Microgreens Farm Business Plan and SWOT Analysis

Microgreens Farm Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Microgreens Farm Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Microgreens Farm business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Microgreens farms have become very popular among high-end restaurants, foodies, and other people that are enjoying the development of these new types of vegetable products. These businesses are especially popular in areas that have a wealthier population that can afford artistically produce. As such, in areas where there are a number of high-end restaurants as well as specialty food stores – microgreens farms tend to do very well. The startup costs for new microgreens farm can be pretty intensive given that it is a highly specialized farming facility. Typically, the startup costs range anywhere from $400,000 all the way to $2 million depending on the amount of land being purchased, the furniture, fixtures, and equipment, as well as other underlying operating costs. One of the biggest drawbacks to operating this type of business is that the ongoing operating costs are extremely high. However, these risks are ameliorated by the fact that the gross margins generated from the sale of microgreens is also significant. Typically, a microgreens farm will generate gross margins ranging anywhere from 70% all the way to 90% depending on the specialized nature of the product being sold.

Given that a substantial amount of the capital used to start a new farm is based in land and equipment – most banks and lenders are very receptive to providing a significant amount of capital to entrepreneurs looking to enter this industry. Most importantly, if an entrepreneur is looking to raise capital either from investor or from a bank then they are going to need a business plan. The microgreens farm business plan should include a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Within this document special attention should be paid to the number of wealthier people in the area as well as the number of restaurants that will source their microgreens inventory from a company. This is one of the most important aspects that needs to be discussed within the business plan given that microgreens are acquired by a highly specific type of buyer. As such, a thorough demographic analysis over viewing the median household income, median family income, population density, and population size should be included. Within this analysis as well an overview of the number of restaurants and specialty food stores operating within the area should also be part of the overall business examination.

As it relates to the marketing plan for a microgreens farm this can be done on a somewhat limited basis. Given that it takes a substantial amount of time between launching the business to the first harvest – an entrepreneur can develop purchase order relationships while microgreens are being grown. One of the ways of these businesses have become very successful is by immediately partnering with high end restaurants and specialty food stores that will use the microgreens as part of their operations. Most of these businesses also maintain a presence on the Internet so that people can come to the farm and purchased these products directly from the owner. There is been a large trend within the United States for people to source their food from local farms. As such, an entrepreneur that owns a microgreens farm can benefit substantially by maintaining relationships with the general public so they can come to the farm on an ongoing basis to purchase their microgreens.

Once the marketing plan has been developed, it is time to develop the microgreens farm SWOT analysis. As it relates the strengths, the startup costs associated with type this type of business is somewhat high but the return on investment is also substantial. Additionally, the gross margins generated from micro green sales are typically higher than their standard farming counterparts. For weaknesses – these businesses have very high ongoing operating expenses given that the number of employees needed as well as a number of production inputs need to purchase on an ongoing basis. There is really nothing that can be done to ameliorate this risk. For opportunities, many microgreens farms will seek to expand their visibility by increasing the size of the market that they service. Additionally, if the brand becomes very successful – entrepreneurs will seek to acquire additional farming facilities so that microgreens can be produced on a much larger scale. For threats – there’s really nothing that is going to impact the way that these businesses conduct operations outside of economic risks and risks relating to climate change.

In closing, a microgreens farm can be an outstanding opportunity for an entrepreneur that has an extensive amount of experience within the farming industry. Given the highly specialized nature of the product being produced it is important that the farmer understand how to properly mitigate any the ongoing operational risks that are faced by microgreens farms on an ongoing basis.

Microgreens Farm Business Plan (text of the plan – sample images only)

The purchased plan’s figures are specific for a microgreens farm.

1.0 Executive Summary

The purpose of this business plan is to raise $900,000 for the development of an organic microgreens farm facility while showcasing the expected financials and operations over the next three years. Microgreens Farm, Inc. (“the Company”) is a New York based corporation that will provide sales of organic fruit/vegetables to customers in its targeted market. The Company was founded by John Doe.

1.1 The Services

As stated above, the primary revenue stream for the business will come from the sale of fruit/vegetables to the general public directly from the Microgreens Farm facility and through distribution agreements with local retailers and restaurants.

Secondary streams of revenue will include providing customers with the ability to tour the Microgreens Farm facility and pick their own microgreens.

The third section of the business plan will further describe the services offered by the Microgreens Farm.

1.2 Financing

Mr. Doe is seeking to raise $900,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 15 year loan with an 8% fixed interest rate. The financing will be used for the following:

  • Development of the Company’s Microgreens Farm location.
  • Financing for the first six months of operation.
  • Capital to purchase equipment needed for the Microgreens Farm.

Mr. Doe will contribute $100,000 to the venture.

1.3 Mission Statement

The Microgreens Farm’s mission is to become the recognized leader in its targeted market for sales of freshly grown organic microgreens.

1.4 Management Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the farming industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target farms, retailers, restaurants, and the general public within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Microgreens Farm, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Microgreens Farm requires $900,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Microgreens Farm, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Microgreens Farm. Based on historical numbers, the business could fetch a sales premium of up to 8 times earnings (including the value of appreciated real estate).

3.0 Products and Services

Below is a description of the services offered by the Microgreens Farm.

3.1 Sales of Organic Microgreens Products

The primary revenue stream for the business will come from the sale of organic microgreens to the general public (directly from the organic farm) as well as through local distribution channels such as restaurants, hotels, supermarkets, and small retailers.

In time, Management may frequently attend farmer’s markets that will allow the business to further divest inventories of organic microgreens.

3.2 Microgreens Farm Tours

The Company’s secondary income stream will come from individuals that will come to the Microgreens Farm to directly pick organic microgreens produced by the business. These patrons will also be able to have tours of the facility.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, produce industry, the customer profile, and the competition that the business will face as it progresses through its business operations.

Currently, the economic market condition in the United States is moderate. Unemployment rates have declined while asset prices have risen substantially.  In the event of an economic recession – this should have only a modest impact on the Company’s ability to generate revenues from its organic farming operations.

4.2 Industry Analysis

Within the United States, there are approximately 6,000 farms that specialize in the production of organic produce. Each year, these businesses generate almost $8 billion of revenues and provide jobs to more than 70,000 people. Annual payrolls in each of the last five years has exceeded $1 billion.

This is a mature industry, and the expected future growth rate is expected to equal that of the general economy. The demand for fruit has continued to remain strong despite the current economic climate.

4.3 Customer Profile

The Microgreens Farm’s average client will be a fruit distributor, restaurant, hotel, or supermarket in the Company’s target market. Common traits among clients will include:

  • Annual revenues exceeding $1,000,000
  • Operates no more than 25 miles from the Company’s location.
  • Will spend $5,000 to $30,000 with the Company on an annual basis.

4.4 Competition

This is one of the sections we discuss in the purchased document.

5.0 Marketing Plan

The Microgreens Farm intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.

5.1 Marketing Objectives

  • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
  • Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
  • Establish relationships with organic produce distributors, retailers, and restaurants throughout the target market.

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow the Microgreens Farm easily target buyers within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public.

The Microgreens Farm will also use an internet based strategy. This is very important as many people seeking local services, such as organic farming operations, now the Internet to conduct their preliminary searches. Mr. Doe will register the Microgreens Farm with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the Microgreens Farm facility, its inventory of organic microgreens, preliminary pricing information, and contact information.

6.0 Organizational Plan and Personnel Summary

7.0 Financial Plan

7.1 Underlying Assumptions

The Company has based its proforma financial statements on the following:

  • The Microgreens Farm will have an annual revenue growth rate of 10% per year.
  • The Owner will acquire $900,000 of debt funds to develop the business.
  • The loan will have a 15 year term with an 8% interest rate.

7.2 Sensitivity Analysis

During times of economic recession or a sluggish economy, the Company may have issues with top line income as ranchers scale down their buying activities and farmers cut back on capital expenditures. However, the demographics target by the Company have tremendous economic staying power, and as such, declines in general economic productivity should have only a moderate effect on the Company’s revenues.

7.3 Source of Funds

7.4 Profit and Loss Statement

7.5 Cash Flow Analysis

7.6 Balance Sheet

7.7 Breakeven Analysis