Preserve Five Sample - BP PDF

Preserve 5, LLC – Business Plan
Preserve 5, LLC Preserve 5, LLC is a limited liability company (LLC) that was
organized in October 2019 in the State of Georgia. The
Business Plan
Company is embarking on an exciting development project
November 2019 that will involve the construction, and launch, of a new 100-
acre agricultural and aquaculture farm in Chattahoochee
Hills, Georgia. The farm will help Preserve 5 attain its
ambition of establishing itself as a leading grower-producer
in the dynamic sustainable, organic and health-conscious
food market.
Table of Contents
1 Executive Summary ......................................................................................................................................... 4

1.1 Mission ........................................................................................................................................................................... 6
1.2 Objectives ...................................................................................................................................................................... 6
1.3 Keys to Success ........................................................................................................................................................... 7
1.4 Company Ownership ................................................................................................................................................ 8
2 Company Summary.......................................................................................................................................... 9
2.1 Start-Up Summary ..................................................................................................................................................... 9
2.2 Funding Sources ....................................................................................................................................................... 10
2.3 Site Description and Business Location ......................................................................................................... 10
2.4 Business Start-Up Milestones ............................................................................................................................. 11
2.5 Business Licensing Requirements .................................................................................................................... 12
2.6 Secured Contracts and Permits .......................................................................................................................... 12
3 Personnel Plan ............................................................................................................................................... 13

3.1 Company Structure ................................................................................................................................................. 13
3.2 Management Team.................................................................................................................................................. 13
3.3 Operations Team and Staffing Requirements .............................................................................................. 15
3.4 Hiring Plan .................................................................................................................................................................. 16
4 Project Overview ........................................................................................................................................... 18

4.1.1 Post-Development Operations .......................................................................................................................... 19
5 Market Analysis ............................................................................................................................................. 20

5.1 Local Geographical and Demographic Summary........................................................................................ 20
5.2 Market Overview ..................................................................................................................................................... 22
5.2.1 U.S. Fish and Seafood Aquaculture Industry .............................................................................................. 22
5.2.2 U.S. Vegetable Farming Industry ..................................................................................................................... 23
5.2.3 U.S. Organic Crop Farming Industry .............................................................................................................. 24
5.3 Major Markets ........................................................................................................................................................... 25
5.3.1 Wholesale ................................................................................................................................................................... 25
5.3.2 Consumers .................................................................................................................................................................. 25
5.3.3 Grocery and other food stores........................................................................................................................... 26
5.4 Market Outlook ......................................................................................................................................................... 26
5.4.1 U.S. Vegetable Farming Industry, Outlook .................................................................................................. 26
5.4.2 U.S. Organic Crop Farming Industry, Outlook ........................................................................................... 27
5.4.3 U.S. Fish and Seafood Aquaculture Industry Outlook ............................................................................ 27
5.5 Regional Employment............................................................................................................................................ 27
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5.6 Competitive Analysis .............................................................................................................................................. 28

5.7 Sample Competition ............................................................................................................................................... 28
5.8 SWOT Analysis .......................................................................................................................................................... 29
6 Sales and Marketing Strategy ................................................................................................................... 31

6.1.1 Primary Marketing Campaign .......................................................................................................................... 32
6.2 Sales Forecast ............................................................................................................................................................ 33
7 Financial Projections ................................................................................................................................... 35

7.1 Projected Profit & Loss .......................................................................................................................................... 35
7.2 Projected Cash Flow Forecast ............................................................................................................................ 37
7.3 Projected Balance Sheet Forecast ..................................................................................................................... 38
8 Sensitivity and Scenario Analysis............................................................................................................ 39

8.1 Sensitivity Analysis ................................................................................................................................................. 39
8.2 Scenario Simulation ................................................................................................................................................ 40
Appendix ............................................................................................................................................................... 43
Table 1: Sales Forecast .................................................................................................................................................. 43
Table 2: Personnel Hiring Plan by Quarter ......................................................................................................... 44
Table 3: Personnel Projected Salaries .................................................................................................................. 44
Table 4: Projected Quarterly Profit and Loss ..................................................................................................... 45
Table 5: Projected Quarterly Cash Flow............................................................................................................... 46
Table 6: Projected Balance Sheet ............................................................................................................................ 47
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The following dashboard highlights the results of the financial analysis, expected company performance,
and summary of market break down. The reader may use this page as a quick reference visual aid to
quickly understand the expected financial performance of the Company.
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1 Executive Summary
Preserve 5, LLC is launching an exciting project, with the support of

direct invsetment, that will create an extensive organic food growing
and processing farm, with onsite Koi Carp aquaculture pools, with the
ambition of offering local consumers access to fresh, organic and
sustainable grown fruit, vegetables, nuts and seeds. The Company is in
the final phases of selecting the prime site for this development, having
undergone extensive research, and is now looking to use direct
investment to help commence the project, which will be sited within the Chattahoochee Hills region
around the south of Fulton County, GA.
Investment & Project Outline

The Preserve 5 project entails the development and construction of a 100-acre farming facility, with onsite
storage and food processing packaging facilities. It will also house extensive aquaculture pools, which will
be seeded with immature (fingerlings) Koi Carp. The farm will encompass open-course arable land, which
will be planted and, in the future, maybe shared to support local farmers in residence, and greenhouse,
which will use the latest technologies and hydroponics to grow high quality produce, all adhering to the
highest sustainability, organic and quality standards. Harvest will be processed and packaged on site, with
downstream markets including direct to consumer (via e-commerce ordering of ‘fruit, veg and food’ boxes’
or packages) and direct to business, with alliances sought across well-known health food, organic produce
and specialty retailers. The aquatic farm stock will be reared for sale, including to overseas markets.
To deliver the project, the Company is sourcing $5 million in funding, including $2 million in direct
investment from four investors (investing $500,000 each), with the remaining $3 million being owner
equity funding. These funds will finance the land purchase, initial site-levelling and scaping, followed by a
9-18 month construction of the koi farm, open-crop agriculture zones and the greenhouses. The
construction of the storage and processing facility will follow after this. The entire construction phase is
expected to cost around $4.45 million. The remaining invsetment will be used to purchase seed and
aquatic inventory, and – importantly – to fund an ambitious recruitment program with a total of at least
53 new U.S. employment opportunities being generated, 40 of which will be appointed during the first 12
months of the project. It will also ensure sufficient working capital access to firm up nascent Preserve 5
brand, leading the launch of operations and an engaging promotional and marketing campaign.
The Opportunity
Preserve 5 plans to take advantage of its location, with Georgia being an affluent region and nearby Metro
Atlanta having a high-proportion of well-paid jobs (which are more inclined to choose organic or specialty
foods) as well as shifting consumer preferences. The U.S. retail food industry in general has performed
well over the past five years, and growth in demand for specialty and premium foods has been particularly
rapid. This remarkable rise in demand for specialty foods is attributable to consumers paying closer
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Strictly Confidential
attention to the quality of the products they are purchasing, which has led to the increasing popularity of
all-natural or organic diets and a greater interest in sustainable living and buying local. Looking at the
organic foods subsegment alone, total U.S. organic food and beverage sales increased 6.4% in 2017 alone
to comprise $45.2 billion, according to the latest data available from the Organic Trade Association.
Growth Strategy
The founder has a clear strategic vision for Preserve 5, LLC that will embrace the latest technologies &
developments in organic greenhouse farming, crop-culture, and hydroponics to build, develop and launch
an extensive agribusiness venture with greenhouses, open-crop culture and a Koi fish farming facility
offering exceptionally fresh produce for specialist retail and consumer markets. The key focus of the
operational sales strategy is to harness this facility and gradually establish the Preserve 5 brand a leading
grower and producer of healthy, nutritious food products, taking advantage of increasing consumer
demand for sustainably grown organic foods and healthier lifestyles. Other strategic ambitions will include:
committed investment in raising the brand profile, aiming at forming lasting relationships with consumers
and establish a trusted reputation for the highest standards of quality as well as agricultural and aquatic
welfare; effective marketing and promotional campaigns, and offer regular special deals for customers;
offering a range of product packs delivered direct to consumers, with seasonal varieties and enclosed
recipes; and building a growing network of commercial customers, shipping to major health food chains,
specialist retailers and organic food suppliers.
The chart to the right illustrates how

the strategic ambition of the Company,
coupled with Direct Investment
funding, might affect the performance
of Preserve 5, LLC by highlighting key
financial metrics – annual sales, gross
margin, net profit, and personnel –
over the next five years1.
In the first full year, 2020, the Company

is forecast to achieve sales of
approximately $1.5 million. Growing brand awareness, increased stocks of mature Koi Carp (for resale) as
well as ongoing marketing and a growing local reputation for exceptional products, will stimulate a
prolonged period of stable growth, with sales predicted to rise over subsequent years reaching over $3.8
million by the end of 2025. Growth in net profits will eventually mirror upward trend in sales, rising from
an initial loss of around $262,000 in 2021 to a healthy after-tax profit of approximately $240,000 by 2025.
The net margin will also improve over time as the business absorbs its growth costs and approaches
stabilization, post-2022. The improving operational performance will naturally lead to an increase in
1Please see a more detailed explanation in the Appendix, which explains the basis used to derive the numbers presented in this
business plan.
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business net worth, which is predicted to exceed $5.2 million by the end of 2025, creating a solid capital
platform for sustainable success and potential expansion of the brand through the domestic market.
Year 2021 2022 2023 2024 2025

Sales $1,504,146 $3,081,888 $3,456,352 $3,702,732 $3,852,822
Gross Margin $317,386 $889,786 $1,047,160 $1,147,069 $1,204,629
Net Profit -$262,702 $73,912 $162,153 $214,475 $240,344
Net Margin -17% 2% 5% 6% 6%
The Company will be generating significant new employment opportunities, with 40 full-time employees
being recruited during the first 12 months following launch of the initial project, with an additional 13 full-
time staffs being recruited over the subsequent year, bring the total staffing level to 53 by the time the
operations will have stabilized (2022/23).
1.1 Mission
Preserve 5 has an ambition vision to grow fresh and nutrition-dense produce with the best quality and
taste to help improve healthy consumption amongst consumers. Its growing, harvest and processing
operations will focus on nature, freshness and sustainability, and the Company will also strive to act
ethically and adhering to best in class food safety and quality standards.
1.2 Objectives
The mission above, along with the success of the Preserve 5 project will be accomplished by fulfilling the
following objectives:
Strategic
Strategic objectives refer to the positioning of this offering in the marketplace. Having these objectives
clear from the beginning, will help the team to identify opportunities and threats more easily. The
following strategic goals have been identified by the team:
o Achieve a successful outcome for the Preserve 5 site, creating an effective growing infrastructure
including ponds, greenhouses and processing plants to enable swift transition to operations;
o Generate economic benefits and new employment opportunities;
o Implementing environmentally sustainable growing, harvest and business practices;
o Developing symbiotic relationships with local partners, including suppliers, distributors, regional
bodies focused on organic produce and nutrition, markets, wholesalers and specialist retailers;
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o Actively promote healthier eating, living and help share knowledge with consumers through
regular outreach, online information and nutritionist access and special organic promotional
packages.
o Partner with regional farmers, offering arable space;
o Carry out market research on other prospective sites throughout the U.S.
Financial
Financial goals are important to maintain the business profitability and value to the shareholders in
check. Among the most important financial goals of this project are:
o Controlling overhead costs and implementing measures to identify key drivers and effectively
manage them;
o Implementing revenue, harvest and production targets, and developing effective measures to
rectify any issues that may arise in attaining these targets;
o Ensuring careful and effective use of working capital, especially throughout the early phases of
the project;
o Increasing annual sales revenues to over $3.8 million by the end of the fifth year;
o Increasing annual net earnings to $240,000 within five years, after taxes.
Operational
The operational objectives need to be clear to facilitate the execution of the business plan. The
following operational objectives have been identified by the owners:
o Securing the necessary permits and licenses for the construction and operation of the new
facilities;
o Reaching agreement with all stakeholders, including contractors, consultants, inventory suppliers,
architects, and relevant local authorities, to ensure a smooth implementation of the initial
development and construction project;
o Ensuring that key milestones are met, through an effective monitoring system;
o Maintain an effective promotional and marketing campaign, utilizing a multitude of channels to
raise brand awareness and increase downstream consumer sales;
o Partnering with third parties to maximize export potential of the Koi Carp inventory;
o Develop a large-scale team of passionate staff, covering managerial, technical, sales and
agricultural skillsets, and offer continued training and support to promote staff welfare and
improve operational performances;
o Active brand promotion and positioning.
1.3 Keys to Success

The founder has identified the following as important for the ongoing success of the company in the U.S.:
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Strong supply chain framework – effective logistics and supply chain management is crucial to guarantee
product freshness, and to maintain reliable deliveries to end customers. The Company will invest in a
streamlined distribution and inventory network, ensuring a quick lead time from post-harvest processing
to delivery through trusted distribution partners.
Brand Value – by developing brand awareness the Company can establish itself at the forefront of
relatively new market. This brand value will be raised by its commitment to organic, healthy and
sustainable growing, as well as its desire to engage, share and inform consumers.
Effective Monitoring – Preserve 5 will have continuous oversight of its facilities, with attendant physical,
mechanical, electrical infrastructure, and intensive monitoring support to minimize any potential risks to
its crop.
High quality products – success is often linked to the quality and freshness of products, with downstream
markets, especially affluent consumers attracted to premium products.
Effective marketing campaign – promotional and marketing campaigns are important for generating
awareness of the Company’s products and core values. As such Preserve 5 will invest in a comprehensive
marketing campaign, embracing most popular digital channels to continually engage with target markets,
and use traditional methods to support this.
Strategic alliances - the company is committed to creating a network of specialist retail partners, by
investing time into personal relationships with like-minded businesses including health food stores,
distributors and organic retailers. Alliances will also be sought with distribution providers to secure
preferential rates.
Highly skilled and passionate workforce – The Company will build a team of passionate and talented staff,
ensuring that its farm activities are effectively managed, and that the end value products are of the highest
quality.
1.4 Company Ownership

Preserve 5, LLC (the Job Creating Entity “JCE”) is 60% owned by Preserve Life. Corp., a Georgia Profit
Corporation. The remaining 40% is owned by four investors – Meena Mulpri, Harsha Konijeti, Padmaja
Thotakura and Subha Devi Surapaneni – all of whom will hold an equal 10% member share in Preserve 5,
LLC and each invest $500,000 in direct funding. The table below summarizes the ownership structure of
the U.S. entity.
Shareholder Name: Ownership Funding

Preserve Life Corp. 60% $3,000,000
Meena Mulpri 10% $500,000
Harsha Konijeti 10% $500,000
Padmaja Thotakura 10% $500,000
Subha Devi Surapaneni 10% $500,000
Total 100% $5,000,000
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2 Company Summary
Preserve 5, LLC is a limited liability company (LLC) that was organized

in October 2019 in the State of Georgia. The Company is headquartered
in Douglasville, Georgia and is embarking on an exciting development
project will see the development and operation of a 100-acre organic,
sustainable farm facility with state-of-the-art agriculture spaces and
aquaculture ponds, helping the Company establish itself as a leading
grower-producer in the rapidly growing sustainable, organic and
health-conscious food market.
2.1 Start-Up Summary

Summary of Start-Up Needs
The table to the right highlights the Total Start-Up Expenses $185,000
funding required to deliver the Preserve Legal Fees 15,000
5 project and to launch its subsequent Consulting Fees 10,000
operations, including financing the initial Travel 25,000
land purchase, development and Marketing & Advertising 75,000
construction works, as well as Licenses 1,500
establishment of the varying operational Miscellaneous 58,500
frameworks and extensive staffing
recruitment. Total Start-Up Assets $4,815,000
Cash Reserve for Operations 290,000
This funding has been provided by a mix Land Purchase 1,250,000
of owner equity and direct investment Land Development 500,000
funding and has been identified as Inventory (seeds + Fingerlings) 75,000
totaling $5 million. Construction 2,700,000
The Start-up Assets ($4,815,000) include: Total Requirements $5,000,000

initial land acquisition of $1.25 million; a
land development expense of $500,000; extensive construction works, including ponds, greenhouses,
storage and processing facilities; an initial volume of aquatic and agricultural inventory, covering both
seeds and fingerlings, valued at $75,000; and a significant cash reserve ($290,000) that will be used as
working capital to meet immediate and ongoing operational expenses.
The Start-up Expenses – totaling $185,000 – will comprise the following: $15,000 on legal fees; $10,000
spent on consulting costs; travel expenditure of $25,000; initial marketing and advertising spend of
$74,000; licensing and permits, costing $1,500; and a $58,500 fund for miscellaneous costs.
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2.2 Funding Sources

The two columns to the left of the graph
opposite – Assets and Expenses – related
directly to those start-up requirements
discussed previously in Section 3.1. The
third column – Funding – represents the
total amount of funding that has been
sourced to establish the Preserve 5 organic
farm, processing facility and aquaculture
ponds, to launch subsequent operations.
In response to the start-up requirements,
the Company is raising $5 million in total
funding, made up by the following:
Source of Funds Amount Percentage

Developer Equity $ 3,000,000 60%
EB-5 Funding $ 2,000,000 40%
Total $ 5,000,000 100%
The four investors, as detailed in Section 2.4, have placed at risk a total of $2 million ($500,000 each), with
the majority shareholder, Preserve Life Corp. contributing $3 million in equity funding. The majority of
these funds, around 89%, will be used to finance the land purchase (25%), land development (10%) and
subsequent construction, with the hard construction costs equating to 54% of the total costs of the project.
2.3 Site Description and Business Location

The Company has identified four preferential locations as the site for its initial development and
construction project, the exact details of which are shown in the table below (which also provides TEA
qualification information). These sites have undergone evaluation, and once the preferred site is chosen
the purchase can be completed and construction commence. The table below summarizes the locations
currently under consideration. All of them have been designated by the Georgia Department of Labor as
a TEA.
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The map below highlights the wider geography of the proposed project sites, detailing accessibility to the
Atlanta-MSA.
2.4 Business Start-Up Milestones

The chart opposite shows the proposed key dates in the construction and development of the Preserve 5
project, revealing a multi-phased approach, with an initial pre-construction phases already far advanced,
having identified preferential land parcel for acquisition, and preliminary investigations into the best site
for the overall project. Initial licensing and permit requirements have also been met.
The first part of the construction phase will involve land redevelopment, specifically carrying out levelling
and site-scaping works, which needs to be completed prior to laying the groundwork for the other
construction. The Koi farm will be the first farm facility constructed, with the open agricultural spaces
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being developed alongside these works, with expected completion timescales of around 9 months and 15
months, respectively. Seeding of the Koi farm may be able to occur following construction of the Koi farm,
although any disruption caused by ongoing works may need to be factored in. Towards Q2 2022, work
can begin on constructing the greenhouses, including the installation of any FF&E or utilities. This phase
is also expected to last around 9 months. Once the farm facilities have been completed, the project will
push forward with the operational construction works – building an onsite storage facility and
processing/packaging facility, both of which should be fully completed, equipped and ready for use within
9 months of commencement, with the storage warehousing expected to finish a few months before the
package plant. This timescale should allow full operations to kick in around 2023.
2.5 Business Licensing Requirements

Preserve 5, LLC will be required to obtain the requisite business license for operating in Fulton County
including the necessary permits that are required for the processing and packaging of food products.
Additionally, the owners are committed to best practices in respect of employee recruitment and has
registered as an employer, securing an employer identification number (EIN) 84-3271922 and a State
identification number in order to account for employer taxes. This ensures compliance with standards for
employee rights in respect of equal opportunities and fair labor standards, in addition to complying with
laws and regulations relating to minimum wage, overtime and other mandatory requirements as
stipulated by the Department of Labor in Georgia.
2.6 Secured Contracts and Permits

Permit to Grow Fish: According to the Guidelines for Aquaculture Activities, cultures of fish products are
grown, farmed, and processed for sale, do not require any permit or license.
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3 Personnel Plan
This section examines the internal staffing structure of the Company,

highlighting the relevant experience and duties expected of the
investor. It also provides an insight into the expected progression of
staffing requirements over the next five years, summarizing the
anticipated timetable and salary costs of the future appointments that
have arisen as a result of the significant investments.
3.1 Company Structure

The Company is structured as a Limited Liability Company (LLC), and will operate most efficiently within a
straightforward hierarchical fashion, as depicted by the organizational diagram below.
3.2 Management Team

The following entities will be involved with the project development, operations, and/or structuring of
the investment:
President
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The President is the senior executive within the Company, with overall responsibility for the strategic,
financial and operational direction of the business, and answerable to the Board of Directors. Core duties
will include, but not be limited to, the following:
➢ Establish a successful launch for the new full-service restaurant in the United States;
➢ Direct, oversee, and develop the sales and financial operations of the Company;
➢ Direct the Company’s planning and expansion strategy and objectives;
➢ Establish and implement the short-term goals and corporate policies;
➢ Liaise with the owners in matters of developing strategic, operational, and marketing activities;
➢ Monitor and direct business activities to ensure the efficiency and effectiveness of the Company
adhering to the outlined budgetary limits and objectives;
➢ Handle corporate matters, including meeting regulatory and statutory compliance;
➢ Manage investor relations;
➢ Direct subordinate managers;
➢ Determine staffing requirements, overseeing the hiring and training of new employees, and
exercise ultimate discretionary authority over managers and subordinate staff, including directing,
managing, and executing all disciplinary actions;
➢ Review financial statements, sales and activity reports, and other performance data to measure
productivity and goal achievement and to determine areas needing improvement and cost
reduction;
➢ Manage relationships with third-parties, including auditors, suppliers, growers, other relevant
stakeholders, and represent the Company in high-level dealings across the market.
General Manager
The GM role is the primary day-to-day operational manager, working toward the objectives and guidelines
outlined by the Board of Directors. Core duties will include, but not be limited to, the following:
➢ Overseeing staff and allocating resources;

➢ Exert day-to-day operational control of the farm;
➢ Manage internal budgets;
➢ Prepare regular reports and KPIs and engage in leadership meetings, and contribute to
development of internal operational policies;
➢ Monitor internal efficiencies and present regular performance related reports to the CEO;
➢ Perform HR duties, including managing personnel files, recruitment policies, and take part in
hiring, firing and disciplinary matters;
➢ Manage administrative functions;
➢ Execute decision-making processes;
➢ Other ad-hoc managerial duties designed to ensure smooth operational processes across the
three offices.
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3.3 Operations Team and Staffing Requirements

In addition to the executive role mentioned previously, the following definitions provide brief descriptions
of the roles and responsibilities to be filled as part of the team created by the investment funding:
Operations Manager
This role provides support and reports to the General Manager, operating ‘on-the-ground’ and overseeing
varying elements of farm activities. They will be passionate about innovative organic production,
sustainable development and embrace the core values and mission of sustaining wellness through healthy
food choices and instill this in team members. They will also supervise staffs, ensuring daily activities and
targets are met, and contribute to the long-term success of an emerging model of sustainable food
production. The Operations Manager will report to the GM, and as part of the role will be required to
collate regular reports and present them to the GM, perform reactive and troubleshooting duties, liaise
with suppliers and distributors, and work closely with other team members to ensure a smooth and
efficient operation.
Farm Workers
These employees have a range of duties, including responsible for manually plant, cultivate, and harvest
vegetables, fruits, nuts and field crops and will use hand tools, such as shovels, trowels, hoes, tampers,
pruning hooks, shears, and knives. Duties include tilling soil and applying fertilizers; transplanting,
weeding, thinning, or pruning crops; applying pesticides; cleaning, packing, and loading harvested
products. May construct trellises, repair fences and farm buildings, or participate in irrigation activities.
Greenhouse Farm Workers are responsible for the planting, cultivating and harvesting of trees, shrubs,
flowers, and other plants and providing these products to consumers. Job responsibilities of a greenhouse
worker include the preparation and maintenance of soil, spraying the plants to prevent pests and diseases,
harvesting the plants including transporting, potting and labelling them, recording and maintaining
information about the plants and their growth, selling and delivering plants to consumers, inspecting
plants to assess quality, and regulating the greenhouse conditions to ensure conditions are suitable and
irrigation systems are running smoothly.
Koi fish farm workers rear fish for food, ornamental pools, and the restocking of lakes and rivers for angling.
They are responsible for practical jobs such as feeding fish, cleaning tanks and pools, maintaining nets and
equipment, and checking the fish for disease.
Produce Sales Associates
These sales professionals are responsible for selling and promotion of the products offered by Preserve 5
LLC, and specific staff may have ownership of specific products, markets or customer relationships. Core
duties will include: sell and service existing retail customers with the complete product line with a view to
retaining and expanding existing business; packaging; administer sales including order entry, follow-up,
management of problems, developing relationships with downstream markets, including retailers,
distributors, wholesalers etc.; work with major customers and accounts to provide smooth order
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processing and deliveries and to ensure customer satisfaction; assist with marketing and promotional
activities, including preparing promotional literature; liaise with distribution partners; and other
marketing and sales-led duties as required.
Equipment Operators
These employees are tasked with driving, controlling and operating farm equipment to till soil and to plant,
cultivate and harvest crops. They may also perform tasks, such as crop baling or hay bucking, and operate
stationery equipment to perform post-harvest tasks, such as husking, shelling, threshing, and others. May
also use other plant and equipment, such as trucks or fork-lifts, to move products around the farm, and
will be responsible for ensuring the upkeep and servicing of equipment, and reporting maintenance issues.
E-Commerce Associates
These technical employees are in charge of Preserve 5's e-commerce division and report to relevant
management. General duties will include website design, market research, budgeting, oversee e-
commerce portal, ensuring minimal downtime, helping fulfil orders, processing online sales data,
reconciling online payments, digital marketing (if required), training new recruits, and other ad-hoc duties
as required.
Outsourced
The business will also take advantage of external service providers who will be engaged on an outsourced
basis to support the inhouse team. Such contractors may include webmasters and legal counsel, but the
most important such outsourced role will be used to manage bookkeeping and accountancy needs. This
role will ensure the management have access to timely reports and information, and will also help process
payroll, as well as ensuring the books and records are maintained in time for regular year end duties.
3.4 Hiring Plan

The table opposite details the expected progression in staffing numbers over the next five years. As the
table reveals, the project will launch with 40 full-time staff in 2021, with large number of passionate
employees being engaged to help the initial seed and harvest. Other roles will be managerial, sales and
technical. Additional recruitment will be essential, across all roles, with an extra 18 employees appointed
during 2022. The overall expectation is for a full-time team of 53 U.S. professionals by 2022. The following
table highlights the expected salary costs, with wage bills of over $1 million by 2022, which will bring
further added value economic benefits to the local region.
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Headcount Table
Employee Names/Titles 2021 2022 2023 2024 2025
Operations 22.0 30.0 30.0 30.0 30.0

Farm Workers 18.0 26.0 26.0 26.0 26.0
Equipment Operators 4.0 4.0 4.0 4.0 4.0
Sales and Marketing 13.0 18.0 18.0 18.0 18.0

Produce Sales 5.0 10.0 10.0 10.0 10.0
E-Commerce Associates 8.0 8.0 8.0 8.0 8.0
General and Administrative 4.0 4.0 4.0 4.0 4.0

Operations Manager 4.0 4.0 4.0 4.0 4.0
Executives 1.0 1.0 1.0 1.0 1.0

General Manager 1.0 1.0 1.0 1.0 1.0
Total Full Time Staff 40.0 53.0 53.0 53.0 53.0
Expected Wages
Employee Names/Titles 2021 2022 2023 2024 2025
Operations $351,260 $484,520 $494,211 $504,095 $514,177

Farm Workers 278,460 410,264 418,470 426,839 435,376
Equipment Operators 72,800 74,256 75,741 77,256 78,801
Sales and Marketing $251,160 $349,003 $355,983 $363,103 $370,365

Produce Sales 91,000 185,640 189,353 193,140 197,003
E-Commerce Associates 160,160 163,363 166,630 169,963 173,362
General and Administrative $120,120 $122,522 $124,973 $127,472 $130,022

Operations Manager 120,120 122,522 124,973 127,472 130,022
Executives $54,600 $55,692 $56,806 $57,942 $59,101

General Manager 54,600 55,692 56,806 57,942 59,101
Total Wages $777,140 $1,011,738 $1,031,973 $1,052,612 $1,073,664
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4 Project Overview
The Preserve 5 project marks the start of a long-term ambition, with

the objective to establish the framework that will help the Company
achieve its goal of being a trusted grower-owned processor which
strives to the best in class food safety and quality standards. The initial
objective of the project will be the redevelopment of the land parcel,
ready for the construction of the growing, processing and storage
facilities. These are summarized below.
Greenhouses
Along with common vegetables and fruits, the goal is
to also grow specialized herbs, medicinal herbs and
other exotic varieties many of which only grow in
specific and/or controlled environments, which can be
replicated using greenhouses. The greenhouses
constructed by Preserve 5 will be equipped with state-
of-the-art equipment to monitor the environmental
conditions and use the latest hydroponic technologies.
Open Culture Agriculture

The project will also host extensive open and semi-
closed agriculture crops, growing a range of produce
that doesn’t require controlled environments. These
spaces will allow the business to bring to market
popular products quickly, and some arable space can
be offered as a resident to support local farmers. All
produce grown will be fully organic, free form harmful
pesticides and certified as such.
Koi Farming
There would be a Koi fish breeding and growing facility
to grow and sell top-quality Koi fish to customers
across the globe, with constant monitoring to ensure
the well-being of these fish.
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Storage, Packaging and Processing

Once the vegetables and fruits are picked and cleaned, the packers check for the quality and correct
weight. The veggies/fruits are then stickered, packed and stacked, and put on a pallet ready to head out
the same day. Distribution we be carried out using 3rd party logistics companies like Veritable vegetable
or ABCO Transportation, Inc., and key target commercial customers will include Organic Food focused
chains like Whole Foods, Kroger and Costco, as well as smaller, independent specialist sellers.
4.1.1 Post-Development Operations

Operations, once launched, will focus on consumer and commercial markets. All vegetables and fruits
would be transported at specific temperatures to maintain freshness and flavor. Consumer sales will be
mostly transacted through e-commerce platforms, with additional functions available such as being able
to access nutritionist and/or wellness support, which would deliver calibrated, balanced meal recipes with
select ingredients to the customer. Customers would also be able to purchase an Organic week Cart, if
requested, which will contain produce tailored to their tastes and requirements. For the farmed Koi Carp,
these will typically be nurtured, then offered for customers globally once mature. Such fish are hugely
popular and greatly prized, especially across European and Asian markets.
The table below highlights key characteristics associated with its primary produce offerings.
Average Unit Sales Average Monthly

Products and Services Price Cost Contrib. Margin %
per Month in Year 1 Margins in Year 1
Koi Fish 24 $4,000 $2,000 50% $48,833
Food Packets Type 1 40 $200 $150 25% $1,984
Food Packets Type 2 40 $200 $150 25% $1,984
Dry Groceries 39 $150 $100 33% $1,942
Fruits/Nuts/Seeds 24 $240 $200 17% $977
Preserve 5 Products and Services
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5 Market Analysis
This section will examine and evaluate the key market characteristics
that the leadership consider important for the long-term strategic
planning and decision-making processes of the Company.
5.1 Local Geographical and Demographic Summary

Preserve 5, LLC is launching its initial organic farming and aquaculture
facility within the Chattahoochee Hills region of Metropolitan Atlanta, with the exact site yet to be
confirmed. Chattahoochee Hills (formerly Chattahoochee Hill Country) is a city in southern Fulton County,
Georgia, United States. As of the latest estimates it had a population of approximately 2,903 in an area of
approximately 37,473 acres (151.65 km2). It is the incorporated part of a region called "Chattahoochee
Hill Country", an area encompassing approximately 60,000 acres (240 km2) southwest of Atlanta,
bordered on the northwest side by the Chattahoochee River. Unlike the rest of metro Atlanta, it is still
relatively undeveloped, and most of its rural character remains unchanged. The majority of the wider area
comprises the west-southwest part of southern Fulton, and smaller adjacent parts of southern Douglas,
eastern Carroll, and northern Coweta counties. The aspect of the Chattahoochee Hills region within the
Atlanta-MSA is shown below.
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Douglasville city, Fulton County,

Fact Georgia United States
Georgia Georgia
Population
Population estimates, July 1, 2018, (V2018) 34,190 1,050,114 10,519,475 327,167,434
Population estimates base, April 1, 2010, (V2018) 30,960 920,441 9,688,709 308,758,105
Population, percent change - April 1, 2010 (estimates base) to July 1, 2018, (V2018)
10.40% 14.10% 8.60% 6.00%
Population, Census, April 1, 2010 30,961 920,581 9,687,653 308,745,538
Age and Sex

Persons under 5 years, percent 7.40% 5.90% 6.20% 6.10%
Persons 65 years and over, percent 8.60% 11.70% 13.90% 16.00%
Female persons, percent 55.20% 51.60% 51.40% 50.80%
Race and Hispanic Origin

White alone, percent 29.40% 45.60% 60.50% 76.50%
Black or African American alone, percent 65.20% 44.50% 32.40% 13.40%
American Indian and Alaska Native alone, percent 0.00% 0.30% 0.50% 1.30%
Asian alone, percent 2.70% 7.50% 4.30% 5.90%
Native Hawaiian and Other Pacific Islander alone, percent 0.00% Z 0.10% 0.20%
Two or More Races, percent 1.30% 2.10% 2.20% 2.70%
Hispanic or Latino, percent 4.80% 7.30% 9.80% 18.30%
White alone, not Hispanic or Latino, percent 27.40% 39.70% 52.40% 60.40%
Population Characteristics
Veterans, 2013-2017 1,832 43,898 646,350 18,939,219
Foreign born persons, percent, 2013-2017 9.20% 12.70% 10.00% 13.40%
Georgia Georgia
Population
Population estimates, July 1, 2018, (V2018) 27,730 790,768 8,857,943 290,348,776
Population estimates base, April 1, 2010, (V2018) 24,500 661,095 8,027,177 271,939,447
Population, percent change - April 1, 2010 (estimates base) to July 1, 2018, (V2018)
10.40% 14.10% 8.60% 6.00%
Population, Census, April 1, 2011 30,961 920,581 9,687,653 308,745,538
Age and Sex

Persons 65 years and over, percent 7.67% 24.07% 17.36% 22.30%
Female persons, percent 6.42% 24.13% 16.91% 22.24%
5.18% 24.19% 16.47% 22.18%
Race and Hispanic Origin 3.93% 24.25% 16.02% 22.12%
White alone, percent 2.68% 24.31% 15.57% 22.06%
Computer & Internet Use

Households with a computer, percent, 2013-2017 91.60% 90.30% 87.00% 87.20%
Households with a broadband Internet subscription, percent, 2013-2017 74.60% 80.90% 76.80% 78.10%
Education
High school graduate or higher, percent of persons age 25 years+, 2013-2017 90.20% 91.70% 86.30% 87.30%
Bachelor's degree or higher, percent of persons age 25 years+, 2013-2017 31.20% 50.20% 29.90% 30.90%
Health
With a disability, under age 65 years, percent, 2013-2017 7.20% 7.10% 8.80% 8.70%
Persons without health insurance, under age 65 years, percent 16.90% 13.00% 15.70% 10.00%
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Georgia Georgia
Economy
In civilian labor force, total, percent of population age 16 years+, 2013-2017 68.00% 67.40% 62.40% 63.00%
In civilian labor force, female, percent of population age 16 years+, 2013-2017 66.20% 63.10% 58.00% 58.20%
Total accommodation and food services sales, 2012 ($1,000) 130,621 4,627,750 18,976,611 708,138,598
Total health care and social assistance receipts/revenue, 2012 ($1,000) 367,743 9,875,785 51,800,643 2,040,441,203
Total manufacturers shipments, 2012 ($1,000) 68,956 8,987,212 155,836,792 5,696,729,632
Total merchant wholesaler sales, 2012 ($1,000) 65,785 29,149,088 143,645,290 5,208,023,478
Total retail sales, 2012 ($1,000) 922,832 13,382,679 119,801,495 4,219,821,871
Total retail sales per capita, 2012 $29,513 $13,687 $12,077 $13,443
Transportation
Mean travel time to work (minutes), workers age 16 years+, 2013-2017 32.7 28.1 28 26.4
Income & Poverty

Median household income (in 2017 dollars), 2013-2017 $51,039 $61,336 $52,977 $57,652
Per capita income in past 12 months (in 2017 dollars), 2013-2017 $25,049 $41,041 $28,015 $31,177
Persons in poverty, percent 15.20% 14.80% 14.30% 11.80%
Businesses
Total employer establishments, 2016 X 35,950 228,330 7,757,807
Total employment, 2016 X 784,738 3,804,433 126,752,238
Total annual payroll, 2016 ($1,000) X 55,206,405 182,911,144 6,435,142,055
Total employment, percent change, 2015-2016 X 2.70% 3.00% 2.10%
Total nonemployer establishments, 2017 X 111,542 915,043 25,701,671
All firms, 2012 3,848 125,745 929,864 27,626,360
Men-owned firms, 2012 1,792 63,155 480,578 14,844,597
Women-owned firms, 2012 1,586 51,911 376,506 9,878,397
Minority-owned firms, 2012 2,054 57,263 371,588 7,952,386
Nonminority-owned firms, 2012 1,508 63,779 538,893 18,987,918
Veteran-owned firms, 2012 515 11,967 96,787 2,521,682
Nonveteran-owned firms, 2012 3,024 108,009 800,585 24,070,685
5.2 Market Overview

The Preserve 5 project will see the construction of extensive aquatic, open agriculture and organic growing
facilities, with onsite processing and packaging capability for onward sales. These activities align with
three primary industry sectors, notably the U.S. Fish and Seafood Aquaculture Industry, Organic Crop
Growing Sector and the U.S. Vegetable Farming Industry.
5.2.1 U.S. Fish and Seafood Aquaculture Industry

The Fish and Seafood Aquaculture industry has grown over the five years to 2019. The majority of industry
revenue is derived from sales of the fish and shellfish used to produce seafood, the consumption of which
has grown over the past five years. Seafood is generally more expensive than substitutes such as chicken,
meaning that an increase in seafood consumption during the current period can be primarily attributed
to the falling price of seafood. However, an influx of inexpensive imports has hurt the industry, with
imports accounting for an increasing share of domestic demand over the past five years. Despite import
competition, the industry has still grown. Declining productivity in the Fishing industry due to depleted
fish stocks and the lingering legacy of the Deepwater Horizon oil spill has also shifted demand for seafood
22
toward the Fish and Seafood Aquaculture industry. Finally, rising seafood demand has been bolstered by
rising seafood prices. As a result, IBISWorld expects industry revenue to grow at an annualized rate of 1.9%
to $1.6 billion during the current period, including expected growth of 1.2% in 2019 alone.
5.2.2 U.S. Vegetable Farming Industry

The Vegetable Farming industry consists of vegetable and melon farmers but does not include those that
harvest notable crops such as corn, soybeans or wheat. Over the five years to 2019, production of both
fresh and processing vegetables has increased, with retail prices also rising, though the farm value of
vegetables has dipped slightly in more recent years. However, increasing exports of both fresh and
processed vegetables have mitigated greater declines in industry revenue. Additionally, industry imports
have increased, preventing greater domestic price growth, diminishing industry returns at the farmgate
during the five-year period. A push toward healthy eating has increased the market for fresh vegetables,
despite slightly weaker per capita consumption, as opposed to processed vegetables. This has benefited
the industry, as fresh vegetables generally sell for more than double the price of processed vegetables
and yield higher profit margins for farmers. Overall, as a result of rising production and declining prices at
the farmgate, industry revenue has fallen an annualized 0.7% to $19.8 billion over the five years to 2019,
despite expected growth of 4.9% in 2019 alone.
Although doctors and public health administrators have stressed the importance of fruits and vegetables
since 1991, American consumption is well below recommended levels. In fact, per capita consumption of
vegetables has trended downward, falling an annualized 0.2% over the five years to 2019. Consumption
was slow during the current five-year period due to the high cost of vegetables; even though fruits and
vegetables are food staples, high prices caused fresh fruits and vegetables to comprise a smaller portion
of consumers’ diets. Still, vegetable consumption is fairly stable, and demand for industry products does
not fluctuate at high levels from year to year, with population growth being the largest driving factor for
increases in good demand. Over the past five years, consumers have become increasingly health-
conscious, which has helped temper the slight fall in vegetable consumption. Additionally, increased
health-consciousness prompted consumption to shift from processed vegetables to fresh products. As a
result, farmers have increased their production of higher-quality vegetables for the fresh market, with the
additional benefit of high-quality produce carrying a price premium. Specifically, due to increased sales of
higher-margin industry products, such as organic offerings, and declines in the price of inputs such as
fertilizer, industry profit margins (measured as earnings before interest and taxes) remained elevated
though stayed below the industry’s peak of 21% of revenue in 2014. Currently, industry profitability is
estimated at 13.1%. Additionally, greenhouse crops are especially profitable because of their consistently
high quality, which makes them ideal for sale on the fresh market.
Demand Drivers
Vegetables are sold to fresh and processing markets. As a result, any factors that improve demand for
either of these downstream markets will increase returns to farmers. The largest factors that influence
demand are dietary trends, produce price, consumer incomes, exchange rates and produce quality.
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Dietary Trends - Rising nutritional awareness and a preference for a produce-rich diet across the nation
has a positive effect on demand for fresh vegetables and melons. The Food and Drug Administration’s
recommendations for low-fat diets and increased media attention on nutrition issues have helped raise
consumer awareness about the benefits of vegetable consumption. Demand for vegetables may increase
as the nation continues to reduce the fat content of its collective diet.
Price - Demand for vegetables is sensitive to large price changes. Smaller increases in price can have a
positive effect on the Vegetable Farming industry by maintaining the same level of demand while
achieving a higher price per unit. However, large increases in the price of industry produce will often
constrain demand and encourage consumption of alternative foods. Prices can increase sharply when
adverse weather conditions cause substantial deadfalls in production. Retailers and wholesalers often try
to smooth out falls in production by importing fresh produce or dedicating more acreage for under-cover
growth.
Household incomes - Disposable incomes influence demand for vegetables. For example, demand for
vegetable juice is positively related to income, so income growth is likely to positively affect downstream
demand from vegetable processors. In the fresh vegetable market, changes in income can sometimes
cause cross-substitution between vegetables. Rather than increase total consumption, households often
decide to reduce consumption of low-cost vegetables and purchase more-exotic vegetables or organic
produce when incomes rise, keeping consumption at or near the same levels. Moreover, as household
incomes rise, it is likely that consumers will increase the number of meals eaten outside the home, which
will serve to increase sales of higher-margin industry products at restaurants and eateries over inferior
goods.
Product attributes - Although demand for greenhouse tomatoes has been quite strong in the retail market,
food service outlets (e.g. restaurants) still prefer mature green tomatoes. If the greenhouse industry is
able to develop flavorful, high-quality tomatoes demand may increase. Similarly, the introduction of new
types of mushrooms and research into alternative products (such as mushroom tea) may also boost
demand for greenhouse mushrooms. Overall, changes in product attributes arise out of a need to meet
shifting consumer preferences to garner higher revenue gains.
5.2.3 U.S. Organic Crop Farming Industry

Over the five years to 2018, the Organic Crop Farming industry in the United States has exhibited strong
revenue gains, with industry revenue rising an annualized 6.8% to reach $4.3 billion, which includes
expected growth of 0.4% in 2018 alone. Rising popularity of organic produce has pushed up demand for
industry products, which trade at a premium compared with traditionally grown produce. Producers of
organic crops tend to exhibit higher profitability than conventional producers due to high price premiums
on organic produce, with organic produce trading at an average 30% higher selling price. Organic
producers’ margins are also aided by diminished purchase costs due to the fact that organic produce must
be grown without the use of chemical fertilizers or pesticides, though these operators tend to have higher
utility costs due to the fact that most organic lettuce and tomatoes are grown under cover.
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Demand for organic crops, vegetables and fruits is mainly determined by consumer health trends and
agricultural prices. Demand for organic produce has been steadily rising for the past two decades as more
emphasis has been given to the health and environmental benefits of organic farming. For many
consumers, purchasing organic produce has been an aspect of “going green,” because pesticides and non-
organic fertilizers can have negative effects on the environment surrounding farms. Additionally, while
the known health benefits of organic produce are limited, many consumers believe organic products to
be healthier or at least less risky. Many non-organic crops have trace amounts of pesticides when sold.
While these low levels of chemicals have been deemed safe, some consumers consider organic products
to be safer. In addition to consumer trends, agricultural prices play a crucial role in determining demand
for organic produce. Organic products are typically sold at a higher price than non-organic products,
because organic farms have greater operating costs and lower production volumes.
5.3 Major Markets

The chart to the right highlights the typical market distribution of the Organic Crop Growing Produce
market, as of 2018.
5.3.1 Wholesale
The majority of organic vegetables, crops and
fruits are sold to grocery wholesalers.
Wholesalers permit organic farms to
distribute their products to a significantly
larger region than they could independently.
According to the USDA, 77% of organic farms
sell their produce within 100 miles.
Therefore, most organic farms do not have
the resources to distribute their produce to
other regions without assistance from
wholesalers. In 2018, sales to wholesalers are
expected to account for 55% of total industry
revenue.
5.3.2 Consumers
Many organic farms operate farm stands or sell produce through farmers markets. Farmers market
shoppers typically have high demand for organic produce, because these consumers are typically looking
for the freshest possible produce. As a result, in 2018, sales to consumers are expected to account for 28%
of industry revenue.
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5.3.3 Grocery and other food stores

In 2018, 17.1% of industry revenue is expected to be generated from sales to grocery stores, restaurants
and other retailers. This segment is the smallest, because retailers typically purchase organic produce
from wholesalers. This enables retailers to have a more consistent supply of produce. If a farm has low
output during a season, its buyers will need to find other suppliers to meet customer demand.
5.4 Market Outlook
5.4.1 U.S. Vegetable Farming Industry, Outlook

Barring calamitous weather such as hurricanes or droughts, the USDA projects total US vegetable and
melon output to rise over the next five years. Improvements in yield and dedicated acreage will drive this
increase; larger farms are increasingly utilizing genetically modified seeds and farming machinery to
increase yields per acre. Steady demand, high vegetable prices and increased productivity are expected
to help drive industry revenue growth throughout the five years to 2024. Increased health-consciousness
among consumers is expected to continue, increasing the production of fresh and organic vegetables
compared with that of processed vegetables. As fresh, high quality produce carries a price premium,
industry operators stand to earn higher profit margins because of the shift toward fresh vegetables.
Additionally, the growing trend of local, organic produce will further raise industry margins, specifically
for smaller farming operations.
For the past decade, the numbers of both smaller local and larger commercial farms have been growing.
According to the 2017 agriculture census (latest data available), over the 10 years from 2002 to 2012, the
number of farms with more than 5,000 acres grew 3%, while the number of farms with less than 0.9 acres
grew 8.4%. This trend is expected to continue over the five years to 2024, with medium-size farms
increasingly becoming larger and new, smaller farms entering the industry to cater to the local, organic
market. As a result, the number of industry enterprises is anticipated to grow at an annualized rate of 0.9%
to 46,268. Larger farms tend to be more capital-intensive, involving extensive mechanized planting,
harvesting and sorting systems.
The Vegetable Farming industry has plenty of room to grow; consumption needs to expand 25% to reach
US Department of Agriculture (USDA)- recommended levels. This, along with increasing health awareness,
could lead to a surge in demand for vegetable farmers. However, officials have been promoting messages
of this nature for some time with no improvement in eating habits. Consequently, per capita consumption
of vegetables has been declining marginally, a trajectory that is anticipated to continue over the five years
to 2024; per capita consumption of fruits and vegetables is expected to decline an annualized 0.1% during
this coming five-year period. However, amid steady demand from wholesalers and full-service single
location restaurants, the price of vegetables is expected to increase an annualized 1.5%. Whether these
increases will be reflected at the farmgate is unclear, but it is expected that industry price trends will
reverse somewhat, exhibiting some level of appreciation. Over the five years to 2024, steady demand and
expected product price appreciation, coupled with an acceleration of industry exports, are expected to
drive industry revenue to increase at an annualized rate of 1.4% to total $21.2 billion.
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5.4.2 U.S. Organic Crop Farming Industry, Outlook

Over the five years to 2023, revenue for the Organic Crop Farming industry is anticipated to rise an
annualized 1.1% to reach $4.6 billion. This deceleration is expected to be caused by a variety of reasons.
For one, increases in per capita fruit and vegetable consumption are expected to slow down, diminishing
broad base demand for industry products as well as traditionally grown produce. Additionally, the
agricultural price index is anticipated to rise 1.3%, which will increase the selling price of industry goods.
Rising prices and an anticipated reduction in labor costs is expected to alleviate pressure on profit margins,
enabling the average industry margin to rise to 18% by 2023. However, since organic fruits and vegetables
already trade at a premium, price increases may serve to price some consumers out of the market and
limit overall demand. Moreover, it is expected that the meteoritic rise in the popularity of organic produce,
which occurred during the current period and prior, will not repeat itself, signaling that adoption of
organic produce is expected to slow.
5.4.3 U.S. Fish and Seafood Aquaculture Industry Outlook

The Fish and Seafood Aquaculture industry is expected to grow at a more moderate pace over the five
years to 2024. Sustained growth in disposable income will likely encourage Americans to eat more
expensive foods, including dining out at restaurants that serve seafood. In addition, demand for seafood
in Asia is expected to drive export growth. However, growth in the Fishing industry and continued import
competition will limit the industry’s ability to meet all of this increased demand. As a result, the industry
is expected to grow at an annualized rate of 1% to $1.7 billion over the five years to 2024.
5.5 Regional Employment

The table to the right illustrates a breakdown of the
primary industry sector employment across the Georgia
and Atlanta Area, revealing several beneficial features for
Preserve 5, LLC. Firstly, there is a high concentration of
retail employment throughout the region, which implies
a large number of shops, stores and other outlets,
underling the strength of the region as a retail
powerhouse. It follows that Preserve 5 should have
access to a significant downstream retail market.
Secondly, the region is also blessed with a high ratio of

well-paying jobs – evidenced by healthcare, professional,
education and manufacturing sector employment
numbers. Higher income individuals (and professionals)
are more likely to spend on healthier, organic and
premium products, which again will benefit the sales
ambition of Preserve 5.
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5.6 Competitive Analysis

Internal competition
The Organic Crop Farming industry has a moderate level of competition. Farms within the industry
compete mainly based on location, price and product variety. While wholesalers enable organic farms to
distribute their products to a larger area, organic farms that operate close to underserved areas have an
advantage due to demand for local produce. Additionally, farms that produce a variety of crops are better
able to serve customers that want to buy all of their produce from one place. Farms can therefore boost
their overall demand by growing less popular crops and vegetables that may not experience as much
competition.
External competition
Organic farms contend with their most significant competition from non-organic farms. While non-organic
farms have greater purchase costs, they are able to produce much greater volumes. This enables non-
organic farms to sell at a significantly lower price. Organic farms must compete with non-organic farms
by emphasizing the quality of organic produce. As a result, marketing costs are slightly higher for organic
farms, because they must make sure that consumers are willing to pay a higher price for their products.
5.7 Sample Competition

The scope and scale of the U.S., alongside the strength of its agricultural sectors, means that there are an
extensive number of organic farms and therefore it is difficult to adequately identify and evaluate key
competing businesses. However, for the purposes of this business plan, there are some businesses which
would represent profile competitors, i.e. with aligned activities and ambitions, if not competing for similar
markets.
Earthbound Farm
WhiteWave Foods (WhiteWave) is a producer of dairy products,
plant-based foods and beverages and organic produce. The company
is most known for non-dairy products like Silk. However, WhiteWave
participates in the industry through the Earthbound Farm brand.
Earthbound Farm sell organic salad mixes and other organic
produce. The company mainly grows on farms in California and
Arizona. In 2018, WhiteWave Foods is expected to generate $41.6
million in industry specific revenue.
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Hanover Koi Farms

Hanover Koi Farms (aka-HKF) is a full-time Koi farm and retailer located in South
Central Pennsylvania, near the state border with Maryland. The business sell
Koi at a retail level, leveraging online sales platforms and walk-in trade. We sell
Koi retail to the general public both online and to walk-in customers. The main
focus is in the breeding of Koi and Butterfly Koi, and with the latter the farm
has some of the best in the world.
Blue Ridge Koi

Blue Ridge Koi & Goldfish is America’s largest &
longest-running Koi & Goldfish farm. With over 200
ponds across 6 farms, the business is able to provide
a steady supply of high quality koi, butterfly koi,
goldfish and cold water ornamentals to businesses
across the nation. Patrick County, the flagship
production facility has transformed into a state-of-
the-art koi farm, with 64 ponds and over 50 surface
acres of water. As a family owned and operated business, each of our employees takes great pride in
delivering a healthy, high quality product coupled with top-notch customer service. Give us a try today,
and you will see the difference.
5.8 SWOT Analysis

SWOT analysis will provide an insight into any competitive advantages that the Preserve 5 project may
possess as well as highlighting internal areas that will benefit from improvement. External factors will also
be evaluated to assess any beneficial or prejudicial influences on the business. Strengths and weaknesses
are internal to the project, while opportunities and threats relate to external factors that may impact on
the project:
Strengths Weaknesses
• Leadership Vision. The owners have a • Long Construction Phases. The

clearly defined vision for growth in the construction timelines cover almost 3
U.S. market, supported by significant years in total, across the greenhouse,
storage, processing and aquaculture
investment funding.
facilities. Lengthy construction
• Diversity. The project will projects can result in delays or
encompass a range of revenue unforeseen problems which may result
streams, which enables it to spread in uplifts in anticipated costs.
the risk of any underperforming • Harvest delays. With the prolonged
market demand. construction phases, the Company will
29
• Low competition. At present there face an extended period before

exists no solid competitors within the produce can be harvested for sale.
sphere of influence of operations.
• Effective project team. The owners
have created a high-caliber
leadership team and network of
professional partners, including
legal, architectural and construction
providers. This means the project
benefits from a clear strategic plan
and expertise to deliver.
• State of the art technology. The
operations benefit from the latest
technologies & developments in
organic greenhouse farming, crop-
culture, and hydroponics.
Opportunities Threats
• Consumer Preferences. • Disposable Income. Industry sensitive

Downstream consumer markets are to economic outlook, particularly
becoming more interested in downstream consumer income levels
organic, healthy produce that has which may impact spending.
been grown and harvested using • Environmental Threats. Any
sustainable and ethical methods. widespread agricultural concern is
• Economic Impact. Job Creating vulnerable to potential environmental
Enterprise and funding generates or ecological events, including extreme
benefits for the regional economy. weathers, drought or disease.
• Genuine Expansion. The business
model is easily translatable to other
regions throughout the U.S., and
holds genuine investor appeal,
especially amongst more ethically-
focused investors.
• Early Mover Brand. Preserve 5 is
aiming to position itself as an early
moving brand in this growth sector.
• Affluent Metro Region. Metro
Atlanta has a high-density of high-
paying jobs. Higher incomes are a key
driver of organic produce purchases.
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6 Sales and Marketing Strategy
The founder has a clear strategic vision for Preserve 5, LLC with an exciting project that will embrace the
latest technologies & developments in organic greenhouse farming, crop-culture, and hydroponics to
build, develop and launch an extensive agribusiness venture with greenhouses, open-crop culture and a
Koi fish farming facility across 100 Acres in the Chattahoochee Hills region of Georgia.
The key focus of the operational sales strategy is to harness this facility and gradually establish the
Preserve 5 brand a leading grower and producer of healthy, nutritious food products, taking advantage of
increasing consumer demand for sustainably grown organic foods and healthier lifestyles. This objective
will be supported by pursuing consumer interest throughout Georgia and, in particular, the Atlanta Metro
region, which has a high density of high-paying employees and affluent households – key buyers of
premium, organic produce. Preserve 5 will be able to market its produce as locally sourced, grown and
processed. Along with this, the Company aims to provide easy access to healthy nutrition advice, with a
dedicated e-commerce portal through which customers can access qualified nutritional advice and
guidance, as well as a library of healthy, balanced meal recipes. This strategy will form the basis of a clear
brand positioning program, with Preserve 5 aiming to be synonymous with healthy produce, sustainable
and ethical growing and as an informative and educational producer.
The Company will support this with a strong marketing and promotional focus, offering regular ‘organic’
promotions and maintaining its advertising efforts through use of online and traditional marketing
channels. In summary, the imagined sales strategy will focus on the following:
➢ Continued investment in raising brand awareness, creating lasting relationships with consumers
and taking an industry thought-leadership role in respect of promoting healthy living and
supporting local growers;
➢ Attracting and retaining passionate staff, who will be committed to the highest standards of
quality as well as agricultural and aquatic welfare;
➢ Developing relationships with key stakeholders, including distribution partners;
➢ Effective marketing and promotional campaigns, and offer regular special deals for customers;
➢ Offering added value for customers, through regular articles, nutritional insights and wellness
coaching programs;
➢ Ensuring all products are exceptionally fresh, and of the highest quality;
➢ Offering a range of product packs delivered direct to consumers, with seasonal varieties and
enclosed recipes;
➢ Build alliances with national and international buyers and distributors for the farmed Koi Carp to
develop significant revenue potential for this highly prized fish;
➢ Establish a growing network of commercial customers, shipping to major health food chains,
specialist retailers and organic food suppliers;
➢ Evaluate expansion opportunities across the United States, facilitated by growing brand
recognition;
31
➢ Continue with research and development activities, especially across new technologies and
growing practices.
6.1.1 Primary Marketing Campaign

The Company plans to implement a cohesive marketing strategy to raise market awareness of the
Preserve 5 brand and will engage a broad variety of platforms to meet its promotional and advertising
needs. These platforms will help it to reach its desired customer market, and will typically involve the
following channels:
Online & Digital Marketing

Online marketing is fast becoming the marketing tool of choice for many businesses, and having an
engaging, informative and professional web presence is often a critical foundation of any marketing
strategy. The Company will be launching a broad reaching online and e-commerce platform, as part of its
ambitions to penetrate direct to consumer markets. Such a portal will easily host information about the
products offered by Preserve 5, as well as informative details regarding nutrition, health and suggested
recipes, as well as promoting (once established) the network of retailers and specialist stores who will
stock the products. The online marketing tools will also take advantage of the following:
Search Engine Optimization (SEO) or Pay-Per-Click (PPC) – SEO and PPC are proven methods to increase
search engine visibility and to help drive traffic to websites. SEO, in particular, is a major cost-effective
focus of the Company’s digital marketing strategy, and focus will be given in building high-quality, relevant
content including blogs, articles and similar, as well as nurturing links to other quality websites in order to
increase visibility in search engine queries. PPC involves spending money to promote visibility and
relevance amongst search engine results and allows for contextual adverts to be placed on other relevant
sites. Google AdWords in particular is proven to attract online traffic and for generating additional
revenues. As part of any holistic online marketing strategy, the business will create a budget for using
Google AdWords and other major PPC providers, ensuring highly targeted adverts of its products at key
consumer markets.
Social Media – Social Media platforms offer a highly targeted method of engaging with audiences.
Facebook, Instagram and other similar applications will be utilised to increase promotional awareness and
to broadcast regularly. Social Media will also allow the Company to interact with relevant consumer
groups, including those with common interests (ethics, sustainability, organic produce, nutrition etc.)
which will further it’s reach. It can also be used as a platform for publishing articles, recipes and similar
content.
Branding
The marketing strategy is to be enhanced by the development of a branding strategy, which will be used
to create, develop and raise awareness of the Preserve 5 brand and its core values. Such brand recognition
will greatly the sales of its products, as well as increasing the possibility of larger specialist retailers looking
32
to sell products. Other opportunities, such as press releases, articles or advertisements in relevant
regional publications will also contribute to raising the brand profile.
Word of Mouth
Delivering high-quality, fresh produce, and offering a uniquely engaging experience with nutritional
support, recipe boxes and advice will help satisfied customer make positive recommendations, including
through online and social media platforms.
Direct Marketing
Direct marketing involves sending promotional materials, flyers, leaflets throughout key neighborhoods,
and is a cost-effective means of broadcasting the Company.
Community Engagement
Active engagement in the local region, through hosting its own events or growers fairs, as well as
sponsoring or supporting other relevant events or businesses can help raise the profile of the business.
Preserve 5 might also consider opening its farm to customers, offering them insights into their facilities.
Networking and Relationship Building

Networking with key industry stakeholders will prove an important marketing resource for the Company,
whether it is with local farmers, distributors or larger organic, specialist food retailers or wholesalers.
Similarly, the Company might also take an active and visible role in attending regional events, fairs,
agricultural shows or expos, and similar such gatherings all aimed at raising its brand profile and network
of commercial partners.
6.2 Sales Forecast

The aforementioned sales and marketing strategies, allied to growing consumer preference for healthier,
more sustainably produced and organic food products, are expected to contribute to a period of solid
growth over the next five years, with annual revenues forecast to rise from $1.5 million in 2021 to over
$3.8 million by the end of 2025. The graph to the right highlights the anticipated progression in specific
product lines, whereas the table below offers more detail by showing the full five-year sales forecast.
33
Unit Sales 2021 2022 2023 2024 2025

Koi Fish 293 594 653 686 700
Food Packets Type 1 481 927 1,020 1,071 1,092
Food Packets Type 2 481 927 1,020 1,071 1,092
Dry Groceries 466 892 981 1,030 1,051
Fruits/Nuts/Seeds 293 594 653 686 700
Unit Prices 2021 2022 2023 2024 2025

Koi Fish 4,000 4,080 4,162 4,245 4,330
Food Packets Type 1 200 203 207 211 215
Dry Groceries 150 153 156 159 162
Sales 2021 2022 2023 2024 2025

Koi Fish 1,172,000 2,423,520 2,717,786 2,912,070 3,031,000
Food Packets Type 1 95,963 188,181 211,140 225,981 234,780
Dry Groceries 69,900 136,476 153,036 163,770 170,262
Fruits/Nuts/Seeds 70,320 145,530 163,250 174,930 182,000
Total Sales $1,504,146 $3,081,888 $3,456,352 $3,702,732 $3,852,822
105% 12% 7% 4%
Direct Unit Costs 2021 2022 2023 2024 2025
Koi Fish 2,000 2,040 2,081 2,123 2,165
Dry Groceries 100 102 104 106 108
Direct Cost of Sales 2021 2022 2023 2024 2025

Koi Fish 586,000 1,211,760 1,358,893 1,456,378 1,515,500
Dry Groceries 46,600 90,984 102,024 109,180 113,508
Fruits/Nuts/Seeds 58,600 121,176 135,824 145,432 151,200
Subtotal Direct Cost of Sales 835,500 1,707,582 1,914,981 2,051,568 2,134,016
34
7 Financial Projections
In addition to the previously stated information regarding the

Company’s mission, corporate objectives, funding and ownership,
operating activities, sales and marketing strategies, and its personnel
plan, this section will further examine the long-term viability of the
business model and appraise the relative risk and return to investors,
by presenting a series of robust financial projections and modeling
outcomes.
7.1 Projected Profit & Loss

The chart to the right illustrates the
expected movement in gross margin over
the first five years, which is expected to
increase sharply over the early part of the
forecast period – rising from 21% in 2021 to
29% by 2022 – mostly due to the strong
growth in harvest yield across the crop and
aquaculture investments. From 2023, the
gross margin will being to stabilize, settling
around 30-31%, and this overall trend will
provide the management the confidence to more effectively manage ongoing and future working capital
and operational requirements.
The following chart, by contrast, highlights

the movement in net profit margin over the
same five-year period. As the chart
demonstrates, the overall pattern in net
margin mirrors that of the gross margin,
albeit in a more pronounced fashion, rising
from a negative 2021 position (due to set-up
costs and initial slow-to-market sales) to
stabilize at around 5% - 6% from 2023
onwards. This net margin movement will see
a first year (2021) net loss of around $262,000 translate into a healthy net profit during 2022 of over
$73,000. From 2023, the net profit potential will increase, with annual net earnings rising from $162,000
(2023) to peak at $240,000 by the end of 2025.
The full five-year profit and loss forecast is shown below, and clearly shows the profit potential business
operations stabilize from 2022/23 onwards.
35
Profit & Loss Statement

2021 2022 2023 2024 2025
Sales $1,504,146 $3,081,888 $3,456,352 $3,702,732 $3,852,822
Direct Cost of Sales 835,500 1,707,582 1,914,981 2,051,568 2,134,016
Operations Payroll 351,260 484,520 494,211 504,095 514,177
Total Cost of Sales 1,186,760 2,192,102 2,409,192 2,555,663 2,648,193
Gross Margin $317,386 $889,786 $1,047,160 $1,147,069 $1,204,629
Gross Margin % 21% 29% 30% 31% 31%
Sales and Marketing Expenses
Sales and Marketing Payroll 251,160 349,003 355,983 363,103 370,365
Advertising/Promotion 1,188 1,212 1,236 1,261 1,286
Total Sales and Marketing Expenses $252,348 $350,215 $357,219 $364,364 $371,651
General and Administrative Expenses
General & Admin Expenses (10%) 75,207 154,094 172,818 185,137 192,641
Payroll Taxes, Insurance, Benefits 77,714 101,174 103,197 105,261 107,366
Total General and Administrative $273,041 $377,791 $400,988 $417,870 $430,029
Other Expenses:
Executives Payroll 54,600 55,692 56,806 57,942 59,101
Consultancy Fee (Accounting, Tax etc.) 99 500 500 500 500
Total Other Expenses $54,699 $56,192 $57,306 $58,442 $59,601
Total Operating Expenses $580,088 $784,198 $815,513 $840,676 $861,281
EBITDA ($262,702) $105,588 $231,647 $306,393 $343,348
Interest Expense 0 0 0 0 0
Depreciation 0 0 0 0 0
Taxes Incurred 0 31,676 69,494 91,918 103,004
Net Earnings ($262,702) $73,912 $162,153 $214,475 $240,344
Net Margin -17% 2% 5% 6% 6%
36
7.2 Projected Cash Flow

Forecast
With the support of direct funding
contributions, the Company plans to
acquire a significant land parcel, to be
selected from shortlisted sites, and to
develop, construct then manage an
innovative agribusiness operation
with aquaculture and organic crop
farming. The table below highlights
the expected movement in cash flows
over the first five years of this exciting project, including the operational phases. During the first year, the
business will experience significant net cash outflows, around $262,000, mostly due to delays in
generating revenues that to the timing of harvest yields as well as absorption of initial staffing and launch
costs. However, from 2022, the business will being to generate positive operational inflows, around
$105,000 in 2022 and increasing year-on-year to peak at $343,348 by 2025, although this will be before
any tax obligations are met. The longer term cash outlook is therefore strong, and with direct investment
helping to absorb the rising operational and staffing costs over the first two years, the business will being
to accumulate considerable cash surpluses, rising from over $263,000 in 2023 to almost $719,000 by 2025.
The full five-year cash flow forecast is highlighted below.
Pro Forma Cash Flow

2021 2022 2023 2024 2025
Cash Flow from Operations
Cash Received from Sales 1,504,146 3,081,888 3,456,352 3,702,732 3,852,822
Cash from Receivables 0 0 0 0 0
Sales Tax, VAT, HST/GST Received 0 0 0 0 0
Other Cash Received 0 0 0 0 0
Payments to Suppliers -835,500 -1,707,582 -1,914,981 -2,051,568 -2,134,016
Payroll -777,140 -1,011,738 -1,031,973 -1,052,612 -1,073,664
Sales Tax, VAT, HST/GST Paid Out 0 0 0 0 0
Other Operating Expenses -154,208 -256,980 -277,751 -292,159 -301,793
Subtotal Cash from Operations -262,702 105,588 231,647 306,393 343,348
Interest Paid 0 0 0 0 0
Taxes on Earnings 0 -31,676 -69,494 -91,918 -103,004
Net Cash Flow from Operating Activities -262,702 73,912 162,153 214,475 240,344
Cash Flow from Investing Activities

Net Cash from Investing Activities 0 0 0 0 0
Cash Flows From Financing Activitites

Net Cash from Financing Activities 0 0 0 0 0
Net Cash Flow -262,702 73,912 162,153 214,475 240,344

Cash Balance $27,298 $101,209 $263,362 $477,838 $718,181
37
7.3 Projected Balance Sheet Forecast

The table below demonstrates the projected financial performance of Preserve 5, LLC by presenting a five-
year balance sheet forecast, with business net worth predicted to reach over $5.2 million by the end of
2025. This growth can be attributed to the funding, with the four proposed investors helping to create 53
new direct jobs across, in addition to helping fund the land acquisition, development and construction
works at its first agribusiness site, which is to be chosen from four preferential options. Overall, the
balance sheet shows that the Company will maintain a healthy liquidity, as highlighted by the expected
growth in cash reserves, which will reach over $263,000 during 2023 when operations are expected to
stabilize; this strong liquidity will assist the Company in bringing its diverse product offerings to market,
and ensure access to sufficient working capital to maintain and promote the nascent operations across its
locations, as well as providing funds to meet any potential growth or contingency events. The overall
outlook for the Company indicates a solid platform for sustainable success.
Pro Forma Balance Sheet

2021 2022 2023 2024 2025
Assets
Current Assets
Cash 27,298 101,209 263,362 477,838 718,181
Accounts Receivable 0 0 0 0 0
Inventory 75,000 75,000 75,000 75,000 75,000
Other Current Assets 0 0 0 0 0
Total Current Assets 102,298 176,209 338,362 552,838 793,181
Long-term Assets
Long-term Assets 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000
Accumulated Depreciation 0 0 0 0 0
Total Long-term Assets 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000
Total Assets $4,552,298 $4,626,209 $4,788,362 $5,002,838 $5,243,181
Liabilities and Equity

Current Liabilities
Accounts Payable 0 0 0 0 0
Current Borrowing 0 0 0 0 0
Other Liabilities 0 0 0 0 0
Total Current Liabilities 0 0 0 0 0
Long Term Liabilities

Mortgage Loan 0 0 0 0 0
EB-5 Loan 0 0 0 0 0
Total Long Term Liabilities 0 0 0 0 0
Total Liabilities 0 0 0 0 0
Equity
Paid-in Capital 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Retained Earnings -447,702 -373,791 -211,638 2,838 243,181
Total Equity 4,552,298 4,626,209 4,788,362 5,002,838 5,243,181
Total Liabilities and Equity $4,552,298 $4,626,209 $4,788,362 $5,002,838 $5,243,181

Net Worth $4,552,298 $4,626,209 $4,788,362 $5,002,838 $5,243,181
38
8 Sensitivity and Scenario Analysis
Up to this point in the business plan, the study looked into the
profitability of the enterprise by considering the financial assumptions
detailed in Sections 7 and 8. The results presented would lead to
different projections should these assumptions change, therefore it is
important, when assessing the risk of such an investment to
understand the fluctuation or volatility of these financial results with
changing circumstances, scenarios, and assumptions. The following
two sub sections present the results of two studies that attempt to quantify the effects of uncertainty in
future projections and the resulting impact on its valuation. The first study is an analysis of the sensitivity
of two main assumptions that provides a basic understanding on how some of the key financial metrics
react to slight changes to these parameters. This analysis results in a better understanding of the financial
model, as well as providing a keener insight for strategic management. The second study, the Scenario
Simulation, is the result of running the financial model above with a combination of changes in the
assumptions as to allow for a better understanding on how the firm’s profitability may change under
different circumstances over time.
8.1 Sensitivity Analysis

Future profits depend on two major components: growth of revenue, and growth of costs. Revenues can
grow differently by increasing the volume of units sold or by increasing price over time (escalation). Costs
can be differentiated into variable and fixed cost. While variable cost is affected by both volume and
inflation, fixed cost is only affected by inflation for a fixed maximum volume output, i.e. if more expansive
facilities are needed to produce goods at higher capacity, then the fixed cost would obviously increase. In
this preliminary analysis, the study focuses on understanding what the implications of changing growth
and inflation are. In this context, inflation does not refer to the U.S. economic measure of changing
Consumer Price Index (CPI) or Growth Domestic Product (GDP) over time, but merely by the changing
prices of costs associated with the operations of Preserve 5, LLC. With this framework, inflation may be
more volatile and unpredictable than the corresponding macro-economic measure.
The chart below depicts the sensitivity of the valuation2 by the third year of operations with respect to
changes to both sales growth and inflation growth. This exercise considered independent changes to both
sales growth and inflation, to evaluate their impact to business value.
2
Valuation is obtained by measuring the projected EBITDA by year 3 and dividing by a Cap Rate of 15%
39
The results highlighted by the chart above indicate that any percentage change in inflation will have a
similar effect to any change in sales growth, although the business valuation consequences of inflation
growth are slightly less sensitive than those associated with any changing sales revenue growth or
unexpected cost changes. This insight provides valuable information to the management of the operations
when it comes to compensating unexpected costs due to market uncertainty. The results of this
preliminary sensitivity analysis are then further used to shape the possible outcomes of this value as the
establishment stabilizes.
8.2 Scenario Simulation

Section 9.1 demonstrated how sales growth was a primary Scenario Analysis
driver of business performance in the future, and it is Scenario 1 - Worse than expected
important to consider how combinations of inflation and Growth -15%
growth changes beyond the ranges presented will impact Inflation 15%
overall business performance.
Scenario 2 - Nominal
In this portion of the study, the financial model runs through a Growth 0%
series of combinations of assumptions and evaluates not only Inflation 0%
the expected business value in year 3, but also its monthly
break-even target, two important metrics of operational and Scenario 3 - Better than expected
investment success. The opposite table presents worse, Growth 15%
nominal, and better than expected scenarios to be combined Inflation -15%
independently of each other.
In all these scenarios, the analyses rely on two key parameters to determine the volatility of financial
performance, namely revenue rate growth and fixed cost inflation. Revenue rate growth is defined as the
expected change in the volume of harvested products, including aquatic, sold year on year. Fixed cost
inflation is the assumed increase in cost per year. In both metrics, these changes are multiplicative in
40
nature, meaning that these are added to one (1) and then multiplied by the existing assumption in the
model (for example, fixed cost inflation factor of 100% implies that inflation in costs would be assumed
to be at 6% rather than 3%). These combinations were run through the financial model and the following
results were obtained:
Business Value by 2023

Inflation
Growth Rates Higher Expected Lower
Lower -$11,323,796 -$4,348,047 $2,542,893
Expected -$3,179,767 $3,860,789 $10,816,536
Higher $4,964,263 $12,069,625 $19,090,178
Monthly Break Even Point in Sales for 2023

Inflation
Growth Rates Higher Expected Lower
Lower $475,278 $307,573 $216,591
Expected $333,094 $245,228 $186,916
Higher $275,582 $214,954 $170,861
These tables depict the worst-case scenario at the top left quadrant, with the nominal case in the center,
and the best possible outcome at the lower right corner. The results of these scenario simulations help to
predict the risk of investment in such a business from a pure statistical standpoint, but it is nevertheless
useful for understanding the risk implications should the business start deviating from cost estimates or
growth trends. A brief explanation of the previous tables is below:
Business Value by Year 3

The Expected Business Value 3 of $3.86 million by the end of 2022 is sensitive to changing economic
conditions associated with worst- or best-case scenarios. This is slightly lower to the net worth of around
$4.7 million predicted by the balance sheet (See Section 8.3). While the long-term outlook for business
net worth therefore remains within acceptable standards, the table highlights the potential losses that
could occur in adverse business conditions. Under better than expected conditions, this value could raise
to almost $19 million, and be reduced to a worthless investment in the worst-case scenario, highlighting
the risk undertaken by the investors.
Monthly break-even point by Year 3

The table shows how volatile the monthly break-even point is to any best- or worst-case scenarios, with
considerable fluctuations in the expected Year 3 break-even, around £300,000 at its greatest extent.
3
Expected Business Value is arrived by using a capitalization rate of 15% based on net operating income.
41
The scenario analysis and risk assessment wouldn’t be complete without a cone of uncertainty around the
Company’s business value. The chart below illustrates the effects on the business net worth over the next
five years with the inputs defined above. In the worst-case scenario, with a -15% sales growth and 15%
increase in cost, the business would still be able to maintain value over time. The best-case scenario
illustrates a potential growth that is almost 4 times higher than the nominal value by the end of 2025, that
is over $22.7 million vs. today’s expected book value by 2025 of $5.7 million.
42
Appendix
The following information is presented in this plan to illustrate financial details, projections, general assumptions, and expected results. As in any business plan,
success is solely dependent on the business execution and the circumstances that surround its operations. The objective of these projections is therefore to aid the
entrepreneur on understanding the business model, along with the feasibility of such business development in current market conditions and with the underlying
assumptions considered only as part of this study.
Table 1: Sales Forecast

Unit Sales 1Q 2Q 3Q 4Q 2021 1Q 2Q 3Q 4Q 2022 2023 2024 2025
Koi Fish 40 57 81 115 293 135 144 153 162 594 653 686 700
Food Packets Type 1 69 94 132 186 481 213 222 237 255 927 1,020 1,071 1,092
Food Packets Type 2 69 94 132 186 481 213 222 237 255 927 1,020 1,071 1,092
Dry Groceries 65 91 129 181 466 207 216 226 243 892 981 1,030 1,051
Fruits/Nuts/Seeds 40 57 81 115 293 135 144 153 162 594 653 686 700
Unit Prices 2021 1Q 2Q 3Q 4Q 2022 2023 2024 2025

Koi Fish 4,000 4,000 4,000 4,000 4,000 4,080 4,080 4,080 4,080 4,080 4,162 4,245 4,330
Food Packets Type 1 200 200 200 200 200 203 203 203 203 203 207 211 215
Dry Groceries 150 150 150 150 150 153 153 153 153 153 156 159 162
Sales 2021 2022 2023 2024 2025

Koi Fish 160,000 228,000 324,000 460,000 1,172,000 550,800 587,520 624,240 660,960 2,423,520 2,717,786 2,912,070 3,031,000
Food Packets Type 1 13,766 18,754 26,335 37,108 95,963 43,239 45,066 48,111 51,765 188,181 211,140 225,981 234,780
Dry Groceries 9,750 13,650 19,350 27,150 69,900 31,671 33,048 34,578 37,179 136,476 153,036 163,770 170,262
Fruits/Nuts/Seeds 9,600 13,680 19,440 27,600 70,320 33,075 35,280 37,485 39,690 145,530 163,250 174,930 182,000
Total Sales $206,882 $292,838 $415,460 $588,966 $1,504,146 $702,024 $745,980 $792,525 $841,359 $3,081,888 $3,456,352 $3,702,732 $3,852,822
105% 12% 7% 4%
Direct Unit Costs 2021 2022 2023 2024 2025
Koi Fish 2,000 2,000 2,000 2,000 2,000 2,040 2,040 2,040 2,040 2,040 2,081 2,123 2,165
Dry Groceries 100 100 100 100 100 102 102 102 102 102 104 106 108
Direct Cost of Sales 2021 2022 2023 2024 2025

Koi Fish 80,000 114,000 162,000 230,000 586,000 275,400 293,760 312,120 330,480 1,211,760 1,358,893 1,456,378 1,515,500
Dry Groceries 6,500 9,100 12,900 18,100 46,600 21,114 22,032 23,052 24,786 90,984 102,024 109,180 113,508
Fruits/Nuts/Seeds 8,000 11,400 16,200 23,000 58,600 27,540 29,376 31,212 33,048 121,176 135,824 145,432 151,200
Subtotal Direct Cost of Sales 115,200 162,700 230,700 326,900 835,500 389,232 413,100 438,906 466,344 1,707,582 1,914,981 2,051,568 2,134,016
43
Table 2: Personnel Hiring Plan by Quarter

Headcount Table
Employee Names/Titles 1Q 2Q 3Q 4Q 2021 1Q 2Q 3Q 4Q 2022 2023 2024 2025
Operations 22.0 22.0 22.0 22.0 22.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0
Farm Workers 18.0 18.0 18.0 18.0 18.0 26.0 26.0 26.0 26.0 26.0 26.0 26.0 26.0
Equipment Operators 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Sales and Marketing 13.0 13.0 13.0 13.0 13.0 18.0 18.0 18.0 18.0 18.0 18.0 18.0 18.0
Produce Sales 5.0 5.0 5.0 5.0 5.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
E-Commerce Associates 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0
General and Administrative 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Operations Manager 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Executives 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
General Manager 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Total Full Time Staff 40.0 40.0 40.0 40.0 40.0 53.0 53.0 53.0 53.0 53.0 53.0 53.0 53.0
Table 3: Personnel Projected Salaries

Expected Wages
Employee Names/Titles 1Q 2Q 3Q 4Q 2021 1Q 2Q 3Q 4Q 2022 2023 2024 2025
Operations $87,815 $87,815 $87,815 $87,815 $351,260 $121,130 $121,130 $121,130 $121,130 $484,520 $494,211 $504,095 $514,177
Farm Workers 69,615 69,615 69,615 69,615 278,460 102,566 102,566 102,566 102,566 410,264 418,470 426,839 435,376
Equipment Operators 18,200 18,200 18,200 18,200 72,800 18,564 18,564 18,564 18,564 74,256 75,741 77,256 78,801
Sales and Marketing $62,790 $62,790 $62,790 $62,790 $251,160 $87,251 $87,251 $87,251 $87,251 $349,003 $355,983 $363,103 $370,365
Produce Sales 22,750 22,750 22,750 22,750 91,000 46,410 46,410 46,410 46,410 185,640 189,353 193,140 197,003
E-Commerce Associates 40,040 40,040 40,040 40,040 160,160 40,841 40,841 40,841 40,841 163,363 166,630 169,963 173,362
General and Administrative $30,030 $30,030 $30,030 $30,030 $120,120 $30,631 $30,631 $30,631 $30,631 $122,522 $124,973 $127,472 $130,022
Operations Manager 30,030 30,030 30,030 30,030 120,120 30,631 30,631 30,631 30,631 122,522 124,973 127,472 130,022
Executives $13,650 $13,650 $13,650 $13,650 $54,600 $13,923 $13,923 $13,923 $13,923 $55,692 $56,806 $57,942 $59,101
General Manager 13,650 13,650 13,650 13,650 54,600 13,923 13,923 13,923 13,923 55,692 56,806 57,942 59,101
Total Wages $194,285 $194,285 $194,285 $194,285 $777,140 $252,935 $252,935 $252,935 $252,935 $1,011,738 $1,031,973 $1,052,612 $1,073,664
44
Table 4: Projected Quarterly Profit and Loss

Profit & Loss Statement
1Q 2Q 3Q 4Q 2021 1Q 2Q 3Q 4Q 2022 2023 2024 2025
Sales $206,882 $292,838 $415,460 $588,966 $1,504,146 $702,024 $745,980 $792,525 $841,359 $3,081,888 $3,456,352 $3,702,732 $3,852,822
Direct Cost of Sales 115,200 162,700 230,700 326,900 835,500 389,232 413,100 438,906 466,344 1,707,582 1,914,981 2,051,568 2,134,016
Operations Payroll 87,815 87,815 87,815 87,815 351,260 121,130 121,130 121,130 121,130 484,520 494,211 504,095 514,177
Total Cost of Sales 203,015 250,515 318,515 414,715 1,186,760 510,362 534,230 560,036 587,474 2,192,102 2,409,192 2,555,663 2,648,193
Gross Margin $3,867 $42,323 $96,945 $174,251 $317,386 $191,662 $211,750 $232,489 $253,885 $889,786 $1,047,160 $1,147,069 $1,204,629
Gross Margin % 2% 14% 23% 30% 21% 27% 28% 29% 30% 29% 30% 31% 31%
Sales and Marketing Expenses
Sales and Marketing Payroll 62,790 62,790 62,790 62,790 251,160 87,251 87,251 87,251 87,251 349,003 355,983 363,103 370,365
Advertising/Promotion 297 297 297 297 1,188 303 303 303 303 1,212 1,236 1,261 1,286
Total Sales and Marketing Expenses $63,087 $63,087 $63,087 $63,087 $252,348 $87,554 $87,554 $87,554 $87,554 $350,215 $357,219 $364,364 $371,651
General and Administrative Expenses
General & Admin Expenses (10%) 10,344 14,642 20,773 29,448 75,207 35,101 37,299 39,626 42,068 154,094 172,818 185,137 192,641
Payroll Taxes, Insurance, Benefits 19,429 19,429 19,429 19,429 77,714 25,293 25,293 25,293 25,293 101,174 103,197 105,261 107,366
Total General and Administrative $59,803 $64,100 $70,232 $78,907 $273,041 $91,025 $93,223 $95,550 $97,992 $377,791 $400,988 $417,870 $430,029
Other Expenses:
Executives Payroll 13,650 13,650 13,650 13,650 54,600 13,923 13,923 13,923 13,923 55,692 56,806 57,942 59,101
Consultancy Fee (Accounting, Tax etc.) 0 0 0 99 99 0 0 0 500 500 500 500 500
Total Other Expenses $13,650 $13,650 $13,650 $13,749 $54,699 $13,923 $13,923 $13,923 $14,423 $56,192 $57,306 $58,442 $59,601
Total Operating Expenses $136,540 $140,837 $146,969 $155,743 $580,088 $192,502 $194,700 $197,027 $199,969 $784,198 $815,513 $840,676 $861,281
EBITDA ($132,673) ($98,514) ($50,024) $18,508 ($262,702) ($840) $17,050 $35,462 $53,916 $105,588 $231,647 $306,393 $343,348
Interest Expense 0 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0
Taxes Incurred 0 0 0 0 0 0 0 0 31,676 31,676 69,494 91,918 103,004
Net Earnings ($132,673) ($98,514) ($50,024) $18,508 ($262,702) ($840) $17,050 $35,462 $22,240 $73,912 $162,153 $214,475 $240,344
Net Margin -64% -34% -12% 3% -17% 0% 2% 4% 3% 2% 5% 6% 6%
45
Table 5: Projected Quarterly Cash Flow

Pro Forma Cash Flow
1Q 2Q 3Q 4Q 2021 1Q 2Q 3Q 4Q 2022 2023 2024 2025
Cash Flow from Operations
Cash Received from Sales 206,882 292,838 415,460 588,966 1,504,146 702,024 745,980 792,525 841,359 3,081,888 3,456,352 3,702,732 3,852,822
Cash from Receivables 0 0 0 0 0 0 0 0 0 0 0 0 0
Sales Tax, VAT, HST/GST Received 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Cash Received 0 0 0 0 0 0 0 0 0 0 0 0 0
Payments to Suppliers -115,200 -162,700 -230,700 -326,900 -835,500 -389,232 -413,100 -438,906 -466,344 -1,707,582 -1,914,981 -2,051,568 -2,134,016
Payroll -194,285 -194,285 -194,285 -194,285 -777,140 -252,935 -252,935 -252,935 -252,935 -1,011,738 -1,031,973 -1,052,612 -1,073,664
Sales Tax, VAT, HST/GST Paid Out 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Operating Expenses -30,070 -34,367 -40,499 -49,273 -154,208 -60,698 -62,895 -65,223 -68,164 -256,980 -277,751 -292,159 -301,793
Subtotal Cash from Operations -132,673 -98,514 -50,024 18,508 -262,702 -840 17,050 35,462 53,916 105,588 231,647 306,393 343,348
Interest Paid 0 0 0 0 0 0 0 0 0 0 0 0 0
Taxes on Earnings 0 0 0 0 0 0 0 0 -31,676 -31,676 -69,494 -91,918 -103,004
Net Cash Flow from Operating Activities -132,673 -98,514 -50,024 18,508 -262,702 -840 17,050 35,462 22,240 73,912 162,153 214,475 240,344
Cash Flow from Investing Activities

Net Cash from Investing Activities 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash Flows From Financing Activitites

Net Cash from Financing Activities 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Cash Flow -132,673 -98,514 -50,024 18,508 -262,702 -840 17,050 35,462 22,240 73,912 162,153 214,475 240,344
Cash Balance $157,327 $58,813 $8,789 $27,298 $27,298 $26,458 $43,508 $78,970 $101,209 $101,209 $263,362 $477,838 $718,181
46
Table 6: Projected Balance Sheet

Pro Forma Balance Sheet
1Q 2Q 3Q 4Q 2021 1Q 2Q 3Q 4Q 2022 2023 2024 2025
Assets
Current Assets
Cash 157,327 58,813 8,789 27,298 27,298 26,458 43,508 78,970 101,209 101,209 263,362 477,838 718,181
Accounts Receivable 0 0 0 0 0 0 0 0 0 0 0 0 0
Inventory 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000
Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Current Assets 232,327 133,813 83,789 102,298 102,298 101,458 118,508 153,970 176,209 176,209 338,362 552,838 793,181
Long-term Assets
Long-term Assets 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000
Accumulated Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Long-term Assets 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000 4,450,000
Total Assets $4,682,327 $4,583,813 $4,533,790 $4,552,298 $4,552,298 $4,551,458 $4,568,508 $4,603,970 $4,626,209 $4,626,209 $4,788,362 $5,002,838 $5,243,181
Liabilities and Equity

Current Liabilities
Accounts Payable 0 0 0 0 0 0 0 0 0 0 0 0 0
Current Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Current Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0
Long Term Liabilities

Mortgage Loan 0 0 0 0 0 0 0 0 0 0 0 0 0
EB-5 Loan 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Long Term Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0
Equity
Paid-in Capital 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Retained Earnings -317,673 -416,187 -466,211 -447,702 -447,702 -448,542 -431,492 -396,030 -373,791 -373,791 -211,638 2,838 243,181
Total Equity 4,682,327 4,583,813 4,533,790 4,552,298 4,552,298 4,551,458 4,568,508 4,603,970 4,626,209 4,626,209 4,788,362 5,002,838 5,243,181
Total Liabilities and Equity $4,682,327 $4,583,813 $4,533,790 $4,552,298 $4,552,298 $4,551,458 $4,568,508 $4,603,970 $4,626,209 $4,626,209 $4,788,362 $5,002,838 $5,243,181
Net Worth $4,682,327 $4,583,813 $4,533,790 $4,552,298 $4,552,298 $4,551,458 $4,568,508 $4,603,970 $4,626,209 $4,626,209 $4,788,362 $5,002,838 $5,243,181
47

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Preserve 5, LLC – Business Plan

1 Executive Summary ......................................................................................................................................... 4

3 Personnel Plan ............................................................................................................................................... 13

4 Project Overview ........................................................................................................................................... 18

5 Market Analysis ............................................................................................................................................. 20

5.6 Competitive Analysis .............................................................................................................................................. 28

6 Sales and Marketing Strategy ................................................................................................................... 31

7 Financial Projections ................................................................................................................................... 35

8 Sensitivity and Scenario Analysis............................................................................................................ 39

Preserve 5, LLC is launching an exciting project, with the support of

Investment & Project Outline

The chart to the right illustrates how

In the first full year, 2020, the Company

Year 2021 2022 2023 2024 2025

1.3 Keys to Success

1.4 Company Ownership

Shareholder Name: Ownership Funding

Preserve 5, LLC is a limited liability company (LLC) that was organized

2.1 Start-Up Summary

The Start-up Assets ($4,815,000) include: Total Requirements $5,000,000

2.2 Funding Sources

Source of Funds Amount Percentage

2.3 Site Description and Business Location

2.4 Business Start-Up Milestones

2.5 Business Licensing Requirements

2.6 Secured Contracts and Permits

This section examines the internal staffing structure of the Company,

3.1 Company Structure

3.2 Management Team

➢ Overseeing staff and allocating resources;

3.3 Operations Team and Staffing Requirements

Produce Sales Associates

3.4 Hiring Plan

Operations 22.0 30.0 30.0 30.0 30.0

Sales and Marketing 13.0 18.0 18.0 18.0 18.0

General and Administrative 4.0 4.0 4.0 4.0 4.0

Executives 1.0 1.0 1.0 1.0 1.0

Operations $351,260 $484,520 $494,211 $504,095 $514,177

Sales and Marketing $251,160 $349,003 $355,983 $363,103 $370,365

General and Administrative $120,120 $122,522 $124,973 $127,472 $130,022

Executives $54,600 $55,692 $56,806 $57,942 $59,101

Total Wages $777,140 $1,011,738 $1,031,973 $1,052,612 $1,073,664

The Preserve 5 project marks the start of a long-term ambition, with

Open Culture Agriculture

Storage, Packaging and Processing

4.1.1 Post-Development Operations

Average Unit Sales Average Monthly

5.1 Local Geographical and Demographic Summary

Douglasville city, Fulton County,

Age and Sex

Race and Hispanic Origin

Age and Sex

Computer & Internet Use

Douglasville city, Fulton County,

Income & Poverty

5.2 Market Overview

5.2.1 U.S. Fish and Seafood Aquaculture Industry

5.2.2 U.S. Vegetable Farming Industry

5.2.3 U.S. Organic Crop Farming Industry

5.3 Major Markets

5.3.3 Grocery and other food stores

5.4 Market Outlook

5.4.1 U.S. Vegetable Farming Industry, Outlook