Do you want to start hydroponic farming business?

Are you looking for a type of business that will have immensely increased demand in the near future? Well, you might like to start a hydroponics farm, if you are a person with a knowledge of plants and if you can invest what is required for this hydroponic farming business plan.

Hydroponics farm business includes growing plants, greenery, flowers, herbs, etc. by providing them the optimal environment and essential nutrients without indulging yourself in the draining and actual lengthy procedure of growing plants in soil. If you want to know more about hydroponics farm and how to start it, you can take help from this sample hydroponics farm business plan of a startup named, ‘Alice Agritech’.

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Executive Summary

2.1 The Business

Alice Agritech will be a registered and licensed hydroponics business owned by Alice Grainger. The business will be started in New Orleans and will include growing greenery and plants by using the latest techniques of growing more nutritious food by providing optimal medium required by plants.

2.2 Management

The first step before you start a hydroponics business is to make a detailed hydroponics business plan. As hydroponics business will involve establishing an indoor area usually a greenhouse, providing plants the essential nutrients, establishing the whole system of power, and drainage alongside packaging and selling the grown foods. Therefore, in order to manage all these tasks, you have to devise a detailed management plan before you take a startup.

2.3 Customers

Our customers will mostly be the departmental stores, food companies, hotels, and restaurants and some individual buyers, residing in New Orleans.

2.4 Target of the Company

Our primary target is to grow and sell tastier and more nutritious food to our customers in whole New Orleans creating an example of standard and quality. Our financial business target is as follows:

Hydroponics Farm Business Plan Sample - 3 Years Profit Forecast
Operational and Strategic Planning
This deliverable will contain a business development road map that will help the company achieve its goals and become a market leader.

Company Summary

3.1 Company Owner

Alice Grainger will be the owner of Alice Agritech. Alice has a Master’s degree in Horticulture from Cornell University. From gardening as a hobby to starting hydroponic farming business plan, she is solely driven by her passion about plants and agriculture and the urge to run her own company.

3.2 Why the Business is being started

It is not wrong to say that Alice is passionate about plant-related fields, but the reason why she is starting this hydroponic farming business plan is to turn hydroponics business opportunities into money. Nowadays the concept of rural areas and agricultural farms is terminating due to the high labor and time required to grow plants in soil.

Hydroponic plants are easy to grow and maintain. In a hydroponic farm, not only their quantity and growth rate would increase but also their nutrition content and taste will be much more craving than the traditionally grown outs. Considering the importance of producing good food in bulk these days as well as in the coming days, Alice has decided to start a hydroponics farm.

3.3 How the Business will be started

All the details of how Alice Agritech will be started, are provided in this hydroponic farming business plan sample. So, if you too are looking for how to start your own hydroponics business you can take help from here.

The hydroponics system will be installed in an indoor facility bought in New Orleans. The plants will be kept in trays and buckets and provided with growth-promoting environment by supplementing them with the proper nutrient intake as told by specialists. Proper light, heat, drainage, and cutting of plants will be insured by Alice and her dedicated staff.

The detailed start-up information is given below:

Hydroponics Farm Business Plan Sample - Startup cost
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    Products of hydroponic farming business

    It will be really helpful for you in future if you include your products and services in your hydroponics business plan template. Predetermining the services will help you in making the proper arrangements and hoarding the required nutrient supplements. The services Agritech will be providing are enlisted here:

    • We’ll be producing healthier and tastier leafy green and other vegetables and some fruits including potatoes, mint, cabbage, lettuce, tomatoes, onions, green beans, spinach, fenugreek plant, lemons, green chili, bell peppers, strawberries, blueberries, and cherries.
    • We’ll be growing all types of greenery and flowers used for decoration.
    • We’ll also be growing some herbs hydroponically including coriander, mint, basil, thyme, chives, and sage.
    • We’ll be having an Edible Bar for the people to visit us, watch our extraordinary system and try our foods.

    Marketing Analysis of Hydroponics Farm Business

    If you are going to start a hydroponic farming business plan, you are fortunate enough in the case of the target market and marketing trends. Nowadays the concept of growing plants in soil is terminating and people are searching for an approach by which they will be able to grow plants speedily and efficiently in large quantities without compromising on their quality.


    The only thing you have to worry about is finding a perfect location for your hydroponic farming business plan</span> with a less or no number of existing hydroponic farms. Do research on how to open a hydroponics business and devise a plan to go ahead.

    5.1 Market Trends

    Franchise Business Planning 

    The market trends of the hydroponics business are extremely satisfying. There are currently 3 thousand hydroponic farms running in the United States generating a revenue of $891 million annually, and their number is expected to increase over the next years. IBISWorld has reported a 1.2 percent growth rate for the hydroponic farming business plan.

    As it is a business that remains active round the year, you will be able to supply your products to your buyers throughout the year making a considerable profit. This is the right time to enter this venture, but before looking for how to start a hydroponic farming business plan, make sure that you have studied the market thoroughly in which you will be serving.

    5.2 Marketing Segmentation

    The target group of customers as identified by Alice Agritech are given here in detail.

    Hydroponics Farm Business Plan Sample - Market Segmentation

    5.2.1 Restaurants and Hotels

    The biggest target group availing our services will comprise of the hotels and restaurants running in New Orleans. By our hydroponics system, we’ll be able to supply them our packed, high-quality vegetables and herbs in bulk quantities on a daily basis.

    5.2.2 Departmental Stores & Food Companies

    We’ll contact various departmental stores and food companies located near to us to supply our products to them. As they are also expected to buy our products in bulk, so we’ll be offering several discounts in order to get introduced to them.

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    5.2.3 Individual Buyers

    The last group of our target customers will be the residents of New Orleans who are expected to purchase our packed products, decorative plants, and to visit our edible bar. They will surely like our edible bar where they can experience the taste of our products and watch our procedures.

    5.3 Business Target

    Our aim is to become the most recognized and most visited hydroponic farm in the whole city. Our financial goals to be achieved are:

    • To balance the startup costs with earned profits by six months of the launch
    • To earn a profit revenue of $10k per month by the end of the first year

    5.4 Product Pricing

    After considering the market demands and running our hydroponic farming business plan without compromising quality, we have priced all our products in similar ranges as of our competitors.

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    After analyzing the target groups and market trends, it is time for you to make a business strategy services to gain your target customers after which you will be able to meet your hydroponic farming business plan targets. In this hydroponics farm business plan pdf format you can know about the competitive edges Alice Agritech will have over her competitors. This hydroponic farming business plan sample also enlist some of the advertisement techniques followed by Alice Agritech.

    6.1 Competitive Analysis

    Our biggest competitive advantage is the variety and quality of the products we’ll be offering. We’ll be producing fresh, healthier and tastier food for our customers. We’ll be using pure organic nutrients to supplement our plants in the supervision of certified nutrition specialist. Secondly, only we in the whole New Orleans are having an Edible Bar where people can sit, enjoy and eat vegetables and fruit by plucking them with their own hands. Lastly, our advertisement plan to get introduced to major restaurants, departmental stores and companies will also be our competitive advantage.

    6.2 Sales Strategy

    Alice Agritech will be advertising her services by adopting these means.

    • We will advertise our services by posting effective billboards and banners.
    • We will print business card template hydroponics and send them to the food companies, departmental stores, and restaurants near to us.
    • We’ll offer free transport of our packed products to the food companies and restaurants for the first three months of our launch.
    • We will get our website developed by expert developers and run a campaign through our website and social sites.

    6.3 Sales Yearly

    Hydroponics Farm Business Plan Sample - Sales Yearly

    6.4 Sales Monthly

    Hydroponics Farm Business Plan Sample - Sales Monthly

    6.5 Sales Forecast

    Hydroponics Farm Business Plan Sample - Unit Sales

    Personnel plan

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      If you are going to start up a hydroponics business, you must hire your staff after rigorous testing and train them well, as hydroponics farm need proper understanding, to be maintained.

      7.1 Company Staff

      Alice will supervise all the tasks by herself, the staff she will hire is listed here with a little job description.

      • 1 General Manager to manage the overall operations of the farm
      • 2 Accountants to maintain financial records
      • 2 Engineers for operating and maintaining the hydroponics system
      • 1 Technician to deal with technical issues at any time
      • 10 Field Employees for operating farm
      • 1 Store Manager to manage and maintain the retail store and edible bar
      • 1 Nutrition Specialist to ensure the quality of products
      • 2 Sales Executives responsible for marketing the hydroponic farming business plan
      • 2 Drivers to transport products to various retail locations, hotels, and restaurants

      Financial Plan

      If you want to start a hydroponics farm, make a rough estimation demonstrating whether you can invest the required amount for this business or not. You will have to buy land and install greenhouse as well as hydroponics systems to initialize your hydroponic farming business plan. Not only this you will need a lot of staff to maintain your hydroponics farm. So, if you are looking for how to start a hydroponics business keep in mind the expenses and investments group for business plan you will have to do.

      Considering the importance of an accurate financial plan for this hydroponic farming business plan, Alice had decided to get this task done by a financial expert. Her sample financial plan showing that how she will balance the startup costs by the profits earned is given here for your help. But still, it is strongly recommended to get this important task done by a professional according to your services, market, expenses, and investment.

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      8.1 Important Assumptions

      8.2 Brake-even Analysis

      Hydroponics Farm Business Plan Sample - Brake-even Analysis

      8.3 Projected Profit and Loss

      8.3.1 Profit Monthly

      Hydroponics Farm Business Plan Sample - PROFIT MONTHLY

      8.3.2 Profit Yearly

      Hydroponics Farm Business Plan Sample - PROFIT YEARLY
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      8.3.3 Gross Margin Monthly

      Hydroponics Farm Business Plan Sample - GROSS MARGIN MONTHLY

      8.3.4 Gross Margin Yearly

      Hydroponics Farm Business Plan Sample - GROSS MARGIN YEARLY

      8.4 Projected Cash Flow

      Hydroponics Farm Business Plan Sample - Projected Cash Flow

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