Investing in a futuristic business like Hydroponics Farming can be a great way to diversify your capital. Those considering investing in the Hydroponic Farming business might be well aware of what Hydroponics Farming is. It is the technology of skipping the soil and growing the plant directly in nutrient-rich water. When you are thinking of investing in a Hydroponic Farming business plan in India there is a list of things that must be given utmost importance. Let us dive into the details.
Advantages of Hydroponic Farming
The first question that arises before investing in the Hydroponic Farming business is the WHY. Why should one invest in this technology? Here is a well-documented list of advantages that reminds the beginner why this is a great avenue to invest in.
1. No Soil Needed:
No soil is required for growing green produce. This makes this technology an easier solution for anyone who is not in possession of arable outdoor spaces.
2. Less Space:
As the plants don’t require a vast area of land to grow, plants can be placed close together as they don’t need an extensive root network of their own.
3. Less Time:
When compared to traditional farming methods, crops in a Hydroponics Farming setup plants grow much faster.
4. High Yield:
The yield is more and which directly links to more profit.
What are the costs involved in Hydroponics Farming?
You would require space to grow your green produce. A greenhouse is required to grow hydroponics produce. Greenhouses come in different sizes. It can be built, rented or purchased. The cost would vary according to the size of the greenhouse. Along with that, the Hydroponics Farming setup would require lighting, grow tunnels, water solvent, UV filtration system, nutrient reservoirs, racks, tower, and several other supplies. Additionally, your business will also require space for an office, office supplies, and a computer in good condition with high-speed internet connectivity. To transport the plant products from one space to another and your potential customers, you will also require a vehicle with enough space.
What are the other costs involved?
Maintaining a hydroponics farm and producing healthy green crops is a product of constant effort. Hence, you would require seeds, labour, equipment, a well-maintained greenhouse that allows the crops to grow without the interference of the outer environment, and a delivery vehicle. The monthly labour cost, fuel for the vehicle, electricity will require a significant budget every month. Plan on spending on the following every month.
How much profit can the business make?
Hydroponics farming has a promising future which can be very profitable in the long run. In this business, you can make money by selling your green items, plants, and products to your potential customers. Your customers can be diverse which may include people, supermarket stores, universities, and other places where either food is served or you can buy plants.
When it comes to deciding the price for the greens, there are certain things that need to be kept in mind. The price firstly depends on what type of greens you are selling. Furthermore, the price also depends on the supply and demand of the nearby market. Try to research and understand the crops that have a high demand in the market, and specialize in selling a specific type of greens that people will readily agree to pay a significant amount for.
If we talk about the profit then one can make nearly a thousand dollars every year. But, if you begin with a small greenhouse and there is tough competition in the market, then the profits can be less than what you would expect. If you continuously produce healthy and green produce, find retaining customers and can have an edge over your competitors, then you can make lacs every year.
Further on the Journey of Hydroponics Farming
Once you have decided to invest in Hydroponics farming you will have to complete some legalities. The first step is to establish a legal business entity such as a corporation or LLC that will protect you from being held liable if your business is sued for any reason. You can start an LLC on your own by paying a minimal amount or hire an agent to do so.
Further, you will be required to register for a variety of state and federal taxes before you can actually open your business. To register your business for taxes you will need an Employee Identification Number (EIP).
You will also have to pay taxes according to the type of business you choose.
There are certain federal regulations related to the food business, which must be abided by. If you failed to do so, it can lead to a hefty penalty.
Establish your Brand
When you have completed all your legalities, one of the most crucial things is to establish your brand. Your brand is what you will be recognized for. Proper branding will help you get an edge over your competitors.
In the later stage, if your prospects are to sell your greens to supermarkets and various restaurants, then you will have to increase your footprints through proper communication. The relationship you build with your clients, owners and manager of such facilities are very important. Try to attend as many events, exhibitions, conferences that are pertaining to your business and network with people who need green produce, plants, and other items that you grow at your farm.
Another prominent thing that must be given prime importance is your business website. Every legitimate business has a website. You can place all the details on your website which will build and enhance the trust of your customers.
Hydroponics Farming can turn the tables in the farming sphere as no one is spared from the scarcity of water and soil pollution. If you are thinking of investing in hydroponics farming and want to get insight from an expert, you can participate in any Hydroponics training in India. We at Brio conduct webinars on various crucial Hydroponics related topics that can guide and strengthen our future agripreneurs.