Aquaponics Business Plan

Aquaponics is a form of agriculture that has been around for many years but resurfaces in today's modern world and attracts many people because of its benefits and profitability. Recent studies have shown the increasing demand for the aquaponics market globally because of the rising population, lack of farming land, and high demand for organic food worldwide.

Today, many people have turned to aquaponics farming to grow food because of its sustainability and organic way of producing food. Aquaponics has grown and developed not just for hobbyists or backyard gardening but, most importantly, for commercial purposes. 

We developed this aquaponics business plan because of the growing interest in commercial aquaponics. We also aim to provide an outline and guidance for developing an operating strategy for those interested in starting their own commercial aquaponics system. 

What is Aquaponics?

Aquaponics is a recirculating method of farming that combines aquaculture and hydroponics. It is the raising of fish and the growing of plants together in a symbiotic environment with the help of beneficial bacteria. The bacteria convert fish waste into nitrates, which become food for the plant, and in return, the plant roots filter and clean the water for the fish to live.

Benefits of Aquaponics 

• Organic Produce - Food grown in an aquaponics system is not exposed to chemicals, including fertilizers and weed killers, because they are grown naturally with the help of fish waste. 
• Year-round farming - Aquaponic growers do not depend on weather conditions to farm because of their ability to regulate temperatures. So they can cultivate organic food all year round.
• Faster Plant Growth - Plants grown in aquaponics naturally grow faster because they can access the nutrients 24 hours a day. A constantly regulated source of water also helps enhance plant growth.
• Two Sources of income - Commercial aquaponics operations can enjoy two sources of income: plants and fish. 
• Reduces the Planet's Carbon Footprint - Large farmland is not needed to grow aquaponics crops. A sustainable aquaponics system is viable in places where the land is rocky, or prone to drought.

Things to Consider In Starting A Commercial Aquaponics System

Before developing and starting your commercial aquaponics business, consider the main reasons you want this kind of business. This will help you focus on the business plan and identify the issues, resources, and expertise needed to develop your business plan.

Consider asking yourself these questions;

• Do you have a farm or crop growing experience to help your farm operations, or do you need to seek that expertise elsewhere?
• Do you have a property, or are you still choosing a location?
• Are you developing an aquaponic farm for-profit and source of income?
• Who will be part of your planning team?
• Do you have the knowledge or expertise to develop marketing, operating, and financial strategies necessary for the business plan or help start the business?
• Do you need expertise in addressing environmental and cleanup issues that may be associated with the public property you intend to use?

Aquaponics Business Plan

This aquaponics business plan is divided into five sections:

1. Overview: This section provides the vision statement, mission, and goals of your commercial aquaponics farm.

2. Management and Organization: This section describes the business ownership structure and its management and organization.

3. Marketing Strategy: This section identifies the products to be produced, how they will be marketed, and the potential competitors. This section will also describe the product's packaging, distributing, and promoting approaches.

4. Operating Strategy: This section describes the approach to product management, farm size, physical and human resources, and regulatory requirements.

5. Financial Strategy: This section provides income and expense estimates, expected profit and loss, sources of funds, and potential business risks to its success.

1. Overview

Your business plan overview provides your vision and mission statement. It also summarizes your goals for your commercial aquaponics farm. The overview is divided into the following:

• Introduction

Describe the purpose and key issues to be addressed by the business plan. It provides an understanding of what information is contained in the business plan.

• Vision Statement

 Your vision statement describes your vision of your commercial aquaponics farm's future and how you incorporate your values into your farm. It provides clear decision-making criteria and answers what economic, environmental, or community values are essential to the farm. What products or services do you intend to offer, and how the community will benefit from these products or services.

• Mission Statement

The mission statement is a set of guiding principles that describe your commercial aquaponics farm's overall goals. A mission statement tells the fundamental purpose and expectations for the farm to its customers. It also provides an understanding of the goals of the farm.

• Goals

The goals describe what is to be achieved by the farm. Goals can be short-term goals or long-term goals. Short-term goals may be focused on the farm's startup and achieving a certain level of production income. Long-term goals can be the plans for farm growth. Goals reflect what you want to achieve and when you like to achieve them. 

2. Management and Organization

Management and organization describe the commercial aquaponics farm's ownership status and how it will be managed and organized. How you register your farm will depend on your business structure (corporation, sole proprietorship, non-profit). In making the management and organization structure of your farm.

Consider answering these questions:

• What will the legal structure of your business be? Will it be a sole proprietorship, partnership, non-profit, or corporation?
• How will the farm be organized and managed? 
• Who will be the key managers who will run the farm?
• What skills do these managers bring to the farm, and what will be their duties and responsibilities?
• Will there be a board of directors?
• How will these managers or board members be compensated?

3. Marketing Strategy

Before starting your commercial aquaponics farm, defining the strategy for marketing and sales is very important. These are also the essential part of your business plan. Developing your marketing strategy requires understanding the market, demands of your product, potential customers, as well as potential competitors. In this section, you must convince your reader that your commercial aquaponics farm is a viable market. 

The marketing strategy is divided into these sections:

1. Introduction: The introduction section of the marketing strategy shows the following:

• The market or potential customers of your commercial aquaponics farm.
• The products that the farm will produce and sell.
• The distribution process or how and where the products will be made available to the customers. 

2. Market: This section describes the demographic, social, and cultural factors that describe your potential customer that will influence or affect your farm. Social and cultural factors refer to your potential customers' basic values, perceptions, and behaviors. These include their preference for the type of crops to be grown.

 In discussing the market section, know the answer to these questions:

• Who are your potential customers, and where are they located?
• How likely are they to buy your product?
• Are you growing a crop that is not easily accessible to consumers?  

3. Product: Use the information you gathered from the market analysis about customer values, needs, and preferences, and describe the product you're planning to offer and how they will compete in the market. Describe why your product is unique and how they differ from its competitors.

4. Distribution: Getting your product to the market will be critical to your marketing strategy, as the quality of crops and customer perception will depend on the freshness and quality of your product. This section discusses the handling of products from harvest to sell, including options for storing the product before selling. 

Discuss these questions: 

• How will you sell your product?
• Will they distribute your product directly from the harvest to the customer?
• How will you maintain your product quality during storage and distribution?
• What will you do with the product that is not sold or delivered?
• What is your method of distribution?
• How will you price your product?

5. Competition: This section describes the competition in your market and how you will position your farm to compete in each market segment. Discuss your farm's advantages and disadvantages over your competitors and how you differ from them. 

Discuss these questions:

• Who are your competitors?
• How does your product differ from your competitor's product?
• Are your competitors established in the market?
• Do they offer a greater variety of products?
• Will your pricing be competitive?