Hello I am new here attempting to start a new business. I am wonder how people went about getting funding to set up a aquaponics farm.
Also has anyone used koi for the fish used in the system?
Thank you for the help.
Jim
The most common paths are self funded, Bank loans, investors, crowdfunding, and grants.
For small scale farms, say less than 250,000 Capital investment than self-funding bank loans, grants Etc. Might be some options. Of course the better you do in life, the better you can do with your bank loans.
But at a certain point there becomes this gray area where no one really wants to invest. Haven’t quite clearly defined it out yet, but I would say it’s somewhere in the range of $500,000 to 5 million
Once you get to that point 250,000 or 500,000 to 1 million typically the return on the investment won’t be attractive enough for large-scale investors and they will come back and say something along the lines of “the business seems like a good investment but I really need for this to be a $5 million investment, rather than a $1 million investment. Can you go bigger?”
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In my experience, start with answering the question “what do I want to get out of this” If you’re looking to make a certain yearly income, then that’s typically a good starting point to work backwards.
For instance, if I want my ebitda to be $80,000 annually or 800,000 annually. You can work your way backwards to determine what that investment may cost based on your approach.
Also you can start with what your Capital investment that you have available is - If that’s 10,000 or 100,000. Going into personal debt for a business isn’t always a good idea. Especially on unproven model. Many would say it’s unwise.
And keep in mind that you don’t need it to be Hi-Tech to be highly productive or highly profitable. I’ve seen projects that produce equal amounts of food, one costing a million the other costing $10,000. Food for thought.
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Thank you for the response.
So far I have read the aquaponic farmer. This is the plan I am shooting for. It is a 40’ x 120’. Yearly yeild will be 80, 000 heads of lettuce. The other book I just stared is the yellow book of Recirculating aquaculture.
I feel like I have a good blue print if I follow it. The part I am struggling with is how to pay for it. I have the land for the greenhouse. Have a decent pond with bluegill. Just started raining koi fish.
So again thank you for the resonse and help. I will look into your suggestions.
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I am in MO nothing but the land.