You are on page 1of 12

Company Summary Mixed Greens Salad Gardens, soon to be located in Blue River, OR, is a grower an d seller of exotic salad field

greens. MGSG grows a wide variety of field greens including red leaf, arugula, radicchio, mustard greens, endive, and chicory. MG SG sells the greens both at farmer markets as well as direct to restaurants. The business will be based out of Heidi Ponic's home. The office will be within her home and the greenhouse will be on her adjoining 20 acres of land. 2.1 Company Ownership Mixed Greens Salad Gardens will be a sole proprietorship with Heidi Ponic as the founder and owner. Heidi will be funding the business with a $50,000 investment of her own. An additional $10,000 will be invested by family member O.G. Tylthe with exit/repayment initially scheduled for year five. 2.2 Start-up Summary Mixed Greens Salad Gardens' start-up costs will include all the equipment needed for the home-based office, the construction of the greenhouse and all the neces sary equipment, and other essentials for growing. The home office equipment will be the largest chunk of the start-up expenses. Th is equipment includes a computer system, fax machine, office supplies, cellular phone, and pager. The computer should have at least a 500 megahertz Celeron/Pent ium processor, 64 megabytes of RAM (preferably 128), 6 gigabyte hard drive, and a rewritable CD-ROM for backing up the system. The home office will also require a few pieces of furniture such as a desk, chair, and book shelf to transform a standard room into an office. Lastly, an additional land phone line will be requ ired. The greenhouse will need the following equipment: a 25' x 100' greenhouse struct ure made out of poly carbonate, a ventilation system, a heater, a mister system, supplemental lighting, fertilizer injector, pruners, pots, trays, soil, seeds, and assorted chemicals. Please note that of the $25,300 of long-term assets, $20,000 will be depreciated straight line for 27.5 years (real estate) and the remaining $5,300 will be dep reciated on a seven year straight-line schedule. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan » Start-up Requirements Start-up Expenses Legal $300 Stationery $200 Insurance $200 Untilities Upgrades $150 Rent $250 Expensed Computer Equipment $3,500 Other $500 Total Start-up Expenses $5,100 Start-up Assets Cash Required $34,700 Start-up Inventory $0 Other Current Assets $500 Long-term Assets $25,300

000 Other $0 Additional Investment Requirement $600 Total Planned Investment $60.500 Total Requirements $65. with LivePlan.p hp#ixzz2Q2sU1xk5 Products .600 Page 1 2 3 4 5 6 7 8 « Previous Page Next Page » Your business plan can look as polished and professional as this sample plan.000 Investor 2 $10. It 's fast and easy.500 Total Funding Required $65. Click here to get started. Create your own business plan » Start-up Funding Start-up Expenses to Fund $5.700 Additional Cash Raised $0 Cash Balance on Starting Date $34.100) Total Capital $55.700 Total Assets $ Need real financials? We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan.600 Assets Non-cash Assets from Start-up $25.bplans.800 Cash Requirements from Start-up $34.100 Start-up Assets to Fund $60.600 Loss at Start-up (Start-up Expenses) ($5.000 Long-term Liabilities $0 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $5. Read more: http://www.000 Capital Planned Investment Heidi Ponic $50.Total Assets $60.500 Total Funding $65.500 Total Capital and Liabilities $60.500 Liabilities and Capital Liabilities Current Borrowing $5.

and restaurants. arugula. endive. For what ever reason (probably attributable to demand of their cus tomers). the French and German restaurants. appreci ates fine dining. Create your own business plan » Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Growth CAGR . generally it is a restaurant of fine dining that serves the finer greens. Read more: http://www. These greens will include but are not limited to: red leaf. During the spring and the summer MGSG will be serving both the consumer markets through farmer market stands and the restaurants thro ugh direct distribution. MGSG has a long term contract with them which helps out in terms of st ability. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. and generally is from a higher socio/economic class. These greens are grown for use in salad mixtures. it is typically an adventurous American or nouveau cuisine restaurant as opposed to a nicer French or German restaurant that appreciates the exotic fiel d greens mix. Not all restaurants use exotic field greens mixes. even the finer ones tend to serve "p easant greens. When people fro m this class get a little "crazy" they might even try romaine lettuce.MGSG will sell a spring mix of salad field greens. mustard greens. These are NOT the people MGSG serves. The consumer market is seasonal so we will have production shifts during the consumer off season and all of the production will go toward wholesal e restaurant distribution. radicchio. MGSG is going after people that appreciate and c hicory. therefore one can conclude that the consumer typically makes more money if they are willing to pay significantly more for their salad greens. 4.php#ixzz 2Q2sghKGk Market Analysis Summary MGSG will be focusing on two distinct users of greens." The restaurants are a year round customer which is helpful to ba lance the seasonal demand of individual consumers (group 1 above). To be even more sp ecific.1 Market Segmentation Mixed Greens Salad Gardens has two distinct customers: Individual Consumers. they are not certified washed and the patrons are told to wash them an additional time. Restaurants. These peo ple are typically unsophisticated or unadventurous in terms of culinary habits. This group of people buy exotic salad greens because t hey have a more sophisticated pallette. and secon d. This group o f consumers is more likely to make their own meals instead of going out. Mixed Gre ens Salad Gardens' field greens are more expensive than choices like iceberg or romaine. Another advan tage of having the restaurants as a customer is that even though they get a bett er price. While the greens are washed at the farm.bplans. tastier alternatives to the standby of iceberg lettuce. individual consumers. purchased by the end c onsumer as well as by restaurants who then serve it to their patrons. people with more sophisticated palates typically are more educated. Average Americans have been raised on ic eberg lettuce and this is their green of choice (unfortunately).

00% 11. I n addition to individuals frequenting the farmer markets. The re are about 25-30 different restaurants in Eugene that use field greens in thei r salad and MGSG intends to approach these to form long-term relationships.882 12. sometimes larger and sometimes smaller. An example of this would be Food Service of America (FSA ) which buys a wide variety of products and quality of produce from farmers and distributes them to restaurants. The cost is higher. MGSG will target these customers by introducing MGSG and their prod ucts to the restaurants through meetings with the buyers at each restaurant. Similar local farmers. The produce is not usually local. The quality and variety lower than the standards set by the offerings of MGSG and other similar local farmers. This occurs when a restaurant needs certain ingredients but di d not have the time to order it in advance. These customers will be buying MGSG products from the different far mer markets located in Eugene. but not necessarily.053 35 0 18. some restaurants will go there as well.99% 12. There appears to be room in the market for multipl e farmers as most of the farmers sell out their products each day at the farmer markets. Restaurants. These are very similar operations to MGSG. Additionally .440 32 0 16. This market gets quite a bit of traffic because there is a nice selection of different farmers a nd products and it is in a central location in the heart of Eugene. There are many supermarkets around the cit y and they are open many hours during the day.3 Industry Analysis There are three different types of competitors that MGSG faces: Supermarkets. This pattern is similar for the individuals.920 16. The main one is "The Farmers Market" held dow ntown twice a week in the spring. Large distributors.Individual Consumers Restaurants 8% Other 0% 0 Total 11.470 12. The advanta ge of the supermarket is convenience.2 Target Market Segment Strategy Mixed Greens Salad Gardens' target market segment strategy is fairly easy. and the early autumn. The disadvantage of a food distributor is the lack of flexibility relative to a local grower whe n serving local customers. 4.859 18. The price is com parable and the quality can be comparable. Buying patterns are based on the customer's desires.99% We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan. Individuals.000 30 0 15. summer. usually 15% more.085 13. Our t wo different customer groups purchase from two distinct locations so it is quite easy to target them individually. There obviously is a fee to set up a stand. and is a few more days older from the field compared with the local farmers. By setting up a booth in these markets. but what you g et for the fee is all of your marketing taken care of and a line of customers.028 Need real financials? 12% 28 0 13. There are some individuals . there are several other smaller farmer markets that exist in outlining communi ties. Create your own business plan » 4. there is no need for them to. What is meant by this is th at lower-end restaurants (or at least restaurants that are less concerned about quality) will not bother to get greens from local farmers. Their disadvantage is price and q uality. there is already a steady flow of interested customers.93% 0.894 15.00% 38 7. These stores sell a salad greens mix to consumers. OR.

that are content with the offerings from supermarkets. The difference s are discovered upon tasting the produce in your home. Heidi is a perfectionist and her striving for perfection will lead MGSG to developing a product that will be a notch better th an the competition. In addition to product consistency. the repeat customer will more easily make the conne ction between the unusual booth and MGSG's product. Flexibility. Quality. distinct booth set-up that stands out among the other farmers.1 Competitive Edge Mixed Greens Salad Gardens' competitive edge has two main aspects: quality and f lexibility. This in part will be done throu gh the use of a colorful. There are others that ap preciate the difference in quality and are willing to schedule a trip to the far mers market to meet their weekly needs. Visibility. MGSG will need to generate visibility that sets them apart from the other local farmers that sell at the market. it will be able to be flexible in meeting customer's demands. typically have their production schedules set up for maxim um yield and are unable to modify crop production very much. MGSG will be aggressive in going after the local restaurants that have a consistent need for the greens. It is much easier to build a wareness and loyalty if people can reliably expect to see MGSG every week in the same place. This visibility will create recognition for MGSG. Most of the farmers. she is more concerned with pleasing the customer. MGSG can rapidly s hift production to meet the needs of that customer. 5. Additionally. rightfully so.bplans. MGSG will continue to grow its number of clients. If MGSG stands out in te rms of the booth appearance. While the quality of the other local farmers is quite good. For instance.2 Sales Strategy MGSG's sales strategy will be based on visibility. Read more: http://www. A combination of quality and flexibility will create a sustainable competitive a dvantage that will allow MGSG to succeed. S he believes. Consistency. MGSG will have consistency in regards to their presence at the farmer markets. This will be the key for restaurant sales. Heidi's extensive educational background and practical experience provides her with to ols to create a superior product. restaurant sales are a consistent income that help reduce the seasonal . As state d before. With MGSG being both small and local in nature. This is important bec ause the produce of the different farmers appears to be the same. Through an as surance of top-shelf service and superior customer service and reliability. ary_fc. 5. and all of the distributors.php#ixzz2Q2sulff1 Strategy and Implementation Summary MGSG will be aggressively courting the farmer markets to ensure the ability to h ave a booth at the markets. Strategic relationships. and strategic re lationships. Heidi is less conce rned about maximizing yield. that talking care of the customer is the most import ant thing. if a local restaura nt has customers that prefer more arugula in their salad mix.

2.805 $14. and t his will continue until month nine when the consumer sales will be significantly decreasing due to the closing of the farmer markets. First batch of greens sold.154 Restaurants $58. restaurant sales will decrease sl ightly to accommodate for the ramping up of consumer sales again.3 Milestones MGSG will have several milestones early on: Business plan completion. Milestones Milestone Start Date End Date Budget Manager nt Business Plan Completion 1/1/2001 1/1/2001 $0 N/A Greenhouse Setup 1/1/2001 2/1/2001 $0 Heidi First Batch of Greens Sold 4/1/2001 4/1/2001 $0 Departme Heidi N/A everyone .ity of MGSG's sales. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan » Sales Forecast Year 1 Year 2 Year 3 Sales Individual Consumers $23.558 Total Sales $81.519 $70.778 Restaurants $7. Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan.509 $13. The end of the consumer season and the ramping up of the restaurant supply c ycle.862 $8.774 $122. 5.773 $9. By month 17. From month nine to 16 Mixe d Greens Salad Gardens will have an increase in restaurant sales to offset the e limination of the consumer sales. strategic partnership will be of upmost importance for building a good revenue base.1 Sales Forecast The first month will be used to set up the greenhouse and get things underway.700 $22. Create your own business plan » 5.712 Direct Cost of Sales Year 1 Individual Consumers $2. Forming mutually beneficial.838 Subtotal Direct Cost of Sales Need real financials? $40.682 Year 2 Year 3 $4.908 $81. T here will not be sales activity until month three when the first greens will be sprouting. This will be done as a road map for the organizati on.981 $114. it will be an indispe nsable tool for the ongoing performance and improvement of the company.282 We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan.027 $9. Month three will see a steady increase in production and sales. Greenhouse set-up.500 $185. While we do not need a business plan to raise capital.

she will always spend a few hours a week tending to the plants.500 $18. a skill set that she lacked. The gardeners will be primarily responsible for the raisi ng of the field greens. Afte r two years at Willamette Seed Company. Heidi went to work for a large grass seed manufacturer.000 $24. Throughout her last three years at Washington .com/produce_farm_business_plan/strategy_and_impleme ntation_summary_fc. while the part-time help will be used to help staff the farmers market booth for the consumer selling of the greens. It 's fast and easy. These realizations were the final catalyst to purs ue her lifelong dream of running her own greenhouse operation. Read more: http://www. Personnel Plan Year 1 Year 2 Year 3 Heidi $24.N/A End of the Consumer Season and the Ramping up of the Restaurant Supply Cycle 9/1/2001 9/1/2001 $0 everyone N/A Totals $0 Page 1 2 3 4 5 6 7 8 « Previous Page Next Page » Your business plan can look as polished and professional as this sample plan.000 $24. founder and owner. Heidi's educational training and her passion creates the ideal combination for a n owner of a start-up company. Heidi pursued her love for plants by obtaining a biology degre e at the University of Washington.650 $17.650 $17. In addition to all of the general management required for the production of the greens.1 Personnel Plan The staff will consist of Heidi working full time. 1) she needed to create a job/company for herself. with LivePlan. sh e was determined to get management experience. While the bulk of the time He idi will spend managing the operation. she enrolled in Oregon State University' s Masters of Horticulture program. she realized two thi ngs. Although the gr owing of grass seed proved to be far less interesting then most other plants.500 Gardener $16. Having gone through the three years of the Masters program. Upon gra duation. Heidi will be setting up strategic relationships with local restaurants. first became interested in growing vegetables at the age of five.bplans. 2) she should follow her passion and grow vegetables. Mixed Greens Salad Gardens will have hired two full-time gardeners beginning in the middle of the first month. she worked in a greenhouse that grew many different types of annuals.000 Gardener $16.500 $18.php#ixzz2Q2t6uB9n Management Summary Heidi Ponic. 6.500 . and will hire a part-time helper by month four.

050 Need real financials? $9. Create your own business plan » Break-even Analysis Monthly Revenue Break-even $8.bplans. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan.42% We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan. 3 10.php#ixzz2Q2tFTEJQ Financial Plan The following sections will outline the important financial information. Create your own business plan » 7.00% 10. Create your own business plan » Page 1 2 3 4 5 6 7 8 « Previous Page Next Page » Your business plan can look as polis Read more: http://www.000 $9.00% 25.00% 10.00% Other 0 0 0 Need real financials? some of the important financial assumptions. c.000 6 $68.2 Break-even Analysis The Break-even Analysis below indicates the monthly sales needed to break even.500 $0 $9.1 Important Assumptions The following table highlights General Assumptions Year 1 Year 2 Year 3 Plan Month 1 2 Current Interest Rate 10.500 We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan.000 $79.Part-time Helper $0 Part-time Helper $6.00% 10.00% Long-term Interest Rate Tax Rate 25.294 .42% 25.750 Total People 4 5 Total Payroll $64.00% 10.

00% Expenses Payroll $64.805 $14. as is the turn of the corner in July when we become profitable.668 $58.000 $6.532 Leased Equipment $0 $0 $0 Utilities $3. Our losses at start -up are evident.151) $18.32% 7.500 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $2.050 $68.906 $107.3 Projected Profit and Loss 12% $7.700 $22.608 $10.282 Other $0 $0 $0 Total Cost of Sales $9.65% 9.00% 88.4 Projected Cash Flow The following chart and table will indicate projected cash flow.305 Net Profit/Sales -19.000 Payroll Taxes $9.400 Gross Margin % 88. Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan.646 $43.532 $2.299 The following table will indicate projected profit and loss.000 $79.400 $2.575 Interest Expense $370 $140 ($20) Taxes Incurred $0 $3.532 $2.043 EBITDA ($13. Create your own business plan » Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales $81.000 $6.51% 23.800 $163.700 $22. Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan.282 Gross Margin $71.00% 88.682 Direct Cost of Sales $9.053) $11.712 $122.500 $185. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan.590 $92.925 Other $0 $0 $0 Total Operating Expenses $87.000 Insurance $2.400 $2.400 Rent $6.000 $3.882 $14.132 $105. Need actual charts? .683) $15.Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost 7.758 Net Profit ($16.000 $3. Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan.805 $14.357 Profit Before Interest and Taxes ($15.200 $60.200 $11.

HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $69.223 $175.051 Current Borrowing $2.400 $2.532 $5.768 $20.156 $3.576 $18.685 $49.704 $98.451 $67. VAT.849 Year 3 $0 $4.578 $81.300 $25.136 $116.920 $48.587 $108.300 $7.438 $2.851) $5. HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $2.136 $116.131 $54.573 balance sheet.064 Total Long-term Assets $22.854 Inventory $1.684 $3. $28.800 7.084 $3.849 $12.223 $175.958 Expenditures Year 1 Year 2 Year 3 Expenditures from Operations Cash Spending $64.430 Long-term Assets Long-term Assets $25.145 $25. VAT.451 .958 Additional Cash Received Sales Tax.500 Bill Payments $29.000 $79.666 Liabilities and Capital Year 1 Year 2 Current Liabilities Accounts Payable $3.363 $34.849 $12.879 Cash Balance $7.537 $40.596 $17.987 $111.278 Additional Cash Spent Sales Tax.We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan.078 Net Cash Flow ($26.222 $101.800 Accounts Receivable $12.751 $139.151 $140.000 $74.751 $59.5 Projected Balance Sheet The following table will indicate the projected Pro Forma Balance Sheet Year 1 Year 2 Year 3 Assets Current Assets Cash $7. Create your own business plan » Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash Received Cash from Operations Cash Sales $32.236 Total Assets $45.373 $5.273 Cash from Receivables $36.268 Other Current Assets $500 $500 $500 Total Current Assets $22.400 $800 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $95.778 Subtotal Spent on Operations $93.920 $48.600 $200 ($600) Other Current Liabilities $0 $0 Subtotal Current Liabilities $5.685 Subtotal Cash from Operations $69.050 $68.300 Accumulated Depreciation $2.072 $35.

46% 95.58 12.00% 100.17 12.093 Total Liabilities and Capital $45.90 n.50% 48.90 3.70% Main Ratios Current 3.31% 14.398 $54.93 9.00% 100.41% 93.70% Advertising Expenses 0.94% 3.51% 23.60% Pre-tax Return on Net Worth -40.90 3.600 ($21.20% Profit Before Interest and Taxes -19.51% 2.56% 20.58% -4. Not Elsewhere Classified.100) Earnings ($16.64 18.70% 22.65 Quick 3.79% 45.91% 43.90% Total Current Assets 49.00% 0.79% 31.80% Total Assets 100.a Debt Ratios Debt to Net Worth 0.00% 100.26% 1.55% 62.40% Other Current Assets 1.59% 6.50 0. 1.19% 12.98% 82.88% n.50% 51.60% Percent of Total Assets Accounts Receivable 27. as part of Vegetables and Melons.45% 37.07 0.81 2.a Current Liab.23 1.600 Retained Earnings ($5.49% 28.91% 0.70% 30.90% Inventory 3. to Liab.a Return on Equity -40.20% Pre-tax Return on Assets -35.a Activity Ratios Accounts Receivable Turnover 3.00% 20.74% 4.00% Selling.00% 0.19% 78.00 n.00% 100. are shown for co mparison.447 $51.00% 100.03 17.Long-term Liabilities $0 $0 Total Liabilities $5.54% 4. Ratio Analysis Year 1 Year 2 Year 3 Industry Profile Sales Growth 0.14 0.60% Net Worth 87.093 Need real financials? $0 $4.89 8.00% 0.00% 32.50% Total Liabilities 12.00% 100.41% 58.20% Long-term Assets 50.18 8.666 $98.50% 51.646 Total Capital $39.00 1.131 Net Worth $39.00 1. Lettuce Far ms.88 n.398 We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan.00% 0.153) ($9.24 1.a .507) $43.88 Total Debt to Total Assets 12.05 n.92% 51.00% 0.053) $11.00% 88.65% 9.6 Business Ratios Business ratios for the years of this plan are shown below.50% Additional Ratios Year 1 Year 2 Year 3 Net Profit Margin -19.91% 12.00% 88.87% 34.40% Percent of Sales Sales 100.09% 56.10% Long-term Liabilities 0.849 $94.57% 28.19% 3.68 9.305 $94.00% Current Liabilities 12.59% 6.32% n.39% 61.600 $60.51% 28. Industry profile rat ios based on the Standard Industrial Classification (SIC) code 0161.573 Paid-in Capital $60.a Inventory Turnover 10.41% 64.59% 6.17 n.451 $60. General & Administrative Expenses 107.11% 0.a Accounts Payable Turnover 10.447 $51.54% 4.a Collection Days 56 78 78 n.00% Gross Margin 88.54% 4.50% 31.00% 49. Create your own business plan » 7.22 n.02% 17.684 $3.a Total Asset Turnover 1.a Payment Days 27 29 25 n.

a 0.97 0.Liquidity Ratios Net Working Capital $16.a n.55 Current Debt/Total Assets Acid Test 1.857 p#ixzz2Q2tU12ae .a n.39 Additional Ratios Assets to Sales 0.00 Page 1 2 3 4 5 6 7 8 « Previous Page Next Page » $30.76 Sales/Net Worth 2.45 13% 11.07 Dividend Payout 0.00 0.47 3.a 0.a $76.679 Interest Coverage -42.08 2.00 n.92 0.694 n.a 5% n.53 7% n.a Your business plan can look as polished and professional as this sample pla Read more: http://www.00 n.