134. $100K/Year Growing Microgreens? This is How You Do It

0:00Growing microgreens rarely comes up when talking about business ideas. But with low startup costs, easy setup, and ever-growing demand, it can be a lucrative business to launch. In today's episode, you'll learn the first steps to get started in your microgreen business, how to grow your microgreen business at a commercial scale, and the exact formula to scale your microgreen business for making not-so-micro profits. This is Ryan Atkinson, and you're listening to the Upflip Podcast, where we uncover the secrets of building and running successful businesses. Today, we have Donnie Greens joining us.

0:31Don's focus on high quality products paired with clever marketing and sales strategies has allowed him to build Donnie's Greens into a six-figure business and his sales keep increasing with an expected 100 % growth this year. Super excited to welcome Donnie on the podcast. Donnie, thank you so much for being here. Hey, what's going on? Thanks for having me. We have had a wide range of topics on this podcast about getting started with businesses and exactly how you can do it. But I'm super excited to peel it back with microgreens because it's kind of a newer concept. So it wasn't new in 2016 when you got started though.

1:01So can you take us back to that timeframe when you're thinking about starting Donnie's Greens and what inspired you to get started? Oh, yeah, back in 2016. So I kind of was born with that entrepreneurship thing. I always knew I wanted to run my own business, but never really had that opportunity. Then my sophomore year in college, I was introduced to urban agriculture. And the way it just worked was so cool to me. It was all organic and closed systems and everything worked together in a really smart, intelligent way. And that really piqued my interest. It was like, all right, I think I want to be a farmer.

1:32I think I want to grow food, weirdly enough. And then I just needed to figure out, all right, well, if I'm going to be a farmer and I'm going to grow stuff to sell, what am I going to grow? And that's what I spent years searching the internet for. And then finally, those videos came up saying, hey, you could start a business growing microgreens. And I was like, all right, this sounds perfect for me. I like it. Let's set the baseline first. How would you define like microgreens for someone that's listening? Sure. So microgreen is essentially just a very young plant. Things like broccoli or sunflowers or radishes, instead of growing them out until they're, you know, full grown vegetables or the seeds that we know, we're actually growing them for about a week or two and then harvesting them at their very earliest stages of growth when they only have their first two leaves.

2:13Okay, super interesting. I think that's a really good baseline of like what microgreens are. And so you're doing a ton of research, you're in college, you're like, you have this entrepreneurial bug and you land on microgreens. What was that first step? Once you start getting the research, okay, I want to start doing this. What were some of those first steps that you took to really get this business off the ground? The first steps I took, it was really just watching a lot of YouTube videos, obviously, just learning as much as I could. And at that time, there wasn't nearly as much content out as there is now.

2:40So I was doing a lot of learning and figuring it out. I had some quick start guide that I had found, traded my email for. And it was really just a matter of buying equipment and learning how to grow. I think a lot of people get hung up when they want to do something and just, you know, it's something new. I've never done it before. So getting over that hump and actually making that initial action that oftentimes I find is the hardest part. So I was like, you know what, this is for me. There was none of that for me. I was ready to go. I just bought equipment. I bought seeds. I bought some soil.

3:09I bought some trays. And I just started growing these greens based on what I had learned online and started figuring out as I go. Interesting. I talk about a lot on this podcast when like the biggest difference between someone that's like an entrepreneur and like a wannabepreneur is like you just take action and like you actually get moving on that idea once it does come to mind. Yeah, for sure. It's the most important part is that action step. Yeah. And it's probably the most overlooked steps. But I want to talk about that equipment that you bought. If someone is like, OK, I'm kind of interested in this micro green stuff and like starting my own company, what equipment should they be buying early on and what equipment did you buy early on?

3:41So the advice that I give people when they're first starting out, I see people making some bad decisions. One, buying bad equipment from the start, stuff that's just really cheap and chintzy and it's not going to work for you long term, even though it seems like, oh, that makes sense because I'm just starting out. No, it's a bad decision because something like a microgreens tray, if you buy a chintzy one, it might last you two or three grows and then it'll break. But if you buy a heavy duty tray, they will last you literally years and hundreds of growth cycles. So that's just a little example of some of the things I was doing in the beginning that was maybe not the best equipment to start off with.

4:15You know, those crappy trays that led to a tray graveyard, buying very mediocre soil from Home Depot, stuff like that. So I recommend people start off with the high quality equipment and really just get started small. That's the other big thing I see people doing when they're first starting is they buy four full rack setups. And I'm like, you haven't even grown microgreens yet. So I would, you know, I recommend growing microgreens before you start determining that this is going to be a business for you because you might not even like growing microgreens. If you don't like growing microgreens, you probably shouldn't start selling them.

4:46Yeah, like a question that comes in mind, because like just as like an entrepreneur, like someone that wants to start a business is like, well, how do I make money doing this? And like, are there some micro greens that you would advise some people to like start out with, like a certain vegetable or just on those very early stages? Yeah, in the beginning, and that's another one of my tips I give, is not to start off with too many varieties because you'll get overwhelmed. So start off with a few simple varieties that are easy to master and that are popular on the market. So the ones that I typically recommend are things like broccoli, peas, radishes, even things like cabbage and kale are very easy to grow.

5:20So sunflowers I used to recommend, but they're a little bit tricky. But yeah, so those are some great starter varieties. Yeah, I think it's really interesting because you're taking about a week or two to actually grow these then, like for the broccoli, for instance. Yeah, they're under lights for about a week and they're in germination for about three days before that. So it's between a week and two weeks for most varieties. Interesting because basically once that week and a half, two weeks is done, like you could essentially start selling these correct me if I'm wrong on that, but it's like, is that how you approach it?

5:47Like what's that next step? Absolutely. And that's one of the beautiful aspects of running a microgreens business and starting up a business like this, especially if it's one of your first businesses you've ever had, which is, it was my first business is the opportunity to get started in this is quick and easy and simple, and it doesn't take a lot of money. And those were the exact things that I was looking for when I first started, didn't have a lot of money, not a lot of time, not a lot of space and this was able to work for that. And the fact that they grow in only one week, it's such a quick turnaround, not only just from like a learning perspective, because you have to learn how to grow these crops and get them to be high quality enough to sell.

6:20But two, just having a new turnover of crops every week and being able to sell them every week, it's just such a tremendous business model. Yeah, that's what I think is super interesting is like you could really be like cash flowing this like pretty quickly compared to like an agency or like especially like a SaaS company where the cash flow might not happen for like a year and a half. It sounds like with this, You could actually be cash flowing in under a month if you do this correctly and market it correctly. Absolutely. Especially if you buy the right amount of equipment, so not too much, and just stay right baseline in the very beginning by just what you need and then sell them basically right when you start growing them.

6:53Yeah, you can cash flow and get your return on investment in a month. That's amazing. Let's start with that baseline of what you need, though, because I definitely want to hit on that point because people might not know the equipment they need. So what is that first equipment? You definitely want to buy the expensive one. We heard that. but like what's like that baseline equipment that you need to get started? The most basic stuff to get started is trays or something to grow in. So like a vessel or a container. You don't even need micro-earned trays. You could literally cut a milk carton in half or use one of those plastic clamshell containers you bought something else in.

7:22So a container. Then you'll need a growing medium. So you can use a hemp grow mat or you could use something more like a potting mix. Then you're going to need seeds. So you're going to put the seeds on top of that growing medium. And then after that, it's really just watering every day and making sure they have some light. So you could either use a grow light or you can even use the outdoor light. But I prefer growing inside because it's a little bit easier to control, control the environment. So yeah. And where are you like getting this stuff from? Is this easily accessible like on Amazon? Are you going to like specific stores to like find this stuff?

7:52Obviously, the milk garden, you can get wherever you want. But yeah, it's accessible. I find that it's like probably with most things, it's more accessible here in America than in other parts of the world because I have people reaching out from all over the world and sometimes they can't find certain stuff. So that kind of makes me sad. But yeah, all the materials are very easy to find, especially in North America, United States, Canada. Okay, I like that. So we now have an idea of what we need, but I also want to hit on that cost point, the startup cost of actually getting this equipment and whatnot.

8:23You definitely don't want to go cheap, as you said. What are you looking at for like your average startup costs for a micro reason business with like all the equipment and everything. So there's really two startup setups. It's like you're either going to start growing and you're going to learn how to grow from the very beginning. And you might only buy a few trays in one light and a few seed packets, or you're going to start it up like from a business perspective. And you're actually going to buy one of those grow racks and strap on some lights on there and have, you know, probably 30 sets of trays, something like that.

8:50So I would say to get started for yourself, to literally start growing and grow a few trays, you can get started for less than a hundred bucks, no problem. And then if you wanted to do an actual business setup, I would say you can get started for under a thousand dollars. Nice. Relative to a lot of startup costs, those are like pretty low. There's a pretty good opportunity, as you said, to get that ROI like pretty quickly, especially with the short span it takes to grow these. Yeah, it really is magic. It was this magic thing that I stumbled upon back in 2016. Like I knew that this was the answer for me when I first found it.

9:21And now it has come full circle because now I'm able to teach other people what I've learned because this has changed my life so much. I want to have that impact on other people's lives. And yeah, thousands of microgreens farmers have cropped up, if you will. And it really is that easy to make a go out of it. The low startup costs, the quick turnover, low space, high value crops, crazy profit margins. Yeah, it just it really is such a good business model. Yeah. And it speaks to like how quickly it's grown. You have over 120 ,000 subscribers on YouTube. So like you're definitely breeding other entrepreneurs as well, which I think is a cool opportunity.

9:53And I also want to speak about those trends that you've seen in the market, because I feel like micro greens and this health and wellness, it's not a trend, but you've seen health and wellness really be at the forefront of people's minds since about 2020. Can you talk about the sales those first four years? And did you see an increase when the increase of the health and wellness movement came across? So when I first started this business, I was told to sell to chefs. And I realized pretty quickly, I didn't want to work with chefs. I was also learning about the health benefits of living foods, which are sprouts, microgreens, and wheatgrass.

10:23So I knew I wanted to go into the health niche with these products from the start. So I started there. The first few years, obviously, I was learning business, learning how to grow, learning all these things because I was, I had never wore any of these hats and now there was a dozen hats to wear. So it worked well. I was able to grow the business quick enough to be net positive in nine months and have a real business. I did$100 ,000 in my year two. Nice. Then, yeah, in 2020, when all the madness happened, my business did increase even more because I had focused on home deliveries. Microgreens farmers that had focused on restaurants and then all the restaurants shut down, a lot of microgreens businesses that had all their eggs in one basket, a lot of them went out of business overnight.

11:06A few of them were able to pivot and stay in business, but businesses like mine that were a little bit more resilient, delivering direct to home. You know, I even have my own drivers. I don't work with Uber Eats or something like that. So everything is very much controlled and resilient in times like that. It's just a direct relationship between me and my customers. So my business skyrocketed in that time. And I think 2021 was my top year. But as far as health and wellness goes, yeah, I mean, there's been a boom, right? 2016 to 2020, 2020 to now, and even into the future. I don't think it's going to slow down.

11:38I think we're realizing the effects of toxins in nature and our lifestyle and the things that we're putting in our body, all of these different things that are adding up and causing negative health impacts. Now we're looking for ways to mitigate that, at least when you get past 30 years old is when you start thinking about that stuff typically. Can I get a drum roll, please? Because we are giving away a free lifetime access to the Academy for one lucky listener. And it's super simple to participate. All you need to do is leave us a review on Apple and then send us a screenshot as proof. Takes five minutes for lifetime access to the Uplip Academy for free.

12:13So two steps. Leave us a review on Apple Podcasts. Send us a screenshot. And the link to participate is in the show notes below. If you are a wannabe entrepreneur, the courses in there are so invaluable for you to actually get that first business idea off the ground. And then for the current business owners that are looking to sharpen their skills, there are a ton of courses in there for you. And the best part, you're going to be able to connect with other top-notch entrepreneurs in your field to network with them and learn from them. The winner will be announced on July 26th. All you need to do, leave us a review on Apple, send us a screenshot of proof, and you guys can find more details in the show notes below.

12:49That's what I think is why this is such a good opportunity for people. Because obviously, we named it one. It's low startup costs. You're cash flowing positive. But you have trends behind you. I'm in Austin, Texas, and it's a very health and wellness-friendly city. And there's just such a push from people 25 years old to like get rid of toxins and like cleaning supplies and making sure everything's like whole foods type of stuff. So I feel like that's why this is also such a good opportunity is because of the true boom we're seeing. It's just like the forefront of like a humongous trend that we'll continue to see.

13:17Yep, definitely a boom, definitely a trend that's working in favor for the micro-eans industry. I think one other thing that we're also seeing is relating to just entrepreneurship and startups because people are looking for that type of thing, especially since 2020. And the fact that this business model is such a turnkey model, I think that almost the fact that, I think it's growing from two ends. I think it's growing from the consumer standpoint because people are eating healthier and learning what to eat and healthy living foods. But then it's also being driven from the other side where it's the entrepreneurs going out, doing this as a business and then driving that market forward because they have to with their marketing.

13:52So yeah, I think it's being driven from two sides. I even posted a video on, you know, should you become a microgreens farmer in 2024? I posted this a month or two ago. And in that video, I even pulled a sample clip from Gary V talking about the trends in clean eating. And it's just, it's, it really is big time. And you can look at the graphs, just look at if you go to Google trends and type in microgreens, and you can see the trend on the graph, just going up with people searching microgreens. It's really cool. Yeah, that's why I think it's like such a good opportunity is because one, I'm huge into health and wellness as well.

14:22And like, I can really feel it here in Austin, but like across the world, essentially, especially the United States, like people are really starting to wake up to like, oh, I should not be eating 15 Oreos a day that comes from these fake chemicals. I should actually be eating healthy foods that are coming into my body. So yeah, I think that's a it's a great opportunity. I want to speak. We're now in 2024. You said 2020 to 2024. There's been a big boom. Getting your first customer today or once people are growing this, they have everything. How would you then advise to like get your first like customer like your first sale then?

14:50Well, a lot of people would say friends and family first. you know, but, you know, so skipping that one, because that's like too simple and easy. I normally recommend that people start off at farmer's markets because there's a few amazing benefits of farmer's markets, especially if you want to do something like a home delivery service, which is what I do. The people coming to a farmer's market, they're so pre-qualified. They're local, right? You're not traveling too far to get to that market. They're not traveling too far to get to that market. So they're a good client for that direct delivery.

15:18They're looking for that type of product. They're looking for, you know, farm, organic, local, that type of stuff. So that's another prequalification. And then another great benefit is that you don't have to know marketing. You don't have to learn anything about marketing. You don't have to learn anything about social media. You go to these markets, people come, they look at all the different tables and the vendors, and they end up buying stuff. And it's a great opportunity to start getting the word out about your company, learn different pricing and different packaging. I did a bunch of learning in the beginning, learning how to talk to people and what to say and what people are really looking for when they're actually buying your product.

15:52Making some of those first sales, of course, that was where this question originated. That's where you can make some of your first sales. And then the biggest value that I think you can draw from a farmer's market is taking these people from farmer's market customers into weekly home delivery customers. So that way you have a real business that's secure. You know how much to grow each week. You know how much you're going to be selling each week. And you have that direct relationship with the customer and have their information on file. So I think farmer's markets are a great place to start. They just make a lot of sense.

16:19And then paired with going to the farmer's markets, maybe once or twice a week, you should be walking into restaurants, walking into health food stores, walking into grocery stores, stuff like that. And you can create a real business doing six figures within a year. I have a guy who took my challenge in January, my January one tray away challenge. And by the next challenge in March, he already had a six figure business and was doing thousands of dollars a week in sales. It's literally incredible. And I like the one tidbit that I want the audience to really hammer here or listen here is you said to do the home delivery and do like reoccurring payments because essentially then you it's predictable on how many sales you're having.

16:55You know, your customers. A question that comes to mind for me is like, how do you price this business and like what you're selling? As far as pricing goes, the pricing is pretty similar across the board. When you look at different microgreens farmers, a lot of us are charging very similar prices. An ounce and a half to two ounces of microgreens product for five or six bucks. Those are the small packages that are typically sold in a grocery store or at a farmer's market. Then you can have bigger sizes and go a little bit cheaper. And there's ways to achieve more value from your products or at least more perceived value.

17:25For instance, I have a sunny sampler box where I have five different varieties all in one box. So because it's one box instead of five and one sticker instead of five, but the same amount of product, your profit margins go through the roof. So it's really at the end of the day, you want to charge as much as you possibly can as long as people are willing to pay it. right? That's kind of business 101. But I think even just looking at other microgreens farmers websites and doing what other people are doing or charging a little bit more and saying that as a premium or even price gouging and going a little bit less, depending on what your tactic is for your area, you know, that can work out well.

17:57And you could even go to these food distributors like, you know, Baldor or US Foods, these big food distributors that are servicing the restaurants, sign up with them as if you're a restaurant, and then you have their price listing and see what they're charging for all their microgreens. This conversation is really exciting for me because like it really is almost like a no brainer to start with just like everything that's going on with like trends, startup costs, all that stuff. And so I definitely wanted to ask that pricing question. And then you also said like obviously you can make a good product here.

18:23Like you can have your microgreens that like suck. I want to shift to like the farming aspect of it a little bit as well. How do you make like a good product when like you're actually farming these? Are there some tips that beginners should know or some things that they should avoid early on? Yeah, I would say a lot of it is dialing in your processes and your procedures, dialing in your climate. So temperature, humidity and airflow are the three big important factors to have dialed in. You need to know how many seeds to put per tray. That way you're not doing too many or too little. And then after that, once those things are kind of dialed in, you just want to dial in your watering and make sure you're not over watering or underwatering because that can definitely lead to some issues.

18:59And then once you start growing these crops, you'll get the hang of it. And then you just want to make sure that they're not wet when it comes time for harvesting, because that's the biggest thing that will ruin your shelf life is harvesting wet crops. You want to make sure the crops are dry when you harvest them into the packaging. Is this something that you could like truly like set up at like in an apartment? It is that simple. And I mean, I started in my parents' basement. So, you know, a quarter of my parents' basement, I was like putting up a fake wall to block out the cats and stuff. So it really is that possible.

19:27And then after being in two urban farms, I moved back into my house. My whole basement of my house is now my urban farm and where I grow my microgreens for my customers. And that's why I like it. It's really great from a tax advantage standpoint. No commute. There's a tons of advantages of running it from home. There's obviously some negative tradeoffs to like privacy and hiring and stuff like that. But running just a small business that you want to run yourself or with a partner, man, it totally works. And you can scale up as you go. So you don't need, you know, five racks and big harvesting tables and all this stuff.

19:56when you start. You can start with just one light and a few trays underneath it growing microgreens in your house and starting to sell them. Each tray is going to sell for around 20 bucks. So one light grows four trays. That's 80 bucks. Have them on a cycle. That's 80 bucks a week. You know, you can get started. It is literally insane. Like this conversation is like so like eye opening for me. I think it is like so cool to like actually hear like this is a business that you can do profitably. Could you do this as like a side hustle? Someone's listening is like, I want to keep my corporate job.

20:23I would never recommend someone to do that. But if you wanted to do this as like a side hustle? Like, could you early on? I think this lends itself greatly to a side hustle. I think it can oftentimes work better as a side hustle than a full thing. And I know for myself, I know for many entrepreneurs, we have that entrepreneurial itch or that bug where we just want to start all these different things just because it's fun for us. It's in our nature. So the tasks of this business do get repetitive. And there are some challenges that come with growing a bigger business, including bigger facilities, bigger HVAC, more employees, which are a huge headache.