Microgreens Business Plan Template
If you want to start a Microgreens business or expand your current Microgreens business, you need a business plan.
The following Microgreens business plan template gives you the key elements to include in a winning Microgreens business plan.
Microgreens Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a farm in [Location], focusing on supplying high-quality microgreens. The Company will cultivate and retail a variety of microgreens of different varieties to restaurants, hotels, supermarkets, and retailers. The microgreens farm will make use of a hydroponic system for vertical farming, to maximize growing space. The Company has secured 5 acres of land with an existing greenhouse from which to launch their commercial microgreens farm.
Products Served
[Company Name] will be involved in cultivating various microgreens from the following plant families:
- Brassicaceae family: Cauliflower, broccoli, cabbage, watercress, radish and arugula
- Asteraceae family: Lettuce, endive, chicory and radicchio
- Apiaceae family: Dill, carrot, fennel and celery
- Amaranthaceae family: swiss chard, beet and spinach
- Legumes like chickpeas, beans and lentils
Customer Focus
[Company Name] will serve the community of [company location]. The Company will primarily offer its products to restaurants and specialty grocers. The complete market segmentation of the microgreens farming business will be:
- 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 farming business for many years. [Founder’s name] has a degree in agriculture from ABC University and has been engaged in progressive farming for the last [x] years. He has an immense interest in new farming techniques, and has the capital needed to start the business.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is a growing demand for microgreens in the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit and robust demand for microgreens, and an intention to frequent the business after launch.
- The Company has the latest microgreens farming system and equipment to help it cultivate crops in commercial quantities with less stress.
- The management team has a track record of success in agriculture.
- Market trends such as increased demand for functional food with increased nutritional value will drive the microgreens market. Also, microgreens are in great demand from chefs in both trendy and high-end restaurants.
Financial Highlights
[Company Name] is currently seeking $300,000 to start a standard microgreens commercial farm business. Specifically, these funds will be used as follows:
- Land purchase: $150,000
- Vertical grow build-out: $100,000
- Salaries: $50,000
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]?
[Company Name], located in [insert location here], is a new commercial microgreens farm, focusing on providing a variety of nutrition-rich microgreens. The farm will use a vertical system of growing microgreens that maximizes yield while efficiently controlling important cultivation factors such as levels of light and shade, irrigation, fertilizer, and humidity.
The Company’s primary service includes the cultivation of different varieties of microgreens. 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 stand to cater to the needs of direct consumers.
[Company Name]’s History
[Founder’s Name] is an educated grower with an immense interest in new farming techniques. He has been studying and implementing progressive farming techniques for the last [x] years. [Company Name] will become a highly respected farm in [Location], offering a range of microgreens.
Upon surveying the local customer base and finding the ideal location, [Founder’s Name] incorporated [Company Name] as a microgreen farm on [date of incorporation].
[Founder’s Name] has selected a location and is currently undergoing due diligence on the property and the local market to assess the feasibility of opening the commercial microgreens farm.
Since incorporation, the company has achieved the following milestones:
- Found agricultural property and signed a letter of Intent to purchase it
- Developed the company’s name, logo, and website
- Created the list of products to be offered
- Secured the vertical growing system
- Began recruiting key employees with experience in agriculture
[Company Name]’s Products/Services
The Company will provide the following microgreens products:
- Brassicaceae family: Cauliflower, broccoli, cabbage, watercress, radish and arugula
- Asteraceae family: Lettuce, endive, chicory and radicchio
- Apiaceae family: Dill, carrot, fennel and celery
- Amaranthaceae family: Swiss chard, beet and spinach
- Legumes like chickpeas, beans and lentils
III. Industry Analysis
[Company Name] competes against other local microgreens producers as well as major regional farms. The global microgreens market is expected to grow at a compound annual growth rate of 7.67% over the forecast period to reach $17.03 billion. Health and fitness-conscious consumers are buying more nutritious foods such as microgreens to use in their home cooking or to incorporate into juices and smoothies. Broccoli, Cabbage, and Peas hold a significant share in the global microgreen market owing to the speed and ease of production. The United States Microgreens Market is projected to register a CAGR of 10. 1% during the next five years.
Indoor vertical farming is the cultivation of agricultural produce in controlled environments such as greenhouses, where crops are provided with required environments such as temperature, light, appropriate water, and growth medium. This farming method has been gaining popularity in the global product market as it allows growers to continue production in all seasons and increases yield.
Going forward, progressive farming practices, such as the microgreen farming industry, will continue to grow to help fill the food demand of a growing global population.
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 high end restaurant dining, as well as higher quality food at home.
The precise demographics of the town in which the business is located is as follows:
| Springdale | Wyndham | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Retail customers: The Company will target people who want to buy microgreens for their household use. The Company will operate a farm stand to cater to the needs of these customers.
- Retailers: Grocery stores and specialty food markets are one of the major market segments for microgreens. The Company will offer wholesale contracts to this segment.
- Restaurants/Hotels: The Company will also reach out to trendy and high-end area restaurants. The Company will focus on finding restaurants with an emphasis on farm-fresh produce, eating locally and seasonally, or those that offer gourmet dishes. [Company name] can anticipate a significant demand from this segment as a result of the growing gastronomy scene in [location].
V. Competitive Analysis
Direct & Indirect Competitors
Competitor 1
Competitor 1 has been providing a multitude of high-quality seeds to residential and professional growers alike, which include flowers, vegetables, grasses, herbs, sprouting, long-term storage, and wildflowers. Since its inception, Competitor 1 has been dedicated to helping anyone begin gardening or sprouting, so it tries to provide as much customer support and growing information as it can because Competitor 1 believes that when the community grows, the company also grows. Competitor 1 hopes to build and rebuild communities through growing by making gardening an accessible practice for all.
Competitor 2
Competitor 2 is the [location]’s first indoor vertical farm to grow vegetables. Since planting its first seeds in [xx], Competitor 2 has created a sustainable urban farm where the harvest cycle is measured in days, not months. Competitor 2’s farm uses less water than traditional agriculture and is pesticide and herbicide-free. Under energy-efficient LED lights, its fully climate-controlled environment consistently produces the freshest greens. Competitor 2 harvest microgreens daily, regardless of season, so that they can be on the customer’s plate within hours of harvest.
Competitor 3
Competitor 3 is a vertical farming company passionately solving agriculture’s biggest challenges, growing real food for elevated flavor and a brighter future for all. Competitor 3 selects the most flavorful varietals of microgreens and baby greens, then perfects them for optimal quality in its indoor growing environment. Using the latest breakthroughs in vertical farming, artificial intelligence, and plant biology, Competitor 3 is fixing the broken food system and improving the way fresh produce is grown and distributed locally and globally. Competitor 3 has built a proprietary agriculture platform to grow a wide array of products, delivering superior flavor, better quality, and improved nutrition with the most sophisticated levels of traceability & food safety in the industry.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: The Company’s management team has xx years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
- Farming system: The Company has the latest and most efficient vertical farming system and is guided by best practices in the industry.
- Quality products at affordable pricing: The complete array of microgreens 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.
- Packaging: [Company Name] will utilize environmentally friendly packaging materials that maintain optimal freshness.
VI. Marketing Plan
The [Company Name] Brand
[Company name] seeks to position itself as a progressive, continuously improving competitor in the microgreens farming industry. End customers can expect to receive superior quality products at competitive prices.
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering a wide variety of microgreens
- Latest and most efficient farming practices
- Quality Packaging
- Affordable prices
- Providing excellent customer service and customer-centric experiences
Promotions Strategy
[Company Name] expects to make connections with the local distributors and retailers which will help the company to maximize brand awareness among grocery stores and supermarkets. Also, the company will visit area restaurants to showcase their products. The Company’s promotions strategy to reach the audience includes:
Pre-Opening Events
Before opening the microgreens farm, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz, and awareness for [Company Name] in the area.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its products in local and regional magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Websites
The Company will advertise its products on different food-related websites, as well as farming/agriculture websites. This will help the company reach a large number of customers in different locations.
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in local newspapers and publications. It will run regular advertisements to maintain exposure to relevant markets.
Industry Events
After launching the commercial microgreens farm, [Company Name] will attend food production / supplier events and will network within the microgreens farming industry. These events will create buzz, and awareness for [Company Name] in the area.
Word of Mouth Marketing
[Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will incentivize its existing customer base to encourage their friends and colleagues to try its range of microgreens.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn of losing a portion of the customer base each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.
Pricing Strategy
[Company Name]’s pricing will be reasonable, so customers feel they receive these specialty products at great value. The Company will ensure that the prices are far more affordable than what they pay for ultra-premium microgreens.
VII. Operations Plan
Functional Roles
[Company name] will be involved in the cultivation of a wide variety of microgreens. [Company name] will process and package on site and then distribute regionally. Walk-in clients will be served at the company’s farm stand.
[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 Functions
- Farm operations
- Outreach and sales
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Preparing financial reports, budgets, and financial statements for the organization
- Inventory management
- Hiring and training staff
Milestones
[Company Name] expects to achieve the following milestones in the following [] 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
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] has been in the farming business for many years. [Founder’s name] has a degree in agriculture from ABC University and has been engaged in progressive farming for the last [x] years. He has an immense interest in new farming techniques, and has the capital needed to start the business.
[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 [x] years of relevant operations or sales experience.
Hiring Plan
[Founder] will serve as the CEO. In order to establish the microgreens farm, the company will need to hire the following personnel:
- Farm hands [Number]
- General Farm Manager
- Administrator/Accountant
- Cultivation Manager / Supervisor
- Processing and Packaging Manager / Supervisor
- Sales and Marketing Manager
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the sale of microgreens. The major costs for the company will be seeds, equipment cost, and wages / salaries of its staff. 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 microgreens commercial farm business. Specifically, these funds will be used as follows:
- Land purchase: $150,000
- Vertical grow buildout: $100,000
- Salaries: $50,000
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Acreage for Crops | 300 |
|---|---|
| Number of customers per month | |
| FY1 | 50 |
| FY2 | 75 |
| FY3 | 100 |
| FY4 | 125 |
| FY5 | 150 |
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 |
