Farmers Market Business Plan Template
If you want to start a farmers market business or expand your current farmers market business, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of farmer’s market business plans.
The following farmer’s market business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Farmers Market Business Plan Example
I. Executive Summary
Business Overview
[Organization Name] is a new farmers market organization located north of [Location]. We organize the Maple Street Farmers Market every summer. Our mission is to bring together the city’s local farmers and vendors so they can sell their products directly to the community in a supportive collaboration.
The farmers market showcases stalls from over 30 local farms and businesses. These businesses sell local produce, dairy, and snacks as well as crafts, gift items, and other locally made items. Maple Street Farmers Market has been a success for several years and has become an important tradition for the northern neighborhoods of [Location].
Products Served
[Organization Name]’s farmers market offers a variety of local, homegrown products for our community to purchase. Some of the items that are sold at the farmers market include:
- Produce
- Meat
- Dairy
- Local snack brands
- Homemade cosmetics
- Soap
- Lotion
- Crafts
- Gift items
Customer Focus
[Organization Name] connects with local farmers and retailers who wish to sell their products directly to the local community. We are open to partnering with any vendor that is local to [Location], uses or grows local products, and supports the community in some way.
As a farmers market, [Organization Name] primarily serves residents living within a 5-mile radius of the farmers market location. The demographics of these customers are as follows:
- 37,125 residents
- Average income of $54,700
- 53.2% married
- Median age: 38 years
Management Team
[Organization Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] previously ran a stall at a farmers market for her family’s business for several years and found it a rewarding experience. She moved to [Location] several years ago and was disappointed in how few farmers markets there were. The two that exist are not easily accessible from her neighborhood. Using her previous business and farmers market experiences, she partnered with several vendors and put together the Maple Street Farmers Market. The market has been a success since its inception [X] years ago.
Success Factors
[Organization Name] is uniquely qualified to succeed due to the following reasons:
- There is a great demand for a farmers market that serves the northern part of the city. There are no other farmers markets that are accessible to this community.
- The management team has a track record of success in running farmer’s markets.
- Members of our community fully support and believe in our mission. Our farmers market has been a huge success since its inception.
Financial Highlights
[Organization Name] is currently seeking $150,000 to continue operations. Specifically, these funds will be used as follows:
- Farmer market build-out and operation costs: $25,000
- Tools and supplies: $25,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Organization Name] is a new farmers market organization located north of [Location]. We organize the Maple Street Farmers Market every summer. Our mission is to bring together the city’s local farmers and vendors so they can sell their products directly to the community in a supportive collaboration.
The farmers market is open every weekend during the summer, starting in mid-May and running until the end of August. The operating hours are from 10 am to 4 pm. The market is located in the parking lot of Maple Street Shopping Center. This parking lot provides ample room for all the vendors while still offering plenty of parking for customers.
The farmers market showcases stalls from over 30 local farms and businesses. Every summer, customers can find a great variety of produce, snacks, and locally-made items. Local farmers sell fresh seasonal fruit and vegetables while retail vendors sell soap, lotions, cosmetics, crafts, and other locally made products.
[Organization Name] was founded by [Founder’s Name] to address the lack of farmers markets in her region. There are only two other farmers markets in the city, but they are difficult to travel to from the northern section of the metro area. Maple Street Farmers Market provides an opportunity for nearby consumers to discover and enjoy local brands and products. The farmers market has been a success for several years and has become an important tradition for the northern neighborhoods of [Location].
[Company Name]’s History
[Organization Name] was founded and incorporated on [Date of Incorporation].
Since our founding, the organization has achieved the following milestones:
- Found a location for the farmers market
- Partnered with over 30 farmers and vendors
- Found an office location and signed the lease
- Successfully ran the farmers market over the course of [X] summers
- Hired key employees
[Company Name]’s Products/Services
[Organization Name]’s farmers market offers a wide variety of local, homegrown products for our community to purchase. Farmers sell local and organic produce such as blueberries, tomatoes, watermelon, spinach, and corn. Local retailers sell a variety of homemade products such as crafts, soap, lotion, cosmetics, and gift items. Our small farmers market offers a diverse selection of products that entices nearly any type of customer to stop by.
III. Industry Analysis
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
Farmers markets provide an exciting opportunity for residents to discover, connect with, and support local farmers and vendors. When shopping at a grocery store or department store, most people buy national brands that are easily found on displays. Therefore, it can be difficult for local brands to get their products discovered. Farmers markets are a great way for local vendors to get discovered and increase their sales, brand, and presence.
Farmers markets have been in high demand in recent years. According to IBISWorld, the farmers market industry has experienced a CAGR of 7.5% over the past five years. This shows that there is a great demand for farmers markets and that the demand is growing. We expect the industry will grow just as much over the next five years and that [Organization Name] will continue to be successful.
IV. Customer Analysis
Demographic Profile of Target Market
[Organization Name] serves the residents living within a 5-mile radius of the farmers market.
The area we serve is middle class and has the funds to support moderately priced vendors at local farmers markets. There has been a significant demand for a farmers market to serve this community. Since our farmers market started, it has been a popular summer event for the community.
Customer Segmentation
[Organization Name] primarily targets the following customer segments:
- Residents living near Maple Shopping Center: Most of our customers live within a quick walk or driving distance of Maple Shopping Center (the location of our farmers market).
- Residents who cannot commute to other farmers markets: There are only two other farmers markets in the city. One is downtown and the other is on the south side. Many residents cannot commute easily to those destinations. We will continue to market extensively to communities that may not be able to reach those other markets.
- Middle-class residents: Other farmers markets can be pricey, especially if the vendors sell luxury or organic items. We choose only vendors that price their products reasonably so that average, middle-class residents can afford them. We will continue to promote the affordability of our farmers market to reach this demographic.
V. Competitive Analysis
Direct & Indirect Competitors
There are only two other farmers markets in the city that provide moderate competition for customers and vendors.
[Location] Farmers Market
[Location] Farmers Market is the city’s primary farmers market and has been running successfully since 1980. It is a massive market with over 200 vendors that sell all kinds of food, cosmetics, and other locally-made products. They are open every weekend from mid-April to the end of August from 8 am to 4 pm. Since [Location] Farmers Market is the primary market for the city, it is our biggest competitor for vendors and customers.
Southside Farmers Market
Southside Farmers Market is located on the southern edge of the city. It primarily serves the southern neighborhoods, particularly communities that cannot commute to the downtown farmers market. Compared to [Location] Farmers Market, Southside Farmers Market is much smaller and showcases only 25 local vendors. While Southside Farmers Market is moderately successful, it only provides minor competition. It is smaller than our farmers market and is too far away for most of our target customers.
Competitive Advantage
[Organization Name] has several advantages over its competition. Those advantages include:
- Location: Our farmers market is located on the north side of the city. This is a convenient location for customers who want to purchase items from a farmers market but can’t access our competitors.
- Smaller setting: We have a modest list of vendors that creates a small, tight-knit farmers market community. Our larger competitors create an overwhelming atmosphere for customers and make it difficult to create personalized partnerships with vendors.
- Affordable pricing: We only partner with vendors who price their products affordably. This ensures that consumers of all demographics can afford the products sold at our farmers market.
VI. Marketing Plan
The [Company Name] Brand
The [Organization Name] brand focuses on the organization’s unique value proposition:
- Variety of quality, locally made food and products
- Friendly vendors and atmosphere
- Moderate pricing
- Easily accessible to locals living north of [Location]
Promotions Strategy
[Organization Name] targets residents living within 5 miles of the farmers market. The organization’s promotions strategy to reach the most clientele includes:
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The organization advertises its vendors and their products in local and regional magazines and news dailies. Obtaining relevant placements in industry magazines and journals also helps in increasing brand visibility.
Website
[Organization Name] has an informative and attractive website that features all of the vendors and farmers partaking in the farmers market. The website is highly informative and designed in a way that is user-friendly and eye-catching.
SEO
[Organization Name] invests in a strong SEO presence so that the farmers market is listed at the top of the Google or Bing search engine when area individuals research farmers market options in [Location].
Social Media
[Organization Name] maintains a social media presence to spread awareness of our seasonal farmers market. This attracts new customers as well as additional vendors and farmers. The organization posts information about our team, vendors, and the products they sell. To create a genuine connection with our clients, the organization also uses social media to engage with them and answer any questions they may have about our farmers market.
Local Publications
[Organization Name] announces its seasonal opening several weeks in advance through publicity pieces in local newspapers and publications. We run regular advertisements to maintain exposure to relevant markets.
Word of Mouth Marketing
[Organization Name] encourages word-of-mouth marketing from loyal and satisfied customers and vendors. The organization incentivizes its existing customer base to encourage their friends and colleagues to visit the farmers market.
Pricing Strategy
[Organization Name] primarily partners with vendors that price their products reasonably. We aim to provide an affordable farmers market experience that can be enjoyed by residents of all income levels.
VII. Operations Plan
Functional Roles
To execute the [Organization Name]’s business model, the organization needs to perform the following functions:
Administrative Functions
- Marketing
- Bookkeeping
- Hiring and training staff
- Other general administrative tasks
Service Functions
- Create the market’s seasonal schedule
- Market the farmers market events to the public
- Meet with key vendors and partners
- Oversee farmers market operations and sales
- Run fundraising events and donation campaigns
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Organization Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] previously ran a stall at a farmers market for her family’s business for several years and found it a rewarding experience. She moved to [Location] several years ago and was disappointed in how few farmers markets there were. The two that exist are not easily accessible from her neighborhood. Using her previous business and farmers market experiences, she partnered with several vendors and put together the Maple Street Farmers Market. The market has been a success since its inception [X] years ago.
[Founder’s Name]’s previous experience working at her family business has given her the business acumen and skills to run the organization. Furthermore, her experience running her family’s farmers market stall has given her the knowledge and experience needed to run a successful local farmers market.
Hiring Plan
[Founder’s Name] is the Executive Director of [Organization Name]. Since incorporation, the organization has hired an Administrative Assistant, Accountant, Operations Director, and Marketing Director. To continue our success, we need to hire the following staff:
- Market Manager/Coordinator
- Seasonal Market Staff
IX. Financial Plan
Revenue and Cost Drivers
Revenues for [Organization Name] primarily come from donations and grants. All farmers who wish to partake in the farmers market pay a small fee to reserve a space for their stall.
The cost drivers for the organization include the payroll of the staff, supplies, equipment, overhead costs, and marketing expenses.
Capital Requirements and Use of Funds
[Organization Name] is currently seeking $150,000 to continue operations. Specifically, these funds will be used as follows:
- Farmer market build-out and operation costs: $25,000
- Tools and supplies: $25,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| 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% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| 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 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| 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 |
