Showing posts with label startup. Show all posts
Showing posts with label startup. Show all posts

02 July 2014

Aquaponics 'Claimed' Disadvantages



Claimed Disadvantages:
by Matthew McCarthy
credit to :sites.google.com/site/aquapanaponics/4-project-updates/advantagesanddisadvantagesofaquaponics


  • Can be expensive to setup as the system requires pumps, tubing, and tanks/beds. This is certainly true though it doesn't necessarily need to be. A small backyard system purchased complete from an aquaponics retailer can cost over $2,000 installed and the larger backyard systems capable of feeding a family between $5,000 and $10,000. Though if you are willing to devote some (or a lot) of your own time and energy then I think similar systems could be built for 25-50% of these costs (this is my guestimate). Grow beds and fish tanks can often be obtained for free (in western countries) and gravel obtained from the local river, though components such as pumps and backup power supplies will still need to be purchased. 

  • You need a green house to really have a good aquaponics system. I guess this depends on what type of climate you live in. A green house can be advantageous to provide heat in cold winters, protect the system from heavy rains and keep out pests. This is also true for soil based gardening.

  • Setup requires technical knowledge of aquaponics systems and hence is possible to make mistakes. True - there are stories around of people who loose fish and give up on their aquaponics system early on and there is some knowledge required to establish the necessary bacteria within the system. In a lot of cases these failures are because systems have fish stocking rates that are to high. We have yet to stock our system with fish so I can not provide a lot of information from our personal experiences though the initial establishing of bacteria (known as cycling the system) was very simple and took a lot less time then the average system cycling time.

  • Water needs to be constantly monitored to make sure the water quality is OK for fish. This is certainly the case during the first couple of months. After the system has matured water testing is usually carried out only once a week unless there are problems. Seems very complicated for the amount of fish I will get. Yes keeping a healthy environment for the fish is where most of the complexity lies within the system. Water needs to be free of toxins (especially ammonia and nitrite) and also have enough oxygen for the fish you are keeping. This can involve adding extra aeration sources and making partial water changes to improve water quality. Stocking fish at a lower density will in most cases reduce the pressures on a system and make it more tolerant to changing conditions and less likely to suffer from the above problems - though this means you will have less fish to eat.

  • Aquaponics requires electric energy input to maintain and recycle water within the system. In most cases you will need to provide electricity to run a water pump and possibly aeration pumps as well. We run our 80w water pump for 5 minutes every hour to flood and drain our three grow bed buckets. As we currently run the pump day and night this amounts to 2 hours of usage a day - so similar to having a light in your house (with an old style bulb) on for the same length of time. We plan to add another three grow beds to the system so this will increase our electricity usage further. At this stage we have not made any attempt to optimize the flood/drain cycle so there may be opportunities to reduce the number of times the system is flooded each hour or to not run the system at night with little impact to plant growth. 

  • If one or more components fail this could lead to the loss of fish and or plants. In this regard you are dependent on using reliable technology (and back up systems) to ensure that your fish, which require oxygen in the water, remain alive an healthy. Your plants are likely to be unaffected in the short term, as the growing medium will likely retain more then enough moisture, though if the fish are not provided enough oxygen, they can suffer and die. This is the same situation for aquaculture systems.

  • You can't grow root crops. You can grow pretty much anything in an aquaponics system from fruit trees to root crops, though depending on the type of growing medium potatoes and carrots may grow into some weird shapes. Most people focus on growing leafy vegetables.

  • Ok so you don't have to add fertilizer or nutrients but you do have to provide fish food. Yes you do, the fish eat the food and their waste is used to produce nutrients for the plants. Of course you also have to feed fish in an aquaculture system and in an aquaculture system fish waste is not used in such a productive way. Fish are some of the best animals at converting food into body mass (different fish species vary) and so are an efficient way of producing meat and protein. Most people buy commercially available fish food for their fish although many people supplement this feed by growing worms, duckweed and other plants and animals.

05 March 2014

Aquaponics as a Business opportunity

How to Start your own Aquaponics Business at Home
credit to http://www.aquaponicsandyou.com/

With many people looking for ways to increase their income these days, starting a home-based business is an attractive option. There are several major hurdles to clear before you can start earning any money from a new enterprise, not the least of which is funding. Many new businesses need a huge injection of capital before any return can be realised and this factor alone prevents many from getting off the ground. An aquaponics business is the exception.

Unlike most other types of business, setting up an aquaponics farm does not cost hundreds of thousands of dollars. While the actual set-up cost obviously varies depending on the size of the system, experts claim that most investors can expect to see a return in a relatively short period of time. Some claim it is possible to have the whole system paid off in a twelve month period.

Aquaponic farming combines aquaculture and hydroponics. Fish are kept in a tank and the water from the tank is pumped through the plants and back into the tank, in a continuous process. Aquarium water is rich in nutrients because of the waste products expelled by the fish and it is these nutrients that the plants take up and use to grow. The water that is returned to the fish tank has been purified by the plants; this keeps the tank water clean and healthy for the fish.

The types of plants that are grown in an aquaponics farm are generally herbs and vegetables. Because they are not treated with fertilizers and the usual garden chemicals, they are considered to be organic produce. The fish you buy to stock your tanks can be eating varieties and this gives you another product to sell. Both the fish and the vegetables grow at the same time, using the same system. Organic produce attracts a premium price at point of sale and is keenly sought by consumers.

The main advantages of starting an aquaponics farm as a business include the low start-up costs, low production costs and the ease with which the system can be managed. You don’t need to rent or buy any space to carry out your business as you can use space in your own yard, garage or other parts of your home. Organic produce is becoming a popular product, especially at farmers’ markets and other local events, so selling your product should be quite easy.

If you are looking for ways to bring in extra money or you want to start your own business, take a close look at how to start your own aquaponics business. You don’t need to be a gardener and you don’t need any specialised skills to succeed in this type of enterprise.


Commercial Aquaponics and Profitability
credit to http://www.greenacreaquaponics.com/

The commercial viability of aquaponics is likely the hottest contested topic on most aquaponic forums today and is the million dollar question that everyone wants answered. While I’m still not willing to make my financial data public (you would be amazed how many people have asked), I will say that we are indeed a profitable farm based on revenue generated by the farm alone. Although our farm’s revenue is derived in diverse ways, even after extracting any non farm related revenue from things such as consulting, education or system sales, our Green Acre farm is indeed profitable on it’s farm generated merits alone. So it then begs the question, why have alternate streams of revenue if farming alone can be profitable? For several reasons. Let’s take a look at each one.

Reason 1 - A business with multiple revenue streams is a more viable, resilient business model. Having multiple revenue streams means a business can be more nimble and weather setbacks more easily. Literally. Setbacks from the weather are a very real possibility and probability for any kind of farming venture unless you farm in a controlled environment setting but even in controlled ag, crop losses can occur due to pest damage or disease. However having multiple streams can help insure there is still cash flow when a crop loss occurs. This is especially important for the aquaponic farmer as crop insurance isn’t yet an option. 

Reason 2 - Direct farm generated revenue from crops is rarely a consistent amount and alternate streams can supplement in between crop harvests and rotations. This actually is probably a little less true in aquaponic farming then in traditional Ag where all of a farms revenue might come in a two month period when the watermelons are ready to harvest. For we aquaponic farmers though, a carefully planned crop schedule and rotation can help insure a constant and consistent harvest of some crops such as lettuce and herbs but even the revenue generated by these will fluctuate with the weather and season.

Reason 3 - Alternate streams of revenue can subsidize a small farm business while it grows its operation to a size large enough to generate enough revenue on farm sales alone.Ah, now this is the ultimate goal for us and most likely for most aquaponic farming hopefuls; have a farm large enough to pay all the bills and then some. It’s not that the farm is unsuccessful or not profitable right now but its simply not large enough yet to produce enough revenue to support two individuals entirely. Understand though that this is purely a function of not having enough start up or expansion capital for a small farm business to create a large enough farm right out of the gate. However, just because a farm’s revenue is limited due to grow space and production does not mean it’s not a profitable business.

Reason 4 - Alternate revenue streams can self fund farm growth and expansions. Lets face it, expanding an aquaponic farm can be pricey and certainly more then its soil counterpart. Have we stumbled on the one drawback of aquaponics? Perhaps, but I will save that discussion for another blog but adding on additional grow space can easily incur a capital outlay of $20k or more or as little as $15 a square foot just for the system or as much as $100 a square foot depending on how you build and source it. We would have to sell an awful lot of lettuce to fund expanding our farm from direct farm sales. Quite honestly, this is the single greatest driver for our alternate streams because our goal is to have enough grow space for the farm alone to support itself and us and so far 100% of our expansion has been self funded from alternate revenue streams.

25 February 2014

How to Write a Business Plan

credit to http://www.startupdonut.co.uk/

Writing a business plan

Many potential start-up businesses are daunted by the prospect of writing a business plan. But it is not a difficult process - and a good business plan focuses the mind as well as helping to secure finance and support.

The business plan will clarify your business idea and define your long-term objectives. It provides a blueprint for running the business and a series of benchmarks to check your progress against. It is also vital for convincing your bank - and possibly key customers and suppliers - to support you.

This briefing explains:
  • What information to include.
  • How to present your financial forecasts.

1 Executive summary

The executive summary outlines your business proposal. Although it is the last section to be written, it goes on the first page of the business plan. It will be read by people unfamiliar with your business, so avoid jargon.

1.1 The executive summary highlights the most important points and shouldsum up six areas.
  • Your product or service and its advantages.
  • Your opportunity in the market.
  • Your management team.
  • Your track record to date.
  • Financial projections.
  • Funding requirements and expected returns.

1.2 When deciding whether to back a start-up, bank managers and investors often make provisional judgements based on the executive summary.
The main body of the business plan is then read to confirm the initial decision. The appendices at the back of the plan carry detailed information to support the main text.


2 The business

2.1 Explain the background to your business idea, including:
  • The length of time you have been developing the business idea in its present form.
  • Work carried out to date.
  • Any related experience you have.
  • The proposed ownership structure of the business.

2.2 Explain, in plain English, what your product or service is. Make it clear how:
  • it will stand out as different from other products or services
  • your customers will gain through buying your product or service
  • the business can be developed to meet customers' changing needs in the future

It is important to cover any disadvantages or weak points you feel the business may have. Be frank about these - it inspires confidence.

2.3 Explain any key features of the industry (eg special regulations, effective cartels or major changes in technology).


3 Markets and competitors

3.1 Focus on the segments of the market you plan to target - for example, local customers or a particular age group.
  • Indicate how large each market segment is and whether it is growing or declining.
  • Illustrate the important trends - and the reasons behind them.
  • Outline the key characteristics of buyers in each segment (eg age, sex or income).
  • Mention customers you have already lined up and any sales you have already achieved.

3.2 What are the competing products and who supplies them?
  • List the advantages and disadvantages of all your competitors and their products.
  • Explain why people will desert established competitors and buy from you instead.
  • Show you understand your competitors' reaction to losing business and demonstrate how you will respond to it.

Unless there is a viable market and you know how you are going to beat the competition, your business will be vulnerable.

You must show you have done the market research needed to justify what you say in the plan.


4 Sales and marketing

This section is crucial. It often gives a good indication of the business' chances of success.

4.1 How will your product or service meet your customers' specific needs?

4.2 How will you position your product?

  • This is where you show how your price, quality, response time and after-sales service will compare with competitors.
  • Quote minimum order figures, if appropriate.

4.3 How will you sell to customers?

  • For example, by phone, through your website, face-to-face or through an agent.
  • Show how long you predict each sale will take. Many new businesses underestimate the time involved in winning each order. In year one you may spend up to 80 per cent of your time making contacts and selling.
  • Will you be able to make repeat sales? If not, it will be hard to build up volume.

4.4 Who will your first customers be?

  • Show which customers have expressed an interest or promised to buy from you and the sales they represent.
  • How will you identify potential customers?
Unless you can demonstrate that you have a clearly defined pool of potential customers, starting your business is likely to be a struggle.

4.5 How will you promote your product? For example, using advertising, PR, direct mail or via email and a website.

4.6 What contribution to profit will each part of your business make?

  • Most businesses need more than one product, more than one type of customer and more than one distribution channel.
  • Look at each in turn. Examine your likely sales, gross profit margins and costs.
  • Identify where you expect to make your profits and where there may be scope to increase either margins or sales.
Services and intangible products (eg computer software) are more difficult to market. Start-ups in these areas must pay special attention to marketing in their business plans.


5 Management

People reading the business plan need to be given an idea of why they should have faith in the management of your start-up.

5.1 Outline the management skills within your team.
  • Define each management role and who will fill it.
  • Show your strengths and outline how you will cope with any weaknesses.
  • Describe the background and experience of each team member.
  • Clarify how you intend to cover the key areas of production, sales, marketing, finance and administration.
  • Management information systems and procedures should be outlined. For example, management accounts, sales, stock control and quality control.
  • Show how many 'mentors' and other supporters you will have access to.

5.2 How committed are you?
Banks and any other potential investors will want to be sure you are committed to the business. Show how much time and money each of the management team will contribute, and what your salaries and benefits will be.


6 Operations

Explain what facilities the business will have and how it will deliver the product or service to the customer.

6.1 Show the pros and cons of the location.

6.2 Indicate the facilities you will need to start (eg equipment and machinery). Some start-up businesses only need a desk and a phone.
Consider any potential limits to production capacity.

If you are going to manufacture or distribute products, show how and where you are going to warehouse them and for how long.

6.3 Provide a list of employee roles you need to fill and the skills required to fill them.

6.4 Show how you selected your suppliers.

Keep it real

Sales forecasts produced for start-up businesses are often over-optimistic. Here are some important reality checks.
  • How soon can you start selling?
  • Will potential customers hold off for a year before they take you seriously and place an order?
  • How often will you be able to sell?
  • How many days can you spend selling?
  • How long will each lead take to line up?
  • What percentage of leads will turn into sales?
  • How much will you be able to sell?
  • What will the average sale value be?
  • Will most people give repeat orders, or must you find new customers each time?
  • How long after a sale will it be before you can collect payment?
  • How much income can you realistically expect each month?


7 Financial forecasts

Your financial forecasts translate what you have already said about your business into numbers.

7.1 A realistic sales forecast forms the basis for all your other figures.
Break the total sales figure down into its components (eg different types of products or sales to different types of buyer).

7.2 Your cashflow forecast shows how much money you expect to be flowing into and out of your bank account and when. You must show that your business will have access to enough money to survive.

  • Demonstrate that you have considered the key factors affecting cashflow - eg level and timing of sales revenue, wages.
  • Show when there will be more money coming in than going out ('cash-positive').

7.3 Your profit and loss (P&L) forecast gives a clear indication of how the business will move forward. Summarize the annual P & L forecast for each of the first two or three years of trading.

7.4 If you are launching a larger start-up, you will also need projected balance sheets.

These will show you the financial state of your business on day one and at year end, perhaps for the first two or three years.

7.5 Do not get too protective about your forecasts. You may need to revise them.

For every forecast, list all your key assumptions (eg prices, sales volume, timing). Small business advisers at banks and your local business support organisation will often help you put together your forecasts free of charge.


8 Financial requirements

The cashflow forecast will show how much finance the business needs. Your assessment of the risks will determine whether or not you need to arrange contingency financing.

8.1 Say how much finance you will want, when and in what forms.

For example, you might want a fixed-interest loan and an overdraft facility.

8.2 State what the finance will be used for.
Show how much will be for buying equipment and how much for working capital (financing stock and debtors).

8.3 Confirm that you will be able to afford it.


9 Assessing the risks

9.1 Look at the business plan and isolate areas where something could go wrong (eg if your main supplier closes down).
What you would do if it actually happens?

9.2 Consider a range of what-if scenarios (eg what happens to your cashflow if sales are 20 per cent lower or 15 per cent higher than forecast). If there are serious risks:

  • you can arrange contingency funding to cover the finance you may need
  • you may decide that the business is too risky and abandon the whole project.
Assessing risk will help you minimise problems and help build up your credibility with any investor or bank.


10Appendices

10.1 Detailed financial forecasts (monthly sales, monthly cashflow, P&L) should usually be put in an appendix.
Include a detailed list of assumptions.

For example, the profit margin on each product, debtor collection period, creditor payment period, stock turn, interest and exchange rates, equipment purchases.

10.2 You may want to give other relevant information.
  • Detailed CVs of key personnel (essential if you are seeking outside funding).
  • Market research data.
  • Product literature or technical specs.
  • Names of target customers.
  • A list of external data sources used in your research will add credibility to the information.


11 Presenting the plan

The more solid information you can gather for your own use, the better the business plan will be. But a banker or other outsider will not have time to read through all the details.

11.1 Keep your business plan short.
Most business plans are too long. Focus on what the reader needs to know.

11.2 Make it professional.

  • Put a cover on the business plan and give it a title.
  • Include a contents page.

11.3 Test it.

  • Re-read it yourself. Would reading your plan give an outsider a good feel for your business and a grasp of the key issues?
  • Show the plan to friends and expert advisers and ask them for comments.

12 February 2014

Aquaponics Garden in your house - AquaLibrium



The Aqualibrium Garden is an indoor ecosystem designed to grow fresh herbs, vegetables, and flowering plants in any home.


  • Aquaponic and Hydroponic Gardening
  • Food Grade, BPA-Free Plastic
  • Adjustable for Larger Plants (e.g. Tomatoes)
  • Snap-on Aquarium Window Covers and LED Grow Lights Included
  • Beautiful Clear Design
  • Aquaponic/Hydroponic Instruction Manual Provided



Plants require nutrients to grow. Aquaponics uses a closed loop ecosystem composed of a fish tank and a garden. The fish produce the nutrients that are cycled up to feed the garden. The plant roots then act as a bio-filter by soaking up nutrients. Finally, the water is cycled back down to the aquarium, fresh and clean for the fish. 


All that is needed to grow peppers, kale and eggplants in your Aqualibrium Garden is a few small fish from your local pet store. The Aqualibrium Garden can also be used as a hydroponic system. Hydroponic gardening allows you to use pre-bottled nutrients instead of fish. Sprinkle nutrients in the bottom portion of the Aqualibrium Garden a few times a week and you will have a fresh herbs and flowers in no time!


http://www.aqualibrium.com/
  

08 October 2013

Different Types of Aquaponics Systems


There are three different types of aquaponics systems that have been developed for use by home gardeners and commercial enterprises. These are media based, NFT and Deep Flow or Raft systems and here is a description of each one.



Media-based: also known as the gravel bed system, the media-based aquaponics system is the simplest type to set up and can be used on a small or large scale. This is why it is the type most commonly used by backyard aquaponics enthusiasts. Containers are filled with small rocks, usually expanded clay pebbles which are porous to absorb water and air, and then seedlings are planted directly into these. Water from the fish tank is circulated through the container to allow the plants to access the nutrients. The rocks act as a biological filter as well as a solids filter, eliminating the need for extra equipment.

You can also use special netted growing pots for your seeds or seedlings. You fill these with perlite, coir, peat moss or the clay pebbles and plant into them. These pots are then placed into a larger container which has been filled with the expanding clay pebbles, making sure the netted sides are covered by the media. Media-based aquaponics systems hold plants firmly and so are ideal for growing fruiting plants.

There are two different ways this type of aquaponics system can be operated. The first method pumps a continuous flow of water through the media bed from the fish tank and back into the tank. The second is a process called flood and drain or ebb and flow, where water is pumped into the bed to a depth of about 10 to 12 inches (20 to 30 cms) and then drained away. A timer controls the flooding and draining sequence.



NFT system: or Nutrient Film Technique is a common method used in hydroponics that is best suited to a large-scale aquaponics production. This is because of the expense of setting up the system of PVC pipes and mechanical filtration needed to operate the system. Because there is not the surface area exposed to the air, as in the media-based system, a biological filter is needed to allow the beneficial bacteria to develop and convert the fish wastes into plant nutrients. Solids filtration is also needed to deal with the solids in the fish waste; this is usually set up in a separate tank through which the water passes before going through the plant pipes.

In the NFT system, plants are held in netted growing pots which are suspended through holes cut in the pipe. A thin film of nutrient-rich water is run along the bottom of enclosed gutters so that the roots can reach it. It is really only suited to plants that have a small root systems, such as leafy green vegetables.



Deep Flow: also called Deep Water Culture (DWC) or the Raft system, this is another commonly-used method in hydroponics. This system involves the use of a foam ‘raft’ that floats on top of the water. It is a popular choice for both commercial and backyard aquaponics because it is relatively cheap to set up and operate.

A container or channel is used to hold the water as it is pumped through from the fish tank, after it has been filtered to remove any solid waste. Plants are held in holes made in the raft, so their roots dangle down into the water. This method uses high volumes of water which provides stable water temperatures for the plants and fish. It is the method most often used in commercial aquaponics operations because of the ease with which the plants can be tended and harvested. Again, it is better suited to growing herbs and leafy green vegetables than plants with bigger root systems and fruiting varieties.

This type of system can easily be adapted for home garden use by simply floating a styrofoam tray on top of a fish tank. Just cut holes in the tray and suspend the plants, or plants in netting pots, through the holes so the roots are in contact with the water. Choose fish varieties that are not voracious plant eaters to avoid having plants’ roots eaten away.

Now that you understand how each of the 3 types of aquaponics systems operates, you will be in a better position to decide which one suits you the best. Whichever method you choose, it is best to start small so you can gradually build your expertise and experience before setting up a large system.

   

07 October 2012

Aquaponics Trial #2

Hey guys, its been a while.

Here's the second trial I've been doing at my house. Had the first prototype moved out of the shade plus additional 2 pods. Also added a fish tank i acquired from a fish store that's about to move out of town.


Actually these photos here are outdated by 2-3 months, since I've already started to harvest them from August. Anyway, here's a close-up of the pods.


I've been trying a lot of different kinds of vegetable; kailan, lettuce, salad, cabbage, sawi, etc. But the most success I've had so far is the kangkung (water spinach).


The two tanks shown are connected underneath; the right tank receives freshly filtered water from the pods. It has 9-10 lampam fish. The water then travel to the left tank (along with fish faeces), before being pumped to the highest pods to begin the cycle again.


24 April 2012

Aquaponics Presentation #3

CONCLUSION
 
The simple steps on how to establish your own homegrown apuaponics produce 

 prepare the tank         prepare the growbed      setup the pipework
 

planting seedlings           watch them grow        harvest in 2-3 weeks


releasing fingerlings      aerate and feed them      harvest in 3-4 months


REFERENCES

1 Australian Aquaponics website
http://www.aquaponics.com.au

2 Cabbage Hill Farm website
http://www.cabbagehillfarm.org

3 Kirby Peak Ranch website
http://www.kirbypeakranch.com

4 University of Virgin Island website
http://rps.uvi.edu/AES/Aquaculture/aquaponics.html

5 Wikipedia
http://en.wikipedia.org/wiki/Aquaponics