The following is based on information taken from H L Saffell's book: "HYDRO 1 - Hydroponic News". If you would like a copy for your own, CLICK HERE.

The following has been taken in part from an article listed in the Library section of the Hydroponic Society of America's web site at
(http://hsa.hydroponics.org/lounge/library/hobby2bus.htm).

I know of a company in this industry that started out with just a few tomato plants in their basement several years ago. Now they operate about 25,000 square feet of greenhouse space, and their annual sales exceed $200,000. I know of another company...that started with six thousand square feet of greenhouse space. Their tomato plants never seemed to produce what they were supposed to, and their average price per pound was less than a dollar. During their third year in business an unusual snow storm caved in their structure. Shortly thereafter they went out of business.

What is it that made the one company fail, while the other thrives? There are a number of factors, such as environmental conditions, and dedication to marketing, but I believe the most important factor was that the first company started out with a successful hobby system, and the other company had absolutely no experience with hydroponics.

Winston Churchill once said, "It is not enough to do your best, sometimes it is necessary to do what is required." What is required in this business is knowledge gained through years of experience. If you haven't had a hobby system, don't become a commercial grower! The one exception might be if you have a mentor with the experience you lack.

We are constantly receiving phone calls or visits from people interested in becoming commercial hydroponic growers. Our time is very valuable to us. Therefore, we have to weed out those who are just interested, from those who are truly serious. We always ask anyone interested in becoming a commercial grower how long they have been growing on a hobby basis. I am amazed at the amount of people ready to invest their life savings in a business they know nothing about. Would you open a car dealership if you had never sold a car? Would you open a clothing manufacturing business if you didn't know how to sew? ...you need to have experience on a hobby level before you consider going commercial.

Please keep in mind, however, that it is not enough just to have experience. There are many companies in this industry that have gone out of business even though they were started by people with extensive experience in hydroponics. So why did they fail? I believe it's due to the lack of the spirit of entrepreneurship. Just because you understand the technical aspects of a business doesn't mean you can successfully fulfill all the other duties required to manage it efficiently. The spirit of entrepreneurship is nothing more than a vision of what you want and the insight and dedication to do what it takes to make that vision a reality.

Before I go any further, I feel it necessary to give you a realistic look into life as a commercial hydroponic grower. First of all, you can expect to be married to your greenhouse. Someone must always be available to maintain the plants, pollinate, turn on the generator in case of power failure, or take action in case of a sudden disease. Secondly, you most likely will never have a perfect crop. Something is always going wrong. With our first crop we had tremendous difficulties with Botrytis. Since then we've had problems with white flies; we've lost plants because of power failures during freezing weather, and we've had plants fail to set fruit for weeks at a time. We have even had people break into our greenhouse and steal our lights. It has been a constant learning experience. This is a risky business, just like soil farming. Do not expect to get rich quick!

Being a commercial hydroponic grower also requires an enormous amount of work, as does any new business. My husband and I work well over sixty hours a week each. I have heard basic guesstimates in the industry that suggest hours of work involved per square foot, etc. I believe it's different for everyone. It depends on the amount of experience you've had, your crop, environmental conditions, and so on. In general, all new business owners work longer hours than expected, and this industry is no exception.

...So perhaps you're wondering why anyone would choose to become a commercial grower. The benefits can be wonderful, and hopefully will out weigh the difficulties involved in such a business. The opportunity to gain control over your own destiny is very satisfying. You will have the freedom to make your own decisions, and the opportunity to reach your full potential. You can also expect to be constantly challenged. I enjoy a good challenge, but some people may see challenge as a drawback.

You will also have the opportunity to make unlimited profits. However, let me suggest some caution here. Many growers make the devastating mistake of thinking that expansion is the way to greater profits. That assumption is not always true. Many growers have expanded only to find the market diminish and quality suffer. There are other ways to increase your income, such as increasing the demand for your product which leads to a higher price, cutting unnecessary costs, consulting, growing or manufacturing complements for your product. An example would be making dried tomatoes out of seconds, or manufacturing your own line of salad dressings to be sold along with your lettuce. It's true that only the sky is the limit.

There are many reasons for people starting their own business... Whatever your reason, if you want to succeed, you must understand and achieve the four basic concepts of running a business. They are to plan, act, evaluate and revise. Running a business is a continual process of these four verbs, and it starts with thorough planning.

To read the rest of this article and get the real low-down on how to set up your commercial hydroponic business, please refer to the web site address above and also my web site at (http://www.mayhillpress.com).

Page design by Bob Saffell. bsaffell@mayhillpress.com

WE HAVE THREE BOOKS THAT MAY BE OF INTEREST TO YOU.
They are as follows:
"How to Start on a Shoestring and Make a Profit with Hydroponics"
"Big Dollars Growing Gourmet Salad Greens"
"Beneficial Insects - How to Mass Rear and Make a Profit"
If you would like a copy or copies of your own,
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