Can Hydroponics Garden Be Profitable Business
Doing a business with hydroponics garden is not difficult now. Write down a business plan or have one prepared by your accountant or yourself. The hydroponic business continues to be another venture that suffers an 80% failure in the first 5 years of operation. Your business plan will focus on business requirements, competition and the anticipation of costs and profits.
Ask for financing.
You will need funds to start as well as money to maintain the business until the sales are enough to sustain it. Your business plan will help lenders evaluate your business vision so they can lend you the necessary funds.
Request the occupation permit and business licenses of your jurisdiction. Contact the tax office to obtain the tax identification number (EIN) and obtain your state and local sales tax license.
Apply for commercial credit cards with at least two large credit card companies. Open a business bank account.
- Secure the location of your company. Depending on your business plan, buy the land or rent it.
- Install greenhouses and hydroponic tunnels. It connects the irrigation and climate control systems.
- Contact your suppliers and vendors related to your area and ask them for a 30-day credit. Ask about volume discounts and special sales.
- Promote your business You get access to the internet and discuss a marketing strategy with a local advertising agency.
Marketing of hydroponic products
No less important for the next question: how will I sell my products?
Important characteristics: To have differentiated added value, quality products, high volume of commercialization, of which they are stored in an environment subject to high temperatures, unscheduled lack of electrical energy and, in some cases, the indifference of the hand of work.
This is the initial and daily challenge for the hydroponics that makes this technique a professional activity and personal fulfillment.
Thus, some points are extremely important to be discussed and mainly followed:
- Differentiated quality: A product with quality and guarantee of methods that advocate good food production practices becomes differentiated. So the continuous evaluation of these variables is of fundamental importance for the demand of the market.
- The professional commitments between the hydroponics and his buyers: Rule, small markets, restaurants, among others for productions that do not surpass the 3000 m2 of a productive area have to have reliability. Thus the analysis of this relation, mainly in the months where the consumption falls, the increase of the supply of vegetables coming from the field (these periods that include those of low temperatures – winter) is relevant.
- Buyer evaluation: Providing a single buyer, usually not a favorable option to the hydroponics garden, you have to think about it seriously!
- Delivery guarantee: There is not much to talk about in this aspect. It is simple and painful, it failed too much and it lost the client. It is a marketing standard.
- Knowledge of the needs of your client: The producer to meet the demand of your market. Either by established vegetables, or by the need for market research. That will have consistent information for decision-making and what action line to follow.
- Investment in the post-harvest: Sanitation, packaging, transport, and any variable that guarantees a long shelf life of the product.
- Investment in advertising: Hiring of a sales promoter who circulates at the points of sale, disclosing the products, recognizing the replacement of the gondolas with the aim of reducing losses to acceptable levels.
- Investment in employee training and well-being: Remember to make the difference between quality, delivery guarantee, price setting and consequent customer satisfaction.
Thus, it is evident that it is not enough just to produce. It has to know how to sell, and selling is an art that is learned with great effort and daily learning.
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