How to Start a Small Business in Hydroponics

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Hydroponics systems offer many significant advantages over traditional farming methods. For example, a hydroponics grow room allows you to produce seasonal crops throughout the year. It also gives you far more control over the final product. With thoughtful planning you can start a small business in hydroponics that has the potential to grow into a successful enterprise.

Research the market for profitable crops you can grow with your hydroponics system by asking growers at local farmers markets about their business, if you are considering growing edible crops. If you are growing flowers or decorative plants, ask questions at small nurseries.

Assess the amount of space needed for your plants, lights and ventilation systems, to see if a grow room will fit in your space. Include space for the waterproof, reflective surfaces you will place around your plants to maximize the effectiveness of your grow lights. Take floor-to-ceiling measurements to make sure there is clearance between the grow light and the plants you want to grow.

Use your research to develop profiles of your potential customers and marketing strategies.

Develop a list of start-up costs. Compare prices for grow lights and the components of your irrigation system. Include monthly costs of both the rental and the utility bills.

Look at financing options for the total of your start-up costs. If you cannot finance the start-up with your own funds, look at business loans and other sources of funding.

Use your marketing analysis to create a financial profitability projection for your hydroponics business. According to the Small Business Administration, “Creditors will want to see what you expect your company to be able to do within the next five years.” Ask an accountant to look over your projections to ensure accuracy before you fill out any loan applications.


  • Hydroponics suppliers will be able to advise you on finding the right lights and nutrient mixtures for the plants you choose to grow.