GreenWave Resource
Farm Design Tool
Lesson 1
Do Some Math
Back to: Build Your Business
Farm Size and Design
There are many costs associated with starting a business that are fixed, meaning they are the same regardless of how big or small your business is or even what kind of business you’re operating. An example of a fixed startup cost is forming your legal entity: this is a flat fee, regardless of whether you’re opening a lemonade stand or a venture capital-backed software company.
However, some costs are variable—their size corresponds roughly to the size and scope of your operation. A bigger farm, for example, requires more line, buoys, and anchors; more gas to power your boat as you work on it; and, in some states, a larger permitting fee. So, you’ll want to have a rough idea of how large of a farm you’re looking to build.
We recommend using the Farm Design Tool to understand how your farm size and design affect your startup costs. Start by entering the physical characteristics of a likely site, then modify or add gear. Notice how the farm cost (in the upper right-hand corner of the screen) changes as you add or subtract different items. Make sure your farm’s startup costs stay well within your startup capital budget, so you have enough to pay for all of your other startup and maintenance costs (like insurance, marketing, gas, etc.) and a buffer in case your farm isn’t profitable right off the bat.