Greenhouse Business Plan Template

Greenhouse Business Plan Template

If you want to start a Greenhouse business or expand your current Greenhouse business, you need a business plan.

The following Greenhouse business plan template gives you the key elements to include in a winning Greenhouse business plan.

You can download our thrift greenhouse plan template (including a full, customizable financial model) to your computer here.

 

Sample Greenhouse Business Plan Template

Below is a greenhouse business plan example with each of the key sections to help you write a greenhouse business plan for your own company.

I. Executive Summary

Business Overview

[Company Name] is a registered and licensed agriculture company that plans to build a commercial greenhouse in [Location], focusing on supplying all types of greenhouse crops. The Company will cultivate and retail a variety of crops, flowers, and agriculture-related transplants to a wide range of customers. The Company has secured 80 acres of land as well as a majority of the farming equipment and machinery needed to launch their commercial greenhouse.

Products Served

[Company Name] will be involved in cultivating various crops via a greenhouse farming model. The Company produces both vegetables and fruits in commercial quantities. Its areas of concentration include:

• Cultivation of crops such as cucumbers, shallots, tomatoes, lettuce, chillis, capsicum, red salad onions, snow peas and many more
• Cultivation of flowers and agriculture-related transplants
• Plant transplant services
• Vegetable and fruit processing and packaging

Customer Focus

[Company Name] will serve the community of [company location]. The Company will primarily offer its products and services to the end consumers of greenhouse commercial farm produce. The market segmentation of the greenhouse farming business will:

• Retail customers
• Grocery stores
• Restaurants
• Supermarkets

Management Team

[Company Name] will be solely owned and operated by [Founder’s Name], who has been in the commercial farming business for many years. [Founder’s name] has a degree in agriculture engineering from ABC University and has been providing consultancy services for progressive farming for the last [x] years. He has immense interest in new farming techniques, and the capital needed to start the business.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• There is currently a high demand for quality greenhouse produce in the community. In addition, the company has surveyed the local population and received highly positive feedback pointing towards an explicit demand for the products, supporting the business after launch.
• The Company has the latest greenhouse farming machines, tools, and equipment to help it cultivate crops in commercial quantities with less stress.
• The management team has a track record of success in the cultivation business.
• The greenhouse commercial farming business is a proven business and has succeeded in communities throughout the United States.

Financial Highlights

[Company Name] is currently seeking $300,000 to start a standard greenhouse commercial farm business. Specifically, these funds will be used as follows:

• Land lease and greenhouse construction: $150,000
• Tools, equipment and supplies: $100,000
• Salaries: $50,000

Top line projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name], located in [insert location here], is a new commercial greenhouse farm, focusing on providing greater control over the growing environment of various crops. It will build the commercial greenhouse farm in a way that it can efficiently control the important cultivation factors such as levels of light and shade, irrigation, fertilizer application and atmospheric humidity.

The Company’s primary service includes the cultivation of crops and flowers. It will provide its products to end consumers as well as retail establishments such as grocery stores and restaurants. The Company will also operate a farm shop just outside the greenhouse to cater to the needs of direct consumers. The Company will also provide greenhouse construction, consultancy, and advisory services to those who want to build their own greenhouse at their home.

[Company Name]’s History

[Founder’s Name] is an agriculture engineer with an immense interest in new farming techniques and has been providing consultancy services for progressive farming for the last [x] years. [Company Name] will become a known commercial greenhouse farming company in [Location], offering a complete greenhouse products and services experience.

Upon surveying the local customer base and finding the potential retail location, [Founder’s Name] incorporated [Company Name] as a greenhouse farming company on [date of incorporation].

[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for opening the commercial greenhouse farm.

Since incorporation, the company has achieved the following milestones:

• Found land for greenhouse construction and signed Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Created the list of products and services
• Secured farming equipment and machines
• Began recruiting key employees with experience in the greenhouse farming industry

[Company Name]’s Products/Services

The Company will provide the following greenhouse farming products and services:

• Cultivation of crops such as; cucumbers, shallots, tomatoes, lettuce, chillis, capsicum, red salad onions, snow peas and many more
• Cultivation of flowers and agriculture related transplants and others
• Plant transplant services
• Vegetable and fruit processing and packaging
• Greenhouse construction, consultancy and advisory services

 

III. Industry Analysis

[Company Name] competes against small, individually owned commercial greenhouse farming businesses and major regional or national chains. The commercial greenhouse market was valued at $23 trillion last year and is projected to reach $36.12 trillion over the next five years, growing at a CAGR of 6.65%. The rising demand for food, declining arable land due to increasing population, and sudden environmental changes have fueled the commercial greenhouse market.

Greenhouses are used to compensate for flaws in a piece of land’s growing properties, such as a short growing season or low light levels. In essence, they are intended to boost food production in underserved areas. This is so because greenhouses allow some crops to be cultivated throughout the year, regardless of the weather. Greenhouses are becoming an increasingly significant component of high-latitude countries’ agricultural supply chains.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will primarily serve retail customers, grocery stores, restaurants, and supermarkets of [company location] and its surrounding areas.

The area it will serve is populated mostly by moderate to affluent people; as a result, they have the means to pay for higher quality service.

Customer Segmentation

The Company will primarily target the following customer segments:

• Retail customers: The Company will target people who want to buy the products for their household use. The Company will also open a farm shop just outside the farm to cater to the needs of these customers.
• Retailers: Grocery stores and retailers will also be one of the market segments that the company will be targeting. The Company will offer products and services to this market segment at discounted rates to make them their regular customers and to advertise its name through them.
• Restaurants: Restaurants that offer non-seasonal vegetable and fruit dishes and need fresh products will also be the company’s customers.

 

V. Competitive Analysis

Direct & Indirect Competitors

Sunshine Farms
Sunshine Farms is one of the largest greenhouse companies in the region. The company has been in business for xx years. Sunshine Farms offers a wide range of fruits and vegetables.
Sunshine Farms has amassed a large customer base, however, they do not provide greenhouse products directly to the end-users, they only distribute their products to wholesalers.

Green Thumb
Green Thumb is one of the largest greenhouse vegetable producers in the U.S. It specializes in producing and selling off-season vegetables. Green Thumb sells over 50 varieties of vegetables to wholesalers, institutional customers, and supermarket chains. The company has accumulated proprietary horticultural know-how for each step of the crop cultivation process.

Everyday Produce
Everyday Produce was established in [xx]. The company is a family group specializing in the fruit and vegetable sector. Everyday Produce sells its products to the main supermarket chains throughout the U.S. and is particularly attentive to continuous quality improvement processes for the satisfaction of the customer and the end consumer. Everyday Produce grows 1000+ varieties of crops and 800+ new varieties tested each year.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management: The Company’s management team has years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
• Machinery/Equipment: The Company has some of the latest and efficient greenhouse farming machines and equipment and is guided by best practices in the industry.
• Quality products at affordable pricing: The complete array of greenhouse products offered by [Company Name] nearly equals the most premium positioned competitor, [Competitor Name]. However, [Company Name] will offer these products at a much more affordable price.
• Quality Packaging: [Company Name] will utilize product-oriented packaging materials that can reduce the damage in the products at the time of supply.

 

VI. Marketing Plan

You can download our thrift greenhouse plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the greenhouse farming industry. End customers can expect to receive superior quality products and services grown by highly educated professionals at competitive prices.
The [Company Name] brand will focus on the company’s unique value proposition:

• Offering a wide variety of fresh off-seasonal vegetables and fruits
• Latest and efficient greenhouse farm machines and equipment
• Quality Packaging
• Providing excellent customer service and customer-centric experiences

Promotions Strategy

[Company Name] has perfected its sale and marketing strategies first by networking with agriculture merchants and companies that rely on raw materials from the agriculture industry who are likely to become the company’s customers. The Company’s promotions strategy to reach the audience includes:

Pre-Opening Events
Before opening the greenhouse farm, [Company Name] will organize pre-opening events designed for prospective customers, wholesalers, retailers and press contacts. These events will create buzz, and awareness for [Company Name] in the area.

Industry Events
After opening the greenhouse farm, [Company Name] will attend the different industry related events and will outreach different renowned people in the greenhouse farming industry. These events will create buzz, and awareness for [Company Name] in the area.

Advertisement
Advertisements in print publications such as newspapers, magazines, and other publications are a great way for businesses to reach out to their target audience. The firm will place advertisements in renowned periodicals and newspapers. Getting appropriate placements in industry magazines and journals will also help to boost brand awareness.

Websites
The Company will advertise its greenhouse products and related services on different food related websites, agricultural websites, restaurant’s websites and many more. This will help the company to reach a large number of customers from different locations.

Social Media Marketing
One of the most cost-effective and practical marketing tools for increasing company visibility is social media. The Company will use social media to create interesting content on various greenhouse items and customer feedback in order to raise audience awareness and loyalty. Engaging with potential clients and business partners on social media platforms such as Facebook, Instagram, Twitter, and LinkedIn can also assist in understanding changing customer needs.

Word of Mouth Marketing
[Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and try their exotic off-seasonal fruits and vegetables.

Special Offers
Offers and incentives are a great way for businesses to refill the turnover in their customer base that they lose every year. Special deals will be introduced to attract new customers and encourage repeat purchases, which will be beneficial in the long run. The Company will offer [x] of discount for initial months.

Pricing Strategy

[Company Name]’s pricing will be reasonable, so customers feel they receive greenhouse products at great value. The Company will ensure that the prices are far more affordable than what they pay at an ultra-premium greenhouse farm.

 

VII. Operations Plan

Functional Roles

[Company name] will be involved in the cultivation of crops, flowers and agriculture related transplants. [Company name] will process and package on site and then distribute regional. Walk-in clients will be served at the company’s onsite store.

[Founder’s Name] will run the day-to-day operations of the farm, including scheduling and assigning the work of farmhands, sourcing and purchasing supplies and basic equipment, keeping the company’s books, maintaining legal licenses, handling insurance, and ensuring that the company meets government regulations. He will contact specialists for equipment repairs when needed.

To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:

Service & Administrative Functions

• Greenhouse farming services
• General & administrative functions including training, evaluation and assessment of employees
• Preparing financial reports, budgets, and financial statements for the organization
• Inventory management
• Hiring and training staff
• Maintenance personnel

Milestones

[Company Name] expects to achieve the following milestones in the following [xyz] months:

 

VIII. Management Team

Management Team Members

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] has been in the commercial farming business for many years. [Founder’s name] has a degree in agriculture engineering from ABC University and has been providing consultancy services for progressive farming for the last [x] years. He has immense interest in new farming techniques, and the capital needed to start the business.

[Founder] has personal relationships with highly educated professionals in the agricultural industry.

[Company name] will also employ a sales and marketing manager to focus on marketing, sales, and customer service to retailers and supermarkets for [Company Name] products. He will either have undergraduate business degrees or years of relevant operations or sales experience.

Hiring Plan

[Founder] will serve as the CEO. In order to establish greenhouse farm and retail stores, the company will need to hire the following personnel:

• Farming professionals [Number]
• General Farm Manager
• Administrator/Accountant
• Store Manager
• Crop (Vegetable and fruits) Cultivation Manager / Supervisor
• Vegetable and Fruits Processing and Packaging Plant Manager / Supervisor
• Sales and Marketing Manager

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come from the greenhouse farming services concentrated to its customers. The major costs for the company will be construction of greenhouse, machinery and equipment cost. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $300,000 to start a standard greenhouse commercial farm business. Specifically, these funds will be used as follows:

• Land lease and greenhouse construction: $150,000
• Tools, equipment and supplies: $100,000
• Salaries: $50,000

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

 
5 Year Annual Income Statement

 
5 Year Annual Balance Sheet

 
5 Year Annual Cash Flow Statement