I. Executive Summary
This Section's Contents
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Business Overview
[Company Name], located in [insert location here] is a new mushroom farm providing a variety of fresh mushrooms to regional distributors. [Company Name] is headed by [Founder’s Name], an experienced farm manager.
Products
[Company Name] will sell high-quality fresh mushrooms. The products will be certified organic as fertilizers and pesticides will not be used in production.
Customer Focus
[Company Name] will primarily serve regional distributors of fresh vegetables. Some products may be sold directly to manufacturers in the local area for the production of other products from these ingredients, or to local restaurants.
These businesses typically gross $5 million to $50 million in annual revenues and source their supplies from farms within a 100 mile radius of their facilities.
Distributors and manufacturers of food products in the region see growth in interest in organic products and are in need of organic ingredients for suppliers. Consumers show increased demand for these organic products at stores, and expect fresh, local produce as ingredients at local high-end restaurants.
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a farm operations manager for the past 15 years. He has spent much of his career working with Green Field Farms, where he oversaw fruit and vegetable production.
[Company name] will also employ an experienced sales manager to sell to distributors and manufacturers. This will be a skilled salesperson trained in farm sales by [Founder’s Name]. An assistant manager will manage day-to-day operations of the farm.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in local fresh mushrooms. In addition, we have surveyed the regional distributors and received extremely positive feedback saying that they explicitly want to buy our products when launched.
- Our location is within 100 miles of numerous potential distributors and consists of two greenhouses, each with capacity to grow 10,000 pounds of mushrooms per year.
- The management team has a track record of success in the farming business.
Financial Highlights
[Company Name] is seeking a total funding of $100,000 of debt capital to open its mushroom farm. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used 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% |
