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Organic farm business plan example

Eveg Organic Farm, based in Plymouth, Wisconsin, is a commercial organic farm managed by John and Jane Burns, focusing on sustainable and community-oriented practices. The farm aims to produce high-quality organic crops and livestock while minimizing environmental impact, with plans to expand its operations and product offerings over time. The business model emphasizes a Community Supported Agriculture (CSA) approach, encouraging local partnerships and active member participation in farming efforts.

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Organic Farm Business Plan Business Plan 2019 John Doe 10200 Bolsa Ave, Westminster, CA, 92683 (650) 359-3153 text@example.com http://www.example.com/ 
Table of Contents Executive Summary 4 Product Offering 4 Objectives 5 Mission Statement 5 Guiding Principles 5 Keys to Success 5 Business Overview 6 Management & Ownership 6 JOHN BURNS 6 JANE BURNS 6 Legal Formation 6 Start-Up Summary 7 Location and Facilities 7 Products & Services 8 Product Overview 8 Seasons & Products 8 Competitive Comparison 9 Product/Service Sourcing 9 Distribution 9 Inventory Management 9 Warehousing and Fulfillment 10 Future Products & Services 10 Honey Bees 10 Dairy Products 10 Community Sharing 10 Farming Awareness Program 10 Customer Updates 11 Vegetable Processing 11 1 / 28
Market Analysis 12 Industry Analysis 12 Market Size 12 Industry Participants 12 Market Segments 13 Market Tests 13 Target Market Segment Strategy 13 The following chart depicts the target market 13 Market Needs 14 Market Trends 14 Market Growth 14 Positioning 14 Competitive Analysis 15 Direct Competitors 15 Backyard Bounty 15 Eilert’s Acres 15 Springdale Farms 15 Indirect Competitors 15 Old Plank Farm 16 Log Cabin Orchard 16 SWOT Analysis 16 Marketing & Sales Plan 18 Strategy Pyramid 18 Unique Selling Proposition (USP) 18 Competitive Edge 18 Marketing Strategy and Positioning 19 Positioning Statement 19 Pricing Strategy 19 Promotion and Advertising Strategy 19 Website 20 2 / 28
Marketing Programs 20 Sales Strategy 20 Sales Forecast 20 Sales Programs 20 Legal 21 Milestones 21 Exit Strategy 21 Organization and Management 22 Organizational Structure 22 Management Team 22 JOHN BURNS 22 JANE BURNS 22 Management Team Gaps 22 Personnel Plan 23 Board of Directors 23 Financial Plan 24 Important Assumptions 24 Start-Up Costs 24 Source and Use of Funds 25 Income Statement Projections 25 Balance Sheet 26 Cash Flow Statement 27 3 / 28
Executive Summary Start Writing here... Examples  Eveg Organic Eveg Organic Farm, LLC is a world class commercial organic farm that will be based in the outskirts of Tallahassee, Florida – United States. We have done our detailed market research and feasibility studies and we were able to secure a well – situated and suitable farmland to start our commercial organic farm. Our commercial organic farm is going to be a standard farm that will be involved in fruit and vegetable growing, livestock farming, grain and oil-seed production, honey Product Offering Start Writing here... Examples  Eveg Organic The Eveg Organic Farm, LLC is a world class commercial organic farm that is committed to cultivating both organic crops and livestock for both the United States’ market and the global market. We are in business to produce both organic food and raw materials for people and industries in commercial quantities. We will also ensure that we operate a standard organic food packaging plant as part of our complimentary business. Fruit and vegetable growing Livestock farming Grain and oilseed production Honey production Other crop production upmetrics.co Read More  Read More  2019 Business Plan | Organic Farm Business Plan 4 / 28
Objectives Start Writing here... Examples  Eveg Organic Eveg Organic Farm has simple objectives: provide healthy and delicious tasting vegetables while simultaneously leaving a minimal carbon footprint. In order to accomplish this, the farm plans to: Sell 60 shares by Year 2 and have full-time income or 90 shares sold by Year 3. Mission Statement Start Writing here... Examples  Eveg Organic Eveg Organic Farm’s mission is to raise the best tasting and finest quality fruits and vegetables for the local community. Eveg Organic Farm uses only natural and sustainable farming methods, free from pesticides or fertilizers. Natural foods and natural farming methods leave a smaller carbon footprint while simultaneously improves the health of its customers and its local community. Guiding Principles Examples  Eveg Organic Eveg Organic Farm’s slogan is simple: “Live life simply and simply live”.The owners also believe in contributing to their community and the planet by: 1. Local: Eveg Organic Farm believes that in order for the survival of the planet, we must rely on local resources. Buying from local farmers supports the local economy Keys to Success Start Writing here... Examples  Eveg Organic Below are an Eveg Organic Farm’s Keys to Success: Superlative Communication – Eveg Organic Farm keeps its members current on all aspects of the farm – through its weekly newsletters and blog updates on what is happening during the winter months such as new and exciting vegetable offerings being planted in the greenhouse. Additionally, Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 5 / 28
Business Overview Start Writing here... Examples  Eveg Organic John and Jane Burns run, manage, and operate Eveg Organic Farm. The company initially sold the farm to market then quickly began supporting local restaurants with a surplus (waste) sold at the local farmers market. John and Jane are operating the business as a CSA, a business for the first time this year. The Burns selected the CSA model, in which both the farmer and the members have a mutual interest in the crop. And because the shares are essentially Management & Ownership Eveg Organic Farm is a C-Corporation formed in the State of Wisconsin and is wholly owned by John and Jane Burns. JOHN BURNS Owner - john.burns@example.com John Burns, a former Human Resources Director at Sargento Cheese, was recently downsized. Not desiring to re-enter corporate America, and concerned about the environment, global issues and the state of the economy, John began expanding his family garden. What began as a way for the family to save some money and reduce the carbon footprint, today has grown from its small ¼ acre plot to over 1+ acre with plans for expansion to 12+ acres. A shrewd businessman and well known in the community, John initially approached colleagues and friends in the local restaurant community. These connections marked the beginning of business for the startup farm and as word of mouth spread, Eveg Organic Farm attracted ten other additional restaurants. All surplus was sold at the local farmer’s market. JANE BURNS - Jane.burns@example.com Jane Burns is an elementary school teacher for the Sheboygan Area School District. A graduate of Marquette University in Milwaukee, Jane has been teaching fifth grade Science for over ten years. Raised on a family dairy farm, Jane’s family also had a small fruit and vegetable farm and she loved helping the family grow and harvest the crop. Mrs. Burn’s summer schedule is flexible and helps the family maintain the garden during the busy summer growing season. Legal Formation Examples Eveg Organic Farm is C-Corporation formed in the State of Wisconsin. The entity upmetrics.co Read More  2019 Business Plan | Organic Farm Business Plan 6 / 28
Start Writing here... Examples  Eveg Organic Eveg Organic Farm is C-Corporation formed in the State of Wisconsin. The entity is wholly owned by John and Jane Burns. Start-Up Summary Start Writing here... Examples  Eveg Organic The Burns have been managing the family farm successfully for the last fifteen years. Recently the owners installed a greenhouse with warming lights for early starts. They also invested in a pickup truck (2005 Ford F150) for delivering vegetables to the members. Most recently they purchased a tractor and borrowed their neighbor’s attachments as needed for harvest. Last year, Eveg Organic Farm passed the stringent requirements needed to Location and Facilities Start Writing here... Examples  Eveg Organic Eveg Organic Farm is located in Plymouth, Wisconsin, located in Sheboygan County Wisconsin. Sheboygan County is located in east- central Wisconsin. Sheboygan County is a one-hour drive to Milwaukee and Green Bay, and less than a 3-hour trip Chicago. Interstate 43 and State Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 7 / 28
Products & Services Product Overview Eveg Organic Farm’s growing season will start in early May and end in October with the goal of 20 weeks. Shares will be comprised of approximately 10-15 different crops every 8 weeks of in-season produce. Here is an example of types of produce throughout the season: Seasons & Products Spring Beets, Broccoli, Cabbage, Carrots, Garlic, Green Onions, Kale, Lettuce (several varieties), Radishes, Peas, Spinach Summer Beans, Carrots, Cucumbers, Eggplant, Green Onions, Leeks, Melons, Onions, Sweet Peppers, Summer Squash, Tomatoes, Zucchini Fall Beans, Beets, Broccoli, Cauliflower, Cucumbers, Chard, Lettuce (several varieties), Potatoes, Red Onions, Spinach, Winter Squash Examples All share sales are sold in advance. upmetrics.co 2019 Business Plan | Organic Farm Business Plan 8 / 28
Start Writing here...  Eveg Organic All share sales are sold in advance. A Full Share will provide a family of four vegetables for a week. (estimate). Likewise, a Half Share provides a week of vegetables for two people. Full Shares are $750 and Half Shares are $375 for the season. (The owners are currently only considering the sale of Full Shares at this time). Competitive Comparison Start Writing here... Examples  Eveg Organic Plymouth, Wisconsin, reports six CSA entities, of which three represent direct competition for the subject. Product/Service Sourcing All produce will be grown on Eveg Organic Farm. John and Jane Burns will both actively work and manage the farm. Distribution Examples  Eveg Organic At Eveg Organic Farm, members have the option for home delivery or to travel to the farm on the scheduled pickup day. The home delivery choice is what most members prefer and allows the Burns to deliver the farm fresh produce directly. This distribution method has the least carbon footprint, with one driver and one truck. It is obviously the most intensive for the Burns and with the busy summer season, this can be too time-consuming Inventory Management Start Writing here... Examples  Eveg Organic N/A. We don't need to store products. The CSA farm concept is all about freshness. The produce is delivered immediately from the farm to the (member’s) table. Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 9 / 28
Warehousing and Fulfillment N/A Future Products & Services Honey Bees Examples  Eveg Organic The owners of the farm have plans to introduce honey bees the following season and offer honey as another organic product. Dairy Products Examples  Eveg Organic On occasion, Eveg Organic Farm partners with its neighboring dairy farm and an organic bakery in town. From time to time members will find fresh cheeses and organic bread in their weekly selection boxes. Eveg Organic Farm owners are currently considering joining forces with a local orchard company as well. The orchard will supply apple butter and jams. Community Sharing Examples  Eveg Organic Within one year, Eveg Organic Farm plans to utilize an additional acre and add 30 more families to their growing share program. They plan to add 30 more families (shares) by Year Three. Eveg Organic Farm has long term plans to purchase an additional 9 acres or a total of 360 shares. To support the farm, they will hire apprentice farmers, part-time delivery drivers, and a bookkeeper. The Burns would then be able to focus their efforts on crop research, marketing trends and Farming Awareness Program Examples  Eveg Organic Other future plans include accessing the internet to increase awareness and the importance of local and community farming. Jane Burns is compiling a recipe E- book which will supplement cash flow during non-productive months. In his spare time, John Burns is also compiling an E-Book to sell on Eveg Organic Farm website. The book will focus on modern organic farming techniques for the novice farmer. A second book is forthcoming dealing with environmental concerns and Examples  Eveg Organic Additionally, Eveg Organic Farm will publish a weekly newsletter to be included in the member’s box as well as the website. The newsletter will identify what is in the Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 10 / 28
Customer Updates weekly box, what is happening on the farm and recipes. The newsletter will educate members to seasonal eating and sustainable principles. Vegetable Processing Examples  Eveg Organic Eveg Organic Farm has future plans for constructing a vegetable processing area with electricity and water. The facility will have a walk-in cooler, a washing and grading area, stainless steel tables and two scales. Additional capital expenditures will be for the purchase of a newer (used) pickup truck and attachments for their tractor. (Currently, they borrow their neighbor’s). Read More  Read More  2019 Business Plan | Organic Farm Business Plan 11 / 28
Market Analysis Start Writing here... Examples  Eveg Organic Sheboygan County’s cost of living is lower than the national average and housing costs are much lower than the national average. At the same time, Sheboygan County personal income is greater than the national average. In other words, this community not only has a high demand for organic items, but it can afford them as well. Industry Analysis Start Writing here... Examples  Eveg Organic This analysis is based on the North American Industry Classification System (“NAICS”) 111998: Agriculture – All Other Miscellaneous Crop Farming. The US crop production industry includes about 1 million farms with combined annual revenue of about $205 billion. Major companies include Dole Food Company, Chiquita Brands International, and Sunkist Growers. Crop farming is the growing and harvesting of field crops such as grain, oilseeds, tobacco, dry beans, Market Size Examples  Eveg Organic The US crop production industry includes about 1 million farms with combined annual revenue of about $205 billion. (First Research) Although the USDA does not have official statistics on U.S. organic retail sales, information is available from industry sources. U.S. sales of organic products were $21.1 billion in 2008--over 3 percent of total food sales and were expected to reach $23.0 billion in 2009. (Nutrition Business Journal) Industry Participants Examples  Eveg Organic Major participants include Dole Food Company, Chiquita Brands International, and Sunkist Growers. (First Research) Examples  Eveg Organic 2008, Sheboygan County’s median household income was $51,681 and the mean household income was estimated to be $61,889. upmetrics.co Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 12 / 28
Market Segments Nearly 72 percent of Sheboygan County’s housing units are owner-occupied. The median housing value in Sheboygan County is estimated to be $149,700, which is $43,000 less than the United States estimated median home value. At the same time, Sheboygan County income is higher than the national average, which Market Tests Start Writing here... Examples  Eveg Organic While selling produce to local restaurants, Mr. Burns realized that the CSA option could potentially come to fruition. Historically the restaurant patrons always asked the source of the beautiful and delicate lettuces and quality tomatoes. Realizing the popularity of his produce, Mr. Burns, while continuing on a quest for global carbon footprint reduction, began researching the possibility of beginning a CSA effort. With the help of his restaurant partners, Mr. Burns posted fliers and Target Market Segment Strategy Start Writing here... Examples  Eveg Organic Eveg Organic Farm is targeting households with earnings in excess of $50,000 in the greater Sheboygan County. Approximately 51 percent of the population resides in this category. Other farmers have missed this target by focusing on traditional farming methods while Eveg Organic Farm has obtained the Certified Organic stamp of approval. Additionally, Eveg Organic Farm will focus its energies primarily on its members and provide services exceeding expectations The following chart depicts the target market Examples According to a USDA survey of market managers (Organic Produce, Price Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 13 / 28
Market Needs Examples  Eveg Organic According to a USDA survey of market managers (Organic Produce, Price Premiums, and Eco-Labeling in U.S. Farmers' Markets, April 2004) found that demand for organic products was strong or moderate in most of the farmers' markets surveyed around the country, and that the managers felt more organic farmers were needed to meet consumer demand in many states. (USDA updated 06/19/12) Market Trends Examples  Eveg Organic While consumers may not understand all the requirements associated with being certified organic, they are comfortable with the label. Which is why Eveg Organic Farm sought the services of the independent certification agency and has earned the distinction to be labeled an organic farm. Comparatively, their CSA counterparts that continue to operate by traditional farming methods, Eveg Organic Farm holds itself to a higher standard, which in time, they believe will Market Growth Examples  Eveg Organic U.S. sales of organic products were $21.1 billion in 2008 - over 3 percent of total food sales- and were expected to reach $23.0 billion in 2009 (Nutrition Business Journal). Positioning Examples  Eveg Organic Eveg Organic Farm is aware that its members are crucial to its survival and growth. The owners will make certain each member feels that Eveg Organic Farm is indeed his/her farm! After all, they do own a portion of the farm! The Burns will encourage its members to stop by to see operations. In addition, the owners will host an open house at harvest time to celebrate the season’s bounty. To further ensure its members are satisfied and encourage retention, the owners Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 14 / 28
Competitive Analysis Direct Competitors Plymouth, Wisconsin reports six CSA entities, of which three represent direct competition for the subject. Backyard Bounty Examples  Eveg Organic Location: W4873 County Hwy U Plymouth, WI 53073 http://ljcomerford.wordpress.com/ This is a 22-acre family-owned farm and has been operating as a CSA for several years. In addition to its offerings of organic fruits and vegetables this farm also sells organic poultry and eggs. The farm had mixed reviews by its members. Eilert’s Acres Examples  Eveg Organic Location: N5575 County Road ZZ Plymouth, WI 53073 http://www.eilertsacres.com/ Owned by Edward and Kay Eilert, this farm began a business as a CSA in 2011. The farm provides many of the same vegetables as the subject as well as Springdale Farms Examples  Eveg Organic Location: W7065 Silver Spring Lane Plymouth, WI 53073 http://www.springdalefarmcsa.org/ This CSA farm is the most established in the direct market and has been in existence 20+ years. Springdale Farm has various pickup sites in the greater Sheboygan MSA. Based on the farm’s website, members are not given the Indirect Competitors The following are CSA businesses that compete indirectly with the subject: Examples  Eveg Organic Location: W6028 County Road C Plymouth, WI 53073 http://www.oldplankfarm.com/ This entity only sells its goods at a local farm stand; it does not sell shares. In addition, this indirect competitor sells organic eggs at its farm stand. Based on its upmetrics.co Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 15 / 28
Old Plank Farm Log Cabin Orchard Examples  Eveg Organic Location: N4797 County Rd E Plymouth, WI 53073 www.logcabinorchard.com This indirect competitor is a fruit orchard selling apples, pears, plums, honey, apple and maple syrup, fresh apple cider and apple butter. In the fall, this CSA SWOT Analysis Start Writing here... Examples  Eveg Organic SWOT stands for strengths, weaknesses, opportunities, and threats. The following is the SWOT analysis for Eveg Organic Farm. Read More  Read More  2019 Business Plan | Organic Farm Business Plan 16 / 28
Strengths Eveg Organic Farm receives share proceeds prior to start of the season which helps to pay for seeds, supplies and inputs During the off-season the owners of Eveg Organic Farm can market and recruit new members and complete their E Books Eveg Organic Farm will establish long term relationships with its members lasting at least one season Members share in the financial risks of the farm Low capital requirements, relatively inexpensive startup business S Weaknesses As many as 30 or more different crops must be grown to provide diversity to members throughout the season Location-if the farm is not close to its customers, it becomes burdensome for the farmer to make deliveries Labor intensive – during the season, crops are continually being planted, harvested, cleaned, sorted and packed – leaving little extra time for the farmer Member retention is key – if the member is not happy the likelihood of returning next season or providing a good recommendation is not good. W Opportunities The greater Sheboygan County is a prime location for organic produce with an historically high demand. Because many farmers still utilize traditional farming methods (pesticide and herbicide applications) Eveg Organic Farm stands out from the crowd with its Certified Organic stamp of approval O Threats New entrants to the market pose a threat. Partially mitigating this risk is the recommended 2-3 year trial farming period – which would give Eveg Organic Farm the necessary ‘heads-up’ to go against (said) competitors. Weather, storms, pests – can damage or even destroy crops. The farm is economically tied, and in inflationary times, consumers could revert back to traditional methods of buying fruits and vegetables at the local grocery store. T 2019 Business Plan | Organic Farm Business Plan 17 / 28
Marketing & Sales Plan Start Writing here... Examples  Eveg Organic Eveg Organic Farm is targeting households with earnings in excess of $50,000 in the greater Sheboygan County. Other farmers have missed this target by focusing on traditional farming methods while Eveg Organic Farm has obtained the Certified Organic stamp of approval. Additionally, Eveg Organic Farm will focus its energies primarily on its members and provide services exceeding expectations by offering farm to door delivery service, providing supplemental Strategy Pyramid Start Writing here... Examples  Eveg Organic Strategy: Create awareness that Eveg Organic Farm delivers a wide variety of quality wholesome and healthy vegetables on a consistent basis. Tactics: Create a specific, detailed planting guide, planting several times over the growing season. Programs: Post fliers and brochures at local restaurants, and locally owned and Unique Selling Proposition (USP) Start Writing here... Examples  Eveg Organic Jane and John Burns stand out from the competition: They are experienced operators and have demonstrated the ability to grow large quantities of many different vegetables. They have demonstrated their ability to manage the crops, harvest, pack and deliver to their customers. They are doing business as a CSA. And unlike their conventional farming peers, Eveg Organic Farm has met the stringent requirements to be designated Certified Organic. Competitive Edge Examples  Eveg Organic CSA farming differs greatly from traditional farming due to the fact that members have ownership shares in the farm. Bearing this in mind, Eveg Organic Farm will wholeheartedly focus on this vital aspect to retain members. The owners will constantly stay in touch with their members and encourage them to come and visit ‘their’ farm. upmetrics.co Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 18 / 28
Start Writing here... Marketing Strategy and Positioning Start Writing here... Examples  Eveg Organic Eveg Organic Farm will utilize product differentiation to stand apart from the competition. By growing wholesome organic produce, offering farm to door service, and actively engaging with its members, Eveg Organic Farm will go above and beyond to maintain and grow its member base. Positioning Statement Examples  Eveg Organic Eveg Organic Farm will be the premier organic CSA in the greater Sheboygan County by offering at least 30 of the most delicious and mouthwatering organic vegetables available in the local growing area and by providing exceptional relationships with its members, its community and the planet. Pricing Strategy Examples  Eveg Organic Eveg Organic Farm will utilize a fair price for a fair value. Some research suggests that the CSA farm is usually lower in price than organically grown food from local markets and is often less than foods from the supermarket. This could be a selling point for attracting new members, however, it also important to note this is not about cheap food. Promotion and Advertising Strategy Examples  Eveg Organic The best strategy is word of mouth advertising. When people are happy with their shares they tell friends. Eveg Organic Farm will place brochures with other CSA businesses such as the local organic bakery and neighboring dairy farm. Eveg Organic Farm’s website will provide additional marketing information. In Examples  Eveg Organic Eveg Organic Farm’s website will be a vital key in marketing. In addition to providing its history, location and contact information, the site will also have links to its CSA affiliations, the USDA website, and current organic industry topics. The Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 19 / 28
Website website will also have links to the current weekly newsletter (during the season) and off-season the owners will maintain a blog of what items are currently going to Marketing Programs Examples  Eveg Organic Eveg Organic Farm will actively work to engage its members and the local community by: Creating fliers and brochures and posting in community gathering places such as churches, community centers, farmers markets, and other environmentally centric business. Sales Strategy Start Writing here... Examples  Eveg Organic Eveg Organic Farm has already sold all 30 of its shares for the upcoming season with future plans to sell 60 shares in Year Two and 90 shares in Year Three. In order to meet these goals, the farmers will continue to rely on advertising fliers, its online presence and most importantly word of mouth. The word of mouth recommendation from a satisfied member not only generates an opportunity for repeat business but also is beneficial in recruiting new members. Sales Forecast The following table represents the annual sales forecast for the initial three years of operations: Annual Sales Forecast Year1 Year2 Year3 Full share $23,250 $46,500 $69,750 E-Books & Cook Books $100 $100 $550 Honey $0 $0 $320 Gross Margin $23,350 $46,600 $70,620 Sales Programs Examples  Eveg Organic Eveg Organic Farm’s primary sales program is the sale of shares. Additional sales programs will come from the sale of their forthcoming books. Honey production is expected to come online by Year Three. During the slow winter months, both John and Jane Burns will actively market their Eveg Organic Farm, by providing speaking engagements at local events, becoming involved in the local community primarily its environmental issues, and Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 20 / 28
Legal Start Writing here... Examples  Eveg Organic Eveg Organic Farm is a C-Corporation doing business in the State of Wisconsin. Milestones The following chart depicts the Milestones Eveg Organic Farm anticipates achieving: Milestone Date Obtain Certified Organic Seal of Approval [Date] Pre Sell 80% of Shares [Date] Complete E-Book & Sell on website [Date] Pre Sell all 60 Shares [Date] Pre Sell all 90 Shares [Date] Establish an excellent credit record and qualify for a commercial loan to purchase an additional 9 acres [Date] Exit Strategy Start Writing here... Examples  Eveg Organic In the event that Eveg Organic Farm will cease operations, all assets (farm equipment, tools, scales) will be sold at auction. Proceeds from the sale will be first be used to pay off the financial obligation to the operating capital loan and the remaining proceeds will be paid to the members (if any obligations remain). Read More  Read More  2019 Business Plan | Organic Farm Business Plan 21 / 28
Organization and Management Organizational Structure Start Writing here... Examples  Eveg Organic Eveg Organic Farm will be wholly owned and operated by John and Jane Burns. Mr. Burns will perform all office and accounting functions such as calculating the initial garden costs, seed costs and planting times. Both owners will harvest the crop. Eveg Organic Farm will hire one apprentice farmer for each additional acre that is cultivated. Over time, they have plans to hire part-time delivery drivers as well as bookkeeper. Management Team JOHN BURNS - john.burns@example.com John Burns will actively manage the farm. Farm management duties will include the creation of a detailed planting guide and building a living soil. Only sustainable and organic farming methods will be used with no reliance on off-farm inputs and chemical pesticides/fertilizers. Growing methods include crop rotation, planting cover crops, applying finished compost and mulches, and encouraging beneficial insects, weed management, irrigation, and harvesting. Mr. Burns will also be the responsibility for preparing detailed accounting records for their tax accountant. JANE BURNS - jane.burns@example.com Jane Burns will also actively participate in managing the crop during the busy summer months. During the slower winter months, both will work to complete their E-books which will be sold online and supplement revenue. They will also actively market Eveg Organic Farm by speaking to local civic groups, providing tours of the farm, and drafting the weekly newsletters. Management Team Gaps Examples  Eveg Organic Eveg Organic Farm will rely on its Tax Accountant to assist with tax reporting. upmetrics.co Read More  2019 Business Plan | Organic Farm Business Plan 22 / 28
Start Writing here... Personnel Plan The following is a summary of Eveg Organic Farm’s Personnel Plan. Position Year1 Year2 Year3 Farmers(Owners) 10,800 10,800 10,800 Apprentice 14,400 31,200 Apprentice 14,400 Total Personnel Costs 10,800 25,200 56,400 Board of Directors N/A Read More  2019 Business Plan | Organic Farm Business Plan 23 / 28
Financial Plan Start Writing here... Examples  Eveg Organic The financial plan will cover the following: Required Cost of Start-Up Profit and Loss Cash Flow Balance Sheet Important Assumptions Start Writing here... Examples  Eveg Organic Revenues increased 50% Year One and 33% Year Two The following variable expenses are tied to volumes and will increase the same amount as revenue: salaries, fuel charges, postage, repairs and maintenance, and supplies The loan example is based on traditional lending – with a collateralized working capital loan, fully amortizing with a three year pay down. Start-Up Costs The following chart summarizes start-up expenses: Startup Expenses Amount Operating Capital [Amount] Salaries & Wages Insurance Premiums Beginning Inventory Legal and Accounting Fees Rent Deposits Utility Deposits Supplies Advertising and promotions Licenses Other Initial Costs Working Capital Total Startup Expenses upmetrics.co Read More  Read More  2019 Business Plan | Organic Farm Business Plan 24 / 28
Startup Assets Real Estate [Amount] Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Startup Assets Source and Use of Funds To date, the owners have come out of pocket approximately $40,600 or 74 percent of the project’s total costs. The following chart summarizes the source and use of funds: Source Of Funds Amount Owner's Contribution [Amount] Commercial Loan Commercial Mortgage Inventory & Working Capital Loan Total Source Of Funds Use Of Funds Amount Fixed Assets [Amount] Operating Capital Total Use of Funds Income Statement Projections Eveg Organic Farm’s estimated profit and loss for the initial three years of operations is reflected below: 2019 Business Plan | Organic Farm Business Plan 25 / 28
Year1 Year2 Year3 Year4 Year5 Revenues Product/Service A $151,200 $333,396 $367,569 $405,245 $446,783 Product/Service B $100,800 $222,264 $245,046 $270,163 $297,855 Total Revenues $252,000 $555,660 $612,615 $675,408 $744,638 Expenses & Costs Cost of goods sold $57,960 $122,245 $122,523 $128,328 $134,035 Lease $60,000 $61,500 $63,038 $64,613 $66,229 Marketing $20,000 $25,000 $25,000 $25,000 $25,000 Salaries $133,890 $204,030 $224,943 $236,190 $248,000 Other Expenses $3,500 $4,000 $4,500 $5,000 $5,500 Total Expenses & Costs $271,850 $412,775 $435,504 $454,131 $473,263 EBITDA ($19,850) $142,885 $177,112 $221,277 $271,374 Depreciation $36,960 $36,960 $36,960 $36,960 $36,960 EBIT ($56,810) $105,925 $140,152 $184,317 $234,414 Interest $23,621 $20,668 $17,716 $14,763 $11,810 PRETAX INCOME ($80,431) $85,257 $122,436 $169,554 $222,604 Net Operating Loss ($80,431) ($80,431) $0 $0 $0 Income Tax Expense $0 $1,689 $42,853 $59,344 $77,911 NET INCOME ($80,431) $83,568 $79,583 $110,210 $144,693 Net Profit Margin (%) - 15.00% 13.00% 16.30% 19.40% Balance Sheet 2019 Business Plan | Organic Farm Business Plan 26 / 28
Year1 Year2 Year3 Year4 Year5 ASSETS Cash $16,710 $90,188 $158,957 $258,570 $392,389 Accounts receivable $0 $0 $0 $0 $0 Inventory $21,000 $23,153 $25,526 $28,142 $31,027 Total Current Assets $37,710 $113,340 $184,482 $286,712 $423,416 Fixed assets $246,450 $246,450 $246,450 $246,450 $246,450 Depreciation $36,960 $73,920 $110,880 $147,840 $184,800 Net fixed assets $209,490 $172,530 $135,570 $98,610 $61,650 TOTAL ASSETS $247,200 $285,870 $320,052 $385,322 $485,066 LIABILITIES & EQUITY Debt $317,971 $272,546 $227,122 $181,698 $136,273 Accounts payable $9,660 $10,187 $10,210 $10,694 $11,170 Total Liabilities $327,631 $282,733 $237,332 $192,391 $147,443 Share Capital $0 $0 $0 $0 $0 Retained earnings ($80,431) $3,137 $82,720 $192,930 $337,623 Total Equity ($80,431) $3,137 $82,720 $192,930 $337,623 TOTAL LIABILITIES & EQUITY $247,200 $285,870 $320,052 $385,322 $485,066 Cash Flow Statement 2019 Business Plan | Organic Farm Business Plan 27 / 28
Year1 Year2 Year3 Year4 Year5 CASH FLOW FROM OPERATIONS Net Income (Loss) ($80,431) $83,568 $79,583 $110,210 $144,693 Change in working capital ($11,340) ($1,625) ($2,350) ($2,133) ($2,409) Depreciation $36,960 $36,960 $36,960 $36,960 $36,960 Net Cash Flow from Operations ($54,811) $118,902 $114,193 $145,037 $179,244 CASH FLOW FROM INVESTMENTS Investment ($246,450) $0 $0 $0 $0 Net Cash Flow from Investments ($246,450) $0 $0 $0 $0 CASH FLOW FROM FINANCING Cash from equity $0 $0 $0 $0 $0 Cash from debt $317,971 ($45,424) ($45,424) ($45,424) ($45,424) Net Cash Flow from Financing $317,971 ($45,424) ($45,424) ($45,424) ($45,424) SUMMARY Net Cash Flow $16,710 $73,478 $68,769 $99,613 $133,819 Cash at Beginning of Period $0 $16,710 $90,188 $158,957 $258,570 Cash at End of Period $16,710 $90,188 $158,957 $258,570 $392,389 2019 Business Plan | Organic Farm Business Plan 28 / 28

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In this document
Powered by AI

Presentation of the Organic Farm Business Plan by John Doe, detailing contact and location.

Introduction to the business plan structure, including objectives, team members and financial sections.

Overview of Eveg Organic Farm's business operations focusing on organic crops and livestock production.

Goals to sell shares and commitment to sustainable farming methods highlighted through mission and guiding principles.

Details on ownership by John and Jane Burns, their management experience and initial farm setup.

Overview of products available by season, sales structure, sourcing, and future product introductions.

In-depth market analysis showing demand for organic produce in Sheboygan County and growth trends.

Legal formation information, milestones in the business plan, and an overview of financial assumptions.

Detailed financial projections including revenue, profits and cash flow over the first five years.

Organic farm business plan example

  • 1.
    Organic Farm Business Plan BusinessPlan 2019 John Doe 10200 Bolsa Ave, Westminster, CA, 92683 (650) 359-3153 [email protected] http://www.example.com/ 
  • 2.
    Table of Contents ExecutiveSummary 4 Product Offering 4 Objectives 5 Mission Statement 5 Guiding Principles 5 Keys to Success 5 Business Overview 6 Management & Ownership 6 JOHN BURNS 6 JANE BURNS 6 Legal Formation 6 Start-Up Summary 7 Location and Facilities 7 Products & Services 8 Product Overview 8 Seasons & Products 8 Competitive Comparison 9 Product/Service Sourcing 9 Distribution 9 Inventory Management 9 Warehousing and Fulfillment 10 Future Products & Services 10 Honey Bees 10 Dairy Products 10 Community Sharing 10 Farming Awareness Program 10 Customer Updates 11 Vegetable Processing 11 1 / 28
  • 3.
    Market Analysis 12 IndustryAnalysis 12 Market Size 12 Industry Participants 12 Market Segments 13 Market Tests 13 Target Market Segment Strategy 13 The following chart depicts the target market 13 Market Needs 14 Market Trends 14 Market Growth 14 Positioning 14 Competitive Analysis 15 Direct Competitors 15 Backyard Bounty 15 Eilert’s Acres 15 Springdale Farms 15 Indirect Competitors 15 Old Plank Farm 16 Log Cabin Orchard 16 SWOT Analysis 16 Marketing & Sales Plan 18 Strategy Pyramid 18 Unique Selling Proposition (USP) 18 Competitive Edge 18 Marketing Strategy and Positioning 19 Positioning Statement 19 Pricing Strategy 19 Promotion and Advertising Strategy 19 Website 20 2 / 28
  • 4.
    Marketing Programs 20 SalesStrategy 20 Sales Forecast 20 Sales Programs 20 Legal 21 Milestones 21 Exit Strategy 21 Organization and Management 22 Organizational Structure 22 Management Team 22 JOHN BURNS 22 JANE BURNS 22 Management Team Gaps 22 Personnel Plan 23 Board of Directors 23 Financial Plan 24 Important Assumptions 24 Start-Up Costs 24 Source and Use of Funds 25 Income Statement Projections 25 Balance Sheet 26 Cash Flow Statement 27 3 / 28
  • 5.
    Executive Summary Start Writinghere... Examples  Eveg Organic Eveg Organic Farm, LLC is a world class commercial organic farm that will be based in the outskirts of Tallahassee, Florida – United States. We have done our detailed market research and feasibility studies and we were able to secure a well – situated and suitable farmland to start our commercial organic farm. Our commercial organic farm is going to be a standard farm that will be involved in fruit and vegetable growing, livestock farming, grain and oil-seed production, honey Product Offering Start Writing here... Examples  Eveg Organic The Eveg Organic Farm, LLC is a world class commercial organic farm that is committed to cultivating both organic crops and livestock for both the United States’ market and the global market. We are in business to produce both organic food and raw materials for people and industries in commercial quantities. We will also ensure that we operate a standard organic food packaging plant as part of our complimentary business. Fruit and vegetable growing Livestock farming Grain and oilseed production Honey production Other crop production upmetrics.co Read More  Read More  2019 Business Plan | Organic Farm Business Plan 4 / 28
  • 6.
    Objectives Start Writing here... Examples Eveg Organic Eveg Organic Farm has simple objectives: provide healthy and delicious tasting vegetables while simultaneously leaving a minimal carbon footprint. In order to accomplish this, the farm plans to: Sell 60 shares by Year 2 and have full-time income or 90 shares sold by Year 3. Mission Statement Start Writing here... Examples  Eveg Organic Eveg Organic Farm’s mission is to raise the best tasting and finest quality fruits and vegetables for the local community. Eveg Organic Farm uses only natural and sustainable farming methods, free from pesticides or fertilizers. Natural foods and natural farming methods leave a smaller carbon footprint while simultaneously improves the health of its customers and its local community. Guiding Principles Examples  Eveg Organic Eveg Organic Farm’s slogan is simple: “Live life simply and simply live”.The owners also believe in contributing to their community and the planet by: 1. Local: Eveg Organic Farm believes that in order for the survival of the planet, we must rely on local resources. Buying from local farmers supports the local economy Keys to Success Start Writing here... Examples  Eveg Organic Below are an Eveg Organic Farm’s Keys to Success: Superlative Communication – Eveg Organic Farm keeps its members current on all aspects of the farm – through its weekly newsletters and blog updates on what is happening during the winter months such as new and exciting vegetable offerings being planted in the greenhouse. Additionally, Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 5 / 28
  • 7.
    Business Overview Start Writinghere... Examples  Eveg Organic John and Jane Burns run, manage, and operate Eveg Organic Farm. The company initially sold the farm to market then quickly began supporting local restaurants with a surplus (waste) sold at the local farmers market. John and Jane are operating the business as a CSA, a business for the first time this year. The Burns selected the CSA model, in which both the farmer and the members have a mutual interest in the crop. And because the shares are essentially Management & Ownership Eveg Organic Farm is a C-Corporation formed in the State of Wisconsin and is wholly owned by John and Jane Burns. JOHN BURNS Owner - [email protected] John Burns, a former Human Resources Director at Sargento Cheese, was recently downsized. Not desiring to re-enter corporate America, and concerned about the environment, global issues and the state of the economy, John began expanding his family garden. What began as a way for the family to save some money and reduce the carbon footprint, today has grown from its small ¼ acre plot to over 1+ acre with plans for expansion to 12+ acres. A shrewd businessman and well known in the community, John initially approached colleagues and friends in the local restaurant community. These connections marked the beginning of business for the startup farm and as word of mouth spread, Eveg Organic Farm attracted ten other additional restaurants. All surplus was sold at the local farmer’s market. JANE BURNS - [email protected] Jane Burns is an elementary school teacher for the Sheboygan Area School District. A graduate of Marquette University in Milwaukee, Jane has been teaching fifth grade Science for over ten years. Raised on a family dairy farm, Jane’s family also had a small fruit and vegetable farm and she loved helping the family grow and harvest the crop. Mrs. Burn’s summer schedule is flexible and helps the family maintain the garden during the busy summer growing season. Legal Formation Examples Eveg Organic Farm is C-Corporation formed in the State of Wisconsin. The entity upmetrics.co Read More  2019 Business Plan | Organic Farm Business Plan 6 / 28
  • 8.
    Start Writing here... Examples Eveg Organic Eveg Organic Farm is C-Corporation formed in the State of Wisconsin. The entity is wholly owned by John and Jane Burns. Start-Up Summary Start Writing here... Examples  Eveg Organic The Burns have been managing the family farm successfully for the last fifteen years. Recently the owners installed a greenhouse with warming lights for early starts. They also invested in a pickup truck (2005 Ford F150) for delivering vegetables to the members. Most recently they purchased a tractor and borrowed their neighbor’s attachments as needed for harvest. Last year, Eveg Organic Farm passed the stringent requirements needed to Location and Facilities Start Writing here... Examples  Eveg Organic Eveg Organic Farm is located in Plymouth, Wisconsin, located in Sheboygan County Wisconsin. Sheboygan County is located in east- central Wisconsin. Sheboygan County is a one-hour drive to Milwaukee and Green Bay, and less than a 3-hour trip Chicago. Interstate 43 and State Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 7 / 28
  • 9.
    Products & Services ProductOverview Eveg Organic Farm’s growing season will start in early May and end in October with the goal of 20 weeks. Shares will be comprised of approximately 10-15 different crops every 8 weeks of in-season produce. Here is an example of types of produce throughout the season: Seasons & Products Spring Beets, Broccoli, Cabbage, Carrots, Garlic, Green Onions, Kale, Lettuce (several varieties), Radishes, Peas, Spinach Summer Beans, Carrots, Cucumbers, Eggplant, Green Onions, Leeks, Melons, Onions, Sweet Peppers, Summer Squash, Tomatoes, Zucchini Fall Beans, Beets, Broccoli, Cauliflower, Cucumbers, Chard, Lettuce (several varieties), Potatoes, Red Onions, Spinach, Winter Squash Examples All share sales are sold in advance. upmetrics.co 2019 Business Plan | Organic Farm Business Plan 8 / 28
  • 10.
    Start Writing here... Eveg Organic All share sales are sold in advance. A Full Share will provide a family of four vegetables for a week. (estimate). Likewise, a Half Share provides a week of vegetables for two people. Full Shares are $750 and Half Shares are $375 for the season. (The owners are currently only considering the sale of Full Shares at this time). Competitive Comparison Start Writing here... Examples  Eveg Organic Plymouth, Wisconsin, reports six CSA entities, of which three represent direct competition for the subject. Product/Service Sourcing All produce will be grown on Eveg Organic Farm. John and Jane Burns will both actively work and manage the farm. Distribution Examples  Eveg Organic At Eveg Organic Farm, members have the option for home delivery or to travel to the farm on the scheduled pickup day. The home delivery choice is what most members prefer and allows the Burns to deliver the farm fresh produce directly. This distribution method has the least carbon footprint, with one driver and one truck. It is obviously the most intensive for the Burns and with the busy summer season, this can be too time-consuming Inventory Management Start Writing here... Examples  Eveg Organic N/A. We don't need to store products. The CSA farm concept is all about freshness. The produce is delivered immediately from the farm to the (member’s) table. Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 9 / 28
  • 11.
    Warehousing and Fulfillment N/A FutureProducts & Services Honey Bees Examples  Eveg Organic The owners of the farm have plans to introduce honey bees the following season and offer honey as another organic product. Dairy Products Examples  Eveg Organic On occasion, Eveg Organic Farm partners with its neighboring dairy farm and an organic bakery in town. From time to time members will find fresh cheeses and organic bread in their weekly selection boxes. Eveg Organic Farm owners are currently considering joining forces with a local orchard company as well. The orchard will supply apple butter and jams. Community Sharing Examples  Eveg Organic Within one year, Eveg Organic Farm plans to utilize an additional acre and add 30 more families to their growing share program. They plan to add 30 more families (shares) by Year Three. Eveg Organic Farm has long term plans to purchase an additional 9 acres or a total of 360 shares. To support the farm, they will hire apprentice farmers, part-time delivery drivers, and a bookkeeper. The Burns would then be able to focus their efforts on crop research, marketing trends and Farming Awareness Program Examples  Eveg Organic Other future plans include accessing the internet to increase awareness and the importance of local and community farming. Jane Burns is compiling a recipe E- book which will supplement cash flow during non-productive months. In his spare time, John Burns is also compiling an E-Book to sell on Eveg Organic Farm website. The book will focus on modern organic farming techniques for the novice farmer. A second book is forthcoming dealing with environmental concerns and Examples  Eveg Organic Additionally, Eveg Organic Farm will publish a weekly newsletter to be included in the member’s box as well as the website. The newsletter will identify what is in the Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 10 / 28
  • 12.
    Customer Updates weekly box,what is happening on the farm and recipes. The newsletter will educate members to seasonal eating and sustainable principles. Vegetable Processing Examples  Eveg Organic Eveg Organic Farm has future plans for constructing a vegetable processing area with electricity and water. The facility will have a walk-in cooler, a washing and grading area, stainless steel tables and two scales. Additional capital expenditures will be for the purchase of a newer (used) pickup truck and attachments for their tractor. (Currently, they borrow their neighbor’s). Read More  Read More  2019 Business Plan | Organic Farm Business Plan 11 / 28
  • 13.
    Market Analysis Start Writinghere... Examples  Eveg Organic Sheboygan County’s cost of living is lower than the national average and housing costs are much lower than the national average. At the same time, Sheboygan County personal income is greater than the national average. In other words, this community not only has a high demand for organic items, but it can afford them as well. Industry Analysis Start Writing here... Examples  Eveg Organic This analysis is based on the North American Industry Classification System (“NAICS”) 111998: Agriculture – All Other Miscellaneous Crop Farming. The US crop production industry includes about 1 million farms with combined annual revenue of about $205 billion. Major companies include Dole Food Company, Chiquita Brands International, and Sunkist Growers. Crop farming is the growing and harvesting of field crops such as grain, oilseeds, tobacco, dry beans, Market Size Examples  Eveg Organic The US crop production industry includes about 1 million farms with combined annual revenue of about $205 billion. (First Research) Although the USDA does not have official statistics on U.S. organic retail sales, information is available from industry sources. U.S. sales of organic products were $21.1 billion in 2008--over 3 percent of total food sales and were expected to reach $23.0 billion in 2009. (Nutrition Business Journal) Industry Participants Examples  Eveg Organic Major participants include Dole Food Company, Chiquita Brands International, and Sunkist Growers. (First Research) Examples  Eveg Organic 2008, Sheboygan County’s median household income was $51,681 and the mean household income was estimated to be $61,889. upmetrics.co Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 12 / 28
  • 14.
    Market Segments Nearly 72percent of Sheboygan County’s housing units are owner-occupied. The median housing value in Sheboygan County is estimated to be $149,700, which is $43,000 less than the United States estimated median home value. At the same time, Sheboygan County income is higher than the national average, which Market Tests Start Writing here... Examples  Eveg Organic While selling produce to local restaurants, Mr. Burns realized that the CSA option could potentially come to fruition. Historically the restaurant patrons always asked the source of the beautiful and delicate lettuces and quality tomatoes. Realizing the popularity of his produce, Mr. Burns, while continuing on a quest for global carbon footprint reduction, began researching the possibility of beginning a CSA effort. With the help of his restaurant partners, Mr. Burns posted fliers and Target Market Segment Strategy Start Writing here... Examples  Eveg Organic Eveg Organic Farm is targeting households with earnings in excess of $50,000 in the greater Sheboygan County. Approximately 51 percent of the population resides in this category. Other farmers have missed this target by focusing on traditional farming methods while Eveg Organic Farm has obtained the Certified Organic stamp of approval. Additionally, Eveg Organic Farm will focus its energies primarily on its members and provide services exceeding expectations The following chart depicts the target market Examples According to a USDA survey of market managers (Organic Produce, Price Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 13 / 28
  • 15.
    Market Needs Examples  EvegOrganic According to a USDA survey of market managers (Organic Produce, Price Premiums, and Eco-Labeling in U.S. Farmers' Markets, April 2004) found that demand for organic products was strong or moderate in most of the farmers' markets surveyed around the country, and that the managers felt more organic farmers were needed to meet consumer demand in many states. (USDA updated 06/19/12) Market Trends Examples  Eveg Organic While consumers may not understand all the requirements associated with being certified organic, they are comfortable with the label. Which is why Eveg Organic Farm sought the services of the independent certification agency and has earned the distinction to be labeled an organic farm. Comparatively, their CSA counterparts that continue to operate by traditional farming methods, Eveg Organic Farm holds itself to a higher standard, which in time, they believe will Market Growth Examples  Eveg Organic U.S. sales of organic products were $21.1 billion in 2008 - over 3 percent of total food sales- and were expected to reach $23.0 billion in 2009 (Nutrition Business Journal). Positioning Examples  Eveg Organic Eveg Organic Farm is aware that its members are crucial to its survival and growth. The owners will make certain each member feels that Eveg Organic Farm is indeed his/her farm! After all, they do own a portion of the farm! The Burns will encourage its members to stop by to see operations. In addition, the owners will host an open house at harvest time to celebrate the season’s bounty. To further ensure its members are satisfied and encourage retention, the owners Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 14 / 28
  • 16.
    Competitive Analysis Direct Competitors Plymouth,Wisconsin reports six CSA entities, of which three represent direct competition for the subject. Backyard Bounty Examples  Eveg Organic Location: W4873 County Hwy U Plymouth, WI 53073 http://ljcomerford.wordpress.com/ This is a 22-acre family-owned farm and has been operating as a CSA for several years. In addition to its offerings of organic fruits and vegetables this farm also sells organic poultry and eggs. The farm had mixed reviews by its members. Eilert’s Acres Examples  Eveg Organic Location: N5575 County Road ZZ Plymouth, WI 53073 http://www.eilertsacres.com/ Owned by Edward and Kay Eilert, this farm began a business as a CSA in 2011. The farm provides many of the same vegetables as the subject as well as Springdale Farms Examples  Eveg Organic Location: W7065 Silver Spring Lane Plymouth, WI 53073 http://www.springdalefarmcsa.org/ This CSA farm is the most established in the direct market and has been in existence 20+ years. Springdale Farm has various pickup sites in the greater Sheboygan MSA. Based on the farm’s website, members are not given the Indirect Competitors The following are CSA businesses that compete indirectly with the subject: Examples  Eveg Organic Location: W6028 County Road C Plymouth, WI 53073 http://www.oldplankfarm.com/ This entity only sells its goods at a local farm stand; it does not sell shares. In addition, this indirect competitor sells organic eggs at its farm stand. Based on its upmetrics.co Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 15 / 28
  • 17.
    Old Plank Farm LogCabin Orchard Examples  Eveg Organic Location: N4797 County Rd E Plymouth, WI 53073 www.logcabinorchard.com This indirect competitor is a fruit orchard selling apples, pears, plums, honey, apple and maple syrup, fresh apple cider and apple butter. In the fall, this CSA SWOT Analysis Start Writing here... Examples  Eveg Organic SWOT stands for strengths, weaknesses, opportunities, and threats. The following is the SWOT analysis for Eveg Organic Farm. Read More  Read More  2019 Business Plan | Organic Farm Business Plan 16 / 28
  • 18.
    Strengths Eveg Organic Farmreceives share proceeds prior to start of the season which helps to pay for seeds, supplies and inputs During the off-season the owners of Eveg Organic Farm can market and recruit new members and complete their E Books Eveg Organic Farm will establish long term relationships with its members lasting at least one season Members share in the financial risks of the farm Low capital requirements, relatively inexpensive startup business S Weaknesses As many as 30 or more different crops must be grown to provide diversity to members throughout the season Location-if the farm is not close to its customers, it becomes burdensome for the farmer to make deliveries Labor intensive – during the season, crops are continually being planted, harvested, cleaned, sorted and packed – leaving little extra time for the farmer Member retention is key – if the member is not happy the likelihood of returning next season or providing a good recommendation is not good. W Opportunities The greater Sheboygan County is a prime location for organic produce with an historically high demand. Because many farmers still utilize traditional farming methods (pesticide and herbicide applications) Eveg Organic Farm stands out from the crowd with its Certified Organic stamp of approval O Threats New entrants to the market pose a threat. Partially mitigating this risk is the recommended 2-3 year trial farming period – which would give Eveg Organic Farm the necessary ‘heads-up’ to go against (said) competitors. Weather, storms, pests – can damage or even destroy crops. The farm is economically tied, and in inflationary times, consumers could revert back to traditional methods of buying fruits and vegetables at the local grocery store. T 2019 Business Plan | Organic Farm Business Plan 17 / 28
  • 19.
    Marketing & SalesPlan Start Writing here... Examples  Eveg Organic Eveg Organic Farm is targeting households with earnings in excess of $50,000 in the greater Sheboygan County. Other farmers have missed this target by focusing on traditional farming methods while Eveg Organic Farm has obtained the Certified Organic stamp of approval. Additionally, Eveg Organic Farm will focus its energies primarily on its members and provide services exceeding expectations by offering farm to door delivery service, providing supplemental Strategy Pyramid Start Writing here... Examples  Eveg Organic Strategy: Create awareness that Eveg Organic Farm delivers a wide variety of quality wholesome and healthy vegetables on a consistent basis. Tactics: Create a specific, detailed planting guide, planting several times over the growing season. Programs: Post fliers and brochures at local restaurants, and locally owned and Unique Selling Proposition (USP) Start Writing here... Examples  Eveg Organic Jane and John Burns stand out from the competition: They are experienced operators and have demonstrated the ability to grow large quantities of many different vegetables. They have demonstrated their ability to manage the crops, harvest, pack and deliver to their customers. They are doing business as a CSA. And unlike their conventional farming peers, Eveg Organic Farm has met the stringent requirements to be designated Certified Organic. Competitive Edge Examples  Eveg Organic CSA farming differs greatly from traditional farming due to the fact that members have ownership shares in the farm. Bearing this in mind, Eveg Organic Farm will wholeheartedly focus on this vital aspect to retain members. The owners will constantly stay in touch with their members and encourage them to come and visit ‘their’ farm. upmetrics.co Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 18 / 28
  • 20.
    Start Writing here... MarketingStrategy and Positioning Start Writing here... Examples  Eveg Organic Eveg Organic Farm will utilize product differentiation to stand apart from the competition. By growing wholesome organic produce, offering farm to door service, and actively engaging with its members, Eveg Organic Farm will go above and beyond to maintain and grow its member base. Positioning Statement Examples  Eveg Organic Eveg Organic Farm will be the premier organic CSA in the greater Sheboygan County by offering at least 30 of the most delicious and mouthwatering organic vegetables available in the local growing area and by providing exceptional relationships with its members, its community and the planet. Pricing Strategy Examples  Eveg Organic Eveg Organic Farm will utilize a fair price for a fair value. Some research suggests that the CSA farm is usually lower in price than organically grown food from local markets and is often less than foods from the supermarket. This could be a selling point for attracting new members, however, it also important to note this is not about cheap food. Promotion and Advertising Strategy Examples  Eveg Organic The best strategy is word of mouth advertising. When people are happy with their shares they tell friends. Eveg Organic Farm will place brochures with other CSA businesses such as the local organic bakery and neighboring dairy farm. Eveg Organic Farm’s website will provide additional marketing information. In Examples  Eveg Organic Eveg Organic Farm’s website will be a vital key in marketing. In addition to providing its history, location and contact information, the site will also have links to its CSA affiliations, the USDA website, and current organic industry topics. The Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 19 / 28
  • 21.
    Website website will alsohave links to the current weekly newsletter (during the season) and off-season the owners will maintain a blog of what items are currently going to Marketing Programs Examples  Eveg Organic Eveg Organic Farm will actively work to engage its members and the local community by: Creating fliers and brochures and posting in community gathering places such as churches, community centers, farmers markets, and other environmentally centric business. Sales Strategy Start Writing here... Examples  Eveg Organic Eveg Organic Farm has already sold all 30 of its shares for the upcoming season with future plans to sell 60 shares in Year Two and 90 shares in Year Three. In order to meet these goals, the farmers will continue to rely on advertising fliers, its online presence and most importantly word of mouth. The word of mouth recommendation from a satisfied member not only generates an opportunity for repeat business but also is beneficial in recruiting new members. Sales Forecast The following table represents the annual sales forecast for the initial three years of operations: Annual Sales Forecast Year1 Year2 Year3 Full share $23,250 $46,500 $69,750 E-Books & Cook Books $100 $100 $550 Honey $0 $0 $320 Gross Margin $23,350 $46,600 $70,620 Sales Programs Examples  Eveg Organic Eveg Organic Farm’s primary sales program is the sale of shares. Additional sales programs will come from the sale of their forthcoming books. Honey production is expected to come online by Year Three. During the slow winter months, both John and Jane Burns will actively market their Eveg Organic Farm, by providing speaking engagements at local events, becoming involved in the local community primarily its environmental issues, and Read More  Read More  Read More  Read More  2019 Business Plan | Organic Farm Business Plan 20 / 28
  • 22.
    Legal Start Writing here... Examples Eveg Organic Eveg Organic Farm is a C-Corporation doing business in the State of Wisconsin. Milestones The following chart depicts the Milestones Eveg Organic Farm anticipates achieving: Milestone Date Obtain Certified Organic Seal of Approval [Date] Pre Sell 80% of Shares [Date] Complete E-Book & Sell on website [Date] Pre Sell all 60 Shares [Date] Pre Sell all 90 Shares [Date] Establish an excellent credit record and qualify for a commercial loan to purchase an additional 9 acres [Date] Exit Strategy Start Writing here... Examples  Eveg Organic In the event that Eveg Organic Farm will cease operations, all assets (farm equipment, tools, scales) will be sold at auction. Proceeds from the sale will be first be used to pay off the financial obligation to the operating capital loan and the remaining proceeds will be paid to the members (if any obligations remain). Read More  Read More  2019 Business Plan | Organic Farm Business Plan 21 / 28
  • 23.
    Organization and Management OrganizationalStructure Start Writing here... Examples  Eveg Organic Eveg Organic Farm will be wholly owned and operated by John and Jane Burns. Mr. Burns will perform all office and accounting functions such as calculating the initial garden costs, seed costs and planting times. Both owners will harvest the crop. Eveg Organic Farm will hire one apprentice farmer for each additional acre that is cultivated. Over time, they have plans to hire part-time delivery drivers as well as bookkeeper. Management Team JOHN BURNS - [email protected] John Burns will actively manage the farm. Farm management duties will include the creation of a detailed planting guide and building a living soil. Only sustainable and organic farming methods will be used with no reliance on off-farm inputs and chemical pesticides/fertilizers. Growing methods include crop rotation, planting cover crops, applying finished compost and mulches, and encouraging beneficial insects, weed management, irrigation, and harvesting. Mr. Burns will also be the responsibility for preparing detailed accounting records for their tax accountant. JANE BURNS - [email protected] Jane Burns will also actively participate in managing the crop during the busy summer months. During the slower winter months, both will work to complete their E-books which will be sold online and supplement revenue. They will also actively market Eveg Organic Farm by speaking to local civic groups, providing tours of the farm, and drafting the weekly newsletters. Management Team Gaps Examples  Eveg Organic Eveg Organic Farm will rely on its Tax Accountant to assist with tax reporting. upmetrics.co Read More  2019 Business Plan | Organic Farm Business Plan 22 / 28
  • 24.
    Start Writing here... PersonnelPlan The following is a summary of Eveg Organic Farm’s Personnel Plan. Position Year1 Year2 Year3 Farmers(Owners) 10,800 10,800 10,800 Apprentice 14,400 31,200 Apprentice 14,400 Total Personnel Costs 10,800 25,200 56,400 Board of Directors N/A Read More  2019 Business Plan | Organic Farm Business Plan 23 / 28
  • 25.
    Financial Plan Start Writinghere... Examples  Eveg Organic The financial plan will cover the following: Required Cost of Start-Up Profit and Loss Cash Flow Balance Sheet Important Assumptions Start Writing here... Examples  Eveg Organic Revenues increased 50% Year One and 33% Year Two The following variable expenses are tied to volumes and will increase the same amount as revenue: salaries, fuel charges, postage, repairs and maintenance, and supplies The loan example is based on traditional lending – with a collateralized working capital loan, fully amortizing with a three year pay down. Start-Up Costs The following chart summarizes start-up expenses: Startup Expenses Amount Operating Capital [Amount] Salaries & Wages Insurance Premiums Beginning Inventory Legal and Accounting Fees Rent Deposits Utility Deposits Supplies Advertising and promotions Licenses Other Initial Costs Working Capital Total Startup Expenses upmetrics.co Read More  Read More  2019 Business Plan | Organic Farm Business Plan 24 / 28
  • 26.
    Startup Assets Real Estate[Amount] Buildings Leasehold Improvements Equipment Furniture and Fixtures Vehicles Other Fixed Assets Total Startup Assets Source and Use of Funds To date, the owners have come out of pocket approximately $40,600 or 74 percent of the project’s total costs. The following chart summarizes the source and use of funds: Source Of Funds Amount Owner's Contribution [Amount] Commercial Loan Commercial Mortgage Inventory & Working Capital Loan Total Source Of Funds Use Of Funds Amount Fixed Assets [Amount] Operating Capital Total Use of Funds Income Statement Projections Eveg Organic Farm’s estimated profit and loss for the initial three years of operations is reflected below: 2019 Business Plan | Organic Farm Business Plan 25 / 28
  • 27.
    Year1 Year2 Year3Year4 Year5 Revenues Product/Service A $151,200 $333,396 $367,569 $405,245 $446,783 Product/Service B $100,800 $222,264 $245,046 $270,163 $297,855 Total Revenues $252,000 $555,660 $612,615 $675,408 $744,638 Expenses & Costs Cost of goods sold $57,960 $122,245 $122,523 $128,328 $134,035 Lease $60,000 $61,500 $63,038 $64,613 $66,229 Marketing $20,000 $25,000 $25,000 $25,000 $25,000 Salaries $133,890 $204,030 $224,943 $236,190 $248,000 Other Expenses $3,500 $4,000 $4,500 $5,000 $5,500 Total Expenses & Costs $271,850 $412,775 $435,504 $454,131 $473,263 EBITDA ($19,850) $142,885 $177,112 $221,277 $271,374 Depreciation $36,960 $36,960 $36,960 $36,960 $36,960 EBIT ($56,810) $105,925 $140,152 $184,317 $234,414 Interest $23,621 $20,668 $17,716 $14,763 $11,810 PRETAX INCOME ($80,431) $85,257 $122,436 $169,554 $222,604 Net Operating Loss ($80,431) ($80,431) $0 $0 $0 Income Tax Expense $0 $1,689 $42,853 $59,344 $77,911 NET INCOME ($80,431) $83,568 $79,583 $110,210 $144,693 Net Profit Margin (%) - 15.00% 13.00% 16.30% 19.40% Balance Sheet 2019 Business Plan | Organic Farm Business Plan 26 / 28
  • 28.
    Year1 Year2 Year3Year4 Year5 ASSETS Cash $16,710 $90,188 $158,957 $258,570 $392,389 Accounts receivable $0 $0 $0 $0 $0 Inventory $21,000 $23,153 $25,526 $28,142 $31,027 Total Current Assets $37,710 $113,340 $184,482 $286,712 $423,416 Fixed assets $246,450 $246,450 $246,450 $246,450 $246,450 Depreciation $36,960 $73,920 $110,880 $147,840 $184,800 Net fixed assets $209,490 $172,530 $135,570 $98,610 $61,650 TOTAL ASSETS $247,200 $285,870 $320,052 $385,322 $485,066 LIABILITIES & EQUITY Debt $317,971 $272,546 $227,122 $181,698 $136,273 Accounts payable $9,660 $10,187 $10,210 $10,694 $11,170 Total Liabilities $327,631 $282,733 $237,332 $192,391 $147,443 Share Capital $0 $0 $0 $0 $0 Retained earnings ($80,431) $3,137 $82,720 $192,930 $337,623 Total Equity ($80,431) $3,137 $82,720 $192,930 $337,623 TOTAL LIABILITIES & EQUITY $247,200 $285,870 $320,052 $385,322 $485,066 Cash Flow Statement 2019 Business Plan | Organic Farm Business Plan 27 / 28
  • 29.
    Year1 Year2 Year3Year4 Year5 CASH FLOW FROM OPERATIONS Net Income (Loss) ($80,431) $83,568 $79,583 $110,210 $144,693 Change in working capital ($11,340) ($1,625) ($2,350) ($2,133) ($2,409) Depreciation $36,960 $36,960 $36,960 $36,960 $36,960 Net Cash Flow from Operations ($54,811) $118,902 $114,193 $145,037 $179,244 CASH FLOW FROM INVESTMENTS Investment ($246,450) $0 $0 $0 $0 Net Cash Flow from Investments ($246,450) $0 $0 $0 $0 CASH FLOW FROM FINANCING Cash from equity $0 $0 $0 $0 $0 Cash from debt $317,971 ($45,424) ($45,424) ($45,424) ($45,424) Net Cash Flow from Financing $317,971 ($45,424) ($45,424) ($45,424) ($45,424) SUMMARY Net Cash Flow $16,710 $73,478 $68,769 $99,613 $133,819 Cash at Beginning of Period $0 $16,710 $90,188 $158,957 $258,570 Cash at End of Period $16,710 $90,188 $158,957 $258,570 $392,389 2019 Business Plan | Organic Farm Business Plan 28 / 28