Investor Alert
The big question is, from an investor perspective, can vertical, hydroponic farms work? Here’s a video thaht may scare you away from investing, as it looks at why many major verticle farms are failing around the world.
Comment
I love this video because it looks at why “BIG” vertical farms are failing.
Investors were sold a promise, but it seems that nobody stopped to calculate the costs of operating a large-scale farm, before they are built. One of the first things we do is exhaustively model a new business venture. What does it cost to build, market and produce. If you can’t make a profit on paper, you’re not going to make a profit in-real-life. This is business 101, yet investors are sold wild visions, impossible returns, using a lot of glitz and glamour.
This is farming, and it has never a get-rich-quick business. How many farmers do you see sitting on piles of money, none. Does that mean we should not pursue this as a viable business opportunity, and a way to address local food security? No! We just need to acknowledge its limitations, have realistic expectations, and accept a modest return on investment.
But Can it Be Profitable?
I love this video because it shows how common-sense business practices can create a profitable business.
They didn’t start out with flashy presentations, hyped up profit claims, and big investment presentations. These people started and grew a profitable hydroponic vertical farming business, based on sound business practices. Starting small, testing systems and growing their market and business profitably, they have built a profitable farm, on a third of an acre, that generates $3.2 million in revenues per year.
Yes vertical indoor hydroponic farming can work, can be profitable, when built on solid business principles.