business plan for agricultural machinery

Agriculture Equipment Manufacturing Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Do you want to start an agro equipment company? If YES, here is a sample agriculture equipment manufacturing business plan template & FREE feasibility report.

The fact that there is no commercial farm without standard agricultural equipment means that the market for agricultural equipment will always experience upper trajectory. As an investor that has the capacity and engineering background, you should look towards this line of business and interestingly there are unrestricted market for agricultural equipment.

Below is a sample agricultural equipment manufacturing company business plan template.

A Sample Agriculture Equipment Manufacturing Business Plan Template

1. industry overview.

Companies in the tractors and agricultural machinery manufacturing industry manufacture agricultural machinery and equipment, in addition to powered lawn and garden equipment. Key agricultural equipment include tractors, harvesting and seeding machinery, grinders, mixers, wool presses, windmills and other hardware.

The Tractors and Agricultural Machinery manufacturing industry over time has experienced rapid growth due to rapid technological advancements, falling costs and new uses of agricultural machinery and equipment.

Going forward, the demand for agricultural machinery and equipment and of course the revenue generated are projected to increase rapidly as agricultural machinery and equipment manufacturing explodes in popularity and accessibility, especially in commercial farming markets.

Statistics has it that in the united states of America alone, there are about 1,371 registered and agricultural machinery and equipment manufacturing companies responsible for employing about 83,779 and the industry rakes in a whooping sum of $39 billion annually.

The industry was projected to enjoy -5.8 percent annual growth between 2014 and 2019. Although the industry is still pretty much open for new investors, but the establishments with the dominant market share in the industry are Deere & Company, CNH Industrial NV and AGCO Corporation.

Please note that the total U.S. industry market size for Tractors and Agricultural Machinery Manufacturing Industry statistics cover all companies in the United States, both public and private, ranging in size from small businesses to market leaders.

In addition to revenue, the industry market analysis shows information on employees, companies, and average firm size et al. Research carried out by IBISWorld estimates that industry revenue will decrease at an average annualized rate of 2.1 percent to $33.94 billion over the five years to 2015.

Immediately following the recession, the industry performed strongly, with high crop prices boosting demand for ethanol and solid climate conditions. These factors boosted farm income and demand for tractors and other agricultural implements.

However, the industry began declining in 2013, as weak commodity prices, a stronger dollar and softening demand for rural produce has caused farmers to put off new equipment purchases. In 2015, revenue is expected to continue declining. Global demand is expected to continue weakening as the dollar continues to increase and interest rate hikes are introduced.

If you are looking towards starting your own tractors and agricultural machinery manufacturing business, then you should endeavor to do your research, set the required structure and assemble the required team.

The tractors and agricultural machinery manufacturing business is still open to new entrepreneurs and investors to come in and build a successful business. But they must first and foremost ensure that they conduct thorough feasibility studies and market survey before situating the business in any location.

2. Executive Summary

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is a U.S based agricultural machinery manufacturing company. We have been able to secure a standard production facility in a conducive environment in Lake Tahoe – Nevada. We chose to start in Lake Tahoe because the city has continued to be a major center for venture capital investment.

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. will be involved in the manufacturing of agricultural machinery and equipment such as tractors, harvesting and seeding machinery, grinders, mixers, wool presses, windmills and other hardware.

We will also be involved in the manufacturing of powered lawn and garden equipment for homes. Our business goal is to become one of the leading agricultural machinery manufacturing company in the United States and we will make sure that every agricultural machinery that leaves our production facility can favorably compete with the best in the industry.

Our workers are going to be selected from a pool of talented and highly creative engineers in and around Lake Tahoe – Nevada. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company.

At Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by delivering excellent and efficient tractors and agricultural machinery and also meeting our client’s needs precisely and completely.

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is a private business that is owned and managed by Mr. Darren Stanley and his immediate family members. Darren Stanley studied Printing Technology from Illinois Institute of Technology and he has over 22 years’ experience working with the leading agricultural machinery manufacturing companies in the United States of America.

3. Our Products and Services

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is established with the aim of maximizing profits in the industry.

We want to compete favorably with companies in the United States of America which is why we have but in place a competent quality assurance team that will ensure that all the agricultural machinery that we manufacture meet and even surpass our customers’ expectations.

We will work hard to ensure that Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is not just accepted in Lake Tahoe – Nevada but also throughout the United States of America.

We will be involved in the;

• Manufacturing farm tractors and attachments
• Manufacturing harvesting equipment and machinery
• Manufacturing irrigation equipment
• Manufacturing seeders
• Manufacturing sprayers and spreaders
• Manufacturing windmills
• Manufacturing powered agricultural mowers
• Manufacturing livestock feeding and watering equipment

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class agricultural machinery manufacturing company whose products and brand will not only be accepted in Lake Tahoe – Nevada and throughout the United States of America.
• Our mission is to build a world class tractors and agricultural machinery manufacturing company that will be known to manufacture top notch tractors and agricultural machinery and to become the number one choice for the agriculture sector and other stake holder in and around the United States.
• We want to build a company that can favorably compete with other leading brands in the industry.

Our Business Structure

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. intends starting small in Lake Tahoe – Nevada, but hopes to grow big in order to compete favorably with leading companies in the industry. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operation.

At Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Plant Manager
• Human Resources and Admin Manager

Sales and Marketing Manager

Engineers and Technologists

• Accountants/Cashiers
• Customer Services Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Responsible for fixing prices and signing business deals
• Accountable for providing direction for the business
• Creates, communicates, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Supervises the smooth running of the daily office activities.

Plant Manager:

• Responsible for overseeing the smooth running of the production plant
• Responsible for approving tractors and agricultural machinery designs and concepts
• Part of the team that determines the quantity of tractors and agricultural machinery and other products that are to be produced
• Maps out strategies that will lead to efficiency amongst workers in the factory
• Responsible for training, evaluation and assessment of factory workers
• Ensures that the steady flow of both raw materials to the factory and easy flow of finished products through wholesale distributors to the market
• Ensures that the factory meets the expected safety and health standard at all times.
• Interfaces with third – party suppliers (vendors) of raw materials
• Controls tractors and agricultural machinery distribution and supply inventory
• Supervises the workforce in the factory.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company
• Responsible for designing and manufacturing of farm tractors and attachments
• Harvesting equipment and machinery
• Irrigation equipment
• Sprayers and spreaders
• Powered agricultural mowers
• Livestock feeding and watering equipment

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive/Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. employed the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured tractors and agricultural machinery manufacturing business that can favorably compete in the highly competitive industry in the United States

Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc.;

Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient agricultural machinery manufacturing engineers and technologists, a team with excellent qualifications and experience in various niche areas in the industry.

Aside from the synergy that exists in our carefully selected agricultural machinery manufacturing technologists and engineers, we have some of the latest and efficient tractors and agricultural machinery and of course our work output and products will be guided by international best practices.

As a new tractors and agricultural machinery manufacturing company in Lake Tahoe – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from the government and other high – profile clients in the highly competitive industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

• Opportunities:

Private investment in computers and software signals a greater focus on technological change. In particular, this investment has an effect on demand for industry products. As connectivity- and autonomy-supporting technology advances in farm equipment, consumers are incentivized to purchase new equipment to take advantage of efficiency gains.

The level of investment in computers and software is expected to rise in the coming year, representing a potential opportunity for this industry. Expected technological advances are forecast to incentivize new purchases.

Many tractors and related machinery products are purchased on credit. When interest rates increase, demand for new products from this industry generally decreases due to higher financing costs. Farmers’ inability to purchase equipment at a high prime rate drives down demand and impedes industry growth. The prime rate, a proxy for all interest rates, is expected to rise in the coming year, representing a potential threat to this industry.

7. MARKET ANALYSIS

• Market Trends

Over the five years to 2015, the US farming segment has also experienced growth in corporatization and consolidation. Price competition has particularly resulted in major consolidation within the industry, causing many smaller industry players to exit the market, as larger players acquire the smaller companies.

Demand for large tractors over 100 horsepower has gone up in response to this trend. Profit is expected to remain stable over the five-year period to 2022 as rising labor productivity will help maintain profitability.

Recent trends in the agricultural machinery manufacturing industry shows that rise and fall in market prices are key factors that affected by supply, demand, and the cost of goods/services sold. Higher demand or COGS will put upward pressure on prices. Higher competition among Tractors & Agricultural Machinery Manufacturing companies will put a downward pressure on prices.

8. Our Target Market

Before starting our agricultural machinery manufacturing company, we are certain that there is a wide range of both business and individual clients who will need our products. We will ensure that we develop strategic pacts with major players in the agricultural sector.

This will give us several options to generate revenue for our company. In view of that, we have created strategies that will enable us reach out to our target market and for the start, we will concentrate only on;

• Commercial crop farmers
• Cattle farmers
• Poultry farmers
• Hydroponic farmers
• Cow and calf operation business owners
• Fish and seafood farmers
• Fish hatcheries
• Tractors and agricultural machinery merchants
• Landscapers

Our Competitive Advantage

We are quite aware that to be highly competitive in the Tractors and Agricultural Machinery Manufacturing industry means that you are not only expected to be able to deliver consistent and highly efficient agricultural machinery, but you must be able to meet set targets. No one would want to continue to order products from you if your products are not reliable.

Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient tractors and agricultural machinery manufacturing technologists and engineers, a team with excellent qualifications and experience in various niche areas in the industry.

Aside from the synergy that exists in our carefully selected agricultural machinery manufacturing technologists and engineers, we have some of the latest and efficient production machines and equipment and of course our work output and product will be guided by international best practices in the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

We are not ignorant of the fact that there are growing competitions in the Tractors and Agricultural Machinery Manufacturing industry which is why we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their set targets and the overall business goal of Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc.

Our goal is to grow Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. to become one of the leading agricultural machinery manufacturing companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Lake Tahoe – Nevada but also in other cities in the United States of America

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is set to make use of the following marketing and sales strategies to attract clients and win contracts;

• Introduce our tractors and agricultural machinery manufacturing company by sending introductory letters alongside our brochure to players in the agricultural sector and key stake holders in and around the United States of America.
• Promptness in bidding for tractors and agricultural machinery supply contracts from the government and other larger farming corporations
• Advertise our business in relevant tractors and agricultural machinery magazines, newspapers, TV and radio stations
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Join local chambers of commerce and industries to network and market our services
• Encourage word of mouth marketing from loyal and satisfied clients

Sources of Income

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is established with the aim of maximizing profits in the Tractors and Agricultural Machinery Manufacturing industry and we are going to go ensure that we do all it takes to meet and surpass the expectations of all our clients.

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. will generate income by engaging in;

10. Sales Forecast

We are well positioned to take on the available market in Tractors and Agricultural Machinery Manufacturing industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our company to enviable heights.

We have been able to examine the agricultural machinery manufacturing market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc., it is based on the location of our business and of course the wide range of our products and target market;

• First Fiscal Year (FY1): $1.2 million
• Second Fiscal Year (FY2): $2 million
• Third Fiscal Year (FY3): $4.7 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

11. Publicity and Advertising Strategy

We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate and individual clients in the whole of the Lake Tahoe and beyond which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc.;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community – based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards in strategic locations all around Lake Tahoe – Nevada
• List our tractors and agricultural machinery manufacturing company in local directories / yellow pages
• Advertise our tractors and agricultural machinery manufacturing company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

At Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. we will adopt all the pricing system as is obtainable in the industry but we will ensure that we keep the prices of our agricultural machinery and after sale maintenance services a little below the average market rate by keeping our overhead low and by collecting payment in advance from our customers. In addition, we will also offer special discounted rates to all our customers at regular intervals.

• Payment Options

The payment policy adopted by Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for our agricultural machinery and after sale maintenance services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

This is what it would cost us to setup Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. in Lake Tahoe – Nevada, U.S;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring a standard production facility that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $350,000.
• The amount needed to purchase the needed production machines and raw materials – $1.2 million
• Equipping the office (computers, 3D printing machines and equipment, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $150,000
• Amount required to purchase the needed software applications – $ 3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about $2.5 million to successfully set up a medium scale agricultural machinery manufacturing company in the United States of America.

Generating Funds/Startup Capital for Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc.

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is a family business that will be owned by Mr. Darren Stanley and his immediate family members. They decided to restrict the sourcing of the start-up capital for the business to just three major sources.

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $700,000 (Personal savings $500,000 and soft loan from family members $200,000) and we are at the final stages of obtaining a loan facility of $1.5 million from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is to ensure that we continue to make available quality and reliable agricultural machinery, after sales maintenance services and improvise on how to do things faster and cheaper.

We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

We are quite aware that our customers are key components to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services.

Our key sustainability and expansion strategy as a business is to ensure that we only hire competent and technically sound employees, create a conducive working environment and employee benefits for all our staff members. We know that if we implement our business strategies, we will grow our agricultural machinery manufacturing business beyond Lake Tahoe – Nevada to other states in the U.S in record time.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard production facility plus renovation of the facility: Competed
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Printing of Packaging Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed tractors and agricultural machinery production machines and other equipment: Completed
• Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the agricultural industry: In Progress

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How to Start a Farm: Plan Your Operation

Think about your operation from the ground up and start planning for your business.  A good farm business plan is your roadmap to start-up, profitability, and growth, and provides the foundation for your conversation with USDA about how our programs can complement your operation. 

Keep reading about planning your business below, get an overview of the beginning farmer's journey , or jump to a different section of the farmer's journey.

On This Page

Why you need a farm business plan.

A comprehensive business plan is an important first step for any size business, no matter how simple or complex. You should create a strong business plan because it:

• Will help you get organized . It will help you to remember all of the details and make sure you are taking all of the necessary steps.
• Will act as your guide . It will help you to think carefully about why you want to farm or ranch and what you want to achieve in the future. Over time, you can look back at your business plan and determine whether you are achieving your goals.
• Is required to get a loan . In order to get an FSA loan, a guarantee on a loan made by a commercial lender, or a land contract, you need to create a detailed business plan . Lenders look closely at business plans to determine if you can afford to repay the loan.

How USDA Can Help

Whether you need a good get-started guide, have a plan that you would like to verify, or have a plan you’re looking to update for your next growth phase, USDA can help connect you to resources to help your decisions.

Your state's beginning farmer and rancher coordinator  can connect you to local resources in your community to help you establish a successful business plan. Reach out to your state's coordinator for one-on-one technical assistance and guidance. They can also connect you with organizations that specifically serve beginning farmers and ranchers.

It is important to know that no single solution fits everyone, and you should research, seek guidance, and make the best decision for your operation according to your own individual priorities.

Build a Farm Business Plan

There are many different styles of business plans. Some are written documents; others may be a set of worksheets that you complete. No matter what format you choose, several key aspects of your operation are important to consider.

Use the guidelines below to draft your business plan. Answering these kinds of questions in detail will help you create and develop your final business plan. Once you have a business plan for your operation, prepare for your visit to a USDA service center. During your visit, we can help you with the necessary steps to register your business and get access to key USDA programs.

Business History

Are you starting a new farm or ranch, or are you already in business? If you are already in business:

• What products do you produce?
• What is the size of your operation?
• What agricultural production and financial management training or experience do you, your family members, or your business partners have?
• How long have you been in business?

Mission, Vision, and Goals

This is your business. Defining your mission, vision and goals is crucial to the success of your business. These questions will help provide a basis for developing other aspects of your business plan.

• What values are important to you and the operation as a whole?
• What short- and long-term goals do you have for your operation?
• How do you plan to start, expand, or change your operation?
• What plans do you have to make your operation efficient or more profitable ?
• What type of farm or ranch model (conventional, sustainable, organic, or alternative agricultural practices) do you plan to use?

Organization and Management

Starting your own business is no small feat. You will need to determine how your business will be structured and organized, and who will manage (or help manage) your business. You will need to be able to convey this to others who are involved as well.

• What is the legal structure of your business? Will it be a sole proprietorship, partnership, corporation, trust, limited liability company, or other type of entity?
• What help will you need in operating and managing your farm or ranch?
• What other resources, such as a mentor or community-based organization , do you plan to use?

Marketing is a valuable tool for businesses. It can help your businesses increase brand awareness, engagement and sales. It is important to narrow down your target audience and think about what you are providing that others cannot.

• What are you going to produce ?
• Who is your target consumer ?
• Is there demand for what you are planning to produce?
• What is the cost of production?
• How much will you sell it for and when do you expect to see profit ?
• How will you get your product to consumers ? What are the transportation costs and requirements?
• How will you market your products?
• Do you know the relevant federal, state, and local food safety regulations? What licensing do you need for your operation?

Today there are many types of land, tools, and resources to choose from. You will need to think about what you currently have and what you will need to obtain to achieve your goals.

• What resources do you have or will you need for your business?
• Do you already have access to farmland ? If not, do you plan to lease, rent, or purchase land?
• What equipment do you need?
• Is the equipment and real estate that you own or rent adequate to conduct your operation? If not, how do you plan to address those needs?
• Will you be implementing any conservation practices to sustain your operation?
• What types of workers will you need to operate the farm?
• What additional resources do you need?

Now that you have an idea of what you are going to provide and what you will need to run your operation you will need to consider the finances of your operation.

• How will you finance the business?
• What are your current assets (property or investments you own) and liabilities (debts, loans, or payments you owe)?
• Will the income you generate be sufficient to pay your operating expenses, living expenses, and loan payments?
• What other sources of income are available to supplement your business income?
• What business expenses will you incur?
• What family living expenses do you pay?
• What are some potential risks or challenges you foresee for your operation? How will you manage those risks?
• How will you measure the success of your business?

Farm Business Plan Worksheets

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

Planning for Conservation and Risk Management

Another key tool is a conservation plan, which determines how you want to improve the health of your land. A conservation plan can help you lay out your plan to address resource needs, costs and schedules.

USDA’s Natural Resources Conservation Service (NRCS) staff are available at your local USDA Service Center to help you develop a conservation plan for your land based on your goals. NRCS staff can also help you explore conservation programs and initiatives, such as the Environmental Quality Incentives Program (EQIP) .

Conservation in Agriculture

Crop insurance, whole farm revenue protection and other resources can help you prepare for unforeseen challenges like natural disasters.

Disaster Recovery

Special Considerations

Special considerations for businesses.

There are different types of farm businesses each with their own unique considerations. Determine what applies to your operation.

• Organic Farming  has unique considerations. Learn about organic agriculture , organic certification , and the  Organic Certification Cost Share Program  to see if an organic business is an option for you. NRCS also has resources for organic producers and offers assistance to develop a conservation plan.
• Urban Farming  has special opportunities and restrictions. Learn how USDA can help farmers in urban spaces .
• Value-Added Products . The Agricultural Marketing Resource Center (AgMRC) is a national virtual resource center for value-added agricultural groups.
• Cooperative.  If you are interested in starting a cooperative, USDA’s Rural Development Agency (RD) has helpful resources to help you begin . State-based  Cooperative Development Centers , partially funded by RD, provide technical assistance and education on starting a cooperative.

Special Considerations for Individuals

Historically Underserved Farmers and Ranchers: We offer help for the unique concerns of producers who meet the USDA definition of "historically underserved,"  which includes farmers who are:

• socially disadvantaged
• limited resource
• military veterans

Women: Learn about specific incentives, priorities, and set asides for  women in agriculture within USDA programs.

Heirs' Property Landowners: If you inherited land without a clear title or documented legal ownership, learn how USDA can help Heirs’ Property Landowners gain access to a variety of programs and services

Business Planning

Creating a good business plan takes time and effort. The following are some key resources for planning your business.

• Farm Answers from the University of Minnesota features a library of how-to resources and guidance, a directory of beginning farmer training programs, and other sources of information in agriculture. The library includes business planning guides such as a Guide to Developing a Business Plan for Farms and Rural Businesses and an Example Business Plan .
• The Small Business Administration (SBA) offers information about starting, managing, and transitioning a business.

SCORE is a nonprofit organization with a network of volunteers who have experience in running and managing businesses. The Score Mentorship Program partners with USDA to provide:

• Free, local support and resources, including business planning help, financial guidance, growth strategies.
• Mentorship through one-on-one business coaching -- in-person, online, and by phone.
• Training from subject matter experts with agribusiness experience.
• Online resources and step-by-step outlines for business strategies.
• Learn more about the program through the Score FAQ .

Training Opportunities

Attend field days, workshops, courses, or formal education programs to build necessary skills to ensure you can successfully produce your selected farm products and/or services. Many local and regional agricultural organizations, including USDA and Cooperative Extension, offer training to beginning farmers.

• Cooperative Extension  offices address common issues faced by agricultural producers, and conduct workshops and educational events for the agricultural community.
• extension.org  is an online community for the Cooperative Extension program where you can find publications and ask experts for advice.

Now that you have a basic plan for your farm operation, prepare for your visit to a USDA service center.

2. Visit Your USDA Service Center

How to Start a Farm with USDA

Get an  overview of the beginning farmer's journey  or jump to a specific page below.

Find Your Local Service Center

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Learn more about our Urban Service Centers . Visit the Risk Management Agency website to find a regional or compliance office  or to find an insurance agent near you.

How to Create an Agricultural Business Plan

Blog > how to create an agricultural business plan, table of content, introduction, executive summary, company description, market analysis, product/service description, marketing and sales strategies, operational plan, swot analysis, financial projections, funding and investment, risk management, sustainability and environmental impact, legal and regulatory compliance, timeline and milestones, our other categories.

• Company Valuation
• Pitch Deck Essentials
• Raising Capital
• Startup Guide
• Uncategorized

Reading Time : 16 Min

Business plan 101.

Starting an agricultural venture is an exciting and rewarding journey, but it requires careful planning and a well-crafted agricultural business plan. This document serves as a roadmap for your agricultural business, outlining your goals, strategies, and financial projections. In this comprehensive guide, we will walk you through each step of creating a robust agricultural business plan to set your venture up for success. Whether you’re planning to start a small family farm or a large-scale agricultural operation, this guide will help you make informed decisions and navigate the challenges of the agricultural industry.

The executive summary is the first section of your agricultural business plan, but it is typically written last. This section provides a concise overview of your entire plan and should capture the reader’s attention. Include the following elements in your executive summary:

• Example: ABC Farms is a sustainable agriculture venture committed to providing organic, locally sourced produce to health-conscious consumers in the region. Our mission is to promote eco-friendly farming practices and support local communities while delivering premium-quality products.

Stellar Business Tips: Keep your executive summary clear, compelling, and focused. Highlight the unique selling points of your agricultural business and how it addresses market demands.

In this section, provide a comprehensive description of your agricultural business. Include the following details:

• Example: ABC Farms was founded in 2010 by John and Jane Smith, who have a combined experience of over 20 years in sustainable agriculture. The business started as a small family farm and has since expanded to a 50-acre organic farm with a diverse range of crops, including vegetables, fruits, and herbs.

Stellar Business Tips: Share your business’s background, founders’ expertise, and growth trajectory. Emphasize your passion for agriculture and commitment to environmental and social responsibility.

Conduct a thorough market analysis to gain insights into the agricultural industry, market trends, and potential opportunities. Consider the following factors:

• Example: The organic produce market has been steadily growing at a rate of 10% per year, driven by increasing consumer awareness of health benefits and environmental concerns. Local restaurants and grocery stores are eager to source fresh, organic produce from nearby farms.

Stellar Business Tips: Use data and statistics to support your market analysis. Identify target customers and potential gaps in the market that your agricultural business can address.

Detail the agricultural products or services your business offers. If you are into crop farming, describe the crops you plan to grow, their varieties, and their uses. If you are into livestock rearing, specify the types of animals and breeds you’ll raise. If you offer agricultural services, describe them in detail.

• Example: ABC Farms specializes in heirloom vegetables, such as tomatoes, peppers, and cucumbers, renowned for their exceptional flavor and nutritional value. We also raise heritage-breed livestock, including free-range chickens and pasture-raised pigs, to provide ethically sourced meat products.

Stellar Business Tips: Highlight the uniqueness and quality of your agricultural products or services. Emphasize your commitment to sustainability and responsible animal husbandry if applicable.

Outline your marketing and sales strategies to reach and attract your target customers. Consider the following aspects:

• Example: ABC Farms utilizes social media platforms to showcase our farm-to-table journey and engage with customers. We actively participate in farmers’ markets and local food events to promote our brand and build personal connections with consumers.

Stellar Business Tips: Utilize digital marketing tools, such as social media and email marketing, to create brand awareness and engage with customers directly. Explore partnerships with local businesses to expand your reach.

The operational plan outlines how your agricultural business will function on a day-to-day basis. It includes the following details:

• Example: ABC Farms employs a team of experienced farmers who follow sustainable farming practices, including crop rotation and integrated pest management, to ensure soil health and minimize environmental impact. We have invested in modern irrigation systems and machinery to optimize productivity and reduce labor costs.

Stellar Business Tips: Detail the specific practices and technologies you’ll use to enhance efficiency and sustainability. Showcase your commitment to ethical and responsible farm management.

Conduct a SWOT analysis to evaluate your agricultural business’s internal strengths and weaknesses, as well as external opportunities and threats. Use this analysis to make informed decisions and develop effective strategies.

• Example: Strengths: ABC Farms has established a strong reputation for premium-quality produce, garnering repeat customers and positive reviews. Weaknesses: We currently face limited storage facilities for harvested crops, which may affect our ability to meet peak demands.

Stellar Business Tips: Be honest about your agricultural business’s strengths and weaknesses. Address how you plan to capitalize on opportunities and mitigate potential risks.

The financial projections section provides a detailed forecast of your agricultural business’s financial performance over the next 3-5 years. Include the following financial statements:

• Example: Sales Forecast: We anticipate steady growth in sales, with a projected increase of 15% annually due to expanding customer base and diversified product offerings.

Stellar Business Tips: Use realistic and data-driven estimates for your financial projections. Include contingency plans for unforeseen financial challenges.

If your agricultural business requires funding or investment, outline your funding requirements and sources of financing. This section should include:

• Example: Funding Requirements: ABC Farms seeks a capital investment of $200,000 to expand farmland, install greenhouses, and upgrade equipment to meet the growing demand for our organic products.

Stellar Business Tips: Clearly explain how the investment will be used to drive the growth and success of your agricultural business.

Identify potential risks and challenges that your agricultural business may face and develop risk management strategies to mitigate their impact. Consider the following risk categories:

• Example: Market Risks: Fluctuations in commodity prices and changes in consumer preferences may impact our sales revenue. To address this, we will diversify our product offerings and explore new markets.

Stellar Business Tips: Demonstrate your proactive approach to risk management. Provide solutions for handling potential challenges to reassure stakeholders.

As the importance of sustainable farming practices grows, customers and investors increasingly value agricultural businesses that prioritize environmental stewardship and social responsibility. In this section, highlight your commitment to sustainability:

• Example: ABC Farms is committed to regenerative agriculture practices, including cover cropping and no-till farming, to enhance soil health and sequester carbon. We actively participate in local conservation programs to protect natural habitats and biodiversity.

Stellar Business Tips: Showcase your efforts to contribute positively to the environment and local community. Share success stories of how your sustainable practices have made a difference.

The agricultural industry is subject to various laws and regulations, such as agricultural zoning laws, environmental regulations, labor laws, and food safety standards. In this section, address the legal and regulatory aspects of your agricultural business:

• Example: ABC Farms complies with all local, state, and federal regulations for organic certification and food safety. We conduct regular inspections and maintain accurate records to ensure full compliance.

Stellar Business Tips: Emphasize your commitment to adhering to legal requirements and ensuring transparency in your agricultural operations.

Develop a timeline for your agricultural business’s key milestones and achievements. This section should include:

• Example: Milestone Timeline: Year 1 – Acquire additional farmland; Year 2 – Expand greenhouse production; Year 3 – Launch an online farm-to-table store.

Stellar Business Tips: Set realistic timelines for achieving your milestones. This will help you track progress and stay on course.

In conclusion, creating a well-structured and comprehensive agricultural business plan is crucial for your venture’s success. It provides a roadmap to guide your agricultural business towards its goals, while also attracting investors and other stakeholders. Remember that the agricultural industry is dynamic and continually evolving, so your business plan should be flexible enough to adapt to changing market conditions and opportunities.

By following the steps outlined in this guide and incorporating sustainable practices, your agricultural business can thrive in an increasingly competitive landscape. At Stellar Business Plans , we are dedicated to supporting the success of agricultural entrepreneurs like you. Our team of experts can assist you in crafting a tailored business plan that aligns with your vision and values. Let’s cultivate growth together and create a sustainable future for agriculture!

Remember, agricultural business success is not only about financial gains but also about nurturing the land, supporting local communities, and providing consumers with nutritious and ethically sourced products. Let your passion for agriculture and dedication to sustainability shine through every aspect of your business. Together, we can sow the seeds of a thriving agricultural future.

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Updated On : September 2, 2023

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Agriculture Business Plan Template

Written by Dave Lavinsky

Agriculture Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and farm owners create business plans to start and grow their agricultural companies.

If you’re unfamiliar with creating an agriculture or farm business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a good business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an agriculture business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Agriculture Business Plan?

A business plan provides a snapshot of your agricultural business as it stands today, and lays out your growth plan for the next five years. It is a valuable tool that explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan for an Agriculture Business

If you’re looking to start an agricultural business or grow your existing agricultural company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your farm to improve your chances of success. Your agricultural business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Agricultural Businesses

With regard to funding, the main sources of funding for an agricultural business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review a comprehensive business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for agricultural companies.

    Finish Your Business Plan Today!

How to write a business plan for an agricultural business.

If you want to start an agricultural business or expand your current one, you need a business plan. A good farm business plan should include 10 sections as follows:

Executive Summary

Company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan. The goal of your executive summary is to quickly engage the reader. Explain to them the kind of farm business you are running and the status. For example, are you a startup, do you have an agricultural business that you would like to grow, or do you have a farming operation that you would like to sell? Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the agricultural industry.
• Discuss the type of farm you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

In your company overview, you will detail the type of agricultural production you are operating.

For example, you might specialize in one of the following types of agricultural businesses:

• Animal feed manufacturing : the production and sale of food formulas for farm animals.
• Agrichemical and seed manufacturing : the production and sale of agrichemicals (e.g., fertilizers, pesticides, and fungicides) and seeds to farmers that support the growth of their crops.
• Agricultural engineering : development, testing, and implementation of new agriculture tools and machinery to improve the process for farmers.
• Biofuel manufacturing : the production of energy from biomass.
• Crop production : the process of growing and harvesting a variety of crops such as fruits, vegetables, and grains.

In addition, the company overview needs to provide information about the business history.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include reaching X number of harvests per year, the number of customers served, or reaching $X amount in revenue.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

In your industry or market analysis, you need to provide an overview of the agricultural industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the agricultural industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies industry trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in this section:

• How big is the agricultural industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your agricultural business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of agricultural business you operate. Clearly, schools would respond to different marketing promotions than corporations, for example.

Try to break out your target market into segments in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target audience. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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With Growthink’s Ultimate Business Plan Template , you can finish your plan in just 8 hours or less!

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other farms and agricultural producers.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of farmers, wholesalers, and distributors.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of agricultural business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to engage with you?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an agriculture business, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of agricultural company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you produce fruit, soy, or vegetable products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your agricultural company. Document where your company is situated and mention how the site will impact your success. For example, is your agricultural business located on a small or large farm near your customer base? And, will you operate one or multiple locations? Discuss how your site might be the ideal location for your customers.

Promotions : The final part is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Attend farmers markets
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your farm business, including scheduling employees, tracking inventory, accepting orders and payments, and meeting with customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your Xth harvest, or when you hope to generate $X in revenue. It could also be when you expect to expand your farm business to a new region.

To demonstrate your potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing agricultural businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an agriculture business, or owning their own farm.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many pounds of each crop do you plan to yield each season? And what is your sales strategy to grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your farm business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a farm business:

• Cost of farm equipment and supplies
• Operating expenses
• Payroll or salaries paid to staff
• Business insurance
• Other start-up costs (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your farm’s location lease or a list of agricultural equipment and machinery used on your farm.  

Free Business Plan Template for a Farm or Agriculture Business

You can download our farm business plan PDF template here.  

Agriculture Business Plan Summary

Putting together a business plan for your agriculture business will improve your company’s chances of success. The process of developing your plan will help you better understand your target market, your competition, and your customers. You will also gain a marketing plan to better attract and serve customers, an operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Growthink’s Ultimate Business Plan Template allows you to quickly and easily write your business plan.  

Additional Resources for Starting an Agriculture Business

• How To Start a Farm
• Sample Farm Business Plan
• Starting a New Agricultural Business
• Small and Mid-Sized Farmer Resources
• Starting a Sustainable Agriculture Business
• Beginning Farmers and Ranchers Loans
• Business Resources for Those Starting to Farm or for an Existing Farm

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan professional services can help you create a winning business.  

Other Helpful Business Plan Articles & Templates

Business Plan Tools for Producers

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. 

Free business plan bundle for farmers

We want to help make writing your business plan easier. The FCC business plan bundle was designed specifically for farm operations and anyone involved in Canadian agriculture.

The bundle includes:

Business plan guide with instructions and resources

Blank business plan template

Sample business plan

Why you need a business plan

There's a lot involved in writing a business plan, but it’s a worthwhile investment. It can help secure financing from a lender, attract investment or act as an internal guide, keeping your management team focused on the same goals.

Related business plan tools

Analyzing cash flow drivers

Assessing your liquidity

Assessing your management ability

Building and sensitizing financial projections

Creating an organizational chart/job description

Financial Asset Analysis

Foundational financial ratios

Net worth template

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Farm Machinery Manufacturer Sample Business Plan

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Farm Machinery Manufacturer Business Plan

Executive summary.

Kouros Brothers Ltd. is an agriculture machinery and implements manufacturer importer and authorized reseller that sells A-Z series of heavy machinery and systems for Potatoes, Vegetables, Cereals, Stubble, and beach cleaning turn key projects and machinery. We have also patented and piloted four innovative machinery and systems the last 6 years for Vegetable and Cereal productions. Is also the sole and exclusive agent and dealer of 10 main agriculture manufacturers in Europe. It has managed to create communication links and to export its series of machinery in Middle East and Syria the last 3 years.

Kouros Brothers Ltd. has an experienced management team with direct knowledge of the industry, extensive research experience, and unique administrative skills. Its team includes Mr. Kouros and Mr Panikos Stella live in Larnaca, Cyprus. Both Owners have compiled an extensive list of customers/potential customers, vendors, and contacts for equipment consignment.

New Opportunity Last week it was announced by the Ministry of Agriculture, Natural Resources and Environment that EU has available 256 million Euro for funding from 65%-80% of all units or producers intending to modernize and use technological advances in order to improve customers’ (Agriculture Producers’) product quality and to be able to export goods into European markets at competitive prices.

We have a good reputation locally, but sales are slow because local farmers cannot buy new equipment every year. With Cyprus’ admission to the EU, this large amount of funding will let farmers buy more and newer equipment. However, the local farmers will only buy equipment they know to be effective; the best way to convince them, in our experience, is to bring a sample of equipment to their fields to demonstrate.

Kouros Brothers Ltd. has good earnings and assets, but we do not have enough cash on hand to buy the wide range of demonstration equipment we need to meet the sales potential created by the upcoming Government funds to our customers. The company intents to employ local individuals and to provide extensive training about its products and services in order to promote its sales. Loyal customers help to expand the company’s business area by word-of-mouth.

We have already identified a list of potential customers and communities that are willing and able to try its new product series. Even more so, the pilot equipments will be used for the upcoming October International fair for Agriculture and Livestock that will take place, at Nicosia, Cyprus. And also, the company plans to participate in the Thesalloniki state Agricultural fair that will take place on the 28th January next. As a sole agent and sales representative for Cyprus, Greece and Syria for some series of Wheat planting systems, the company needs to promote its series of products to all available marketing opportunities.

The company is seeking funding of the amount of £50,000 for the purpose of expanding the business. Expansion plans include the purchase of additional equipments allowing the company to promote and to demonstrate its products and services, and also by hiring additional personnel. This loan will be paid back in 6 years, with principal payments of £5,833/year, at 8.5% interest. This is on top of the existing 10,000 loan, which will be paid back on the same time frame, at roughly £1,666/year.

With this new demonstration equipment, and well-funded customers, our projected revenues for Year 1 are expected to reach £274,200, and up to £400,000 by Year 5.

1.1 Objectives

The Kouros Brothers Ltd. directors believe that, there is a current untapped market opportunity for agriculture machinery because, existing providers of agriculture machinery and implements are too diversified to serve the increasingly specialized needs of the potato segment, by ignoring the crop needs for mechanization of Vegetables, Cereal, wheat and livestock sectors.

The company’s coverage area is constantly increasing, as customers are becoming aware of the company’s presence. European community offers a real business opportunity for such expansion, because now, there are 256 million Euro available for agriculture funding and support by EU agriculture committee, left to the Cyprus Government, to fund the Local Farmers and Agriculture producers for upgrading their production effectiveness and efficiency.

1.2 Mission

Kouros Brothers Ltd. mission is to become THE exclusive full-service equipment manufacturer and authorized importer, sales, and service company in agriculture machinery and implements in Cyprus and to expand its business to Middle East, with the ability to satisfy all needs of Livestock farmers and Agriculture producers.

Therefore, the company’s strategy is to create a limited geographical niche for itself, where there will be no potential competitors. Kouros Brothers Ltd. aims to offer high-quality agriculture equipments and machinery for crop mechanization of potato, vegetables and wheat crops at a price which is competitive in comparison to other premium-quality commercial machinery manufacturers in the local market.

1.3 Keys to Success

Kouros Brothers Ltd.’s keys to success will include:

• A high level of quality in its product line.
• A-Z equipment mechanization series for Vegetables, Cereals, Potatoes & Livestock.
• Maintaining and growing its referral networks to generate new and repeat sales.
• Significant investments in research and development of machinery with the aim to focus on precisely controlled equipment (Coriander seed, carrot machines etc.).
• Improving efficiencies of operations and to reduce the crop producers operating costs.
• Link with Consulting offices for Agriculture and Scientific support to its Customers.
• The machinery and Systems of Kouros Brothers Ltd. aim to help Cypriot farmers and Agriculture producers to export their products in the European market and to obey all European directives for product quality.

Company Summary

Kouros Brothers Ltd. is a manufacturer of heavy Agriculture equipments and Euro, with one location in industrial Estate area, Larnaca. The company began its operations since 1963 with little capital investment. The company combined 40 years of experience in the Agriculture machinery and Implements field to generate a large customer base, where until recently owned 80% of the local Potato machinery market.

The company is specialized into Potato planting and mechanization. After Cyprus accession into EU the company’s Directors decided to expand their field of products and to diversify into Cereal, vegetables and livestock. Kouros Brothers Ltd. hopes to initially make a successful effort to secure start-up financing to implement a new business opportunity.

2.1 Company Ownership

Kouros Brothers Ltd. is a limited liability company. Mr. Kouros Stella Zither, Mr. Panikos Stella, and Mr. Andreas Stella are the shareholders, owning 66%, 26% and 8% of the share capital, respectively.

2.2 Location & Facilities

The company has one office currently located in Industrial Area, at Our Town. The factory is only 3.5 kilometers from the center of town and is located on the front line of the industrial area. It has a 500 sq. meter showroom and is visible from the main road.

The factory has 3000m2 of shop floor area, where all manufacturing equipments and facilities are located and used for either maintenance or manufacturing of equipments and implements.

The factory facilities are open from 07:00 – 17:00 hours, Monday to Friday. The company does receive after hours calls or on weekends and provides assistance as needed.

2.3 Company History

Kouros Brothers Ltd. was founded in Our Town, Cyprus in 1963, to manufacture and to sell a complete A-Z series of potatoes crop mechanization. The company was formed by the Stella Zither family: Mr. Kouros Stella Zither, Mr. Panikos Stella, and Mr. Andreas Stella.

Kouros Brothers Ltd. has its principal offices and manufacturing unit of 3000 m2 , located at Our Town, Industrial estate area, Cyprus.

We have good earnings and Capital Assets (the value of the land and store), but do not have enough cash on hand to buy new samples of the equipment to demonstrate their effectiveness to farmers.

Products and Services

Kouros Brothers Ltd. is a manufacturer and Authorized dealer of imported Agriculture machinery and implements. The company is a manufacturer of the Potato A-Z mechanization such as Potato Planters, Diggers, Harvesters, Inter row cultivators, Taper Machines and Potato Fork-lift tractor mounted machines, Soil Preparation Machinery and Implements, Cereal Machinery and Implements, Transplanting machinery, Irrigation systems, Vegetable small seed planting machines, Wheat and Barley mechanization, Animal food factory and packing systems and Fire Fighting units designed for Agriculture areas.

Kouros Brothers Ltd. takes pride in having brought several new items for Livestock and Vegetable equipments that were otherwise unknown, such as the manure spreader machines, Cereal mechanization, and soil preparation machines. We also have designed and patented a new vegetable seed planting machine for Coriander, Onions, Beans, peas, broad beans, ground nuts, garlic, etc.

Kouros Brothers Ltd. has obtained the authorization to be a distributor for Beach Cleaning machines (French Patented systems). We are also a sole agent for beach creating technology and systems implementation.

Cereals In the case of cereals, the farmers plant 50-120 kgs of seeds per hectare, while they could have the same results and even more production with 18 kgs seed per hectare. Cereal planting systems can save up to 70-100 kgs seed that is wasted in each hectare without reason.

Stubble Cultivator Implement Stubble is an easy and inexpensive food for cows, sheep and other animals, and it decreases the use of fertilizers by 50%. Farmers who acquire the knowledge to increase stubble create their own forage, with the utilization of stable and barley.

If stubble is left in the fields, it can cause serious problems to the Wheat producers. The result is that soil is overloaded, there is a decrease of the fertility of soil and there is a continuous danger of fires which can burn hundreds of hectares of virgin forests and cause disasters to the environment as happens very ofter in summer. (EU directives have forbidden field-burning.) Our unique Stubble cultivator machine can increase Wheat production and also can decrease the producer’s operating costs. By not exploiting stubble, farmers waste of tens of millions of pounds per year.

Potatoes The potato producers lose huge quantities of potatoes that are abandoned in the fields without being collected, because they are only 5-10 cm below soil surface. From research, we found out that more than 1-1.5 tonnes of potatoes are abandoned in the soil in each hectare (1,000 t. meters), and in monetary terms we can say that the profit of the producer is abandoned in the field.

Our unique series of Potato mechanization systems and hectare that are exclusively manufactured into our Factory are tested for simplicity and are made with the best materials can warranty the potato quality and Low operating costs to the potato producer. These machines are satisfying the European directives requirements for Potato quality.

Livestock-farming The cows in Cyprus produce 4-5 tonnes milk per year instead of 10-12 tones per year. For solving such problems our company has created last year a Pilot System of Cereals that can increase cereal production up to 1,000 -1,500 kgs per hectare clover for the livestock-farming and mixing of hay and pellets.

Our company has all the mechanization series and the associates with technology and know-how for animal food preparation and production from Cypriot materials such as Lolium, Loutex, Maze, Vetch, AA and trefoil. Compost Machinery and Manure Spreader. Our Company has well-established European associates with the know-how and the technology to create compost, helping not only in farming sewage problems but also in quality of soil fertilization.

Wheat Planting Machines The Wheat producer, in order to plant seed into 100 hectares, needs to use 250 kgs of Seed and to go to his field at least 4 times. This means 4 times more operating costs and even more so, Wheat prices dropped by 40% with the Cyprus accession into EU.

Our machine is designed such that it can do all four processes–soil cultivation, fertilizing and planting on line, seed cover with soil and corrugation–in one go. The producer needs only 80 kgs per 100 hectares, instead of 250 kgs. Fertilizer is dropped just 1 cm from soil surface, reducing fertilization costs by 50%, because the fertilizer is not moved away by wind or rain.

Seed Vegetable Planting Machines Through research and development over the last 3 years, we have managed to create and to patent a unique Seed vegetable machine for a variety of vegetables such as onions, beans, garlic, coriander, etc. This machine is capable of planting all mentioned Vegetables by minimizing operational costs by up to 70% and can have the products made as per European Union directives as concern Size, Weight and Quality.

The company has already tested this machine for 3 years with several Cypriot vegetable producers and the results were beyond expectations. The machine has already been registered and patented rights are exclusively owned by our company. (Patent No. CY2351)

Market Analysis Summary

The overall market for agriculture machinery and implements is immense.

This business plan has identified over 1,800 agricultural producers and farmers in the local market that have a potential need to maintain and/or win customers or even more so are striving to survive. The funding schemes for agriculture and livestock support set by EU will allow them to stay competitive and this business opportunity is all about it.

Last week it was announced by the Ministry of Agriculture, Natural Resources and Environment that EU has available 256 million Euro for funding from 65%-80% of all units or producers intending to modernize and use technological advances in order to improve customers’ (Agriculture Producers’) product quality and to be able to export goods into European markets at competitive prices.

In reality, all agriculture and livestock businesses are in need of our products, because there are only 3 potential competitors locally who import or manufacture agricultural machinery and implements. Those involved with Potato mechanization have copied some of our unique series of products, whereas only 2 of them are involved with Cereal and Wheat implements. Kouros Brothers Ltd. has all machinery and implement series of equipments that will allow the Cypriot agriculturer and Livestock producer to stay competitive into European markets.

4.1 Market Segmentation

Our market segmentation scheme is fairly straightforward, and focuses on all agricultural and livestock sectors. The information contained in our customer analysis table is taken directly from the last statistics report published by the Ministry of Commerce and Industry and Tourism website and clearly shows that our largest market potential is more concentrated on the following sectors:

• Potato Crop Mechanization
• Cereals Crop Mechanization, including Wheat and Barley
• Vegetables crop Mechanization
• Packing Technology
• Livestock Machinery
• Beach Cleaning Machines and Beach Creation methodologies
• Fire Fighting Systems for rural areas

For more than 35 years, the company has owned almost 80% of the potato mechanization market. However, due to negative growth opportunities in this sector the last years, the prospects of this sector were unclear. Therefore, the company in order to survive has decided to invest in sectors such as new vegetable machine designs that will satisfy the vegetable producer needs (lower operational costs, low investment costs, simple machines, etc.) and also simultaneously through dealership of the main European agriculture machinery and implements manufacturers to become their sole agent and promoter in Cyprus and the Middle East area.

After 40 years of experience in agricultural machinery and implements manufacturing and design, the company has identified its strengths and weaknesses and has focused on vegetable, Cereals, Livestock and Beach Cleaning implements and technologies, allowing it to offer the same quality of service and support as are afforded by the larger businesses.

The strategy used for years was to bring in selected products, and then attempt to find a buyer. This resulted in inventory overstock, and obsolescence. The company already knows the customers’ needs and wants, therefore, as part of its marketing mix has decided to use the start up funding for buying a series of 6 main machinery that will have the most predicted demand and via marketing and promotion will try to promote its complete series of products.

After sales, services and spare parts provision to repeat customers is also part of our new Marketing strategy. The aim of the new marketing approach is to keep the existing customers and not to start building a new market share. Long-term relationships with customers is one of the key-success factors mentioned earlier and was one of the reasons that company survived and earned their business. The company expects that by implementing a correct marketing mix, we will increase our share in this market segment by offering the same value-added service and support benefits that its commercial clients demand.

4.2 Target Market Segment Strategy

Our choice of target markets is based on comprehensive experience within the agriculture industry coupled with an in-depth understanding of the customers’ needs for more than 40 years.

We have taken a unique approach to satisfy our customers needs and wants and also simultaneously to answer all their questions and to air their fears about the effectiveness and efficiency of our products. The company identified that only the on-site testing of the agriculture machinery in the customers’ fields could calm down even the most resistive and questionable customer.

The company cannot be successful by just waiting for the customer to come for ordering. Instead, we must focus on the specific market segments whose needs match more to our series of products. Focusing on targeted segments is the key to company’s future. Therefore, the company’s focus and marketing message will be not only the customer needs but also the after service and spare parts services offered. A good marketing mix will develop company’s message, communicate it, and fulfill its commitment to excellence.

Developing a market strategy is a departure from the way the company has been managed in the past. We will change the paradigm of being a product- and price-focused sales organization, to that of becoming a customer- and market-focused organization, aiming in sharing responsibility for customer satisfaction. We will accomplish this paradigm shift through the implementation of a balanced and continuous market research for agriculture needs and technology demands. Planning and implementing specific strategies for each of the seven identified segments will be an ongoing process, and we will will consult with marketing specialists, and our manufacturers, to further refine these efforts as we develop an effective marketing plan.

4.3 Competition and Buying Patterns

Our customers want equipment that works well. They are paying a great deal of their annual income to purchase a machine, and will not buy anything unless they have a clear demonstration that it works, or a recommendation about buying from another farmer they trust. The Cypriot farmer and agriculture producer is the last minute man. He plans to buy a machinery only when it is critical and necessary, and when he identify the need, he wants immediate delivery.

Kouros Brothers Ltd.’s closest competitors are located in Next Town, Other Town and Our Town. They include the following five companies:

All above listed competitors are offering standardized agriculture forbidden and implements for the potato industry and only 2 seek to satisfy somehow other sectors of the agriculture and Livestock Industry.

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Farm Machinery Manufacturer Business Plan

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Your business plan says everything about your company. It is the document in which you should collect all the important information about it, such as the business overview, the state of the market and the competition, your sales and marketing plan and the operations and financial plan. If you need to develop your own, this template is specially designed for machinery manufacturer companies, although you can adapt it to any other type. Its elegant and minimalist style, with gradients, make it a success.

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Agriculture Farm Business Plan

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Botanical Bounty

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.">, opportunity.

The health and vitamin industry is growing at a very quick pace. Customers want to have natural and plant alternatives to medication. They are starting to believe the body is a temple. They don’t want to pollute with chemicals. The industry needs botanical plants that are ready to process as well as give to nurseries for the “do it yourselfers”.

Botanical Bounty is working hard to become a leading producer of botanical plants for the natural supplement industry as well as plant nurseries.

Botanical Bounty has three distinct customers: supplement companies, processors of botanicals for supplement companies, and nurseries that resell the plants.

The first two customers purchase the plants for use in their products which they ultimately sell to the end consumer.

The market for natural supplements is quite exciting. Surveys show that over 158 million consumers (over 55% of U.S. population) use dietary supplements. An estimated 115.3 million consumers buy vitamins and minerals for themselves, and 55.8 million purchase them for other members of their family, including children. Consumer surveys consistently find that nearly half of all Americans now use herbs – a statistic that is particularly remarkable when we realize that today’s herbal products industry is just over a quarter century old.`

Competition

Competition takes two forms, farms similar in size and production capacity to Botanical Bounty and megafarms. The similarly sized farms range in size from 5-30 acres. The number of different herbs grown varies from a handful to upwards of 50. The choice of plants grown is based on owner preference as well as location and the ability of the local growing conditions to support the different plants.

It is Botanical Bounty’s mission to become the leading provider of botanical perennials to the health/vitamin industry. This will be accomplished by providing quality plants at fair prices while exceeding customer’s expectations.

Expectations

To finance our growth and full-time production, we need to purchase $35,000 worth of new equipment as long-term assets taking that total up to $53,800. To that end, we are seeking a $100,000 10-year loan. Sales forecasts conservatively indicate that $190,000 revenue will be generated in year two, rising to over 400,000 by year 4.

Financial Highlights by Year

Financing needed.

We need to have a $100,000 10 year loan. We will use our $35,000 of cash from our current operations.

Problem & Solution

Problem worth solving.

There is a growing trend towards plant cures to common diseases or health issues.Consumers care about getting a natural supplement to make them feel better and take care of their body. Because of this the natural market has grown exponentially in the last few years. The market needs high quality botanicals to keep up  with demand. 

Our Solution

Botanical Bounty has identified three keys that will be instrumental in their success. The first is the implementation of strict financial controls. By having the proper controls, production efficiency will be maximized. The second key will be the never ending pursuit for the industry’s highest concentration levels of botanical ingredients in each plant. The third key is the recognition and implementation of the philosophy that 100% customer satisfaction is required to ensure a profitable business. Profits are a by product of satisfying customers, not the other way around.

Target Market

Market size & segments.

Botanical Bounty has identified three different target market segments: 

Supplement Companies This customer group manufactures botanical supplements for their own label products. The companies purchase the plants and extract the active ingredients and transform them into sellable products for their own brand. There are a handful of large companies that operate in this market space. Ten years ago there were many different ones but through consolidation the industry has grown in size but decreased in the number of different players.

Processors These customers purchase the the plants, extract the botanicals and either sell the concentrated botanicals to the end producers or they themselves produce the supplement and sell the final product to other companies for their private label products. In essence they are the subcontractor for the supplement companies. These companies therefore are one layer within the manufacturing system and do not sell to the end consumer. They act as a supplier/processor for the retail brands.

Other Nurseries/Garden Centers This customer group purchases the plants which they in turn sell at retail to the individual end consumer. The typical consumer is a health conscious individual who is interested in either extracting the botanical from the plant immediately or growing the plant in their own garden for future use.

Current Alternatives

As mentioned previously, competition takes two forms, farms similar in size and production capacity to Botanical Bounty and megafarms. The similarly sized farms range in size from 5-30 acres. The number of different herbs grown varies from a handful to upwards of 50. The choice of plants grown is based on owner preference as well as location and the ability of the local growing conditions to support the different plants.

On the other end of spectrum is the megafarm. These farms have a similar range of species cultivated, however they differ greatly in production capacity. These farms are huge, typically not less than 100 acres, peaking at 300 acres. These growers however are few number.

The buying patterns of the different customers are typically based on these variables:

• Availability
• Ability to deliver consistently on long-term contracts
• Significant % of active ingredients
• Consistency

Our Advantages

Botanical Bounty has a dual competitive edge:

Healthy Plants The healthier the plant, the faster it will grow, the more botanicals that can be extracted from it. This means an increase in production efficiency due to a larger percentage of plants that are sellable. Other characteristics of healthy plants which are important on the production side is: lower pest counts, more established root structures, and high biomass.

High Concentration of Active Botanicals This is beneficial to the purchaser because they are buying the plants precisely for the active botanicals. High concentration levels are valuable to Botanical Bounty because they increase the amount of botanicals produced per plant or per acre, increasing the production capacity of a given amount of land, thereby increasing their return on investment and increasing the attractiveness of Botanical Bounty’s plants relative to the competition.

Keys to Success

Our keys to success are: 

• Strict financial controls.
• The never ending pursuit of the highest concentration of botanicals in every plant.
• Ensuring that all customer’s needs are met and they are satisfied with the purchased products.

Marketing & Sales

Marketing plan.

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Botanical Bounty’s sales strategy efforts will focus on identifying qualified leads and turning them into paying customers. The main sales effort that Botanical Bounty will undertake is the reinforcement of the fact that Botanical Bounty’s plants have the industry’s highest percentage of botanicals. This will be quite appealing to the buyers as this is exactly what they want, more botanicals per plant. In addition to selling the buyers on Botanical Bounty’s competitive edge of potent plants, there will be an emphasis on Botanical Bounty’s ability to perform on long-term contracts.

Botanical Bounty recognizes that the transactions should not be thought of as individual sales, but as long-term relationships. This is a reasonable assumption based on the fact that the customers are in the business of utilizing botanicals, that they will continually have the need for the botanicals, and that it is far less expensive to establish a relationship with one vendor than to continually have to find new vendors that can meet their needs.

Locations & Facilities

Botanical Bounty is a 10 acre farm that concentrates on the growing of botanical medicinals. Botanical Bounty has chosen five plant species that have significant market demand as well being well suited for growth in the Willamette River Valley. Botanical Bounty will feature: Echinacea – an immune system booster; Ginseng – a source of energy; St John’s Wort – for mild depression; Skullcap- for inflammation; and Ginger – a stomach soother.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

• Sales, cost of sales, expenses, profits, and cash.
• Production cost of goods. We need to keep them low.
• Keep current on our competitors botanical concentration and prices.
• Measure the number of emails and phone calls.
• Measure the Facebook Page views and Twitter re-tweets. 
• Measure website searches and inquiries. 

Ownership & Structure

Botanical Bounty is an Oregon L.L.C. owned by David and Susan Nealon. The L.L.C. business formation has been chosen as a strategic way to shield the Nealons from personal liability.

Company History

Botanical Bounty has been in operation for two years. Initially it was started as a hobby where Susan could use her plant biology skills while covering some of the costs. The Nealon’s were able to achieve this lifestyle due to a windfall that David received as a result of exercised stock options. After the second year, the Nealon’s decided that although they had the money to live on for many years, it would be irresponsible to needlessly spend it so they got serious about the business and made a concerted effort to become profitable.

Botanical Bounty has chosen the Willamette River Valley as an ideal place to grow perennials. Botanical Bounty has 10 acres of land which they use for production. During several of the winter months, production is moved into their green house for propagation. Botanical Bounty employs a drip irrigation system for all of the plants.

Management Team

Botanical Bounty will be lead by the husband and wife team of David and Sue Nealon. David brings a wealth of business and project management skills to the company. While working at Yahoo!, David was responsible for the successful launch and market lead capture of Yahoo!s driving directions section. Utilizing these skills, David will be responsible for the business operations of the farm. Sue, with a background of plant biology will be the driving force of the operation, growing the highest active ingredient content plants in the country. Additionally, because of her wealth of knowledge, she will be the leader of the sales department.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

Our key assumptions 

• Our market and customer base are growing and with them the opportunities for sales.   
• The area has wealthy households that can afford to spend money on non essential vitamins.   
• Our customers appreciate our dedication to high quality products and price controls.   
• We will be able to get the 100,000 dollar loan at 8 percent based on our past success and being able to put our property up as collateral. We are a safe investment. If unplanned expenses pop up we have people interested in investing.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We will be using the loan to purchase machines and to expand our farm and our personnel to grow the highest quality botanicals and process them so they can be turned into vitamins or other products that give the  customer a natural cure. 

Sources of Funds

We are leveraging our business to get an $100,000 10-year loan. We will also be using the cash on hand from our current business. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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