Aquaponics Commercial/Business Potential

Aquaddict

I agree with most everything. Aquaponics may be too new for corporate style capitalisation and big business, but small owner/operators could stand a chance. Rushing in is definately going to see some heartbreak.

I've done 3 years 24/7 Aquaponic homework include much market research. I've sat business courses, had sales training, run a paper and a touring company well, can build competently, had small scale systems in several forms, etc.

I'm quietly confident I could make a living at this. But I've put in well more than a doctorates worth of time on the subject and have all this background to draw from.

But I'd still not be so silly to think I'll be doing this alone. I need a team. I won't have a business partner again, that's plain fact, but I will employ specialists. A Marine Biologist, A lab, various tradesmen and technicians.

Plus the collective knowledge of this forum and several learning resources now available.

And I'll be starting ever so small, for a while...

aeldric

Gary offers great advice. His comment that the protection systems will cost more than the initial system is a good point. I am working on improving this situation, but the amount of money I am spending on failsafing my system is still going to be significant.

Gary Donaldson wrote:

As a Business Development Consultant, I get excited by all of this entrepreneurial talk but I'd like to offer the following:

- If you can't successfully operate a small system, you won't be able to operate a big one successfully and a large system will hurt you much more if you have a significant failure.
- You don't need to be an aquaponicist to run an aquaponics business. You can hire lots of people who understand the mechanics of aquaponics (or commercial hydroponics and aquaculture)......but you won't be successful if you don't have a good understanding of business.
- Any business comprises three principal elements - marketing, operations and finance. If you do not have expertise in all three (and, in almost 30 years as a business operator, I have never seen anyone who was equally proficient in all three areas), you had better partner with someone who does.
- Your first financial return from aquaponics should be to feed yourself. The money that you trim from your existing food bill is your first financial reward.

Simmo, you've already said you're going to be away for up to a week at a time. The protection systems and automatic dosing systems that will save your operation in the event of a power or equipment failure (or a chemistry upset) will cost you more than your aquaponics system. You need a partner.....or an employee. My preference would be for a partner in this situation. Before that, of course, you need a business plan.

Be very careful about springing into business because someone says something is a good idea. About 80% of all businesses that commence on any given day, will cease to trade inside five years.....and, of those that remain, 80% will cease to operating in the ensuing five years. American business educator, Dr Michael Gerber, refers to such people as "technicians suffering an entrepreneurial siezure." These are often people who believe (falsely) that, because they can do the technical work associated with a particular business idea, they can run a business.

There are a variety of other reasons for this dismal state of affairs but the main one is that the people who had this experience simply didn't know what they didn't know about business. They often made fatal assumptions.

In my experience, ignorance of marketing is arguably the biggest issue in business failures. You can find someone who can look after the operations (the technical work of the business) and you can hire a competent accountant to keep you tidy in the financial department, but people who have a genuine grasp of small business marketing are rare.

Marketing for small businesses is not the same as the stuff that is usually dished up in universities. They generally have a view of marketing that is pitched at larger corporations. The practical application of small business marketing is very different. The difference arises out of the need for small entrepeneurs to rely less on maxi-media like print, TV and radio media, and on a more direct selling and service delivery relationship with customers.

Start small.......and learn your new trades (aquaponics and business) thoroughly.

Gary Donaldson

Don't be concerned Murray. Like you, I've done the hard yards in a variety of businesses. I've worked for the RACQ for the past 12 months but, even then, I advise a small caseload of small business clients.

By the way, have you heard from our mate at Childers since he emptied his ponds?

earthbound

Yep, I like whats being said here, commercial aquaponics is taking on an enormous responsibility. Not only are you starting a business which is hard enough by itself, but you have to have knowledge of fish and knowledge of plants production. So in reality you have to be good at business, an aquaculturalist and a horticulturalist as well.

As AA suggested 'experts' in their particular field are going to be intrinsic to the success of any enterprise, there's a severe lack of expert knowledge in aquaponics at the moment, but there is information and consultancy available, and this should be used...

Think long and hard about it, take small steps, plan well, and don't give up your day job...

simmo_77

Wow, this is all excellent stuff, thanks again guys. I have only skimmed your comments for now, bit busy at the moment, but will be back later to read everything more thoroughly and reply. Just wanted to jump in and thank you all for your contribution thus far.

I won't be quitting my day job any time soon (I work for my dad and he would kill me :wink:

)

creative1

What about spreading the risk, say offering to install systems at a price at different locations(interested hobbyist) and looking after them at a nominal fee and perhaps creating a market for there produce.
Might be interesting to see if you could generate some interest at the local level.
Only a thought.

Aquaddict

But a good thought C1. I contemplated going to some of the poorer folk here with subsidised housing. These houses were built before land hit premiums and so many of our very poor have large sections. Right smack in the middle of big expensive rent cities.

A greenhouse here, another there, market the produce for them, cottage industry all over the place. Get another live feed farming....

I won't though, the human element is too full of error for that plan, and you gift people things like a living they don't respect it.

I'll definately go into consultancy mode should someone show me enough money. Too busy having fun designing and planning for now.

Aqua Fan

every year they have a big home and garden show up in cleveland (ohio). happens in the middle of the winter to give all of the yuppies an idea of what to spend their money on in the upcoming spring.

my plan is to get hooked with a couple of contractors that build patio enclosures, and get at least one large demo system in the show. have it set up in a patio enclosure. could probably even involve the guys who run the hydro store to provide supplemental lighting and additional ventilation.

Donarto

What about members who are geographically close instead of trying to start a huge business each having their own system to take care of which provides a common sale point with supplies. There fore the risk to each member is a lot lower, and may nto interfere with their normal work.

Just and idea.

aquamad

how about something like this? purely for ornamentals perhaps? stocked with gold fish / koi?

Donarto

Looks really great AM. What about putting in a "waterfall" effect from half-way down the "ornamental growpots" into the above ground pool section. This could add that relaxing/soothing sound of a waterfall that maybe people are looking for.

aquamad

ooo, good idea!
we will design a good looking system for ya in no time flat this way!
:mrgreen:

Donarto

This idea has been bouncing around in my head for the last couple of days. I think going with a "value added" product is the way to go. Not nessecarily selling to the general public, but selling it as a quality product that cafes/restaurants and maybe fish markets can't get anywhere else. I'll ponder this some more and get my thoughts cleared up a bit then post again, hopefully it'll make more sense then hehe

aeldric

Donarto wrote:

This idea has been bouncing around in my head for the last couple of days. I think going with a "value added" product is the way to go. Not nessecarily selling to the general public, but selling it as a quality product that cafes/restaurants and maybe fish markets can't get anywhere else. I'll ponder this some more and get my thoughts cleared up a bit then post again, hopefully it'll make more sense then hehe

As a selling point: Omega-3 is increasingly emerging as an important nutrient - particularly for children (childhood reading disabilities, attention deficit problems etc have been tied to omega-3 deficit). Omega-3 is good for kids. You get omega-3 oils from fish, but unfortunately you also get mercury from fish.... and mercury is very bad for kids.

But you don't get mercury from our fish. And Silver Perch is unusually high in omega-3 oils.

That makes our fish completely unique..... and very valuable.

creative1

Now then, sounds like a portable model in the making.
Could be something for Muzza.

Backyard Aquaponics A place to discuss aquaponics

Aquaponics Commercial/Business Potential

Backyard Aquaponics
A place to discuss aquaponics