BUSINESS PLAN

NAME OF BUSINESS: FRESH FRUIT AND VEG COMPANY

TYPE OF BUSINESS: FRESH ASSORTED VEGETABLES
ADDRESS: MOUNTAIN AREAS OF QOBO-QOBO VILLAGES
CONTACT NO: 083 8071416
EMAIL: AMZIMBA624@GMAIL.COM
OWNED BY: MZIMBA AGIYE-ONKE
CONTENT
1. CONTENT…………………………………………….1
2. SUMMARY……………………………………………2
3. COST ANALYSIS…………………………………......3
4. MARKET RESEARCH…………………………….….3
5. BUSINESS ANALYSIS…………………………….3&4
6. COMPETITORS……………………………………….4
7. BENCHMARK…………………………………………5
8. FINANCIAL SKILLS…………………………………..5
9. BUDGET……………………………………….……….6
10. RISKS……………………………………....................7-11
11. TECHNOLOGY………………………………………...11
12. ENVIRONMENTAL FACTORS……………………….11
13. LEGAL ISSUES………………………………..……….12
14. MARKETING SKILLS…………………………………12
15. ORGANISATIONAL STRUCTUER…………………..13

1
SUMMARY

As an aspiring entrepreneur who is interested in starting a business in the agricultural sector

of your country, you can be guaranteed that there are loads of business opportunities
available, and vegetable farming is one of them.

Vegetable farming is known to be a cost-effective business which has over the years changed

from small scale (backyard garden), into a global industry in all countries where it is carried
out. Countries in the Caribbean, South America, North America, Europe, Asia, Australia and
Africa are known to be in the lead when it comes to cultivating varieties of vegetables. If you
are seeing starting a vegetable farm business, the good news is that you cannot get it wrong.
This is because various types of vegetable are consumed by almost everyone all over the
world.

It is important to government that starting a vegetable farming business comes with its own
share of experiments, but that does not rule out the fact that it is indeed a gainful business
venture. An aspiring entrepreneur can either choose to start a vegetable farm on a small scale
or on a large scale depending on their economic status.

If you have decided to go into vegetable farming, then you should ensure that you carry out
thorough possibility studies and market survey. Business plan is yet another very vital
business document that you should not take for granted when launching your own vegetable
farming business.

Below is a sample vegetable farming business plan template that can help you to successfully
write your own with little or no difficulty.

MISSION

-Our mission is to strive to create customer satisfaction through delivering services and
product that exceed customer expectations. Ensure the most advantageous benefits to our
shareholders. Provide high quality products through advanced technology, processes and
systems. Establish our trademark through innovative marketing

VISION

Our vision is to become the world largest produces and supply every one of our customers
with the freshest, high quality fruit and vegetables. To be preferred tademark and supplier of
quality fruit juice and related products in South Africa

2
COST ANALYSIS

Products Price
Vegetable R2000
Cabbage R3400
Tomato R1200
Onion R1500
Spinach R5000
Lettuce R8000
Cucumbers R1200
Butternut R45 000
Truck for transporting the produce R30 000(2)
Containers R8 000
Shelves R10 000(30)
Refrigerator R15 000(2)
Scales R2 000(2)
Carry bags R300
Cash till R1 000
Wages for workers R23000

-MARKET RESEARCH

My business is located in Keiskammahoek it have few competitors so there are many

consumers busying which are from the villages around the town so that make my business
successful because they get them in fresh quality at a purchasable price. The big competitors I
get are national when I have to export my vegetable in marketable value and price.

3
-BUSINESS ANALYSIS

 Strength:
The strength as a vegetable farm business is in the fact that we have healthy relationships
with loads of major players (agriculture wholesalers) in the agricultural industry; both
suppliers and buyers inside and outer of the United Countries.

It have some of the modern vegetable farming machineries, implements and equipment that
will assistance us cultivate crops (vegetables) in profitable amounts with less stress. Asides
from our relationship (network) and equipment, I can surely boast that we have some the
most knowledgeable hands in the vegetable cum greenhouse marketable farming line of
business.

 Weakness:
Our major weakness is that we are a new vegetable farm in the United Countries and it
might take long period for our business to break into the market and gain acceptance
exclusively from global markets in the already saturated and highly competitive commercial
farming industry. Another weakness is that we may not have the essential cash to promote
my business the way I would want to.
 Opportunities:
The opportunities that are available to us cannot be calculated; I know that everyone on
planet earth eats different types of vegetables. So also changes in consumer favorites have led
supermarkets and other selling outlets to demand fresh vegetables and fruits all year-round. I
am ready to take advantage of any opportunity that is available in the industry.

 Threat:
Both the number of small local farms and the number of bigger commercial farms have been
growing. Increasing imports of fresh produce will slightly limit demand for vegetables. Just
like any other business, one of the major threats that I am likely to face is financial downturn.

It is a fact that financial downturn affects buying/spending power. Another threat that may
likely confront us is the arrival of a new vegetable farm or moneymaking greenhouse farm
in the same location where our target market exists and who may want to adopt the same
business model like us.

-COMPETITOR’S

4
 Competition in most global product/markets is intense. In the fertiliser industry for example,
few companies dominate - including Norsk Hydro. Product type competition has become
intense also, for example, Pannar and Cargil seeds, so has brand competition, for example
Israel's CARMEL and South Africa's OUTSPAN. Substitute competition has also become an
increasingly bitter battleground, with products being able to replace others as technology and
tastes have changed

-BENCHMARK

Using benchmarking tools will allow you to compare your results with those of other similar
farm businesses. This helps you to find out how your business is performing compared with
farms of a similar size and type, and in turn will help you identify areas for improvement.
Farm benchmarking is an online tool from Defra. You can use it to compare your farm with
other farms in Defra’s Farm Business Survey and with farms in similar surveys in other
European Union countries. Farm business benchmarking lets you compare your:
 financial data with farms of a similar type and size
 performance in terms of revenue, cost and profit
 business results with average or above-average farms
The tool is based on Defra’s annual Farm Business Survey. This survey gathers information
from farmers and growers each year about various aspects of their business.
The tool will also help you decide if there are areas of your business that could be improved -
eg by reducing costs or increasing output.
You will need up-to-date financial accounts in order to use the tool. For more information on
farming accounts, see the section on using financial figures to assess the viability of your farm
business.
-FINANCIAL SKILLS

1. Communication Skills
2. Relationship-Management Skills
3. Marketing and Sales Skills
4. Project Management Ability, Organizational Skills and Attention to Detail
5. Problem-Solving Skills
6. Technological Savvy
7. Tenacity and Ethics

5
-BUDGETING

ITEMS( START UP COSTS) COSTS

Electricity R2 000.00
Fruits R15 000.00
Stationery R5 000.00
Veg R2 000.00
Storage R1 500.00
Insurance R3500.00
Employees R600 (per head)

Equipment R13 00.00

START UP ASSETS

Cost required R54 000.00

Other current assets R8 0000.00
Long term currents R0.00
Total Capital Needed

-RISKS

1) Production Risks
Production risks relate to the possibility that your harvest or production levels will be lower
than estimated. Main sources of production risks arise from opposing weather conditions
such as drought, freezes, or excessive rainfall at harvest or planting. Production risks may
also result from damage payable to insect pests and disease even though control measures
employed, and from failure of equipment and machinery such as an irrigation pump.  
Strategies to manage production risks include:
  Follow recommended production practices.
  Differentiate enterprises by growing different crop varieties and completely new crops.

6
   Expand production through more intensive growing practices or by planting more
land.
 Purchase crop insurance coverage to stabilize income during times of loss.
  Adopt risk mitigating practices such as drip irrigation, tile drainage, trap crops or
resistant varieties.
  Maintain equipment and keep facilities in good working condition.
2) Marketing Risks
Marketing risks relate to the possibility that you will lose the market for your products or that
the price received will be less than expected. Lower sales and prices due to increased
numbers of competing growers or changing consumer preferences are common causes of
marketing risk. Marketing risks can also rise from loss of market access due to a wholesale
buyer or processor relocating or closing, or if a product fails to meet market standards or
packaging requirements.
Strategies to manage marketing risks include:
 Develop a marketing plan with realistic sales forecasts and target prices.
 Form or join a marketing cooperative to enhance prices and guarantee a market.
 Increase direct marketing efforts to capture a higher price.
 Market through multiple channels or outlets to reduce reliance on a single market.
3) Financial Risks
Financial risks relate to not having sufficient cash to meet estimated duties, generating lower
than expected profits, and losing equity in the farm. Sources of financial risk commonly
result from production and marketing risks described earlier. In addition, financial risks may
also be caused by increased input costs, higher interest rates, excessive borrowing, higher
cash demand for family needs, lack of adequate cash or credit reserves, and unfavourable
changes in exchang rates.
Strategies to manage financial risks include:
 Develop a strategic business plan.
 Monitor financial ratios and enterprise benchmarks.
 Control key farm expenses - consider other suppliers and alternative inputs.
 Conduct a trend analysis to assess change in farm profits and owner’s equity over time.
 Communicate and renegotiate agreements with suppliers and loan terms with lenders.
 Consider leasing and rental options rather than purchasing machinery, equipment or
land.
  Evaluate the possibility of expanding or contracting different enterprises.

7
  Control or defer unnecessary family and household expenditure
4) Legal and Environmental Risks
In part, legal risks relate to achieving business agreements and contracts. Failure to meet
these agreements often bring a high cost. Another major source of legal risk is tort liability -
causing injury to another person or property due to carelessness. Lastly, legal risk is closely
related to environmental liability and concerns about water quality, erosion and pesticide use.
Strategies to manage legal risks include:

  Review business insurance policies and carry sufficient liability coverage.

  Choose a different business legal structure - a sole proprietorship is not always best.
 Understand business contracts and agreements - ask questions if you are unsure.
 Develop good relationships with neighbours and address their concerns.
 Use good agricultural practices to limit environmental risk.
 Know and follow State and Federal regulations related to your farming operation.
5) Human Resource Management Risks
Human resource risks pertain to risks associated with individuals and their relationships to
each other: These relationships include those with family members, as well as farm
employees and customers. The impact of any of these events can be devastating to a farm.
Human resource risks also include the negative impacts arising from a lack of people
management skills and poor communications.
Strategies to manage human resource risks:
  Develop and practice good “people skills” with family members, as well as
employees.
  Evaluate alternative sources of labour.
  Communicate with employees and family members.
  Recognize and reward good performance.
 Review wills, trusts, and powers of attorney.
  Consider health and life insurance needs.
Managing risk starts with identifying the most crucial risks you face; understanding the
potential impacts and likelihood of undesirable outcomes; and, identifying and taking
possible steps to mitigate or lessen the impacts.  It’s unlikely any one person understands all
the areas of risk faced by a family farm. If you don’t know the answer or find it difficult to
initiate risk management planning on your own, get assistance from Cooperative Extension,
USDA, attorneys, bankers, insurance agents, and other service providers.  

8
1) Production Risks

Production risks relate to the possibility that your yield or output levels will be lower than
projected. Major sources of production risks arise from adverse weather conditions such as
drought, freezes, or excessive rainfall at harvest or planting. Production risks may also result
from damage due to insect pests and disease despite control measures employed, and from
failure of equipment and machinery such as an irrigation pump.  
Strategies to manage production risks include:
  Follow recommended production practices.
  Diversify enterprises by growing different crop varieties and completely new crops.
  Expand production through more intensive growing practices or by planting more
acreage.
 Purchase crop insurance coverage to stabilize income during times of loss.
  Adopt risk mitigating practices such as drip irrigation, tile drainage, trap crops or
resistant varieties.
 Consider site selection - use fields less susceptible to frost or pests and rotate crops.
  Maintain equipment and keep facilities in good working condition.
2) Marketing Risks
Marketing risks relate to the possibility that you will lose the market for your products or that
the price received will be less than expected. Lower sales and prices due to increased
numbers of competing growers or changing consumer preferences are common sources of
marketing risk. Marketing risks can also arise from loss of market access due to a wholesale
buyer or processor relocating or closing, or if a product fails to meet market standards or
packaging requirements.
Strategies to manage marketing risks include:
 Develop a marketing plan with realistic sales forecasts and target prices.
 Form or join a marketing cooperative to enhance prices and guarantee a market.
 Increase direct marketing efforts to capture a higher price.
 Market through multiple channels or outlets to reduce reliance on a single market.
 Enter into sales or price contracts with buyers.
3) Financial Risks
Financial risks relate to not having sufficient cash to meet expected obligations, generating
lower than expected profits, and losing equity in the farm. Sources of financial risk

9
commonly result from production and marketing risks described earlier.
Strategies to manage financial risks include:
 Develop a strategic business plan.
 Monitor financial ratios and enterprise benchmarks.
  Evaluate the possibility of expanding or contracting different enterprises.
 Control or defer unnecessary family and household expenditures.
 Find off-farm employment for a family member, preferably a job with benefits such
health insurance, group life insurance, and a retirement program.
 Use non-farm investments such as IRAs or mutual funds to diversify your asset
portfolio.
4) Legal and Environmental Risks
In part, legal risks relate to fulfilling business agreements and contracts. Failure to meet these
agreements often carry a high cost. Strategies to manage legal risks include:

  Review business insurance policies and carry sufficient liability coverage.

  Choose a different business legal structure - a sole proprietorship is not always best.
 Understand business contracts and agreements - ask questions if you are unsure.
 Develop good relationships with neighbors and address their concerns.
 Use good agricultural practices to limit environmental risk.
 Know and follow State and Federal regulations related to your farming operation.

5) Human Resource Management Risks

Human resource risks pertain to risks associated with individuals and their relationships to
each other:
Strategies to manage human resource risks:
  Develop and practice good “people skills” with family members, as well as
employees.
  Communicate with employees and family members.
  Recognize and reward good performance.
 Review wills, trusts, and powers of attorney.
  Initiate estate transfer and business succession planning.
  Consider health and life insurance needs.

10
-TECHNOLOGY

 Cultivators
 Harvester
 Irrigation systems
 External implements
 Computers
 Farm structures
 Tractors

-ENVIROMENTAL FACTORS

 Micro environmental factors

-Suppliers
-Employees
-Customers
-Competitors
-Shareholders
 Internal environmental factors
-Value system
-Mission& Vision
 Macro environmental factors
-Political legal
-Economic
-Demograph
-Social cultural
-Technological
-Climatic

-LEGAL ISSUES

 Disgruntled employees
 Discrimination

11
  Immnagration Audits
 Dissatisfied Customers
 Tax litigation
 Disputes with competitors & workers
 Comnication

-MARKETING SKILL

 Master the Soft Skills for Success

 Communication Skills
 Conflict Management Skills
 Creativity Skills
 Management Skills
 Networking Skills
 Planning Skills
 Presentation Skills
 Selling Skills

-ORGANISATIONAL STRUCTURE

MANAGER
MS A MZIMBA

EMPLOYEES
MS N MBANGATA

SUPPLIERS CONSUMERS COMPETITORS

MS S STUURMAN MS T GRIFFITS MS S MTWESI

12