Business Plan

MUSHROOM
FARMING

HUNDAL MUSHROOM FARM

Vill.- Muridpur, Bhogpur
Jalandhar
Punjab
Confidentiality Agreement

The undersigned reader acknowledges that any information provided by

_________________________ in this business plan, other than information that is in the public
domain, is confidential in nature, and that any disclosure or use of same by the reader may cause serious
harm or damage to ________________________. Therefore, the undersigned agrees not to disclose
it without express written permission from ________________________________.

Upon request, the undersigned reader will immediately return this document to
___________________________.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date
1. Executive Summary

Our business is seeking to be the major supplier of Oyster mushrooms in Jalandhar and
nearby cities. We will grow and sell all the different kinds of mushrooms to our variety of
customers. We will also indulge in exporting of mushrooms which will commence two
years from the time of the commencement of business operations.
Our aim as a business is not only to make profit but also become a leading company that
can compete favourably with other mushroom business in Jalandhar and also in the
nearby cities. To be able to effectively compete against our competitors, we intend to en-
sure that we hire the best professionals in the industry so as to build the perfect business
structure.
Due to the fact that mushrooms are edible products, we intend to ensure that our mush-
rooms are grown in an environment that is conducive and hygienic. We are also growing
the mushrooms organically as we intend to ensure that our mushrooms pack a high dose
of nutrition.
Because the demand for mushrooms is increasing as more people are recognising its im-
portance, we would ensure that our mushrooms reach all our target customers.
One of our strongest factors apart from producing and selling organic mushrooms will be
the excellent customer care we will provide to our customers which will led to a high re-
tention rate for us and an overall healthy bottom line for our business.

2. Company Description

Company Description Worksheet

Business Name
Hundal Mushroom Farm

To provide best quality of fresh mushrooms to our target custom-

Company Mission ers to achieve great stakeholder value through satisfaction of cus-
Statement
tomer demands.
 Our vision is to establish a mushroom farm that will be reputed for
producing the best mushroom in the state. Our aim is to have an
efficient distribution mechanism that will ensure our products reach
Company Vision their desired destination both domestically and internationally.

1. To provide fresh mushrooms in the market with least price.

Goals & Milestones
2. To be the market leader of fresh quality mushrooms.

3. To make people aware about nutritional benefits of

mushrooms.

There is a huge market for mushrooms. Our target markets will in-
clude:
Households
Farmers’ markets
Supermarkets
Target Market Restaurants
Hotels
College cafeterias
Caterers and catering services

1. Randhawa Mushroom Farm

Industry/
Competitors
2. Harkirat Mushroom Farm

In the initial years ownership of our business will be Sole proprie-

torship however in upcoming 3-4 years, in order to expand busi-
Legal Structure/ ness we might enter into some partnership agreement.
Ownership
3. Products & Services

Product & Service Description Worksheet

Business Hundal Mushroom Farm

Name

Our products and services will include the production of fresh

mushrooms of different varieties, some of which will include
Product/ Ser- button mushrooms, white button mushrooms, oysters, gour-
vice Idea
met and sun dried mushrooms.

Best quality at least price

Unique Fea-
tures

Existence of other established mushroom businesses in the market.

Limits and Li-
abilities

1. Sri Krishna Seed Agency

2. Telu Ram Moti Lal Aggarwal
Suppliers
3. Ganga Seeds Store

4. Operational Plan

1. LAND: Land is the foremost condition for growing mushrooms. The size of land will
be around one acre where shed will be constructed to cultivate different varieties of
mushrooms.
2. COTTON WASTE: The next step is to arrange cotton waste which is our basic
raw material. Cotton waste is the medium on which mushrooms are cultivated.It is
the most suitable material because they provide better medium for mushroom growth
and are also economical. Arora Cotton Waste Company will be our supplier from Jal-
andhar.
3. SPAWN: Spawn are the seeds that are used for growing mushrooms on the me-
dium.The cost of spawn is 500 per kg. So we will order spawn according to our pro-
duction requirements.
4. POLYTHENE BAGS: Another major raw material for mushroom farming is poly-
thene bags. These are the bags in which cotton waste is covered and in which the me-
dium for mushroom growth is provided. These bags are easily available in the market
and we can order these bags from near market. These bags cost 100 per kg and there
are about 250 bags in one kilogram.
5. TEMPERATURE CONTROLLER MACHINE: This machine will be required to
regulate temperature for mushrooms growth as for the first three weeks temperature
of 16 to 25 degree centigrade is required. However, after 3 weeks temperature
should be raised to 28 to 30 degree centigrade.
6. CARETAKERS: These are the persons required for purpose of caring of mush-
rooms. So for our production we will hire 2 persons for our farm that will continu-
ously look after the farm and mushrooms.
7. RAW MATERIAL ARRIVAL: After placing the order, all the raw materials includ-
ing cotton waste, polythene bags and spawn will reach the farm within two days. All
these things will be collected by the care takers and it is their responsibility to look
after all these materials. All these things will initially be placed in our building at one
place.
8. WETTING AND MOISTURE LEVEL:This is the initial procedure in which the
cotton waste is watered and leave for some time. The basic purpose for this process
is to create moisture in the cotton waste or our medium which is an initial factor for
mushroom growth. We should place cotton on floor and leave for certain time.
When adequate level of moisture is attained, we start filling this cotton waste into
polythene bags. The level for moisture is that you should fill it into bags when you grip
cotton into your hands and your hands feel slightly wet. If the moisture level is ade-
quate and suitable for the mushroom growth, then we should pack these into the pol-
ythene bags. But in some cases, the moisture level is not suitable and the cotton waste
 dry. In such situation, we should repeat all the procedure again and then again try to
attain the required moisture level.
9. FILLING OF BAGS:The bags are to be filled with the wet cotton waste. 8 x 12 bag
should contain 1000 grams of wet cotton waste. The weight of wet cotton varies from
size of the bag. If the size of the bag is larger, then more cotton waste in wet form is
filled into it. So we will fill wet cotton according to our desired bag size.
10. SPAWN SPRAY: The next step is to spray spawn on the medium. As we know that
our medium is wet and contains moisture. So we mix up the spawn into the bags with a
certain quantity. The suitable quantity for spawn is 1 to 1.5 percent of the weight of wet
media. For example if the weight of our wet polythene bag is 1000 grams, then we
should mix 10 to 15 grams of spawn into the bag.
11. COVER THE BAGS:The next step after the spawn spray is to cover the bags. The
bags should be covered in such a way that their front opening is closed but there should
be a passage for air. It is because the growth phase of mushroom requires air along with
moisture. If the bags are air tight, then the spawn is unable to spread.
12. TEMPERATURE REGULATION:The next step in our cultivation process is to
maintain or regulate accurate temperature for the mushroom growth. For the first three
weeks, the temperature should be maintained at 16-25 degree centigrade. This is be-
cause the initial weeks of mushroom growth are sensitive and requires adequate tem-
perature level. After 4 weeks, the temperature should be raised to 28-30 degree centi-
grade and this temperature helps in mushroom flower growth.
13. UNCOVER BAGS: After 2 weeks, the front of the bags will be opened. This is done
because the flower should grow in the direction of open end. So it is necessary to open
the bags after two weeks. If the bags will not be opened, then the mushrooms will start
spoiling inside the bag and such mushrooms are unable to grow.
14. GROWTH: Then we will left these bags for entire 40 days. The whole process of
mushroom growth takes 40 days. During these days, we should check regularly the
temperature, humidity and moisture level.
15. CUTTING: The next step is the cutting process. After 40 days time period, the mush-
rooms are able to cut. So the care taker will cut these grown mushrooms with the help
of a simple knife.
16. WAIT 5 DAYS: But in some cases, the mushroom flower is not grown properly in 40
days. In such cases, we should not cut these flowers and wait for maximum 5 more
days to grow. During these days, the mushroom grows its entire flower and attains a
certain level to cut it off.
17. PACKING: Then these mushrooms wIill be packed in the polythene bags. The plastic
bags should be filled according to size of the mushrooms.
18. DISPATCH: Finally, the packed mushrooms will be dispatched to our customers. We
should use a pickup van for our transportation method. All the orders will be delivered
to our customers according to their needs.

5. Marketing Plan
★SWOT Analysis
STRENGTHS:

1. New idea in market.

2. People already have taste of mushroom.

3. A huge profit margin.

4. Raw material with lower cost.

5. Lesser initial investment.

6. Rising demand of mushrooms in various eatables.

7. Increased awareness among people about nutritional benefits of mushrooms.

WEAKNESS:

1. No specialist for mushroom farming.

2. Mushrooms are spoiled in 3 to 4 days.

OPPORTUNITIES
 1. Raise the production to meet international market.

2. Hire a mushroom specialist to identify problems and resolve them.

3. Make delivery as early as possible to avoid loss due to spoilage of product.

THREATS

1. Existing mushrooms market.

2. Risk of increasing demand being satisfied from competitors.

★Target Market:

There is a huge market for mushrooms as there are a lot of mushroom demands to fill.
Our target markets will include:
Local health food stores
Households
Farmers’ markets
Supermarkets
Restaurants
Hotels
Factory cafeterias
College cafeterias
Caterers and catering services

★Market Potential
Mushroom is a vegetarian delicacy and a suitable substitute for meat and eggs. It
is easily digestible as well. It is very popular in most of the developed countries
and being accepted in many developing countries like India. Market for mush-
rooms is growing rapidly because of nutritious values and special taste. Many ex-
otic preparations are made from them like soup, pickles, vegetables etc. It is also
used for stuffing several food preparations and for garnishing. Hence it has huge
market potential.

★MARKETING MIX

In this phase, we have developed marketing mix in which the 4 Ps are included:
1. Product: We will grow different varieties of mushrooms which includes button
mushroom, white button mushroom, milky mushrooms, oysters, gourmet and
sun dried mushrooms.

2. Price: The price of different types of mushrooms grown in our farm will be
as follows:

Button mushrooms 100 per kg

Milky mushrooms 200 per kg
Oysters 150 per kg
Sun dried mushrooms 600 per kg

3. Place: Mushroom will be marketed locally through a free market system. Ini-
tially, we will target local health food stores, households, farmers’ markets, super-
markets, restaurants, hotels, college cafeterias, caterers and catering service.
However after 3-4 years when our business will well establish in target market, we
will plan for exporting mushrooms to other countries where there is higher demand
for mushrooms.

4. Promotion: To make our customer aware of the nutritional aspect of mush-

room, we will use brochures for our promotion. Moreover, we will also advertise lo-
cally using cable operators as our media for advertisement.

6.Competitor Analysis: These days, there is a big market of fast food

items and it is growing day by day. As the industry is growing, meanwhile its de-
mand is also rising. So to fulfill this demand, there are many companies in the
market. But our target market is Jalandhar and in Jalandhar there is no company
that is providing fresh mushrooms. So we are pioneers in our market. Some com-
panies are operating, but in other regions. Some of them are Harkirat mushroom
farm, Amritsar and Randhawa mushroom farm, Tanda. However these competi-
tors won’t possess any serious threat to our business as these are located far
away from our business place.