Want to Start Your Own Vertical Farming or Hydroponics Business? 4 Questions You Should Ask

So you’ve heard about all of the miraculous and wonderful things hydroponic vertical farms can do. You’ve learned how they can grow huge amounts of nutritious veggies in a relatively short time. You know they require far less land and less water than traditional farming methods, and are far less prone to contamination and other food safety hazards. And now you want in on the concept.

But starting a vertical farm or getting into the hydroponic produce market isn’t as simple as starting a backyard garden. If you’re not quite sure how to start a vertical farm, now is the time to do your research and planning.

There are four areas of consideration that you should carefully assess: budget, authority, need, and timeline. 

Do You Have a Budget?

Obviously, a venture like this requires finances. If you have a large source of funding available, this may not be a big deal. If not, funding will need to be procured. Have you properly prepared for this? Do you already have a budget in mind and have funding secured? If not, do you at least have a plan in place for how you will fund your new farming venture?

Of course, budget concerns will continue beyond the initial investment. Starting a hydroponic greenhouse farm is a large business and should be approached with consideration and forethought. Have you taken the time to really think the whole operation through? Have you written a vertical farming business plan? Before investing time and money into starting up your greenhouse, you should have a solid plan outlined for how your business will function. The Urban Farm Business Plan Handbook from the EPA may be a good starting point.

Do You Have Authority?

If you’re planning on starting a brand new business, this is likely not a concern. The only outside authority you’re likely to need will come in the form of business permits from your local government. But for those hoping to add a hydroponic greenhouse to an existing business though, authority can be a major question. 

If you want to add a greenhouse to your business, are you authorized to do this yourself? Or is there someone else whose permission you need to acquire? Who in your company is authorized to fund the new venture? Who will procure the land or authorize the use of existing company land assets? Is there someone who needs to authorize the necessary hiring to run your greenhouse? If you can’t make all of the decisions necessary to run a vertical farm, you should get the other decision-makers on board as early as possible.

Is There a Need for a New Hydroponics Business?

You’ve just been reading about all of the amazing things hydroponics and vertical farms can do. Being a self-starter with an entrepreneurial spirit, you’ve decided to start a hydroponics business of your very own. But if you haven’t thought this out all the way through, you need to put on the brakes for a minute.

What are you planning to use the greenhouse for? Selling veggies to local supermarkets? Supplying high-end restaurants with fresh herbs and leafy greens? Directly supplying your local community through a co-op or other organization? Running R&D for your company or university? There are a number of ways these operations can be used, and it’s vital that you know your plan before you get started.

You’ll also need to consider where you’re going to put your greenhouse. Our vertical farms take roughly an acre and a half of space, minimum. That’s not really very big compared to some businesses, but you’ll need to make sure that space is available before you get started. 

What Is Your Timeline?

Once you’ve made a business plan, procured financing, and made other preparations, are you ready to go? The answer is: Maybe. Since the microclimates inside our greenhouses make them season and climate independent, you won’t need to wait for planting season to get started. But you might need to wait for other reasons. Here are a few additional questions you might want to consider: 

• Is your financing dependent on a specific timeline? 

• How long do you anticipate the hiring process will take? 

• Is your land already cleared and prepared for the new structure? 

• How long do you anticipate it will take to negotiate your first contract to sell your produce (if that’s the plan)? 

• What state and local regulations will need to be considered? 

• Are there other considerations that might slow down the process or grind it to a halt altogether? 

If your aim is to start a vertical farming business, we salute your ambition and hope your venture will bear fruit, both literally and figuratively. Be sure to do your research, work out a plan, and have all of your financing and authority in place. Then give Eden Green Technology a call and let us help you get started with vertical hydroponic farming.