Greenhouse Business Plan Template

Greenhouse business plan for starting your own business

If you are looking to start a new business, one that can be profitable always, without being impacted by any external factor, this business plan for green house is what you need. As long as there are humans on this planet, they’ll need to eat and that’s the reason this field can never go out of business.

This business will be even more profitable for ones who own their own land and don’t have to lease it. Making it the best business plan for landlord. Let’s now see how to write a business plan for a greenhouse so that you can enter this business and make money.

 Executive Summary

2.1 The Business

Candyland Greenhouse will be a registered and licensed greenhouse farming company in Ohio, USA. This business will be used as an example of starting greenhouse business plan. The aim of this business will be to provide all greenhouse crops to the state.

2.2 Management of Greenhouse Business

Before you learn more about how to start a greenhouse business, you need to learn how the business will be managed. The greenhouse business start up will be owned and presided by John Candy. He will hire three managers for operations, liaison, and procurement to handle the day-to-day operations of the greenhouse.

The supreme authority in the business will reside with John Candy himself. Any matter of significant importance must be brought to his notice. This business plan and management structure of the farm is created by professional business plan writers and is designed to be applicable to any greenhouse business in any part of the world. One thing must be kept in mind that unlike a microbrewery business plan, this business will need a lot of starting capital.

2.3 Customers of Greenhouse Business

As greenhouses produce food, everyone with a beating heart is technically a customer. We will be providing our products to the following customers:

• Retail customers.
• Grocery stores.
• Restaurants.
• Supermarkets.

2.4 Business Target

The business target we have set for this venture are the following:

• Starting to generate a revenue of more than $201,161 by year 2.
• Expanding to two other states by year 5.

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Helps commercial tenants get landlord approval.

 Company Summary

3.1 Company Owner

The owner of this vegetable greenhouse business plan, will be John Candy. John is an agriculture engineer and has been providing consultancy services for progressive farming for the last 10 years. He has immense interest in new farming techniques, and the capital needed to start the business.

3.2 Why the Greenhouse Farming Business is being started.

The reason John is starting this business is that there is a serious gap between the supply and demand of greenhouse crops in the area. People go through a lot of trouble just to get non-seasonal veggies and fruits and can only get them in frozen form, fresh ones are not available.

This sample greenhouse business plan aims to target this market gap and make a lot of money while we are at it. Let’s now explore more details of this greenhouse farming business plan doc. Before that, if you want to get into the food business here’s a seafood restaurant business plan.

3.3 How the Greenhouse Business will be started.

Step1: Planning

The first step of starting this business will be planning. We need to make a solid plan starting from where the farm will be located to the buyers, we’ll be supplying the product to. All the planning aspects of the business will be discussed in this greenhouse farming business plan.

Step2: Building a Brand

One of the main practical things to do, one which needs to be started even before the physical structure of the farm comes into existence is the brand building.

Step3: Establish Your Corporate Office

Jack decided to rent a building in Manhattan to establish his business office. He will procure the latest cleaning equipment and inventory to set his business. Just like a gourmet food store business plan, we need to make sure that we have a brand that people know before we actually start the business.

Step4: Going Online

As people tend to buy a lot of stuff online, we’ll be offering our products on our online store. For this, an e-commerce website and social media pages will be created.

Step5: Promote and Market

Lastly, we’ll promote our brand via all advertisement channels so that people know the name.

Start-up Expenses
Legal	$245,000
Consultants	$0
Insurance	$28,000
Rent	$31,000
Research and Development	$22,000
Expensed Equipment	$57,000
Signs	$4,000
TOTAL START-UP EXPENSES	$387,000
Start-up Assets	$344,000
Cash Required	$355,000
Start-up Inventory	$42,000
Other Current Assets	$233,000
Long-term Assets	$271,000
TOTAL ASSETS	$1,245,000
Total Requirements	$1,632,000
START-UP FUNDING
Start-up Expenses to Fund	$387,000
Start-up Assets to Fund	$1,245,000
TOTAL FUNDING REQUIRED	$1,632,000
Assets
Non-cash Assets from Start-up	$1,631,000
Cash Requirements from Start-up	$385,000
Additional Cash Raised	$53,000
Cash Balance on Starting Date	$36,000
TOTAL ASSETS	$2,105,000
Liabilities and Capital
Liabilities	$28,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$47,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$75,000
Capital
Planned Investment	$1,632,000
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,632,000
Loss at Start-up (Start-up Expenses)	$473,000
TOTAL CAPITAL	$2,105,000
TOTAL CAPITAL AND LIABILITIES	$2,180,000
Total Funding	$1,632,000

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Services

The next big thing that we need to discuss in this organic greenhouse business plan is the services we will be providing. This is necessary to complete this greenhouse business example. The thing that we need to be clear on before actually starting greenhouse business is that this is more of a products business than a services one. All the services provided by this business will be based on the products that we will provide to the customers.

The main services that we will provide after opening a greenhouse business will be the following:

• Organic Food Provision

We will be providing organic food delivery services to businesses as well as individual customers. As the trend of organic food is on the rise, this will help us make a lot of money.

• Non-Seasonal Veggies Provision

This is one of the most obvious services for the greenhouse. We will grow and supply veggies that are not in the season and this will be another of the main income streams for the business.

• Exotic Fruits

Another of the services of this greenhouse business plan example will be exotic fruits. We will grow and supply fresh exotic fruits, something that is not available on the market.

• Farm Outlet Shop

Last, but not the least, we will establish a farm outlet and provide all our product for sale there.

These are just the services we are providing as a starting point of our greenhouse business plan template and we will add more services later.

Let’s now see more aspects of this tomato greenhouse business plan pdf.

 Marketing Analysis of Greenhouse Business

One thing can be safely assumed in this greenhouse business plan example and that is; the greenhouse business is not going anywhere anytime soon. People no longer want to be bound to eating just the seasonal vegetables. If we can create a way of providing all vegetables all-year-long, sky is the limit for us. Just like a distillery business plan, this business has a very low chance of failure.

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5.1 Market Trends

If we have a look at the size and growth rate of this industry, it is mind boggling. The greenhouse industry was worth $17 billion in 2019 in USA alone. It is expected to show a combined annual growth rate of a whopping 10%. This means that in just 5 years from now this industry will be worth over $50 billion dollar.

That is the kind of growth that you do not see everywhere. Now is the time to enter this industry and make money while we can. Like we said in the brewery business plan, such opportunities are rare, and you need to catch them if you can.

5.2 Marketing Segmentation

The market segmentation of the greenhouse farming business will be the following:

5.2.1 Retail customers

These will be the people who want to buy the products for their personal use. We will open a farm shop just outside the farm to cater the needs of these customers. The size of these sales will be small, but the large number of sales will make up for it.

5.2.2 Retailers

Grocery stores and retailers will also be one of the market segments that we will be targeting. These will be our regular customers. We will offer this market segment discounted rates to make them our permanent customers and to advertise our name through them.

5.2.3 Restaurants

Restaurants that offer non-seasonal vegetable and fruit dishes and need fresh products for that will also be our customers. We will give them discounts to make them our long-term customers.

5.2.4 Supermarkets

Supermarkets that have fruit and vegetable stalls and need to have fresh fruits and vegetables for sale will also make a major segment of our target market.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Retail customers	32%	37,000	38,000	40,000	42,000	44,000	10.00%
Grocery Stores	25%	25,000	26,000	27,000	28,000	30,000	10.00%
Restaurants	23%	20,000	21,000	22,000	24,000	25,000	10.00%
Supermarkets	20%	16,000	17,000	19,000	21,000	23,000	11.00%
Total	100%	98,000	102,000	108,000	115,000	122,000	10%

5.3 Business Target

• To become the leading supplier of greenhouse products in the area.
• To expand to other states by the end of year 2.
• To experiment and improve the techniques of growing crops in a greenhouse.
• To be the leading greenhouse business in the USA by the end of year5.

5.4 Product Pricing

We will price our products a bit lower than the competitors to get permanent customers. Once we make a loyal customer base, we will then move on to competitive pricing.

 Marketing Strategy

If you really want to know how to open a greenhouse, one of the most important things to have is a strong marketing strategy for the business.  Your marketing strategy is what helps you get on top of the game and outperform the competition. Let’s see how to open a greenhouse business with a winning marketing strategy.

The marketing strategy we are adopting for this greenhouse business model is simple; make it known to everyone and offers products and services not given by any competitor.

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6.1 Competitive Analysis

After an extensive research of the market, we’ve determined that Candyland Greenhouse will have the following competitive edges:

• No business is providing fresh non-seasonal fruits and vegetables in the area, and we will be the first one to do so.
• Exotic fruits being sold in the area are imported and are sold a week or so after being picked from the farms. We will provide fresh ones.
• Organic non-seasonal fruits and veggies are not available in the area and we will be the first company to provide these products.

6.2 Sales Strategy

• We will use multiple channels to advertise out products and services.
• We’ll arrange giveaways at the time of the launch to make it known to the potential customers that we provide quality products.
• We’ll provide a 25% discount on all cash orders for the first 2 months.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Organic Food Provision	44,000	46,640	49,438
Non-Seasonal Veggies Provision	46,000	48,760	51,686
Exotic Fruits	42,000	44,520	47,191
Farm Outlet Shop	40,000	42,400	44,944
TOTAL UNIT SALES	172,000	182,320	193,259
Unit Prices	Year 1	Year 2	Year 3
Organic Food Provision	$45.00	$52.20	$60.55
Non-Seasonal Veggies Provision	$52.00	$60.32	$69.97
Exotic Fruits	$60.00	$69.60	$80.74
Farm Outlet Shop	$47.00	$54.52	$63.24
Sales
Organic Food Provision	$1,980,000.00	$2,434,608.00	$2,993,594.00
Non-Seasonal Veggies Provision	$2,392,000.00	$2,941,203.20	$3,616,503.45
Exotic Fruits	$2,520,000.00	$3,098,592.00	$3,810,028.72
Farm Outlet Shop	$1,880,000.00	$2,311,648.00	$2,842,402.38
TOTAL SALES	$8,772,000.00	$10,786,051.20	$13,262,528.56
Direct Unit Costs	Year 1	Year 2	Year 3
Organic Food Provision	$43.00	$49.00	$56.00
Non-Seasonal Veggies Provision	$50.00	$57.00	$65.00
Exotic Fruits	$58.00	$66.00	$76.00
Farm Outlet Shop	$45.00	$51.00	$59.00
Direct Cost of Sales
Organic Food Provision	$1,892,000.00	$2,285,360.00	$2,768,550.40
Non-Seasonal Veggies Provision	$2,300,000.00	$2,779,320.00	$3,359,564.00
Exotic Fruits	$2,436,000.00	$2,938,320.00	$3,586,531.20
Farm Outlet Shop	$1,800,000.00	$2,162,400.00	$2,651,696.00
Subtotal Direct Cost of Sales	$8,428,000.00	$10,165,400.00	$12,366,341.60

Personnel plan

The next important thing to mention in this business plan for greenhouse farming is the detail of the staff that will be needed to run the business. As agriculture is a labor-intensive business, we’ll have to hire quite a bit of staff for the farm to run smoothly. This is not a butcher shop business plan where you can make do with a couple of men.

7.1 Company Staff

• John Candy will be the CEO of the company.
• 3 Managers for operations, liaison, and procurement.
• 8 Farm workers.
• 1 Technician.
• 1 Accountants.
• 2 Shopkeepers for farm outlet
• 1 Software engineer for the online store and social media presence management.
• 3 Delivery drivers.
• 2 Security guards.

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Operation Manager	$14,000	$15,400	$16,940
Liaison Manager	$13,000	$14,300	$15,730
Procurement Manager	$13,000	$14,300	$15,730
Farm Workers	$65,000	$71,500	$78,650
Technician	$8,000	$8,800	$9,680
Accountant	$10,000	$11,000	$12,100
Shopkeepers	$16,000	$17,600	$19,360
Software Engineer	$9,000	$9,900	$10,890
Delivery Drivers	$24,000	$26,400	$29,040
Security Guards	$16,000	$17,600	$19,360
Total Salaries	$188,000	$206,800	$227,480

Financial Plan

A strong financial plan is also one of the very important things required to complete a commercial greenhouse business plan. This part of the business plan elaborates the costs that will be incurred by the owner of the business in order to start it and run it until it starts making profit.

The expenses will include:

• Money needed to buy the land for the greenhouse.
• Price of constructing the greenhouse.
• Running expenses of the farm before it starts making profit.
• Salaries of the employees for the first 6 months.
• Prices of delivery vehicles.
• Cost of setting up the outlet.

 

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.16%	8.19%	8.26%
Long-term Interest Rate	8.39%	8.48%	8.52%
Tax Rate	24.20%	24.45%	25.80%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5341
Monthly Revenue Break-even	$130,500
Assumptions:
Average Per-Unit Revenue	$235.00
Average Per-Unit Variable Cost	$0.69
Estimated Monthly Fixed Cost	$165,000

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$8,772,000	$10,786,051	$13,262,529
Direct Cost of Sales	$8,428,000	$10,165,400	$12,366,342
Other	$0	$0	$0
TOTAL COST OF SALES	$8,428,000	$10,165,400	$12,366,342
Gross Margin	$344,000	$620,651	$896,187
Gross Margin %	3.92%	5.75%	6.76%
Expenses
Payroll	$188,000	$206,800	$227,480
Sales and Marketing and Other Expenses	$120,000	$125,000	$130,000
Depreciation	$2,130	$2,200	$2,300
Leased Equipment	$0	$0	$0
Utilities	$2,900	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$3,000	$3,100	$3,200
Payroll Taxes	$26,000	$27,000	$29,000
Other	$0	$0	$0
Total Operating Expenses	$344,130	$369,200	$397,180
Profit Before Interest and Taxes	($130)	$251,451	$499,007
EBITDA	($130)	$251,451	$499,007
Interest Expense	$0	$0	$0
Taxes Incurred	($26)	$50,290	$99,801
Net Profit	($104)	$201,161	$399,206
Net Profit/Sales	0.00%	1.87%	3.01%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

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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	$56,000	$60,480	$65,318
Cash from Receivables	$21,000	$22,680	$24,494
SUBTOTAL CASH FROM OPERATIONS	$77,000	$83,930	$90,644
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	$77,000	$84,000	$91,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$37,000	$39,000	$41,000
Bill Payments	$19,000	$24,000	$27,000
SUBTOTAL SPENT ON OPERATIONS	$56,000	$63,000	$68,000
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	$65,000	$70,200	$75,816
Net Cash Flow	$20,000	$20,000	$22,000
Cash Balance	$30,000	$31,000	$33,000

 

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$271,000	$303,520	$333,872
Accounts Receivable	$25,000	$28,000	$31,472
Inventory	$4,400	$4,928	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$278,000	$311,360	$349,969
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$18,800	$21,056	$23,688
TOTAL LONG-TERM ASSETS	$23,300	$26,096	$29,358
TOTAL ASSETS	$290,000	$324,800	$365,400
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	$17,000	$19,040	$21,401
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$50,000	$54,500	$59,950
Earnings	$191,000	$208,190	$229,009
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$302,000	$324,800	$365,400
Net Worth	$293,000	$319,370	$351,307

 

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.22%	8.00%	8.86%	3.00%
Percent of Total Assets
Accounts Receivable	9.28%	10.28%	11.39%	9.80%
Inventory	5.46%	6.05%	6.70%	9.90%
Other Current Assets	2.18%	2.42%	2.68%	2.40%
Total Current Assets	150.09%	152.00%	152.00%	158.00%
Long-term Assets	11.60%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.96%	5.00%	5.05%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.66%	7.72%	7.79%	7.38%
NET WORTH	100.50%	101.30%	102.24%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	95.55%	98.13%	100.88%	99.00%
Selling, General & Administrative Expenses	93.95%	96.49%	99.19%	97.80%
Advertising Expenses	1.51%	1.55%	1.59%	1.40%
Profit Before Interest and Taxes	41.70%	42.83%	44.03%	33.90%
Main Ratios
Current	34	35	36	32
Quick	32	32.4	33.21	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	74.08%	74.70%	75.00%	75.00%
Pre-tax Return on Assets	94.24%	98.95%	103.90%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.00%	34.02%	35.08%	N.A.
Return on Equity	55.74%	57.47%	59.25%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	31	32.55	33	N.A.
Accounts Payable Turnover	15	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.5	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	$245,000	$258,720	$273,208	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.

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