Hydroponics Farm Business Plan Template [Updated 2023]

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I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name], located in [Location] is a new hydroponics farm that focuses on growing and selling a variety of fresh fruits and vegetables. The company has selected a 5-acre facility located in the heart of the community that it will use to set up its hydroponics farm operations. [Company Name]’s focus is on using the latest technology and best farming practices to ensure quick growing high yield crops of fresh produce that will be available all year round.

Products Served

[Company Name] will grow and sell a variety of fresh produce including the following fruits and vegetables:

  • Tomatoes
  • Lettuce
  • Cucumbers
  • Cilantro
  • Kale
  • Spinach
  • Peppers
  • Strawberries
  • Herbs

Customer Focus

[Company Name] will primarily serve individuals, restaurants, and supermarkets within a 30-mile radius of the hydroponics farm. The company will deliver its products to restaurants and supermarkets. Individual consumers can also purchase produce directly from the farm and at local farmers markets.

The demographics of these customers are as follows:

  • 120,000 residents
  • Average income of $74,700
  • 58.9% married
  • 49.6% in management/professional occupations
  • Median age: 38 years
  • 1,500 small businesses

A large share of the local population prefers healthy foods that are locally grown. Also included in these demographics are hundreds of restaurants, supermarkets, and farmers markets, making [Location] an ideal target for the hydroponics farm.

Management Team

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a hydroponics farm operations manager for the past 15 years. He has spent much of his career working with a large commercial company, where he oversaw the entire production process.

[Company name] will also employ an experienced sales manager to sell to local supermarkets and restaurants. This will be a skilled salesperson trained in farm sales by [Founder’s Name]. An assistant manager will also be employed to help manage the day-to-day operations of the farm.

Success Factors

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

  • There is a growing demand for locally grown fresh fruits and vegetables in the community. In addition, the company surveyed the local population and small businesses and received highly positive feedback pointing towards an explicit and robust demand for food grown hydroponically, and an intention to frequent the business after launch.
  • The company will use the latest hydroponics farming system and equipment to cultivate high yield crops all year round, providing customers with fresh farm-to-table options on demand.
  • The management team has a track record of success in hydroponics farming.
  • Market trends such as increased demand for fresh, locally sourced food will help drive the hydroponics market. Also, locally grown, farm-to-table ingredients are in great demand from chefs in trendy and high-end restaurants in the community.

Financial Highlights

[Company Name] is seeking a total funding of $300,000 of debt capital to open its hydroponics farm.

  • Land purchase: $150,000
  • Hydroponics equipment and build-out: $100,000
  • Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

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

Financial SummaryFY 1FY 2FY 3FY 4FY 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 Margin25%31%31%32%35%
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