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Feasibility and Risk Analysis

How much will it cost? How much will my farm produce? How much money will I make? How big does my farm need to be? Can aquaponics be profitable? 

The real answer is... it depends. It depends on a number of variables that will ultimately influence the financial performance, production and profitability of your farm. "It depends" is not an answer unique to aquaponics or any other startup business endeavor. If there was one silver bullet answer for profitability then everyone would be doing it, but it just doesn't work that way despite what some may claim. 

With aquaponics you are creating and managing a complex eco-system which in and of itself has its own challenges. In order to be successful, ownership must also manage the business operations, customer relations, marketing, accounting, distribution, human resources, food safety regulations, suppliers, inventory and on and on. All of these major components layer on top of this eco-system and must be working efficiently and in concert with one another to be able to effectively achieve the goals of the business plan and achieve profitability. 

What goes hand in hand with design planning and forecasting production is an understanding of the financial implications and risks associated with aquaponic farming. 
The important components of feasibility and risk analysis can include but are not limited to:
  • Financial pro formas
  • Monthly cash flow analysis
  • Price sensitivity analysis
  • Break even analysis
  • Revenue analysis linked to production plan results
  • Risk Matrices - Showing various best and worst case scenarios such as production volatility compared against revenue
  • Projected startup and operating costs
  • Opportunities for alternative revenue streams
  • Technical, financial, and market risks associated with the project
Please contact us for more information and to discuss your project