Starting a microgreen business 101

Update: January 2, 2024

By: Tom Macken

How to start a microgreen business

The global market for microgreens reached a value of around $1.3 billion in 2019 and is projected to reach $2.2 billion by 2028, showing an annual growth rate of 11.1% from 2021. Discover comprehensive information on starting your microgreen business in this thriving, high-profit industry.


What is a microgreen business?
8 tips for opening a microgreen business
Training needed to open a microgreen business?
Regulations for opening a microgreen business

What is a microgreen business?

A microgreen business focuses on cultivating and selling nutrient-rich, small-sized greens that are harvested shortly after planting. They are grown in trays or containers using hydroponic or soil-based techniques and are ready to be harvested within 7-14 days.

Microgreens are favored by health-conscious individuals, chefs, and restaurants for their concentrated flavors, textures, and nutritional value, making them ideal for salads, sandwiches, smoothies, and garnishes.

8 tips for starting a microgreen business

1. Form your Legal Business

When setting up a microgreen business, you’ll need to think about what business structure will work best, including registering your company with the appropriate authorities, both locally and nationally. 

Many would-be company owners struggle to make sense of the differences among an LLC, a sole proprietorship, a partnership, and other business structures, much alone settling on one. 

A company incorporation service can help you determine the best business structure for your  company based on factors like the level of liability protection you require, the laws of the state in which your company will operate, tax filings requirements and the type of license you will need to legally sell your service and products. 

In the case of microgreen businesses, we advise you to choose one of these legal forms:

  • An LLC might have a single owner or several owners.
  • A corporation

In the U.S, limited liability companies (LLCs) are favored over sole proprietorships because their owners are shielded from personal liability for corporate debts and obligations.

Naming your microgreen business

The process of naming your microgreen enterprise may be a lot of fun. Create a list of terms that best describe your company’s values and goals. Then, put those words to use in creating new, meaningful two-word and three-word combinations. 

Try mixing and matching words that signify the same thing to hear what you come up with. Last but not least, check online to see whether the company name you want to use has already been taken.

2. Setup your Business Bank Account 

Depending on your needs and the amount of money you want to deposit, there are different kinds of business accounts you can set up for your microgreen business including:

  • Checking Accounts: The most typical form of business bank account. Opening a company checking account is simple and provides a number of advantages. Having a bank account means you may quickly and simply add or remove funds as your needs change. You may use your checking account to pay bills and vendors by writing checks.
  • Savings account: With the return you may receive on your savings, it’s a terrific way to build up a rainy-day fund for your microgreen company. Savings accounts, on the other hand, may have withdrawal restrictions and provide lower interest rates than checking accounts.

Before deciding on a bank account, it’s a good idea to do a comparison of different business banks for features and fees, including FinTech banks with very competitive benefits of no monthly fees, no minimum balances and an unlimited number of transactions compared to traditional high street bank offerings. 

3. Organize Your Accounting, Taxes & Credit Card reader


Setting up a reliable accounting system will allow microgreen business owners to keep tabs on all kinds of financial transactions from sales (income & invoicing), purchases (expenditure), liabilities (bank loan funding) to taxes due to the IRS or similar. 

The books for your microgreen business can be organized in a few ways:

If you choose to handle things on your own, pick a system that is intuitive and simple to use. When your accounting system is ready, you can begin recording your earnings and spending. If you want to save money, you can now see exactly where it’s being spent meaning future budgeting is simplified as a result.

Spice business owners should be careful to maintain a consistent schedule of accounting maintenance. This calls for putting time in your calendar on a regular basis to check your books and make any necessary changes. While this may appear to be a lot of extra effort, it will ultimately save you time and energy.


Before you can start your own company, you have to get yourself registered for a number of different taxes, both federal and state, first. Your business has to submit an application for an EIN (Employer Identification Number), which is a simple process and is free of charge. Doing so will allow you to register for taxes.

Through the Internal Revenue Service’s website, you can obtain your EIN. There are certain taxes imposed by states that might be applicable to the operation of your firm. 

Credit card readers

Microgreen businesses will of course need to take payment for the services and products they provide. Having access to a low-cost POS card machine is essential to ensure your business can take payment from your customers in a quick and easy manner. 

A card reader such as the Payanywhere Smart Terminal offers a simple pricing model, next day funds in your bank account, integrates with your Quickbooks accounting software and can also provide valuable data insights into sales trends, inventory management and customer behavior.

4. Launch your microgreen website & social media

A stunning site for your fresh microgreen company can be created very easily via:

  • DIY building the business website yourself using a Page Builder or
  • Hiring a qualified web designer to build effective landing pages that can drive new leads for your business using high-quality photos, videos, and other visual components that are in keeping with your brand’s aesthetic.

Having a slick, mobile-optimized website has numerous benefits for any business including: 

  • Attracting new customers 24/7, showcasing your services and products at any time 
  • Credibility, making it easier to attract and retain customers 
  • Online presence for Google searches actively looking for microgreen services in your area
  • Customer engagement by helping to engage with customers regarding business info, photos, videos, feedback forms as well as contact forms
  • Branding A website can help businesses establish and reinforce their brand identity, by incorporating their logo, color scheme, and other branding elements into the design.

Marketing & Social Media

Social media including Instagram, TikTok, Facebook and Twitter are powerful tools for a microgreen business as they can increase your business visibility, ability to engage with customers, establish and reinforce brand identity, and gather valuable data insights to improve marketing strategies.

Platforms such as Instagram and Facebook alone have billions of active users, providing a  microgreen business with an opportunity to increase its visibility and reach a wider audience.

Direct Marketing can also be used in the form of Facebook and Google online ads on these platforms to market services and products to potential customers. Backflow testing businesses can use targeted ads to reach specific demographics and interests and use the campaign data to make informed decisions about your next marketing campaigns to drive more sales.

5. Create a Brand Identity for your microgreen business

To differentiate your company from your competitors, you’ll need to take some time to prepare and concentrate on how you want your consumers to feel & develop a unique personality for your microgreen business. From the logo’s design to the brand’s color scheme, there is a lot to think about. 

A unique and memorable logo for your business can be professionally created by a talented Graphic Designer from a Logo Design service. 

Hiring a logo design service can save a business time and money by eliminating the need to spend hours researching and creating a logo and a high-quality logo can be designed quickly and efficiently.

The steps to think about include: 

  • 1). Establish the vision and values that guide your microgreen company. What are you hoping to accomplish with your company? When people consider your microgreen brand, what do you want them to feel? 
  • 2). Go with a color palette that conveys who you are as a business. Colors say a lot regarding a product or service. If you’re stuck for inspiration, research competing products in your field to discover what colors they’re using.
  • 3). Create a distinctive logo for your microgreen line. This is the first thing that customers will associate with your brand, therefore it has to be striking. Get in touch with an expert designer to develop a logo that captures the essence of your company while also looking great.
  • 4). Make sure your branding is the same across all platforms. This should include your website banners to your business cards, your logo and color palette are always consistent with your brand. As a result, your brand’s identity will be strengthened and your company’s name recognition will increase.

Making a name for your microgreen company is unlikely to be as difficult as you would think. Creating a brand that sticks with consumers requires zeroing down on the company’s raison d’etre and core principles. A distinct identity for your microgreen business may be developed with some forethought and imagination. 

6. Develop a Business Plan for your new microgreen

A well-developed business plan is a crucial tool for any entrepreneur looking to start a successful business. The plan should include your microgreen company’s mission and vision, target audience, product offerings, marketing and sales strategies, and financial projections. 

The business plan should be regularly reviewed and updated to ensure that the business is on track to meet its goals.

A business strategy should cover the following:

  • Market Analysis: An in-depth look at how the market for bricklayers is doing now and how it could grow.
  • Business Summary: A description of your new microgreen business, including its purpose, goods or services, and target market.
  • Business Strategy: A thorough plan that explains how the business is going to reach its goals.
  • Financial Strategy: How much money you expect to make, spend, and need for cash.
  • Marketing Plan: How the business will sell itself and what strategies and methods will be used.
  • Operations: This is an account of the business’s working methods and practices.

7. Get Financing for your microgreen business

For your microgreen business, you can use personal savings or decide to use financing solutions for your new venture and you’ll have different options to consider which may work best: A bank loan, crowdfunding, investors or something different. 

A clear, detailed, and comprehensive business and financial strategy is usually expected by banks or other partners from whom you seek for funding. To launch a firm, you could require funding from a bank, credit union, or the Small Firm Administration (SBA). 

It is difficult to provide an exact estimate for the cost to start a microgreen business as it can vary depending on a number of factors. However, based on industry research and estimates, the startup costs for a small to medium-sized microgreen operation can range from $2,000 to $10,000 or more.

This estimate includes the cost of basic equipment such as trays, growing medium, lighting, and irrigation systems, as well as the cost of seeds, location and facilities, legal and administrative costs, and marketing and promotion expenses.

8. Business setup essentials

There are a number of different considerations which microgreen businesses should keep in mind when setting up including: 

  • Ensure Legal Compliance: Obtain necessary permits, licenses, and liability insurance while adhering to food safety regulations.
  • Find Your Niche: Identify high-demand microgreens in your local market and consider unique varieties to differentiate your business.
  • Select a Suitable Growing Location: Choose an indoor or outdoor space with ample natural light, water access, and electricity, depending on your budget and requirements.
  • Acquire Equipment and Supplies: Purchase growing trays, medium, irrigation systems, lighting, and high-quality seeds from reputable suppliers. Consider packaging, labeling, harvesting tools, and transportation supplies.
  • Develop a Marketing Plan: Create a brand identity, establish an online presence, and design marketing materials. Identify target markets, price competitively, and aim for profitability.
  • Establish Operations and Customer Service Protocols: Implement schedules for growing, harvesting, packaging, and shipping. Develop a custome

Training needed to open a microgreen business?

Opening a successful microgreen business necessitates a strong grasp of cultivation techniques and the business aspects of running an agricultural operation. Key areas of training and knowledge include:

  • Cultivation Techniques: Learn about seed selection, planting, watering, fertilizing, and harvesting through hands-on training, workshops, or online courses.
  • Food Safety: Comply with food safety guidelines by understanding Good Agricultural Practices (GAP), Hazard Analysis and Critical Control Points (HACCP), and relevant regulations through specialized training.
  • Business Management: Acquire knowledge in marketing, financial management, and customer service through courses in sales, bookkeeping, entrepreneurship, and marketing strategies.

Numerous resources, such as online courses, workshops, and mentorship programs, are available for aspiring microgreen business owners. Networking with fellow growers can also provide valuable insights and support.

Regulations for opening a microgreen business?

Regulations for opening a microgreen business vary based on location and jurisdiction. Consider the following:

  1. Permits and licenses: Obtain necessary permits, such as a business or agricultural license, and check if a food handler’s permit is required in your area.
  2. Zoning and land use: Comply with local regulations concerning agricultural activities, building permits, and inspections.
  3. Food safety: Adhere to food safety guidelines, like Good Agricultural Practices (GAP) and Hazard Analysis and Critical Control Points (HACCP), specific to your region.
  4. Environmental compliance: Follow environmental regulations regarding water usage, waste management, and environmental impacts based on your operation’s scale and location.


Is it profitable to sell microgreens?

Profit margins for selling microgreens can vary, typically ranging from 30% to 60% or higher. Factors such as microgreen type, production expenses, and market demand influence these margins.

How much does it cost to start a microgreens business?

The initial investment required for a small to medium-sized microgreen operation can range from $2,000 to $10,000 or higher, depending on various factors.

What are the most profitable microgreens to grow?

The choice of highly profitable microgreens can differ based on demand and location. Some sought-after varieties known for their rapid growth and abundant yields include sunflower, pea shoots, radish, and wheatgrass.

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