key funding questions !
Post on 28-Jul-2015
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Introduction to:Funding Commercial
Aquaponics
Presented by:Linkedin Commercial Aquaponics Group
The Family Fish Farms Network Inc.
Commercial Aquaponics © 2015 (1)
Show Me The Money!
Our Target Audience
Entrepreneurs who have made the critical decision to build and operate a successful commercial aquaponics
farm
Commercial Aquaponics © 2015 (2)
WELCOME!
Commercial Aquaponics © 2015 (3)
Who do you Approach?
Job one is not to sell seafood and vegetables
– that’s easy!
The most challenging job is to sell investors
on the validity of investing in aquaponics!
Commercial Aquaponics © 2015 (4)
Educating Your Bank and Investors
Most people think of vegetables coming from gardens and farms with long rows of plants in the ground
Hydroponics is accepted but still relatively obscure.
Aquaponics is ?
Commercial Aquaponics © 2015 (5)
1• Review and Confirm Your Decision
2• Audit Your Business Plan
3• Value Your Business
4• Identify Sources of Funds
5• Negotiate The Deal
Webinar Objectives
Today’s Agenda
Who do you Approach?
What is your ‘Funding’ plan before the Business Plan?
The Family Fish Farms Experience
Educating your bank or investors
Review and Summary
What’s Next
Commercial Aquaponics © 2015 (6)
Commercial Aquaponics © 2015 (7)
Review and Confirm Decision
Sustenance – Subsistence- Commercial?
Most Investors Won’t be Interested
Profitable AP Farms are Hard to Find
Energy Will be Your Biggest Cost Factor
After the Business Plan – Funding Plan?
Commercial Aquaponics © 2015 (8)
Our Company’s Experience
The Family Fish Farms Network Inc.
Hard Lessons Learned!
Commercial Aquaponics © 2015 (9)
Hard Lessons Learned
Our experience – My Mistakes
I am not a grower, investment banker
…and not a deal maker
Now, after three years…
Listen to my advice, please
…but make your own decisions
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Audit Your Business Plan
Management – The Key Issue
The Business Model
Sales, business organization, value chain
Competition
Financial Pro Forma
Assumptions
Revenue & Costs
Commercial Aquaponics © 2015 (11)
Value the Business(Show me the money)
How? You Don’t Have a Business
The Kahn Academy
http://tinyurl.com/nnc5clm
Is It a Good Investment?
Do the Numbers Work?
EBIT of 20%
Leverage and Multiples
Stock Dilution
Commercial Aquaponics © 2015 (12)
Identify Sources of Funds(Show me the money)
Equity Funding
Private vs Public
Banks (Assets) Funding
Something of Value
Partners
Active vs Passive
Corporate
Government
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Negotiate a Deal(Show me the Money)
1• My Advice – Hire a Pro• An Investment Banker
2
• …With Investors• Active vs passive partners• Equity and dilution
3
• Banks & Lenders• Interest, lines of credit• Convertible notes
4
• Special Programs• Community Reinvestment Act• CDFI’s, USDA, SBA, VA• Hub Zones, Block Grants• New Market Tax Credits
Commercial Aquaponics © 2015 (14)
1• Review and Confirm You Decision
2• Audit Your Business Plan
3• Value Your Business
4• Identify Sources of Funds
5• Negotiate The Deal
Objectives Review
Commercial Aquaponics © 2015 (15)
How to Get There From Here?
• A SWOT shows…• …lots of weaknesses and threats• There are strengths in numbers• And …this is an opportunity for all
• Our Model is a distributive network
• Gung Ho!• It means, ‘work together in harmony’
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Here’s My Thinking(We all gotta eat)
Stage One: Build Trust
Slowly Monetize ‘The Network”FREE Webinars Continue
Low Cost monthly on-line meetingsWith Shared experts – get discount
Stage Two : Build the NetworkEquity Sharing Structure
TBD – Likely a cooperative
Commercial Aquaponics © 2015 (17)
Top Ten Crowdfunding Sites for Fundraising at Listed by Forbes
Kickstarter
Razoo
Indiegogo
Crowdfunder
Rockethub
Crowdrise
Somolend
Appbackr
AngelList
Invested.in
Quirky
Commercial Aquaponics © 2015 (18)
What’s Next?
Question?
How do we build value and how do we use this group to promote investment in aquaponics?
Future Webinar Topics
• The potential of CSR (corporate social responsibility) • Vertical growing is urban farming• What is de-coupled aquaponics?
Commercial Aquaponics © 2015 (19)
THANKYOU!
Thank you for attending the second session of the Commercial Aquaponics webinar series.
We hope it has been enlightening with regard to funding and that you will join us for our next one.
A survey will appear next and we hope you will take a few minutes to answer the questions on it.
Our experts want to be able to answer all the questions you might have about how to run a successful Aquaponics
business.
Thank you again.
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