Hydroponics as a Business

MANY PEOPLE DREAM of a relaxing and stress free occupation such as gardening. Few, however, will actually venture forth and start a gardening business. If this is a dream of yours, I’ve provided some insight and experience in this article to help you make the decision and to get started off on the proper path to success.

MAKING A MARKET FOR YOUR GARDEN

Many gourmet restaurants and markets will purchase high quality hydroponic produce, provided it is available in good supply and available on a regular basis. If you are interested in making a profit from your garden, you should first investigate the local marketplace and determine just what it is that you should grow. Don’t try to compete with everyone else. Identify a unique opportunity for a high profit plant by interviewing the owners and operators of local establishments. I have found that growing culinary herbs is the best way to make extra income from a garden in my local area, quality Basil seems to be the most requested by local merchants. Of course there’s always tomato and pepper plants that are staple foods, but both require significantly more space and considerably more time to harvest. Growing fresh cut flowers can also be very profitable. However, it is a harder market to penetrate, and flowers take longer to grow than herbs. The reason herbs are such a great product to produce and market is simple. The most popular culinary herbs are all leafy plants that will grow like wild in your hydroponic garden. Before getting started, you should contact your local county clerk’s office to determine what legal requirements you’ll need to meet to start your own business. So let’s take a look at how we can get started in making a market for your garden.

INVESTIGATE YOUR LOCAL MARKET

The most important thing you can do before planting a seed is to visit your local markets and do some informal research. Determine what they sell, and where the opportunity exists. Take a look at the fresh herb sections and see what they have available for their customers and how fresh it is. Nine times out of ten you will be amazed at how ragged their “fresh” herbs are! Have a look at the prices, and jot them down. Also, take notes of the quantities being sold in each package. Usually fresh herbs are sold by the “bunch,” which in most cases is about as much as you could grab in your hand. Study the packaging and labels used for fresh produce. Once you get started, you will need to create a unique identity for your own business and products. Visit as many small markets as possible in your immediate area. Compile your information and organize it so you can determine what is selling, and for how much. Using a list of what I have determined to be the best selling herbs, in order of importance, assign a price to each from the research you have conducted.

Here’s an excellent online pricing reference

http://www.ams.usda.gov/fv/mncs/fvwires.htm

THE MOST POPULAR CULINARY HERBS:

Basil (Ocimum basilicum)

Dill (Anethum graveolens)

French Tarragon (Artemesia)

dracunculus

Mint (Mentha)

Oregano (Origanum)

Sweet Marjoram (Marjorana hortensis)

French Sorrel (Rumex scutatus)

Rosemary (Rosemary officinalis)

Chive (Allium schoenoprasum)

Parsley (Petroselinum crispum)

Thyme (Thymus)

Sage (Salvia officinalis)

PRODUCT QUALITY CONSIDERATIONS

Product quality is, by far, the most important consideration that will determine your business success. If you are growing hydroponically, you are already ahead of the game. However, you will certainly want to perfect your method before considering entering commercial markets. If you are totally new to hydroponics and gardening, take a few months developing your green thumb, because once you go commercial you will be counted upon to consistently deliver quality produce on time. Another important factor in your success is product packaging. After you have perfected your crop and production techniques, you should turn your concentration to packaging. You will certainly want to use a visually appealing package for your product. Most commercial product is packaged in screen printed plastic bags with colorful logos. Since you are just starting out, and probably cannot afford that added expense, try inexpensive yet attractive packaging methods such as using a clear zip lock type of plastic bag with an attractive self-adhesive label. It is also a good idea to use a hole punch to make a couple of “breathing” holes in your bags to maintain product freshness. Give an extremely fine misting with water before sealing the bags. Use a small kitchen scale to weigh your herbs to ensure uniformity from package to package.

Many patrons of gourmet markets will identify with a wholesome looking label indicative of the origin of the produce. An excellent method of building and growing your business is to invest some time and money in creating a visually appealing label and “brand” name for your packaging. By creating your own brand, people will recognize your products and have a handy “name” to refer to when telling their friends how fresh and wonderful your produce is. Creating your own brand will also allow you to enter into larger markets because your following will already be familiar with the quality of your product and attribute it to your “brand.” This is how the mega-brands are created, and although you might not be thinking in terms of nationwide branding and becoming a “mega-sized” operation, it is nice to know that your hard work is building your reputation, and at the same time, positioning your business for future growth.

Once you have a high quality sample product available, even if it is from your first round of crops, package a few bunches, apply your labels, and introduce yourself and your products. It’s a great idea to bring a cooler along with you, packed with ice to keep your samples as fresh as possible. This way, when you introduce your local merchants to your products, they will be fresh and appealing. This is especially important if you live in a hot climate and you plan to spend the whole day on the road, visiting merchants. It is also a good idea to print up simple business cards that match the labeling on your products. Take advantage of the software available today that helps you design materials for starting a small business. There are literally hundreds of titles on the shelf that include templates and royalty free artwork you can use to get started. If you can afford it, a good graphic designer is an excellent investment in your future success. Remember to position yourself as a wholesome grower that only uses the finest nutrients, purest water and NO insecticides, fungicides or herbicides in the production of your herbs. This alone will help sway people to trying your brand.

APPROACHING PROSPECTIVE CUSTOMERS

Now that you have a great product, nice packaging, and an idea of what is important, here are some suggestions on what to do and say. Start off with the smallest store you can find (the smaller the better), since the chances that the person you encounter will be an owner or manager. If they express a sincere interest, you can realistically supply a smaller operation a lot easier than a large market. Start small but always think big. You will want to speak to the owner or buyer, so identify who they are and then approach them by simply introducing yourself with your name and telling them that you would like just a moment of their time to discuss your gourmet produce. Make sure you always have a sample with you (freshly chilled from your cooler). By putting the product directly in front of the customer, you can let your product do most of the talking, especially if you are a little nervous at first. Explain how you grow in a pure environment that is completely free of chemical pesticides, herbicides and fungicides. Let them know your crop is so healthy because it is fed the finest hydroponic nutrients and purest water. Assure them that you are (most likely) “just down the road,” and you can deliver frequently.

Once you have established contact, here’s the most important part of your business presentation! If at all possible, open your package right there in front of them, and get them to sample the superior fresh scent and taste of your products! If you can only do one thing, get them to taste your product. That is the single most important factor that will determine your success as a grower. Of course, since your produce has been grown in a clean, efficient hydroponic system, they will be infused with more flavor than your field grown competitors. The produce buyer will most likely immediately recognize the difference in your premium quality product from the scent, texture and deep, intense taste. Remember, good products that keep their customers happily coming back for more will keep them ordering! After you have established the desire to carry your products, your goal with this first account is to get them to agree to showcase your herbs in their market. If they are unwilling to make an initial financial commitment to carrying your products, tell them you would love a chance to sell on consignment. You will need to be competitive with their current suppliers, but if your product is of significantly better quality, you have the competitive advantage. Assume that every reseller is looking to double their money, so if a bunch of basil sells for $3.99, you can assume they are paying about $1.50 per package. Since you are leaving your products on consignment, and your costs (due to the higher quality farming techniques you use) are considerably higher than those grown in the field, explain that upon sale of the produce that they pay you 50% of their selling price. Now remember, I recommended that you to start small so you can gain experience and confidence. Once they agree to give it a try, and you work out a delivery and payment schedule, you are now in business. The next step is to deliver on all of your promises.

Once you establish an account and you visit the store regularly to deliver new product, pay close attention to how your product is selling and determine which are the hot sellers. Obviously, you will want to concentrate on growing the hottest sellers. I can tell you from experience that Basil will most likely be your best seller and most profitable crop. However, each market differs, and you will have to learn on your own what to grow. Keep your resellers supplied with new products, since people will tend to buy produce that is visibly fresh and in abundant supply. If there is only one bundle left, they may have the preconception that it has been sitting on the shelf. On the other hand, once word gets out, your products may start disappearing faster than you can supply them. This is a good problem to have! The next step is to scale your business by expanding your production and signing on new resellers. Seeds are usually readily available, so finding good stock should not be a problem. Follow the direction on the seed packets for proper germination and growing techniques. Remember, the most valuable information on the subject of making a market for your garden is to visit your local markets and see what is selling. Talk to your local merchants and listen to what they will gladly tell you about their requirements. They are always interested in new suppliers with superior quality products to offer to their customers.