Chapter 2

Product

Fish is one of the most popular hobbies in the world. A tank or pond filled with colorful

fishes is always a conversation piece be it at home, office or shops and malls. What

with huge number of fish species to choose from, any fish tank or pond owner can take

delight just by choosing what fish to take home and care for. Taking care of fishes,

aquariums and ponds is not as complicated as other pet hobbies. This makes fish shop

a good business anywhere in the globe.

However, as with any other trade, it is important that the entrepreneur entering into this

kind of industry do not only have knowledge on the area but a genuine interest is

beneficial in successfully running this kind of business. If you are into fishes, be it fresh

water or salt water, establishing a fish shop business may just be for you.

Salt water fishes, like its name suggest, are fishes that live in the sea like clown fish,

angel fish, cardinals, etc. They are more expensive to buy and take care of than that of

the fresh water type. Caring for these fishes require that the tank or aquarium that

closely mirrors the water environment of their sea home. However, specialty shops have

been breeding salt water fishes for some time now and fishes that are breed are mostly

more tolerant to makeshift habitat.

Fresh water fishes are those that naturally live in the river or lake such as gold fish, koi,

catfish, etc. These are more tolerant than salt water fishes and they are easier to take

care of either in an aquarium or in a pond. Fresh water fishes may be a good place to
start for an entrepreneur just entering into this kind of business. (Starting a Fish Shop,

n.d.)

Market

fish keeping has become one of the most popular hobbies among millions of

enthusiasts across the globe. Additionally, most of the fish species kept in aquariums

are freshwater species.

The surging demand for ornamental fish among hobbyists is one of the major driving

forces contributing to the sales of aquarium accessories. Hobbyists are increasingly

seeking products such as aeration equipment, substrate, tanks, ornaments, and fish

food.

The growing interest of individuals in keeping aquarium fish has resulted in the

establishment of new stores. Generally, these stores sell aquarium-related products and

services such as installations, maintenance, and cleaning.

The aquarium stores are also employing skilled and knowledgeable staff to assist

consumers in maintaining their aquariums regularly at their residence. Also, the market

is witnessing the growing preference for technology-integrated products. Hence, starting

a business in the aquarium industry is highly lucrative these days. (Next What Business

Research Team, 2020)

Capacity of the industry

Ornamental fish production for the aquarium industry is a multimillion-dollar industry in

the United States. Annual sales from Florida alone are estimated at over 175 million

dollars in retail value. Because the vast majority of fish varieties sold originate from

tropical regions of the world, in the United States, the majority of production is limited to

South Florida. The Florida industry dates back to the early 1930s, but its major

expansion has occurred in the last 20 years. Farms in Florida now produce over 700

varieties of ornamental fish and ship them to wholesalers and retail pet shops around

the world. In a survey conducted by the Florida Department of Agriculture, the farm gate

value of this crop was reported to be $33.7 million in 1989. Besides the production on

Florida farms, there are minor operations in warm water springs in the Western U.S.

and numerous "backyard" operations throughout the country. In the Far East,

production centers are found in Thailand, Singapore, Indonesia, Hong Kong and

Malaysia. In addition, there are hundreds of species which are only available as wild-

caught specimens, either because no one has found a way to produce them on farms,

or economics prohibit production; except for a handful of species, all marine ornamental

fish are caught from the world's tropical oceans. Major centers for. (Craig A. Watson

and Jerome V. Shireman)

Fish consumption per capita reached 34.1 kg in 2013 in Philippines, according to

Faostat. This is 1.73 % less than in the previous year. Historically, fish consumption per

capita in Philippines reached an all-time high of 37.8 kg in 1975 and an all-time low of
kg in. When compared to Philippines's main peers, fish consumption per capita in China

amounted to 32.4 kg, 27.6 kg in Indonesia, 31.2 kg in Taiwan and 33.6 kg in Vietnam in

2013. Philippines has been ranked 18th within the group of 160 countries we follow in

terms of fish consumption per capita, 3 places above the position seen 10 years ago.

(Source: Faostat)

Harvests from aquaculture farms was recorded at 2,324.00 thousand metric tons in

2020. The production was -1.5 percent less than the 2,358.33 thousand metric tons

produced in the previous year. The subsector contributed 52.8 percent to the total

fisheries production. (Figure 4 and Table 1) Of the 20 major species, 15 species

registered decrements in. (PSA)

Major players of the industry

Jecars pet shop

The owner of this pet shop, Joy Len Diaz Pantaleon, has two daughters. There are two

locations of Jecars Pet Shop. The primary branch was at the public market in Surallah.

The proprietor of this pet business has recently taken on the task of caring for fish. She

urged her husband to open a pet store because it was his childhood dream. They began

building a shop in front of Purok Sison Elementary School in 2010. Then, in 2013, they

made the decision to go public.

Organizational aspect

There is only one worker at Jecars Pet Shop. The laborer is in charge of cleaning and

maintaining the aquarium while simultaneously working as a cashier. regularly the

laborer draining water at least 30% to avoid contamination and after draining the laborer

refill 30% of water.

Operational and technical aspect

Jecars Pet Shop has only one employee who is responsible for all aspects of the

business, including draining, refilling, and serving as a cashier. Salaried employees are

paid a fixed annual salary. To calculate each paycheck, the owner divides their annual

wage by the number of pay periods in a year, which will be the same each pay period

regardless of how much time they worked.

Marketing aspect

Jecars Pet Shop has two (2) locations: one in Banga, South Cotabato, and the main

branch is in the municipality of surallah. They also have customers who are between the

ages of 15 and 40 years old. Joylen Pantaleon, the owner of the Jecars Pet Shop, is

also the shop's facilitator. Fish pricing are determined by the size and quality of each

fish.

Financial aspect

Jecars Pet Shop has been in business as a private proprietorship since 2013. Mrs.

Joylen Pantaleon, who also managed it until recently, put it up. The initial investment

was merely a hundred thousand (100,000) pesos, which covered all of the merchandise.

JMB Aqua Pet and Livestock

The JMB Aqua pet and livestock facility is currently positioned in front of the Banga

Municipality. Richard Jim Doromal, a married father of two children, owns and manages

the business. Despite the epidemic, their pet shop in Banga Plaza had just opened in

June 2020, and he planned to launch another business there. Mr. Richard Jim Doromal

owned two businesses, one of which he developed at B0.6 Banga, South Cotabato.

Organizational aspect

JMB Aqua Pet and Livestock has a team of dedicated employees who look after his

business. Each shop has two laborers who oversee the entire operation. Cleaning and

disinfecting the pet shop, as well as dealing with clients, are responsibilities of the

employed staff Because it is a tiny shop, they keep a close eye on the animals to

ensure their health and vigor. The two employees were treated as a family concern or

responsibility, and the owner's mother was in charge of overall oversight of the entire

company.

Operational and technical aspect

The owner gives general advice on animal care and handling to the pet shop's

caretaker. Unfortunately, due to the wide variety of animals kept in pet stores, he

provides detailed information on every type of pet. They believe it is impossible to

describe the specific care and handling requirements of each species in a single

booklet. However, the owner's business may have a staff library with books and videos

on general and species-specific pet care that they consult if they are unsure.
Marketing aspect

JMB Aqua pet and livestock, located in front of the municipality plaza of Banga South

Cotabato and the main is in bo.6 Banga South Cotabato, has been in operation since

June 2020. And their target market consists of people who are interested in raising

animals and fish. Mr. Richard Jim doromal began caring for and breeding fish such as

koi, guppy, gold fish, and others with a capital of 3,000 in 2016 only in their yard until it

increased, he anticipated, in the year 2020. On the day of the municipality of Banga

anniversary, he began his own business. The prices of their sold fish vary according to

size and variety, but they are not less than 10 pesos.

Financial aspect

JMB pet and livestock began last year June 2020 as a sole proprietorship headed by

Richard Jim doromal who also maintain and monitor the business shop. His business

right now has a big income because aside from the species fish they sell a lot and he

still has a lot of buyers who order his products and he delivers them.

Fresco pet galore

Mr. Elian Fresco owns and manages Fresco Pet Galore, which is located in Koronadal

City, South Cotabato. Although the pet shop is registered, it is a sole proprietorship that

has been in operation for fifteen years. Fresco pet galore has two (2) locations in

Banga, one of which is called Smiling Fish Pet Shop.

Organizational aspects
Fresco pet galore has full-time personnel, including two (2) cashiers, however they are

only scheduled to hire one (1) person per day for the next week. They also have two (2)

laborers per day. Only for work or job-related purposes, such as cleaning aquariums

and arranging fish and product accessories. Fresco Pet Galore also has three (3)

employees in other branches in Banga South Cotabato. One (1) employee for cashier

and two (2) labors each day is required.

Operational and technical aspect

The owner of the Fresco pet galore teaches and supervises the employees to the

operational aspects of fish breeding and selling. They employed a strict implementation

of the appropriate caring of the fishes in order to maintain the cleanliness of the

aquariums. to provide a good quality of fish that they sell. The labors are cleaning the

waste product and contaminated water was into the area of decomposition. The

employees of Fresco pet galore were paid monthly salaries that given by the owner Mr.

Elian Fresco.

Marketing aspect

Fresco pet galore have two (2) branches in Banga South Cotabato and the main is in

Koronadal City. There have also basic customers such as people at the age of 10 to 40

years old above. The pet shop has also suppliers that get and buy the fishes and

product accessories. Marketing fish for them is not a problem since they have a

captured market in Koronadal City South Cotabato (Smiling fish shop). Also, headed by

Ellian Fresco that consolidates all their fish and product accessories display. The prices

of the fishes are depending on the sizes and variety classification (small, medium, large)
there have also retails. Also, Ellian Fresco is in charge of consolidating all of their fish

and product accessory displays. The prices of the fish vary according to size and variety

classification (small, medium, and large), and there are also retails. Because of their

loyal customers, this pet shop has remained open since they began breeding and now

has a capital of three hundred thousand (300,000) pesos. Furthermore, the location is

along the highway, which makes them appealing to buyers.

Financial aspect

Fresco pet galore has been in business as a sole proprietorship since 2006. It was put

up by Mr. Elian Fresco, who also managed it from time to time. The initial capitalization

was only three hundred thousand (300,000) pesos, which covered all of the fish and

fish-related products. One (1) capital was taken from family members who helped him

with his business hobby.

Key success factor

The operation of the pet shop in the province of south Cotabato is dependent on some

factors. The following factors listed here have contributed to the success of pet shop

industry in the province.

Existing market

It was not difficult because buyers place a higher value on ornamental and monster fish

and accessories than on the animal pets that they generate. Buyers are typically the

ones who contract and initiate sales. As a result of their experience, today's producers
have exposed their market to social media accounts as a way to spread the word about

their desire to learn about new varieties and trends in shop decoration.

Potential market

There is a potential market in the Province of South Cotabato which is in the Koronadal

City since the population of the city has increased due to the improved economy that

they have. Also, the population in per barangay of the city is increasing thus it also

corresponds to the increase in demand of the said product, the ornamental and monster

fish and accessories. In addition, the Koronadal City was the Capital of the South

Cotabato thus leads advantage to the Pet Shop.

Suitable location

All the ornamental and monster fish need a location that is highly visible and easy to get

to. Selling pets and pet supplies requires complying with regulation, upholding certain

standards and performing necessary procedures. Also, in the highway and center of the

market is the best location for pet shops because it is attractive to the people’s eye.

Less worker requirement

Majority of the backyard breeder or even the commercial scale breeder that was visited

only started with themselves as a labor doing all the fish breeder. It could be considered

as a family recreation or exercise and a responsibility of everyone. Workers required

were minimal and work could be done by daily basis only.

Minimal capital and fast capital turnover

Putting up backyard breeders does not require intensive capital. It ranges from a

thousand pesos, for purchases of breeder to depending on the varieties of fish. Since

the breeding cycle starts anytime.

Government policies

General policies

In establishing a business, all entities are required to secure all necessary documents

from national agencies up to the local government where the business shall be located.

Necessary documents shall be completed before the business will be fully operational.

National agencies such as Department of Trade and Industry (DTI) requires business

name to be registered and Bureau of Internal Revenue (BIR) issues certificate of

Registration. A business permit shall be secured from the local government.

Requirements for new business

1. Latest Barangay clearance where the business is to be established

2. Latest community tax certificate for corporation or individual

3. Filled up BIR Form No.0605 and proof of payment

4. One (1) copy of the applicant’s passport size picture

5. Zoning clearance for business operation

 6. Assessment of capital invested by the treasurer’s office

7. Building permit/annual inspection certificate

8. Fire safety inspection certification

9. Sanitary permit to operate/clearance from municipal Health office

10. Environment compliance certificate from DENR

Specific policy

Pet shop is being regulated by the provision of the laws on aquaculture. this has to be

strictly followed since this will deal primarily with animals that are consumed by people.

In compliance with the department of aquaculture. order #08 series of 1999 which

subject to the rules and regulation on the registration of species control facility, cattery,

circus/carnival animal shows, corral, hog farm, kennel, laboratory animal facility, pet

shop, poultry farms racetrack and equestrian establishment, slaughterhouse, stock

farm, stockyard stud farm. veterinary clinic, veterinary hospital, wildlife rescue center

and zoo, the business must consider the following provisions.

Section 2 registration

 Any person or partnership, firm corporation, association or any government

agency/instrumentality desiring to engage in the establishment, operation and

maintenance of animal control facility, aviary, cattery, circus/carnival animal

 show, corral, crocodile farm, hog farm, racetrack and equestrian establishment,

slaughterhouse, stock farm, stockyard, stud farm, veterinary clinic, veterinary

hospital, wildlife rescue center and zoo shall first be registered in the office of the

director, bureau of animal industry (BAI)

 Any person, partnership, cooperative, cooperative, firm or corporation,

government agency/instrumentally or his accredited agent shall make application

for registration or annual renewal in such form and manner as may be prescribed

from time to time by regulation

 A registration fee paid in accordance with the scheduled fees found in section 7

of his administrative order shall accompany an application for registration.

 The director may suspend subject to the rules and regulations promulgated for

the implementation of the animal welfare act. The registration of any

establishment which is found after proper investigation to be not on conformity

with the provision of this act. Once suspended, the committee on animal welfare

shall conduct a formal investigation. The action of the director of animal industry

may be appealed to the secretary of agriculture.

Section 3 standard and requirement for registration

The authorization shall be valid for two (2) days and renewable thereafter. Renewal

shall be based on a compliance evaluation of the entity.

- Application for renewal of the authorization shall be made at least 1 month

prior to the expiration of the authorization.

section 4 renewal of registration

  The registration shall have the following validities for all categories of

establishment

- Initial period ( initial application ) 1 year

- Subsequent application (renewal application) 3 years

 At least one month prior to the expiration of the registration, the

establishment should apply for renewal of its license.

 In considering the renewal application, BAI shall ascertain the continued

compliance by the establishment with the standard and requirements

stipulated in section 3.1, 3.2 and 3.3