How to create a farm business plan.
It’s something you nurture, revise, and expand as circumstances dictate and as your farm business matures. Feeling pressure to perfect your business plan from the outset could be paralyzing. Instead, we suggest you view this document as a foundation that can be continuously built upon.
Therefore, your farm business plan should not only anticipate these challenges but also prescribe adaptive measures to navigate through them. It’s this inherent adaptability that transforms a good farm business plan into a great one.
Creating a robust business plan is of paramount importance, whether you’re kickstarting a farm venture or acquiring an existing one. Our farm business plan template starts off with an executive summary.
Goals and objectives, introduction, mission statement and values of your farming business plan.
This section enables you to express the core values that led you to the farming business, whether it’s an urban farming venture or a homemade product-based farm. Your mission statement should reflect these values. Sustainable practices and conservation are often key motivations that draw people to farming, so don’t be shy to share your commitment to such principles.
Company background and history, competitor analysis, target market.
Clearly define your target market. This can include area groceries, farmers’ markets, or online customers. If you’ll be relying on online sales, ensure your website is professionally designed, keyword optimized, and easily discoverable.
Organization, human resources, and management plans, swot analysis, growth strategy.
A comprehensive growth strategy should outline your plans for debt reduction, savings, and business expansion. Keeping detailed farm production records is key to evaluating the effectiveness of your growth strategy.
Marketing strategy, establishing a farming business entity, detailed description of farm operations, risk management strategies.
Address potential risks and challenges your farm might face, such as natural disasters, market fluctuations, or pest infestations. Discuss the strategies you plan to implement to mitigate these risks, like insurance coverage, diversification, and emergency response plans.
Community involvement and social responsibility, supply chain and vendor relationships, technology and innovation.
Discuss the role of technology and innovation in your farm business. This could include the use of precision agriculture, innovative irrigation systems, or the adoption of farm management software to enhance efficiency and productivity.
Expansion and diversification, exit strategy.
Wrap up your business plan with a conclusion that reiterates your farm’s core mission and vision, and express your enthusiasm and commitment to making your farm business a success.
One of the many advantages of constructing your business plan is the opportunity it affords to involve others. Employees, family members, even your loyal farm dog might have innovative small farm business ideas that could significantly enhance your farm’s productivity and marketability. A different perspective can often yield solutions for issues you might not have even been aware of. Therefore, encourage an open exchange of thoughts and ideas. Who knows, the next great idea could be lying right under your hay bale!
Don’t sit down to write the whole thing. Chip away, one section at a time. Keep in mind that the plan doesn’t have to be the definitive last word. You can make adaptations.
How much do farm owners make a year, how much does it cost to start a small farm, what is the most profitable farming business.
Poultry farming is currently the most profitable – and common – farm business in the world. It includes chicken, turkey, quail, ducks and goose, that are being raised for meat or eggs.
Writing a farm business plan can be a tool for you to plan your farming business. It can also be a requirement of securing grants and loans for your farm business. The process of writing a farm business plan may seem overwhelming and intimidating at first, but if you break it down into its component steps, it becomes much more manageable.
A business plan is a roadmap for your small farm . It is both process and product. During the writing of a farm business plan, you'll develop an overall vision and mission for your business. You will think about your short- and long-term goals. You'll define the steps needed to achieve those goals. You'll set the direction for your business to develop over the next five years.
If you're already an established business, your new business plan will show where you're going next. A good business plan should be:
Your farm’s mission statement is your overarching purpose for your business:
This is beyond “make money.” This mission statement is based on your values and your core identity as a small farm.
The goals in your business plan are the specific, measurable “things” you will achieve with your small farm. Short-term goals are defined as those that you will complete within one year. Long-term goals are those that take longer than one year to complete.
SMART Goals are:
In this section of your business plan, take inventory of what you have right now:
This is where your business plan gets to looking forward. You are going to formulate your farm strategy from now into the next five years or so.
In the next part of your farm business plan, you develop and outline a marketing strategy for your products and services. This can build on the research you did in the previous step. For each product, include the price, placement, and promotion ideas. Consider how you will convey real and perceived value to your customers.
This part of your business plan details your farm business’ structure. Everyone who is involved in the management of the business should be listed here. External resources are listed here as well.
In this section, you will need to detail the financial aspect of your farming operation. List your current finances in detail, including all income and operating expenses. Referring to your new strategy, you will forecast what is needed for future growth and to meet the goals you have outlined in terms of capital. Include what your future operating expenses will be.
Writing a farm business plan is a big project. Don’t let that put you off. Your plan can be as simple as it needs to be for right now. Begin with your mission statement and goals. Do your homework by analyzing markets and researching competitors and trends. Have fun brainstorming alternative strategies and let them marinate a while. Take it one step at a time.
Most entrepreneurs are terrified of planning. But this can be a different scenario for you. A farming business can be more successful if you will develop a farm business plan . Not only will you set the steps that you need to follow to achieve your goals, but you can also become more prepared with the risks. More so, your strategic plans will help you develop a mission statement that will guide you through. So, are you ready for this? Below,we provide you a farm business plan examples that you can look into as a guide.
1. farm business plan template.
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A farm business plan is an excellent organizational and business material that you can use for a variety of purposes. All you must do is to be familiar with business plan guidelines and the basics of farm business management so you can already identify the specific business plan document that you need.
Have you ever been to a hotel where you can see each process’s organization from the welcoming of guests up to their check-out procedures? One of the planning documents that provide a contribution to that organization is a hotel operational business plan . This can be compared to the usage of a farm business plan if you want to ensure that the operations of your farm business are laid out properly. According to a gathered analysis published by Noble Research Institute, the advantages of a farm business plan includes an easy application to loans. It can also promote solidarity within the farm business’s stakeholders. This is relatively substantial, especially for every small business in the agricultural industry.
Creating your farm business plan can be easier if you will refer to helpful agriculture business plan examples. But aside from the items mentioned above, there are still some items that can make it more efficient for you to develop an outstanding, complete, and organized farm business plan . Some of these tips and guidelines are all listed below.
To begin with, always start by visualizing your ideas. After that, you can now proceed with outlining your goals and objectives. Remember to make it as realistic as possible. Come up with measurable and obtainable plans. This should include proposals , marketing , and budget . Truly, there is no easy business. So, plan long-term, and everything else will follow.
Next, you have to learn how to write an executive summary for your business plan. Especially for farm business startups, an executive summary is one of the parts of the farm business plan that will be first seen by your target audience. Make it as appealing and as presentable as possible so you can already get positive responses and impressions. But remember, don’t make it too long and invite confusion from readers. Make it precise as much as possible.
What could be the necessary steps to do in achieving your goals? Here, you have to outline your action plans . It should be relevant to your objectives. Therefore, they must align. You can also set a schedule to follow. This helps you cope with your daily tasks while keeping it on time. Another thing to remember is to make it attainable for everyone in the organization.
make sure that your farm business plan can present your business values. It should be a reflection of your identity, brand, mission statement , and image as a business. These characteristics can set you apart from your competition. It can promote memory retention, which is an excellent way for you to remain relevant and memorable in the marketplace where the farm business belongs.
Don’t propose it right away. But make sure that you check your content from the cover page down to the last pages. Is your budget for the business plan considerable? Can your members achieve success in no time? It is essential to check it first before using it for actual scenarios. This helps you come up with an excellent report later on.
How much is a typical business plan.
The price of a business plan depends on the agency that creates it. But in most cases, it reaches up to $15,000 for a complete plan.
A business plan is a necessity if you take a look at the bigger picture when it comes to finances and projects. This helps you accomplish more than what you imagine for your business.
Among the various elements of a business plan, the executive summary and market analysis are standard.
Again, feeling overwhelmed with everything that you need to consider when developing a farm business plan is normal. However, you should make sure that you will not be carried away so you can focus on the items that can help you give the farm business a boost in productivity, efficiency, sales, visibility, and leads. Be mindful of how you will develop farm planning strategies. Also, see how an effective one can improve your farm business’s overall operations . So, get ready with your document and follow the list of steps above.
Text prompt
Create a study plan for final exams in high school
Develop a project timeline for a middle school science fair.
How to write a farm business plan.
Getting a loan for your agricultural business — no matter the size or scope — means asking the lender to have faith in your ability to manage a full-fledged operation and your finances in a healthy way. The best way to prove that is by coming prepared with a farm business plan proposal.
No pressure, right? While it may seem daunting and scary, we’ve broken down the steps to writing the perfect business plan below. Read on to learn more and check out the end of this guide for additional resources to help you craft a top-notch business plan.
You can set yourself up for success — both in business and with your lender — by having a detailed business plan for your farming operation. It doesn't need to be pretty, but you do have to prove that you're willing to put the time and effort into creating a well thought out course of action for your operation.
Are you already operating but don't have a plan? That's okay! It's never too late to put extra thought into how your operation will continue to fulfill your livelihood.
Whether you're a new farmer looking for a loan , or a seasoned grower that needs funding for a new agribusiness , there are a few things that you want to make sure you include in your agricultural business plan.
Keep it simple on the cover page. The most important information here is accurate contact information so your lender can get in touch with you easily. Include your mailing address, phone, email, and fax if you have it.
Although it will be the first page of your farm plan, this will be the last section that you write, since it acts as a summary of all your key points in your plan. Remember that this is the first section that your lender will read , so they’ll expect to see all of the highlights that make approving this loan a good financial decision for both you and the lending organization. Include points about expansion plans, market opportunities, financial trends and projections in a short and easy to read summary. Treat this section as if you're telling a stranger about your operation and you want to give them an overview of what you do and what sets you apart from other businesses in your industry.
What are your key business objectives? In this part of your farming business plan, you'll want to describe your products and services your business will offer.
Start by describing how your business will operate and include what makes your business unique. Provide details regarding the size of the operation, location, and note any expansion plans.
Who is your target audience? Who will benefit from your products or services produced from your farm business?
Think about the desire and drive behind why you want to pursue this business venture. It is common to connect your business why with your mission statement.
If you’re starting a new operation, clearly state how much money you are applying for, how you plan to use it and how it will make your business more profitable, thereby ensuring repayment.
Creating your own farm business plan will take time and effort. As you complete sections, send them to partners or colleagues to review as you go along. If you have any questions on farm business plan examples or more specifically what lenders are looking for, give us a call.
Business history:.
How long have you been in operation? Are you starting from scratch or did the business have previous owners?
Describe the strengths and weaknesses of your business.
What is your plan of action? What specific tasks need to be completed in order to reach your business goals?
Goals are often broken into two categories — short term and long term. Short term goals are focused on actions likely to be achieved in 1-3 years, and long term goals are likely accomplished in 3-10 years, or beyond.
What risk management practices do you have in place? Think about your business contingency plan, insurance coverage , regulatory requirements, and your market and production diversification.
For some people, this can be the most fun or the most challenging part of creating your small farm business plan. Before thinking about your marketing tactics, think about the data you need to make informed business decisions .
Researching your target market is key to understanding what opportunities are available in the marketplace. Is there current market share to gain? How will you remain competitive as a farm business? Who are your biggest competitors in the marketplace? Do you anticipate any obstacles?
How will your farm business generate farm income? Think about how your product will be sold and priced? What is your projected or estimated income? How are you going to gain commitments and contracts to sell your products?
What marketing strategy will your business use to reach your business goals? As a small business, will you utilize tools like social media, email marketing, and/or ecommerce to maximize your marketing efforts to connect with your target audience? Check out our blog on how to create a marketing plan for your farm and download a free template!
Arguably, the most important part of your agricultural business plan is how you will finance your operation. In this section, make sure to take time to complete your balance sheet. The balance sheet will identify your cash-basis income trend, breakeven analysis, and sensitivity analysis. This statement is a summary of what you own vs. what you owe.
The income and expenses statement shows your business’ profit and loss over a period of time, determined by taking all the revenue and subtracting all expenses. This will show the profitability of your operation.
Business advisors are a group of professionals who serve as subject matter experts to enhance productivity, business, and on-farm profitability, while offering technical insight for your farm operations. Surrounding yourself with people who know how to support your farming venture will help to support and find your long-term business success. You will want to organize your team that might consist of an attorney, accountant, lender, insurance provider, and consultants in the last section of the business plan. Did you know Farm Credit offers services for Accounting, Records, Payroll and Taxes, Appraisal, Business Consulting, Farm Succession Planning, and more? Give us a call at 888.339.3334 or view our full list of services here .
Congratulations! You’ve made it through each section of how to write your business plan! If you’re interested in more coaching on your business plan, check out the resources below or give us a call to connect with a local lender — we're happy to help.
Request your Business Plan Template and replay of our How to Write a Business Plan webinar here.
Click here to request a mentor with SCORE Small Business Resources.
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A business plan is like a road map. It helps you define your ag operation’s core objectives and build a detailed plan for how to achieve them.
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Farm business planning involves outlining the goals, strategies, and financial projections for an agricultural operation. It serves as a roadmap that guides farmers in making informed decisions, managing resources effectively, and adapting to changing market conditions. A well-crafted farm business plan provides a clear direction for the farm’s future, enabling farmers to identify potential risks, capitalize on opportunities, and secure financing from lenders or investors.
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Having a farm business plan is crucial for several reasons. Firstly, it helps farmers clarify their vision and set realistic goals for their agricultural enterprise. By clearly defining their objectives, farmers can focus their efforts on areas that contribute to their long-term success. Secondly, a farm business plan facilitates effective communication and collaboration with stakeholders such as partners, employees, and financial institutions . It ensures that everyone involved understands the farm’s mission, strategies, and financial expectations.
Furthermore, a business plan for farms enables farmers to identify potential risks and develop strategies to mitigate them. By conducting a thorough market analysis, farmers can anticipate market trends, assess consumer demands, and identify potential competitors. This information allows them to tailor their products and marketing strategies to meet the needs of their target audience effectively. Additionally, a farm business plan helps farmers plan their operational processes, including production schedules, supply chain management, and quality control, ensuring efficiency and productivity.
Break down the essential sections that make up a comprehensive farm business plan. Provide an overview of each component and explain their significance in convincing investors.
The executive summary is a concise overview of the entire farm business plan. It provides a snapshot of the farm’s mission, goals, strategies, and financial projections. This section should be compelling enough to capture the reader’s attention and generate interest in the rest of the plan.
In this section, you will provide detailed information about your farm, including its location, size, infrastructure, and history. Describe the type of farming you engage in (crop cultivation, livestock production, organic farming, etc.) and highlight any unique selling points or competitive advantages your farm possesses.
Conducting a thorough market analysis is crucial to understanding the demand and competition in your target market. Identify your target customers, analyze their preferences and purchasing power, and evaluate the market trends that may affect your farm’s operations.
Detail the range of products and services your farm offers. Include information about the specific crops or livestock you produce, their quality, and any value-added products or services you provide, such as organic certification or agritourism activities.
Outline your marketing and sales strategies for promoting and selling your farm products. Identify the channels you will use to reach your target customers, such as direct sales, farmers’ markets, online platforms, or partnerships with local restaurants or grocery stores.
In this section, explain how you will manage the day-to-day operations of your farm. Outline the production processes, equipment and machinery required, labor needs, and any other relevant operational considerations.
Develop comprehensive financial projections for your farm business. Include information on the initial investment required, projected revenue and expenses, cash flow statements, and profitability forecasts. This section will help you assess the financial viability of your farm and attract potential investors or lenders.
Identify the potential risks and challenges your farm may face, such as weather-related events, disease outbreaks, or market fluctuations. Describe the strategies and contingency plans you will put in place to mitigate these risks and ensure the continuity of your farm’s operations.
Creating a farm business plan may seem overwhelming, but breaking it down into manageable steps can simplify the process. Follow these steps to develop a comprehensive and effective farm business plan:
Start by clarifying your long-term goals and objectives for your farm. What do you want to achieve in terms of profitability, sustainability, and growth? Having a clear vision will guide your decision-making throughout the planning process.
Thoroughly research your target market to identify consumer demands, market trends, and potential competitors. This information will help you tailor your products and marketing strategies to meet the needs of your customers effectively.
Evaluate the resources and infrastructure available on your farm. Consider factors such as land availability, water sources, equipment, storage facilities, and labor availability. Assessing these resources will help you determine the scale and type of farming practices you can undertake.
Based on your market research, develop a comprehensive marketing strategy that outlines how you will promote and sell your farm products. Consider different marketing channels, such as online platforms, farmers’ markets, community-supported agriculture (CSA) programs, or direct sales to local businesses.
Describe the day-to-day operational processes required to run your farm. Include details about cultivation techniques, livestock management practices, quality control measures, and supply chain management. Consider any necessary certifications or licenses required for your specific farming practices.
Develop realistic financial projections for your farm business. Calculate the initial investment required, projected revenue streams, and anticipated expenses. Consider factors such as production costs, marketing expenses, equipment maintenance, and labor costs. Regularly monitor and update these projections to track your farm’s financial performance.
Review and refine your farm business plan regularly. Seek feedback from trusted advisors, industry experts, or experienced farmers. Continuously monitor market trends and make adjustments to your strategies and projections accordingly.
A well-developed farm business plan offers several benefits:
Guidance and Direction : A farm business plan provides a roadmap for your farm’s operations, helping you make informed decisions and stay focused on your goals.
Effective Communication : It facilitates communication and collaboration with stakeholders, including partners, employees, lenders, and investors, ensuring everyone is aligned with the farm’s vision and objectives.
Risk Mitigation : By identifying potential risks and developing contingency plans, a farm business plan helps you proactively manage risks and navigate unforeseen challenges.
Opportunity Identification : A thorough market analysis and competitive assessment enable you to identify emerging trends and opportunities in your target market, allowing you to adapt and seize new business prospects.
Financial Planning and Investment : A well-crafted financial projection helps you understand the financial feasibility of your farm business, attract potential investors or lenders, and secure the necessary funding for your operations.
Operational Efficiency : By outlining your operational processes, a farm business plan enables you to streamline your operations, improve productivity, and optimize resource allocation.
Long-Term Sustainability : A farm business plan encourages sustainable farming practices, ensuring the long-term viability of your agricultural enterprise while minimizing environmental impact.
While developing a farm business plan, farmers may encounter several challenges. It’s important to be aware of these challenges and develop strategies to overcome them:
Agricultural markets can be volatile, with unpredictable price fluctuations and changing consumer preferences. Farmers must stay updated on market trends, consumer demands, and potential disruptions to make informed decisions and adjust their strategies accordingly.
Farmers are highly dependent on weather conditions and environmental factors, such as rainfall, temperature, and soil quality. Climate change and extreme weather events can significantly impact crop yields, livestock health, and overall farm productivity. It’s important to incorporate climate resilience strategies into your farm business plan.
Securing adequate financing for farm operations can be challenging, especially for small-scale or new farmers. Limited access to capital and funding sources may restrict the implementation of growth strategies or necessary investments in equipment, infrastructure, or technology. Exploring alternative funding options, such as grants, loans, or partnerships, can help overcome this challenge.
Looking at examples of successful farm business plans can provide valuable insights and inspiration for your own planning process. Take the time to study the approaches and strategies adopted by established farmers in your industry or region. Understand their marketing tactics, operational processes, and financial management techniques, and adapt them to suit your own farm’s unique circumstances and goals.
Ready to Create a Solid Farm Business Plan? Get Started Today!
Creating a well-crafted farm business plan is crucial for the success and sustainability of your agricultural venture. Whether you’re a small-scale farmer, a family-run farm, or an aspiring agribusiness entrepreneur, our team at Easy Capraise is here to help. We specialize in assisting businesses like yours in finding investors and securing the capital raising you need to bring your farm business to new heights.
Don’t miss out on the opportunity to maximize your farm’s potential. Contact us today and let our experts guide you through the process of creating a comprehensive farm business plan that will attract investors and set you on the path to success.
A farm business plan provides a roadmap for your farm’s operations, helping you set goals, make informed decisions, secure funding, and adapt to market conditions.
The time required to create a farm business plan depends on various factors, such as the farm’s complexity and your familiarity with the planning process. It can range from several weeks to a few months.
Using a template as a starting point can be helpful, but ensure that you customize it to reflect your specific farm’s goals, strategies, and financial projections.
Financial projections should include initial investment requirements, projected revenue streams, anticipated expenses, and cash flow statements. It’s crucial to regularly monitor and update these projections to track your farm’s financial performance.
A farm business plan should be regularly reviewed and updated, at least annually or whenever significant changes occur in your farm’s operations, market conditions, or financial situation.
Here’s a guide on how to start a farm business and where to find a sample farm business plan: Identify your farm’s purpose and goals: Determine the type of farming you want to engage in and the specific goals you wish to achieve. This could include crop farming, livestock production, organic farming, or specialized farming practices. Conduct thorough market research: Understand the demand and market potential for your chosen farming niche. Identify your target market, competitors, pricing trends, and any regulatory requirements specific to your area. Determine your farm’s resources: Assess the resources you have available, such as land, capital, equipment, and labor. Determine if you need to acquire additional resources or secure financing for your farm business. Develop a farm business plan: Create a comprehensive business plan that outlines your farm’s mission, vision, and strategies. Include sections on market analysis, production methods, operational plans, marketing and sales strategies, financial projections, and risk management. Seek out sample farm business plans: There are various resources where you can find sample farm business plans to use as templates or references. Consider the following options: a. Online resources: Many agricultural organizations, government agencies, and agricultural universities provide sample farm business plans on their websites. Search for “sample farm business plan” and explore the available resources. b. Local agricultural extension offices: Visit your local agricultural extension office or cooperative extension service. They often have resources, workshops, and sample farm business plans tailored to your specific region.
Seek professional advice: If you need guidance in developing your farm business plan or need assistance customizing a sample plan, consider reaching out to Easycapraise.com.
Developing a comprehensive farm business plan is a vital step toward the success and sustainability of your agricultural venture. By outlining your goals, conducting thorough market research, assessing resources, and creating financial projections, you can create a roadmap that guides your farm’s operations and positions you for long-term success. Remember to regularly review and update your plan to adapt to changing market conditions and seize new opportunities. With a well-developed farm business plan in hand, you can navigate the challenges of the agricultural industry and achieve your desired outcomes.
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Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.
Mixed Greens Salad Gardens (MGSG) is an exciting new company that meets an unsatiated need for quality salad greens. The close proximity to Eugene ensures a steady flow of customers. MGSG is a start-up grower and distributor of exotic salad greens for restaurants and individual consumers. MGSG is located in Blue River, Oregon and serves the southern Willamette Valley. MGSG’s objectives are to develop a product-based company whose goal is to exceed customer’s expectations, increase production efficiency by 10% a year, and lastly, and develop a sustainable farm business, able to survive off their cash flow.
MGSG will sell a spring mix of salad field greens. These greens will include but are not limited to: red leaf, arugula, radicchio, mustard greens, endive, and chicory. These greens are grown for use in salad mixtures, purchased by the end consumer as well as by restaurants who then serve it to their patrons.
MGSG has decided to target two distinct market segments, individual customers and restaurants. The individual customers will purchase greens from MGSG at the Tuesday and Saturday Farmer’s Market. This segment is growing at 12% and has 12,000 potential customers. The second segment is local restaurants. This market is smaller at only 28 potential customers, but is more consistent in demand throughout the year.
Competitive Edge
MGSG has two competitive edges that will help them maintain strong growth rates, increasing their market penetration. The first edge is quality. MGSG prides themselves on the high quality of exotic salad greens. Greens that do not meet MGSG high standards of quality are rejected as imperfects and go to a not-for-profit food bank. MGSG’s second competitive edge is their flexibility. The entire farm has been set up to allow them to change crops or scale existing crops to meet demand. This is highly unusual as most farms are unable to change crops mid year.
MGSG is led by Heidi Ponic. Heidi initially got her start in growing while working at a greenhouse. After college, Heidi went to work for a large grass seed company. This experience is what solidified Heidi’s desire to continue working in an agricultural capacity. Soon after her experience at the Willamette Seed Company she decided to enroll in Oregon State University’s Master of Horticulture Program. Heidi’s Masters provided her with requisite detail and skills to develop her own farm business.
The objectives for the first three years of operation include:
Mixed Greens Salad Gardens’ mission is to provide the highest-quality salad greens. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall in to place. Our services will exceed the expectations of our customers.
Mixed Greens Salad Gardens, soon to be located in Blue River, OR, is a grower and seller of exotic salad field greens. MGSG grows a wide variety of field greens including red leaf, arugula, radicchio, mustard greens, endive, and chicory. MGSG sells the greens both at farmer markets as well as direct to restaurants.
The business will be based out of Heidi Ponic’s home. The office will be within her home and the greenhouse will be on her adjoining 20 acres of land.
Mixed Greens Salad Gardens will be a sole proprietorship with Heidi Ponic as the founder and owner. Heidi will be funding the business with a $50,000 investment of her own. An additional $10,000 will be invested by family member O.G. Tylthe with exit/repayment initially scheduled for year five.
Mixed Greens Salad Gardens’ start-up costs will include all the equipment needed for the home-based office, the construction of the greenhouse and all the necessary equipment, and other essentials for growing.
The home office equipment will be the largest chunk of the start-up expenses. This equipment includes a computer system, fax machine, office supplies, cellular phone, and pager. The computer should have at least a 500 megahertz Celeron/Pentium processor, 64 megabytes of RAM (preferably 128), 6 gigabyte hard drive, and a rewritable CD-ROM for backing up the system. The home office will also require a few pieces of furniture such as a desk, chair, and book shelf to transform a standard room into an office. Lastly, an additional land phone line will be required.
The greenhouse will need the following equipment: a 25′ x 100′ greenhouse structure made out of poly carbonate, a ventilation system, a heater, a mister system, supplemental lighting, fertilizer injector, pruners, pots, trays, soil, seeds, and assorted chemicals.
Please note that of the $25,300 of long-term assets, $20,000 will be depreciated straight line for 27.5 years (real estate) and the remaining $5,300 will be depreciated on a seven year straight-line schedule.
Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $300 |
Stationery | $200 |
Insurance | $200 |
Untilities Upgrades | $150 |
Rent | $250 |
Expensed Computer Equipment | $3,500 |
Other | $500 |
Total Start-up Expenses | $5,100 |
Start-up Assets | |
Cash Required | $34,700 |
Start-up Inventory | $0 |
Other Current Assets | $500 |
Long-term Assets | $25,300 |
Total Assets | $60,500 |
Total Requirements | $65,600 |
Start-up Funding | |
Start-up Expenses to Fund | $5,100 |
Start-up Assets to Fund | $60,500 |
Total Funding Required | $65,600 |
Assets | |
Non-cash Assets from Start-up | $25,800 |
Cash Requirements from Start-up | $34,700 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $34,700 |
Total Assets | $60,500 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $5,000 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $5,000 |
Capital | |
Planned Investment | |
Heidi Ponic | $50,000 |
Investor 2 | $10,000 |
Other | $0 |
Additional Investment Requirement | $600 |
Total Planned Investment | $60,600 |
Loss at Start-up (Start-up Expenses) | ($5,100) |
Total Capital | $55,500 |
Total Capital and Liabilities | $60,500 |
Total Funding | $65,600 |
MGSG will sell a spring mix of salad field greens. These greens will include but are not limited to: red leaf, arugula, radicchio, mustard greens, endive, and chicory. These greens are grown for use in salad mixtures, purchased by the end consumer as well as by restaurants who then serve it to their patrons. While the greens are washed at the farm, they are not certified washed and the patrons are told to wash them an additional time.
MGSG will be focusing on two distinct users of greens, individual consumers, and restaurants. The consumer market is seasonal so we will have production shifts during the consumer off season and all of the production will go toward wholesale restaurant distribution. During the spring and the summer MGSG will be serving both the consumer markets through farmer market stands and the restaurants through direct distribution.
Mixed Greens Salad Gardens has two distinct customers:
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Individual Consumers | 12% | 12,000 | 13,440 | 15,053 | 16,859 | 18,882 | 12.00% |
Restaurants | 8% | 28 | 30 | 32 | 35 | 38 | 7.93% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 11.99% | 12,028 | 13,470 | 15,085 | 16,894 | 18,920 | 11.99% |
Mixed Greens Salad Gardens’ target market segment strategy is fairly easy. Our two different customer groups purchase from two distinct locations so it is quite easy to target them individually.
Individuals . These customers will be buying MGSG products from the different farmer markets located in Eugene, OR. The main one is “The Farmers Market” held downtown twice a week in the spring, summer, and the early autumn. This market gets quite a bit of traffic because there is a nice selection of different farmers and products and it is in a central location in the heart of Eugene. Additionally, there are several other smaller farmer markets that exist in outlining communities. By setting up a booth in these markets, there is already a steady flow of interested customers. There obviously is a fee to set up a stand, but what you get for the fee is all of your marketing taken care of and a line of customers. In addition to individuals frequenting the farmer markets, some restaurants will go there as well. This occurs when a restaurant needs certain ingredients but did not have the time to order it in advance.
Restaurants . MGSG will target these customers by introducing MGSG and their products to the restaurants through meetings with the buyers at each restaurant. There are about 25-30 different restaurants in Eugene that use field greens in their salad and MGSG intends to approach these to form long-term relationships.
There are three different types of competitors that MGSG faces:
Buying patterns are based on the customer’s desires. What is meant by this is that lower-end restaurants (or at least restaurants that are less concerned about quality) will not bother to get greens from local farmers, there is no need for them to. This pattern is similar for the individuals. There are some individuals that are content with the offerings from supermarkets. There are others that appreciate the difference in quality and are willing to schedule a trip to the farmers market to meet their weekly needs.
MGSG will be aggressively courting the farmer markets to ensure the ability to have a booth at the markets. Additionally, MGSG will be aggressive in going after the local restaurants that have a consistent need for the greens. Through an assurance of top-shelf service and superior customer service and reliability, MGSG will continue to grow its number of clients.
Mixed Greens Salad Gardens’ competitive edge has two main aspects: quality and flexibility.
A combination of quality and flexibility will create a sustainable competitive advantage that will allow MGSG to succeed.
MGSG’s sales strategy will be based on visibility, consistency, and strategic relationships.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Individual Consumers | $23,154 | $40,519 | $70,908 |
Restaurants | $58,558 | $81,981 | $114,774 |
Total Sales | $81,712 | $122,500 | $185,682 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Individual Consumers | $2,778 | $4,862 | $8,509 |
Restaurants | $7,027 | $9,838 | $13,773 |
Subtotal Direct Cost of Sales | $9,805 | $14,700 | $22,282 |
MGSG will have several milestones early on:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business Plan Completion | 1/1/2001 | 1/1/2001 | $0 | Heidi | N/A |
Greenhouse Setup | 1/1/2001 | 2/1/2001 | $0 | Heidi | N/A |
First Batch of Greens Sold | 4/1/2001 | 4/1/2001 | $0 | everyone | N/A |
End of the Consumer Season and the Ramping up of the Restaurant Supply Cycle | 9/1/2001 | 9/1/2001 | $0 | everyone | N/A |
Totals | $0 |
Heidi Ponic, founder and owner, first became interested in growing vegetables at the age of five. Heidi pursued her love for plants by obtaining a biology degree at the University of Washington. Throughout her last three years at Washington, she worked in a greenhouse that grew many different types of annuals. Upon graduation, Heidi went to work for a large grass seed manufacturer. Although the growing of grass seed proved to be far less interesting then most other plants, she was determined to get management experience, a skill set that she lacked. After two years at Willamette Seed Company, she enrolled in Oregon State University’s Masters of Horticulture program.
Having gone through the three years of the Masters program, she realized two things, 1) she needed to create a job/company for herself, 2) she should follow her passion and grow vegetables. These realizations were the final catalyst to pursue her lifelong dream of running her own greenhouse operation.
Heidi’s educational training and her passion creates the ideal combination for an owner of a start-up company.
The staff will consist of Heidi working full time. While the bulk of the time Heidi will spend managing the operation, she will always spend a few hours a week tending to the plants. In addition to all of the general management required for the production of the greens, Heidi will be setting up strategic relationships with local restaurants. Mixed Greens Salad Gardens will have hired two full-time gardeners beginning in the middle of the first month, and will hire a part-time helper by month four. The gardeners will be primarily responsible for the raising of the field greens, while the part-time help will be used to help staff the farmers market booth for the consumer selling of the greens.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Heidi | $24,000 | $24,000 | $24,000 |
Gardener | $16,650 | $17,500 | $18,500 |
Gardener | $16,650 | $17,500 | $18,500 |
Part-time Helper | $0 | $9,000 | $9,500 |
Part-time Helper | $6,750 | $0 | $9,000 |
Total People | 4 | 5 | 6 |
Total Payroll | $64,050 | $68,000 | $79,500 |
The following sections will outline the important financial information.
The following table highlights some of the important financial assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
The Break-even Analysis below indicates the monthly sales needed to break even.
Break-even Analysis | |
Monthly Revenue Break-even | $8,294 |
Assumptions: | |
Average Percent Variable Cost | 12% |
Estimated Monthly Fixed Cost | $7,299 |
The following table will indicate projected profit and loss. Our losses at start-up are evident, as is the turn of the corner in July when we become profitable.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $81,712 | $122,500 | $185,682 |
Direct Cost of Sales | $9,805 | $14,700 | $22,282 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $9,805 | $14,700 | $22,282 |
Gross Margin | $71,906 | $107,800 | $163,400 |
Gross Margin % | 88.00% | 88.00% | 88.00% |
Expenses | |||
Payroll | $64,050 | $68,000 | $79,500 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $2,532 | $2,532 | $2,532 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $3,000 | $3,000 | $3,000 |
Insurance | $2,400 | $2,400 | $2,400 |
Rent | $6,000 | $6,000 | $6,000 |
Payroll Taxes | $9,608 | $10,200 | $11,925 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $87,590 | $92,132 | $105,357 |
Profit Before Interest and Taxes | ($15,683) | $15,668 | $58,043 |
EBITDA | ($13,151) | $18,200 | $60,575 |
Interest Expense | $370 | $140 | ($20) |
Taxes Incurred | $0 | $3,882 | $14,758 |
Net Profit | ($16,053) | $11,646 | $43,305 |
Net Profit/Sales | -19.65% | 9.51% | 23.32% |
The following chart and table will indicate projected cash flow.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $32,685 | $49,000 | $74,273 |
Cash from Receivables | $36,451 | $67,222 | $101,685 |
Subtotal Cash from Operations | $69,136 | $116,223 | $175,958 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $69,136 | $116,223 | $175,958 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $64,050 | $68,000 | $79,500 |
Bill Payments | $29,537 | $40,751 | $59,778 |
Subtotal Spent on Operations | $93,587 | $108,751 | $139,278 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $2,400 | $2,400 | $800 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $95,987 | $111,151 | $140,078 |
Net Cash Flow | ($26,851) | $5,072 | $35,879 |
Cash Balance | $7,849 | $12,920 | $48,800 |
The following table will indicate the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $7,849 | $12,920 | $48,800 |
Accounts Receivable | $12,576 | $18,854 | $28,578 |
Inventory | $1,438 | $2,156 | $3,268 |
Other Current Assets | $500 | $500 | $500 |
Total Current Assets | $22,363 | $34,430 | $81,145 |
Long-term Assets | |||
Long-term Assets | $25,300 | $25,300 | $25,300 |
Accumulated Depreciation | $2,532 | $5,064 | $7,596 |
Total Long-term Assets | $22,768 | $20,236 | $17,704 |
Total Assets | $45,131 | $54,666 | $98,849 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $3,084 | $3,373 | $5,051 |
Current Borrowing | $2,600 | $200 | ($600) |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $5,684 | $3,573 | $4,451 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $5,684 | $3,573 | $4,451 |
Paid-in Capital | $60,600 | $60,600 | $60,600 |
Retained Earnings | ($5,100) | ($21,153) | ($9,507) |
Earnings | ($16,053) | $11,646 | $43,305 |
Total Capital | $39,447 | $51,093 | $94,398 |
Total Liabilities and Capital | $45,131 | $54,666 | $98,849 |
Net Worth | $39,447 | $51,093 | $94,398 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 0161, Lettuce Farms, as part of Vegetables and Melons, Not Elsewhere Classified, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 49.92% | 51.58% | -4.60% |
Percent of Total Assets | ||||
Accounts Receivable | 27.87% | 34.49% | 28.91% | 12.90% |
Inventory | 3.19% | 3.94% | 3.31% | 14.40% |
Other Current Assets | 1.11% | 0.91% | 0.51% | 28.90% |
Total Current Assets | 49.55% | 62.98% | 82.09% | 56.20% |
Long-term Assets | 50.45% | 37.02% | 17.91% | 43.80% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 12.59% | 6.54% | 4.50% | 31.10% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 20.50% |
Total Liabilities | 12.59% | 6.54% | 4.50% | 51.60% |
Net Worth | 87.41% | 93.46% | 95.50% | 48.40% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 88.00% | 88.00% | 88.00% | 32.00% |
Selling, General & Administrative Expenses | 107.19% | 78.41% | 64.56% | 20.70% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.20% |
Profit Before Interest and Taxes | -19.19% | 12.79% | 31.26% | 1.70% |
Main Ratios | ||||
Current | 3.93 | 9.64 | 18.23 | 1.65 |
Quick | 3.68 | 9.03 | 17.50 | 0.88 |
Total Debt to Total Assets | 12.59% | 6.54% | 4.50% | 51.60% |
Pre-tax Return on Net Worth | -40.70% | 30.39% | 61.51% | 2.20% |
Pre-tax Return on Assets | -35.57% | 28.41% | 58.74% | 4.50% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -19.65% | 9.51% | 23.32% | n.a |
Return on Equity | -40.70% | 22.79% | 45.88% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.90 | 3.90 | 3.90 | n.a |
Collection Days | 56 | 78 | 78 | n.a |
Inventory Turnover | 10.89 | 8.18 | 8.22 | n.a |
Accounts Payable Turnover | 10.58 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 29 | 25 | n.a |
Total Asset Turnover | 1.81 | 2.24 | 1.88 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.14 | 0.07 | 0.05 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $16,679 | $30,857 | $76,694 | n.a |
Interest Coverage | -42.39 | 111.92 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.55 | 0.45 | 0.53 | n.a |
Current Debt/Total Assets | 13% | 7% | 5% | n.a |
Acid Test | 1.47 | 3.76 | 11.08 | n.a |
Sales/Net Worth | 2.07 | 2.40 | 1.97 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Individual Consumers | 0% | $0 | $0 | $0 | $2,956 | $3,354 | $3,789 | $3,458 | $3,687 | $2,847 | $2,063 | $1,000 | $0 |
Restaurants | 0% | $0 | $0 | $0 | $2,974 | $3,654 | $4,545 | $5,588 | $6,245 | $7,258 | $7,987 | $9,412 | $10,895 |
Total Sales | $0 | $0 | $0 | $5,930 | $7,008 | $8,334 | $9,046 | $9,932 | $10,105 | $10,050 | $10,412 | $10,895 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Individual Consumers | $0 | $0 | $0 | $355 | $402 | $455 | $415 | $442 | $342 | $248 | $120 | $0 | |
Restaurants | $0 | $0 | $0 | $357 | $438 | $545 | $671 | $749 | $871 | $958 | $1,129 | $1,307 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $712 | $841 | $1,000 | $1,086 | $1,192 | $1,213 | $1,206 | $1,249 | $1,307 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Heidi | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Gardener | 0% | $700 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 |
Gardener | 0% | $700 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 | $1,450 |
Part-time Helper | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Part-time Helper | 0% | $0 | $0 | $0 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 |
Total People | 0 | 3 | 3 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
Total Payroll | $3,400 | $4,900 | $4,900 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $0 | $5,930 | $7,008 | $8,334 | $9,046 | $9,932 | $10,105 | $10,050 | $10,412 | $10,895 | |
Direct Cost of Sales | $0 | $0 | $0 | $712 | $841 | $1,000 | $1,086 | $1,192 | $1,213 | $1,206 | $1,249 | $1,307 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $712 | $841 | $1,000 | $1,086 | $1,192 | $1,213 | $1,206 | $1,249 | $1,307 | |
Gross Margin | $0 | $0 | $0 | $5,218 | $6,167 | $7,334 | $7,960 | $8,740 | $8,892 | $8,844 | $9,163 | $9,588 | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 88.00% | 88.00% | 88.00% | 88.00% | 88.00% | 88.00% | 88.00% | 88.00% | 88.00% | |
Expenses | |||||||||||||
Payroll | $3,400 | $4,900 | $4,900 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $211 | $211 | $211 | $211 | $211 | $211 | $211 | $211 | $211 | $211 | $211 | $211 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Insurance | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Rent | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Payroll Taxes | 15% | $510 | $735 | $735 | $848 | $848 | $848 | $848 | $848 | $848 | $848 | $848 | $848 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $5,071 | $6,796 | $6,796 | $7,659 | $7,659 | $7,659 | $7,659 | $7,659 | $7,659 | $7,659 | $7,659 | $7,659 | |
Profit Before Interest and Taxes | ($5,071) | ($6,796) | ($6,796) | ($2,440) | ($1,491) | ($325) | $302 | $1,082 | $1,234 | $1,186 | $1,504 | $1,929 | |
EBITDA | ($4,860) | ($6,585) | ($6,585) | ($2,229) | ($1,280) | ($114) | $513 | $1,293 | $1,445 | $1,397 | $1,715 | $2,140 | |
Interest Expense | $40 | $38 | $37 | $35 | $33 | $32 | $30 | $28 | $27 | $25 | $23 | $22 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($5,111) | ($6,834) | ($6,833) | ($2,475) | ($1,525) | ($356) | $272 | $1,053 | $1,207 | $1,161 | $1,481 | $1,907 | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | -41.75% | -21.76% | -4.27% | 3.01% | 10.61% | 11.95% | 11.55% | 14.22% | 17.51% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $2,372 | $2,803 | $3,334 | $3,618 | $3,973 | $4,042 | $4,020 | $4,165 | $4,358 | |
Cash from Receivables | $0 | $0 | $0 | $0 | $119 | $3,579 | $4,231 | $5,015 | $5,445 | $5,963 | $6,062 | $6,037 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $2,372 | $2,922 | $6,913 | $7,850 | $8,987 | $9,487 | $9,983 | $10,227 | $10,395 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $0 | $0 | $2,372 | $2,922 | $6,913 | $7,850 | $8,987 | $9,487 | $9,983 | $10,227 | $10,395 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $3,400 | $4,900 | $4,900 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | $5,650 | |
Bill Payments | $50 | $1,507 | $1,723 | $1,775 | $3,310 | $2,836 | $2,988 | $3,011 | $3,132 | $3,058 | $3,024 | $3,120 | |
Subtotal Spent on Operations | $3,450 | $6,407 | $6,623 | $7,425 | $8,960 | $8,486 | $8,638 | $8,661 | $8,782 | $8,708 | $8,674 | $8,770 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $3,650 | $6,607 | $6,823 | $7,625 | $9,160 | $8,686 | $8,838 | $8,861 | $8,982 | $8,908 | $8,874 | $8,970 | |
Net Cash Flow | ($3,650) | ($6,607) | ($6,823) | ($5,253) | ($6,238) | ($1,773) | ($989) | $126 | $505 | $1,074 | $1,352 | $1,425 | |
Cash Balance | $31,050 | $24,443 | $17,619 | $12,366 | $6,128 | $4,354 | $3,366 | $3,492 | $3,997 | $5,072 | $6,424 | $7,849 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $34,700 | $31,050 | $24,443 | $17,619 | $12,366 | $6,128 | $4,354 | $3,366 | $3,492 | $3,997 | $5,072 | $6,424 | $7,849 |
Accounts Receivable | $0 | $0 | $0 | $0 | $3,558 | $7,644 | $9,065 | $10,261 | $11,206 | $11,824 | $11,891 | $12,076 | $12,576 |
Inventory | $0 | $0 | $0 | $0 | $783 | $942 | $1,100 | $1,194 | $1,311 | $1,334 | $1,327 | $1,374 | $1,438 |
Other Current Assets | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
Total Current Assets | $35,200 | $31,550 | $24,943 | $18,119 | $17,207 | $15,213 | $15,020 | $15,321 | $16,509 | $17,655 | $18,789 | $20,374 | $22,363 |
Long-term Assets | |||||||||||||
Long-term Assets | $25,300 | $25,300 | $25,300 | $25,300 | $25,300 | $25,300 | $25,300 | $25,300 | $25,300 | $25,300 | $25,300 | $25,300 | $25,300 |
Accumulated Depreciation | $0 | $211 | $422 | $633 | $844 | $1,055 | $1,266 | $1,477 | $1,688 | $1,899 | $2,110 | $2,321 | $2,532 |
Total Long-term Assets | $25,300 | $25,089 | $24,878 | $24,667 | $24,456 | $24,245 | $24,034 | $23,823 | $23,612 | $23,401 | $23,190 | $22,979 | $22,768 |
Total Assets | $60,500 | $56,639 | $49,821 | $42,786 | $41,663 | $39,458 | $39,054 | $39,144 | $40,121 | $41,056 | $41,979 | $43,353 | $45,131 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $1,450 | $1,666 | $1,664 | $3,216 | $2,736 | $2,888 | $2,907 | $3,030 | $2,958 | $2,921 | $3,014 | $3,084 |
Current Borrowing | $5,000 | $4,800 | $4,600 | $4,400 | $4,200 | $4,000 | $3,800 | $3,600 | $3,400 | $3,200 | $3,000 | $2,800 | $2,600 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $5,000 | $6,250 | $6,266 | $6,064 | $7,416 | $6,736 | $6,688 | $6,507 | $6,430 | $6,158 | $5,921 | $5,814 | $5,684 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $5,000 | $6,250 | $6,266 | $6,064 | $7,416 | $6,736 | $6,688 | $6,507 | $6,430 | $6,158 | $5,921 | $5,814 | $5,684 |
Paid-in Capital | $60,600 | $60,600 | $60,600 | $60,600 | $60,600 | $60,600 | $60,600 | $60,600 | $60,600 | $60,600 | $60,600 | $60,600 | $60,600 |
Retained Earnings | ($5,100) | ($5,100) | ($5,100) | ($5,100) | ($5,100) | ($5,100) | ($5,100) | ($5,100) | ($5,100) | ($5,100) | ($5,100) | ($5,100) | ($5,100) |
Earnings | $0 | ($5,111) | ($11,945) | ($18,778) | ($21,253) | ($22,778) | ($23,134) | ($22,862) | ($21,809) | ($20,602) | ($19,441) | ($17,961) | ($16,053) |
Total Capital | $55,500 | $50,389 | $43,555 | $36,722 | $34,247 | $32,722 | $32,366 | $32,638 | $33,691 | $34,898 | $36,059 | $37,539 | $39,447 |
Total Liabilities and Capital | $60,500 | $56,639 | $49,821 | $42,786 | $41,663 | $39,458 | $39,054 | $39,144 | $40,121 | $41,056 | $41,979 | $43,353 | $45,131 |
Net Worth | $55,500 | $50,389 | $43,555 | $36,722 | $34,247 | $32,722 | $32,366 | $32,638 | $33,691 | $34,898 | $36,059 | $37,539 | $39,447 |
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The Farm Business Plan Balance Sheet can help gather information for the financial and operational aspects of your plan. Form FSA-2037 is a template that gathers information on your assets and liabilities like farm equipment, vehicles and existing loans. FSA-2037 - Farm Business Plan - Balance Sheet. FSA-2037 Instructions.
combinepdf(3).pdf. This example beginning farmer business plan is written by staff from the Intervale Center with funding from the USDA Beginning Farmer and Rancher Development grant in partnership with Vermont Land Trust and the Vermont Farm and Forest Viability Program. Nikki Lennart, Farm Business Specialist Sam Smith, Farm Business Director ...
Download this agriculture farm sample business plan PDF for free right now, or visit Bplans' gallery of more than 550 sample business plans if you're looking for more options. Brought to you by. Create a professional business plan Using AI and step-by-step instructions Create Your Plan. Secure funding.
A farm business plan is an essential document for new farm start-ups or farms seeking funding. Farm business plans give an overview of the business, including company history, owner/operator backgrounds, products/services, projections, and more. Use this template to quickly create your farm business plan.
A business plan is a decision making tool that takes the form of a formal document. It states your business goals, why you think you can achieve them, and lays out your plan for doing so. Farm business planning is also a process, not an end product. A business plan is a work in progress, which farm business owners or operators will want to ...
Find the right agriculture business plan template for your business. If you're not sure where to begin, check out our farms, food growers, food production facilities, and other agriculture-related sample business plans for inspiration. Explore our library of Farm and Agriculture Business Plan Templates and find inspiration for your own business.
Sample Business Plan For Farms & Agricultural Businesses. Executive Summary - The Executive Summary is the most important part of your business plan. It is a brief description of your farm, its products and services, potential market opportunity, and competitive advantage. Company Overview - Also called the Company Analysis, here, you will ...
Produce Farm Business Plan. Mixed Greens Salad Gardens specializes in exotic salad field greens for local restaurants. When you run a farm, you've got to know all about growing things, including your business. A business plan will help. This selection of farm-related sample business plans will give you a head start on writing a business plan ...
For aspiring farm business owners, having access to a sample farm business plan can be especially helpful in providing direction and gaining insight into how to draft their own farm business plan. Download our Ultimate Farm Business Plan Template. Having a thorough business plan in place is critical for any successful farm venture.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the farm business industry. Discuss the type of farm business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan.
Interval Farm Business Plan Sample. Peach Farm Business Plan Sample. USDA FSA Sample Microloan Application. Small Farms Program Oregon State University Send E-mail Phone: 541-713-5009. OSU College of Agricultural Sciences 430 Strand Agriculture Hall Corvallis, Oregon 97331. Contact Us
ision is and how you will make it happen. The goal of this Business Farm Plan Workbook is to provide a s. raightforward approach to writing a plan. If more in-depth planning is desired, there are many other resources available. The focus of this workbook is to help you think through your vision and goals and get detail.
We have prepared a solid Farming business plan sample that guides you on every stage of your business plan writing. Download Template. Create a Business Plan. Agriculture is the one industry that consistently does well, irrespective matter the economic conditions of the world. So, for a stable income and career farming business is a great option.
Cornell Small Farms Program Online Course BF 202: Business Planning. The Cornell Small Farms Program offers 20+ online courses every year on many topics related to the production and business sides of farming. Most are taught by Cornell Cooperative Extension educators. BF 202 is a 6-week course that will guide you through the process of writing ...
These might be local consumers, restaurants, farmers' markets, or even online customers. Key Strategies: Highlight the strategies you plan to implement to run and grow your business. This could cover marketing techniques, sustainability practices, or partnerships. Mission and Vision: Briefly outline the mission and vision of your farm business.
A business plan is a roadmap for your small farm. It is both process and product. During the writing of a farm business plan, you'll develop an overall vision and mission for your business. You ...
Cash at End of Period. $24,463. $29,034. $87,541. Download This Plan. Explore a real-world agriculture farm business plan example and download a free template with this information to start writing your own business plan.
This should include proposals , marketing, and budget. Truly, there is no easy business. So, plan long-term, and everything else will follow. 2. Provide an Executive Summary. Next, you have to learn how to write an executive summary for your business plan. Especially for farm business startups, an executive summary is one of the parts of the ...
Give us a call at 888.339.3334 or view our full list of services here. Congratulations! You've made it through each section of how to write your business plan! If you're interested in more coaching on your business plan, check out the resources below or give us a call to connect with a local lender — we're happy to help.
The FCC business plan bundles were designed specifically for Canadian producers, food and beverage entrepreneurs or anyone involved in Canadian agriculture and food. The bundle includes: Bundle includes: Word documents and pdfs. By accessing, downloading, and using the FCC Business Tool Template, you acknowledge and agree that any use of the ...
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
Developing a comprehensive farm business plan is a vital step toward the success and sustainability of your agricultural venture. By outlining your goals, conducting thorough market research, assessing resources, and creating financial projections, you can create a roadmap that guides your farm's operations and positions you for long-term ...
2.1 Company Ownership. Mixed Greens Salad Gardens will be a sole proprietorship with Heidi Ponic as the founder and owner. Heidi will be funding the business with a $50,000 investment of her own. An additional $10,000 will be invested by family member O.G. Tylthe with exit/repayment initially scheduled for year five.