Start A Hydroponic Farm Business - Business Ideas

Pat Walls

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Updated: September 15th, 2022

Start A Hydroponic Farm Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

A hydroponic farm is a modern method of growing crops that uses only small amounts of soil, with all other nutrients needed to be provided in liquid form.

The production of hydroponic crops takes place indoors, generally under artificial lighting and protected by some form of physical covering or insulated blanket to retain the appropriate, close-to-nature temperature and humidity levels necessary to ensure healthy plant growth. This type of farming saves a lot of time and energy.

Hydroponic farming is very profitable, and farmland the size of an acre will yield between $200,000 and $250,000 each year, while traditional farmland gives you between $20,000 and $30,000.

Starting a hydroponic farm business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell hydroponic plants, or selling hydroponic plants online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size

$15.6B

starting costs

$18.9K

gross margin

43%

time to build

270 days

Startup Costs

	Min Startup Costs	Max Startup Costs
Equipment & Supply Expenses	$66	$1,200
Retail Business Expenses	$1,250	$11,650
Inventory Expenses	$350	$14,750
Advertising & Marketing Costs	$75	$9,636
Software Expenses	$0	$425
Website Costs	$13	$215
Total Startup Costs	$1,754	$37,876

See all startup costs ➜

Successful Businesses

Business	URL	Rank
GrowGeneration	growgeneration.com	182,689
Online Hydroponics Shop	hydroponic.co.za	211,712
Bowery Farming	boweryfarming.com	356,627
Freight Farms	freightfarms.com	406,444
Hydroponic Masterclass	hydroponicmasterclass.com	449,195
ZipGrow	zipgrow.com	480,504
BGHydro	bghydro.com	497,598
Agron	agron.io	667,861
City Hydro	city-hydro.com	707,626
CityGreens Hydroponics	citygreens.in	728,767
Ponic Greens	ponicgreens.com	805,000

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Pros & Cons

Pros	Description
Rewarding work	Starting a hydroponic farm business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections	You never know who you will meet as a hydroponic farm business. This could be the start of an incredible business opportunity!
Daily physical activity	Hydroponic Farm Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts	Working in the hydroponic farm business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss!	With starting a hydroponic farm business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community	One of the best parts of starting a hydroponic farm business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

See all pros ➜

Cons	Description
Crowded Space	Competition is high when it comes to your hydroponic farm business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier	Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees	If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins	The gross margins for your hydroponic farm business are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover	In the hydroponic farm business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes	As a hydroponic farm business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

See all cons ➜

Marketing Ideas

1

Direct Sales

Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.
For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Learn more about direct sales ➜
2

Word of mouth

Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

Learn more about word of mouth ➜
3

Social Media Advertising

Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.
According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.
Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

Learn more about social media advertising ➜

See all marketing ideas ➜

Key Stats

Startup Costs

Successful Businesses

182,689

211,712

356,627

406,444

449,195

480,504

497,598

667,861

707,626

728,767

805,000

Pros & Cons

Marketing Ideas

Direct Sales

Word of mouth

Social Media Advertising