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Business model

“Growing up on a family farm, I know firsthand the challenges of running a small business… challenges that only seem to be growing for today’s entrepreneurs”

Sam Graves

Business Model in aquaponics

The Hidden cause of failure

show and tell aquaponics to politicians

Size matters

The business model is the tool that you use as a start to finish guide towards becoming profitable. You should know that business planning in aquaponics is the single most important tool to help you visualize and achieve success. The decision to put together a business plan to use as a guide for your pathway to make profits from aquaponics is a better one than starting aquaponics thinking that starting small and growing will be enough.They are two business models in aquaponics for profit

  1. The industrial type and
  2. The owner operated type system.

The more prominent Personal use (PU) aquaponics comes from the misconception that aquaponics can make a profit from a small area in your backyard. There is a minimal viable size to make a profit with aquaponics while paying back for startup cost and it’s a lot bigger than most people imagine.

You will find out how to correctly use a business plan to adjust your operation to achieve the most from your aquaponic system. W started using a plan at the request of funders. and after noticing the major changes in bottom line when we change the business model it was decided to uses this tool to its full potential. This is the right decision because research and development is costly and almost always nonprofit generating; you can save money by planning out your whole journey before you start. Knowing what your final aim is and the step by step process to get there is good because you will not lose money unnecessary .The designed to first to a business plan came for funders because they wanted to know how it will profit. Information on business plans comes from online but information specific to owner/ operated aquaponics you can only get from here at the aquaponic machine.

An aquaponic system large enough to support a family of 5 after the SHTF will be a large for profit system in this current times. SHTF aquaponics a preppers dilemma
lets be reailistic here.
It takes a full time job to make enough money to feed 5. likewise farming for 5 is a full time job also.

Operations this size needs a correct business model to support you and your system.

Two different needs from one system

The owner operated business model was developed at our research system. A large percentage of the people want the ability to be food secure if major problems were to occur. A system designed to feed a small group and a system design for profit is two different systems, here is why. To feed oneself you need a variety of different foods frequently however when growing for profit there is a marketing and transportation cost that can only be covered by mono cropping. You have to plan for that so you can convert when necessary.

This can be difficult because a for profit system has different requierments from a for food system, the crop types and amounts will vary drastically.

You will have to build a system that is easily transformed from profit generating to food generating.

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Success starts on paper

Having a business model and plan is important so you can get others involved and tell others like funding agencies how you plan to get where you are going and how each step will be taken. This means that you will be able to look at how your business model will affect your cash flow and how you will be able to reach long term goals.

Your business model will determine what success is possible with your system.

What is the best business model? The UVI model with DWC growing leafy greens is the best for profit generation when close to a city or sub urban areas.

If your going for a UVI type system know that this model is for large industrial type aquaponics and has its flaws when applied to smaller scaled owner operated systems.6 lies the aquaponics experts don’t want you to know With our incite you will not fall victim to these flaws. But ensure you achieve an awesome successful aquaponic system.

Business model as a tool

Aquaponics has a steep learning curve you have to learn two points

  1. HOW aquaponics work
  2. How the market works

Efficiency as a grower will have to selling 60+% of maximum output to break even, most beginners start at 25%. If you start too big and not hit that 60% output it causes catastrophic failure. We recommend starting small scale until you can reach efficiency but because of the high start up and running cost the Return on investment (ROI) is very long.

If your going to build an Aquaponic system that is capable of producing all your family calories needs and have such a system at hand right now you have to look at these specific things in the business model.

Start Right

The business model will affect the bottom line, how you plan and implement each phase of growth and even what plants and fish you grow. Make sure your starting capital lets you build out enough infrastructure that your harvest amount and frequency is large enough to cover all your inputs including labour and energy.

Renewable energy is often the better choice because the monthly payments for a loan is similar to the payments for energy from the mains.

Yet because aquaponics is a long term venture you can really save on total money spent to ROI with renewables.

Wholesale means less packaging problems

If your harvest amount is too small keeping customers will be difficult as wholesale prices always have a min amount.
Sales in bulk is better or you will have to hire someone to do marketing when at retail price. The frequency of harvest should be more than you have to pay for inputs like feed witch you don’t need to store for long as it may go bad.

Parsley in coco coir wicking bed

Now that you know enough to build a critical financial plan take a look at this sample business plan, note that this is a trial and error and it cost less to make the mistakes on paper before you make them in real life, you’re ready to hash out the framework for your aquaponic system without worrying that you will not reach your goals.

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