key funding questions !

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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!

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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

Commercial Aquaponics © 2015 (10)

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

Commercial Aquaponics © 2015 (13)

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’

Commercial Aquaponics © 2015 (16)

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.