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Garlic Farm business plan for starting your own business
Are you thinking to start a garlic farm business? If yes, then we have provided a complete garlic farming business plan template for your feasibility. When you think of starting a business that gives profit, the rule of thumb is to make sure that you start a business whose services or products are used by the average woman or man on the street. Garlic farming business never goes into loss and it is such business that provides profit within a short time.
Whether you want lawn care business plan template, pepper farm business plan, business plan for poultry farming, agriculture fruit farm business plan, organic farm business plan or goat farming business plan, this template will work for you. Read on as we will discuss in detail about the business plan of garlic farming.
Executive Summary
2.1 The Business
Fresh Garlic Farms, Inc. is a registered commercial farm based in Sacramento, California. Our main goal is to provide fresh garlic to all over the state.
We will make our commercial garlic farm to be a standard and it will be involved in cultivating some other vegetables such as potato, ginger, sweet corn, and tomatoes. We will also cultivate non-organic garlic along with organic garlic farming.
In this garlic farming business plan, we will discuss the management of garlic farm business and garlic farm profit.
2.2 Management of garlic farm
To run any business smoothly and efficiently, manager or owner needs to manage their team wisely.
Fresh Garlic Farms, Inc. is a family business that is owned by James Clark and his family members. The farm will be single and fully handled by James Clark and his family members. Before starting Fresh Garlic Farms, James has worked with some leading commercial farms in the United States. He has done his degree in Agriculture Sciences from the University of California.
The family have worked on their garlic farm start-up business plan and are well-positioned to become one of the most popular and leading garlic farms in California, United States. Their business continuity plan includes spreading their farm into different cities of the U.S.
2.3 Customers of Garlic Farm
Customers are important for any business as they are the backbone of the business. If you do not have good customers, you will not be able to achieve the goal at the end of the day. All it matters is to have a loyal audience for your business.
To run your business effectively, you need to target the right customers and consumers. To generate desired revenue out of your business, you need to identify and understand your customers. The main customers for Fresh Garlic Farms will be following:
Produce Brokers
Produce Brokers generally buy garlic in bulk and then resell it to retail outlets and supermarkets. If you want to sell a large number of garlic at once, you can always sell it to produce brokers.
Hotels and Restaurants
You can also sell a large number of garlic to restaurants that need it in bulk. It will help in generating more revenue.
Food Factory
Another important consumer for garlic is the food factories that make products in which garlic is used. Food factories allow you to sell a lot of stuff at a time.
2.4 Business Target
The main target of Fresh Garlic Farms, Inc. is to produce fresh organic and non-organic garlic for its consumers. We aim to provide the best products in town. We believe that customer satisfaction is our first and topmost priority. We want to enhance our business by targeting new clients and retaining old clients.
Company Summary
3.1 Company Owner
The owner of Fresh Garlic Farms, Inc. will be James Clark and his immediate family members. Before starting his garlic farm, James understood how to start a farm garlic. Starting a garlic farm was always James’ mission – and when he discussed these garlic business ideas with his family members, they all agree to invest in this business.
3.2 Why the Fresh Garlic Farm, Inc. is being started?
Garlic Farming is a profitable business, and it has evolved from a small scale garden farming to a large business globally. James knew that garlic is used for a wide variety of food and medicinal purposes. Garlic is consumed all over the world and the decision to start a garlic business can never go wrong. James made research on how to farm garlic before starting his own business and worked day and night to make it successful.
3.3 How the Fresh Garlic Farm, Inc. will be started?
Starting your own garlic business can be a fun as well as profitable idea to make a solid income in a small space. A good thing about starting a garlic business is the low cost of investment. With a small amount of money, you can start this business on a small scale and then work to expand it each year gradually.
Know About Industry Experience
Before entering into the world of entrepreneurship, gain some experience in the relevant industry. For example, before starting your own garlic business, try working on a garlic farm. It will give you an idea about a lot of things. After gaining sufficient experience, you can start your garlic farm.
Get the tools and supplies
To start a garlic business, you need to get all the tools and supplies needed to start it. In addition to all the gardening tools, you need garlic seeds bulbs.
Healthy soil is important
To grow healthy garlic, the soil should be rich enough to produce it. Improve the soil quality by using fertilizers and providing sufficient nutrients to the garlic plants. It is best if you use organic fertilizers. The better the soil is, the high-quality garlic would be.
| Start-up Expenses | |
| Legal | $226,000 |
| Consultants | $0 |
| Insurance | $28,000 |
| Rent | $33,000 |
| Research and Development | $20,000 |
| Expensed Equipment | $56,000 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $366,400 |
| Start-up Assets | $326,000 |
| Cash Required | $369,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $240,000 |
| Long-term Assets | $287,000 |
| TOTAL ASSETS | $1,261,000 |
| Total Requirements | $1,627,400 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $366,400 |
| Start-up Assets to Fund | $1,261,000 |
| TOTAL FUNDING REQUIRED | $1,627,400 |
| Assets | |
| Non-cash Assets from Start-up | $1,626,000 |
| Cash Requirements from Start-up | $385,000 |
| Additional Cash Raised | $50,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $2,096,000 |
| Liabilities and Capital | |
| Liabilities | $28,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $44,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $72,000 |
| Capital | |
| Planned Investment | $1,627,400 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,627,400 |
| Loss at Start-up (Start-up Expenses) | $396,600 |
| TOTAL CAPITAL | $2,024,000 |
| TOTAL CAPITAL AND LIABILITIES | $2,096,000 |
| Total Funding | $1,627,400 |
Services
Fresh Garlic Farms, Inc. is a commercial farm that will be responsible for producing garlic and other vegetables as well through land farming and greenhouse farming for both US and global markets.
When starting a garlic farm, you should mention all the services and products that your farm is going to provide. Our services include following:
Producing garlic
We will produce both organic and non-organic garlic for both the global market and the US.
Other vegetables
In addition to garlic, our commercial farms will produce other vegetables as well. These include ginger, shallots, cucumber, lettuce, tomatoes, capsicum, basil, melons, onions, mushrooms and cabbage.
Greenhouse Farming
We will construct a greenhouse and will grow vegetables via greenhouse farming as well.
Consultancy and advisory services
We will also give consultancy and advisory services to our clients, who want to grow garlics at a large scale.
Marketing Analysis of Garlic Farm
To make your organic garlic farms successful and to grow garlic for profit, you need to keep an eye on the market trends as well.
Great service
Great service. Good turnaround time and quality work. Thanks!
In this garlic farm business plan, James has researched by running a complete analysis of the market. Understanding this analysis will help you in making certain decisions about your business. The main goal of this market research is to get a general idea about the garlic farms in your area.
5.1 Market Trends
If you are conversant with the scientific development and rising technology in the agriculture industry, you will agree that garlic farming using greenhouse commercial farming is at the front burner. This technology is rapidly increasing in the modern world today.
Greenhouses are used to overcome the shortcomings in growing garlic such as poor light levels and short growing seasons. Being a part of the garlic farm industry, James knew that the agriculture industry is increasing due to the increased consumer demand for fresh produce.
Due to this demand, the number of both small and large farms has been increasing over the last few decades. Small and local farms are producing organic products whereas large commercial farms are busy improving their labor efficiency.
5.2 Marketing Segmentation
The end consumers of the Fresh Garlic Farms, Inc. products will be all the people who consume garlic from farms. A garlic cum vegetable farmer should also be able to sell this farm produce product to as many people as possible.
We will make sure that the products of Fresh Garlic Farms, Inc. will not only be consumed by the people of the state but we also plan to export them to other countries as well.
The garlic farm business plan pdf includes the following marketing segmentation for our garlic products.
5.2.1 Restaurants & Food Companies
Our two main customer groups will be restaurants and food companies. We will sell our organic and non-organic garlic in bulk to these two customer groups. It will bring huge revenue to our business.
5.2.2 Export products
Along with organic and non-organic garlic, we will export our other vegetables as well. It will also play a huge part in generating revenue for the business.
5.2.3 Local Vendors
Another important customer group will be local vendors. We will sell them garlic and other vegetables at wholesale price. It will help us in selling garlic and other vegetables in bulk.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Private Customers | 29% | 34,000 | 35,000 | 37,000 | 39,000 | 41,000 | 10.00% |
| Corporate Customers | 28% | 30,000 | 32,000 | 34,000 | 35,000 | 37,000 | 10.00% |
| Business Customers | 24% | 24,000 | 26,000 | 28,000 | 30,000 | 32,000 | 10.00% |
| Government Agencies | 19% | 17,000 | 19,000 | 22,000 | 24,000 | 25,000 | 11.00% |
| Total | 100% | 105,000 | 112,000 | 121,000 | 128,000 | 135,000 | 10% |
5.3 Business Target
- To gain customer satisfaction up to 100%
- To become the most popular garlic farm in the area
- To expand the export to other countries as well
- To establish a name and reputation in the garlic farm market
- To retain customers and attract new consumers
5.4 Product Pricing
The prices of the products of Fresh Garlic Farms, Inc. will be comparable to other farms. We will provide healthy and fresh vegetables to our consumers. Unlike other farms that only focus on profit, we will focus on the production of organic products. We will make sure that our customers are satisfied by providing exceptional products and will make as much profit as possible.
Marketing Strategy
UK Start-Up Visa Business Plan
In addition to knowing how to grow garlic commercially, one should also know the techniques about marketing garlic. Along with the garlic business ideas, you should also focus on the marketing strategy to attract new customers. We know that no business can become successful without a marketing strategy.
Despite the excellent services and products, if you do not have customers, then you will not be able to achieve as much as you dream of. The more you reach out to people, the more successful your business will become.
You can use social media platforms to reach out to millions of people at a very low cost. Apart from that, you need a competitive analysis to make a strategy that will help in making your business successful.
6.1 Competitive Analysis
- People are not satisfied with the prices of the products that other farms are providing.
- Some farms compromise on the quality of the vegetables and do not produce organic products.
- Some use fertilizers in excess quantitaties.
6.2 Our Strategy
- Our Garlic Farms will produce both organic and non-organic vegetables at a reasonable price.
- We will use all the latest techniques to produce healthy garlic and other vegetables.
- We will market our healthy products through social media advertising.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Personnel plan
In garlic business plan, it is important to mention all the necessary points required to run a business successfully.
To make your dream come true and to make your garlic farm profit up to your desire, you need loyal customers, good management, experienced staff and advanced tools and techniques.
7.1 Company Staff
James Clark will be the owner and CEO of Fresh Garlic Farms, Inc. The following people will be needed to run the Garlic Farm:
- 1 farm manager
- 1 digitial marketing manager
- 3 crop cultivation managers
- 2 sales and marketing officers
- 4 helpers
- 2 accountants
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Farm Manager | $13,000 | $14,300 | $15,730 |
| Marketing Manager | $12,000 | $13,200 | $14,520 |
| Crop Cultivation Managers | $30,000 | $33,000 | $36,300 |
| Sales & Marketing Officers | $7,500 | $8,250 | $9,075 |
| Helpers | $75,000 | $82,500 | $90,750 |
| Accountant | $10,000 | $11,000 | $12,100 |
| Total Salaries | $147,500 | $162,250 | $178,475 |
Financial Plan
Along with the personal plans, it is also vital to know how much does garlic cost to get the exact amount of investment to start the business. When you know how to grow garlic and how to make money growing garlic, you will be able to run your business successfully.
To start and run a smooth business, proper financial planning is required. It also helps you to maintain a stable budget for the upcoming year. Your financial plan should include all the necessary points such as what will be your expected income and how will you spend it. The financial plan keeps a record of your profit and expenses. It also keeps a record of where is your money going and coming from.
To start a garlic farm, you need money for the following things
- Money is needed to buy or rent out land to grow garlic
- Fertilizers and nutrients for the soil to make it healthy
- The salary of employees
- The cost of using new technologies and tools
- Security, registration cost and insurance
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.15% | 8.24% |
| Long-term Interest Rate | 8.37% | 8.46% | 8.49% |
| Tax Rate | 24.01% | 25.10% | 26.30% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $131,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $232.00 |
| Average Per-Unit Variable Cost | $0.65 |
| Estimated Monthly Fixed Cost | $163,400 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $8,360,000 | $10,279,456 | $12,639,619 |
| Direct Cost of Sales | $8,078,000 | $9,637,520 | $11,811,283 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $8,078,000 | $9,637,520 | $11,811,283 |
| Gross Margin | $282,000 | $641,936 | $828,336 |
| Gross Margin % | 3.37% | 6.24% | 6.55% |
| Expenses | |||
| Payroll | $134,000 | $147,400 | $162,140 |
| Sales and Marketing and Other Expenses | $137,000 | $148,000 | $156,000 |
| Depreciation | $2,100 | $2,200 | $2,340 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $3,000 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $3,100 | $3,200 | $3,400 |
| Payroll Taxes | $31,000 | $32,000 | $33,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $312,300 | $337,900 | $362,080 |
| Profit Before Interest and Taxes | ($30,300) | $304,036 | $466,256 |
| EBITDA | ($30,300) | $304,036 | $466,256 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | ($6,060) | $60,807 | $93,251 |
| Net Profit | ($24,240) | $243,229 | $373,005 |
| Net Profit/Sales | -0.29% | 2.37% | 2.95% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $52,000 | $56,160 | $60,653 |
| Cash from Receivables | $14,000 | $15,120 | $16,330 |
| SUBTOTAL CASH FROM OPERATIONS | $66,000 | $71,940 | $77,695 |
| 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 | $67,000 | $72,000 | $78,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $37,000 | $39,000 | $41,000 |
| Bill Payments | $26,000 | $27,000 | $28,000 |
| SUBTOTAL SPENT ON OPERATIONS | $63,000 | $66,000 | $69,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| 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 | $63,000 | $68,040 | $73,483 |
| Net Cash Flow | $19,000 | $21,000 | $22,000 |
| Cash Balance | $29,000 | $31,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $25,000 | $28,000 | $31,472 |
| Inventory | $4,000 | $4,480 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $287,000 | $321,440 | $361,299 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $20,100 | $22,512 | $25,326 |
| TOTAL LONG-TERM ASSETS | $24,000 | $26,880 | $30,240 |
| TOTAL ASSETS | $293,000 | $328,160 | $369,180 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $19,000 | $21,280 | $23,919 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $16,700 | $18,704 | $21,023 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,800 | $58,642 | $64,506 |
| Earnings | $198,000 | $215,820 | $237,402 |
| TOTAL CAPITAL | $287,000 | $312,830 | $344,113 |
| TOTAL LIABILITIES AND CAPITAL | $303,700 | $328,160 | $369,180 |
| Net Worth | $300,100 | $327,109 | $359,820 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.23% | 8.01% | 8.88% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.20% | 10.19% | 11.29% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.12% | 2.35% | 2.60% | 2.40% |
| Total Current Assets | 149.00% | 152.00% | 152.00% | 158.00% |
| Long-term Assets | 11.54% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.87% | 4.91% | 4.95% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.56% | 7.62% | 7.69% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.90% | 97.46% | 100.19% | 99.00% |
| Selling, General & Administrative Expenses | 94.00% | 96.54% | 99.24% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.00% | 42.11% | 43.29% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 32 | 32.6 | 33.415 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.00% | 74.50% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 94.60% | 99.33% | 104.30% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.01% | 34.03% | 35.09% | N.A. |
| Return on Equity | 56.00% | 57.74% | 59.53% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 33 | N.A. |
| Accounts Payable Turnover | 15 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.4 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $239,000 | $252,384 | $266,518 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.86 | 0.87 | 0.87 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29.1 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.3 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
- How much can you make off an acre of garlic?
From an acre of garlic, you can produce 10,000 to 20,000 pounds of garlic. The garlic farm profit depends on environmental and management conditions, as well as your final yield.
- How profitable is garlic farming?
From one acre of land, an average profit that a farmer gets can reach around $2,000 per year, depending on the yield. In garlic farming business plan pdf, you will get the exact idea of the figure.
- What is the best garlic to grow for profit?
If you know how to make money growing garlic, you should know the most profitable types of garlic. The most profitable types of garlic to grow are purple stripe, elephant garlic and rocambole.
- How do I start a garlic farm?
We have mentioned all the necessary steps and costs to start a garlic farm in our template. If you want to grow garlic for profit, follow those steps and start your business.
Download Business Plan for Garlic Farm Template in pdf
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