How to start a hydroponics business

Written by ray anderson
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Hydroponics is a word derived from the Greek “hydro” meaning water and “ponos” meaning work. It is a method of growing vegetables, fruits and flowers without using soil and with providing plant food directly to the roots with water. This technology allows 25 per cent more plants to be grown in the same space that would otherwise have been used in traditional ground growing methods.

Skill level:

Things you need

  • Business plan
  • Business and tax licenses
  • Occupancy permit
  • Business current account
  • Merchant credit card accounts
  • Greenhouses with hydroponics growing tunnels
  • Hydroponics irrigation and climate control systems
  • Cultivation tools
  • Office space

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  1. 1

    Write a comprehensive business plan or have one prepared for you by a CPA. The hydroponics business is not unlike other start-ups that suffer an 80 per cent failure rate within the first five years of operation (though some of these business may have had an exit strategy). Your business plan will focus on the business’ requirements, the competition and anticipated costs and profits.

  2. 2

    Apply for financing. You will need start-up funds as well as money to maintain your business until sufficient sales are able to support it. Your business plan will help lenders evaluate your vision of your enterprise in order to lend you the needed funds.

  3. 3

    Secure your business location. Depending on your business plan, either purchase the land or lease it.

  4. 4

    Apply for your business’ occupancy permits and your jurisdiction’s business licenses. Contact the Internal Revenue Service for your Federal Tax Employer Identification Number (EIN) and get your state and local sales tax licenses.

  5. 5

    Install the greenhouses and the hydroponics growing tunnels. Hook up the irrigation and climate control systems.

  6. 6

    Apply for merchant credit card status with at least two different major credit card companies. Open a business bank account.

  7. 7

    Contact your suppliers and business-related vendors and ask for net-30 day credit. Inquire about volume discounts and sales specials.

  8. 8

    Stock your shelves with merchandise that you purchased from your wholesalers and display your products grown in your hydroponics greenhouses.

  9. 9

    Advertise your business. Get Internet access and discuss a marketing strategy with a local advertising agency.

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