and case studies

4 Personal Outreach
Sales rep visits to farms

5 Demonstration
Product demos and ROI calculations

6 Negotiation
Proposal and contract discussions

7 Implementation
Pilot program and full deployment
Identifying Key Customer
Acquisition Metrics
To measure the effectiveness of our customer acquisition strategy, we'll focus on
these key metrics: 1) Cost per Lead (CPL), 2) Lead-to-Opportunity Conversion Rate,
3) Opportunity-to-Customer Conversion Rate, 4) Customer Acquisition Cost (CAC), 5)
Time to Close, 6) Initial Contract Value, 7) Customer Lifetime Value to CAC Ratio.
These metrics will help us optimize our sales and marketing efforts for maximum
efficiency.
Metric Target

Cost per Lead (CPL) $500

Lead-to-Opportunity Rate 20%

Opportunity-to-Customer Rate 30%

Customer Acquisition Cost (CAC) $15,000

Time to Close 90 days

LTV:CAC Ratio 5:1

Designing the Sales Process: From Lead to Close
Our sales process will be designed to guide potential customers from initial interest to successful implementation: 1) Lead qualification through scoring based on farm size and readiness, 2) Initial consultation
to understand specific needs and challenges, 3) Customized solution presentation and ROI projection, 4) Site visit and technical assessment, 5) Proposal submission and negotiation, 6) Contract signing and
deposit collection, 7) Implementation planning and scheduling, 8) System installation and training, 9) Post-installation support and optimization.

Lead Qualification
Score leads based on farm size and readiness

Consultation
Understand specific needs and challenges

Solution Presentation
Customize proposal and project ROI

Site Assessment
Technical evaluation of farm setup

Negotiation
Finalize terms and sign contract

Implementation
Install system and provide training
Calculating Unit Economics: Cost vs.
Revenue per Customer
Understanding our unit economics is crucial for sustainable growth. We'll analyze: 1) Cost of
Goods Sold (COGS) including hardware and installation, 2) Gross margin on initial sale and
recurring revenue, 3) Customer Acquisition Cost (CAC) including marketing and sales expenses,
4) Lifetime Value (LTV) of the customer. Our goal is to achieve a LTV:CAC ratio of at least 3:1 to
ensure profitability and justify continued investment in customer acquisition.

Metric Value

Initial Sale Price $30,000

COGS $15,000

Gross Margin (Initial) 50%

Annual Recurring Revenue $5,000

CAC $15,000

LTV $80,000

LTV:CAC Ratio 5.33:1

Identifying Key Assumptions for
Customer Acquisition
To validate our customer acquisition strategy, we must test these key assumptions: 1)
Our target customers are actively seeking technology solutions for their farms, 2) The
proposed ROI is compelling enough to drive purchase decisions, 3) Our sales cycle
length is accurately estimated at 90 days, 4) The customer acquisition cost will
decrease as we gain market recognition, 5) Early adopters will serve as effective
references for future sales. These assumptions will guide our initial marketing and sales
efforts.
1 Market Demand
Farmers actively seeking tech solutions

2 ROI Appeal
Projected returns drive purchase decisions

3 Sales Cycle
90-day estimate is accurate

4 CAC Reduction
Costs decrease with market recognition
Designing Experiments to Test Customer
Acquisition Assumptions
To validate our customer acquisition assumptions, we'll conduct these experiments: 1) Run targeted ad
campaigns to measure interest and click-through rates, 2) Offer free ROI assessments to gauge the
impact on decision-making, 3) Track actual sales cycle lengths across different customer segments, 4)
Implement a referral program to test the influence of early adopters, 5) A/B test different marketing
messages and channels to optimize CAC. These experiments will provide data to refine our acquisition
strategy.

Ad Campaign Test ROI Assessment Offer Sales Cycle Tracking

Measure interest and click- Monitor actual time from lead

through rates for targeted ads Evaluate impact of free to close across segments
assessments on decision-
making
Defining the Core: Product Positioning
and Unique Value
Our core product offering is an integrated smart feeding and monitoring system for
aquaculture. Key features include: 1) AI-driven feeding optimization, 2) Real-time water
quality monitoring, 3) Predictive analytics for fish health and growth, 4) User-friendly mobile
app for remote management. Our unique value lies in combining cutting-edge technology
with deep aquaculture expertise, delivering a solution that significantly reduces costs while
improving sustainability and fish welfare.

Smart Feeding
AI-optimized feed dispensing based on real-time data

Water Monitoring
Continuous tracking of critical water parameters

Predictive Analytics
AI-powered insights for fish health and growth

Mobile Control
User-friendly app for remote farm management
Identifying Key Product Assumptions
To ensure our product meets market needs, we must validate these key assumptions: 1) Our AI-driven feeding system can
consistently outperform manual feeding methods, 2) Farmers are willing to trust automated systems for critical tasks like
feeding, 3) The mobile app interface is intuitive enough for farmers with varying levels of tech literacy, 4) Our predictive
analytics provide actionable insights that significantly improve farm management, 5) The system is robust enough to withstand
various environmental conditions in different aquaculture settings.

1 AI Performance 2 Farmer Trust

Automated feeding outperforms manual methods Willingness to rely on automated systems

3 User Interface 4 Actionable Insights

App is intuitive for various tech literacy levels Analytics provide valuable management guidance