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Table of Contents
1.0 Executive Summary.................................................................................................................... .1

Chart: Highlights.......................................................................................................................... .2
1.1 Objectives................................................................................................................................... .2
1.2 Mission...........................................................................................................................................2
2.0 Company Summary......................................................................................................................2
2.1 Company Ownership................................................................................................................3
2.2 Start-up Summary....................................................................................................................3
Table: Start-up............................................................................................................................. .3
Chart: Start-up............................................................................................................................. .4
Table: Start-up Funding............................................................................................................ .5
3.0 Products........................................................................................................................................... .5
4.0 Market Analysis Summary.........................................................................................................5
4.1 Market Segmentation............................................................................................................. .6
Table: Market Analysis................................................................................................................6
Chart: Market Analysis (Pie).....................................................................................................7
4.2 Target Market Segment Strategy...................................................................................... .7
4.3 Industry Analysis.......................................................................................................................8
5.0 Strategy and Implementation Summary............................................................................ .8
5.1 Competitive Edge..................................................................................................................... .8
5.2 Sales Strategy........................................................................................................................... .9
5.2.1 Sales Forecast................................................................................................................... .9
Chart: Sales Monthly............................................................................................................ .10
Chart: Sales by Year..............................................................................................................10
Table: Sales Forecast........................................................................................................... .11
5.3 Milestones................................................................................................................................. .11
Table: Milestones....................................................................................................................... .11
6.0 Management Summary.............................................................................................................12
6.1 Personnel Plan......................................................................................................................... .12
Table: Personnel..........................................................................................................................12
7.0 Financial Plan............................................................................................................................... .13
7.1 Important Assumptions....................................................................................................... .13
Table: General Assumptions...................................................................................................13
7.2 Break-even Analysis...............................................................................................................14
Chart: Break-even Analysis................................................................................................... .14
Table: Break-even Analysis................................................................................................... .14
7.3 Projected Profit and Loss.................................................................................................... .15
Chart: Profit Yearly.....................................................................................................................15
Chart: Gross Margin Monthly................................................................................................ .16
Chart: Gross Margin Yearly.....................................................................................................16
Table: Profit and Loss................................................................................................................17
Chart: Profit Monthly................................................................................................................ .15
7.4 Projected Cash Flow...............................................................................................................18
Table: Cash Flow........................................................................................................................ .18
Page 1
Table of Contents
Chart: Cash.................................................................................................................................. .19

7.5 Projected Balance Sheet..................................................................................................... .20
Table: Balance Sheet.................................................................................................................20
7.6 Business Ratios....................................................................................................................... .20
7.6 Business Ratios....................................................................................................................... .20
Table: Ratios.................................................................................................................................21
Table: Sales Forecast......................................................................................................................... .1
Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: General Assumptions.............................................................................................................3
Table: General Assumptions.............................................................................................................3
Table: Profit and Loss..........................................................................................................................4
Table: Profit and Loss..........................................................................................................................4
Table: Cash Flow.................................................................................................................................. .5
Table: Cash Flow.................................................................................................................................. .5
Table: Balance Sheet...........................................................................................................................6
Table: Balance Sheet...........................................................................................................................6
Page 2
Mixed Greens Salad Gardens
1.0 Executive Summary
Mixed Greens Salad Gardens (MGSG) is an exciting new company that meets an unsatiated
need for quality salad greens. The close proximity to Eugene ensures a steady flow of
customers. MGSG is a start-up grower and distributor of exotic salad greens for restaurants and
individual consumers. MGSG is located in Blue River, Oregon and serves the southern
Willamette Valley. MGSG's objectives are to develop a product-based company whose goal is to
exceed customer's expectations, increase production efficiency by 10% a year, and lastly, and
develop a sustainable farm business, able to survive off their cash flow.
Products
MGSG will sell a spring mix of salad field greens. These greens will include but are not limited
to: red leaf, arugula, radicchio, mustard greens, endive, and chicory. These greens are grown
for use in salad mixtures, purchased by the end consumer as well as by restaurants who then
serve it to their patrons.
The Market
MGSG has decided to target two distinct market segments, individual customers and
restaurants. The individual customers will purchase greens from MGSG at the Tuesday and
Saturday Farmer's Market. This segment is growing at 12% and has 12,000 potential
customers. The second segment is local restaurants. This market is smaller at only 28 potential
customers, but is more consistent in demand throughout the year.
Competitive Edge
MGSG has two competitive edges that will help them maintain strong growth rates, increasing
their market penetration. The first edge is quality. MGSG prides themselves on the high quality
of exotic salad greens. Greens that do not meet MGSG high standards of quality are rejected as
imperfects and go to a not-for-profit food bank. MGSG's second competitive edge is their
flexibility. The entire farm has been set up to allow them to change crops or scale existing crops
to meet demand. This is highly unusual as most farms are unable to change crops mid year.
Management
MGSG is led by Heidi Ponic. Heidi initially got her start in growing while working at a
greenhouse. After college, Heidi went to work for a large grass seed company. This experience
is what solidified Heidi's desire to continue working in an agricultural capacity. Soon after her
experience at the Willamette Seed Company she decided to enroll in Oregon State University's
Master of Horticulture Program. Heidi's Masters provided her with requisite detail and skills to
develop her own farm business.
Page 1
Chart: Highlights
Highlights
$200,000
$180,000
$160,000
$140,000
$120,000 Sales
$100,000 Gross Margin
$80,000
Net Profit
$60,000
$40,000
$20,000
$0
Year 1 Year 2 Year 3
1.1 Objectives
The objectives for the first three years of operation include:
1. To create a product-based company whose goal is to exceed customers' expectations.

2. The utilization of Mixed Greens' lettuce products in at least 20% of the top restaurants in
Eugene as listed in local paper's restaurant reviews.
3. To increase the efficiency of our production by 10% a year.
4. To develop a sustainable farm, surviving off its own cash flow.
1.2 Mission
Mixed Greens Salad Gardens' mission is to provide the highest-quality salad greens. We exist to
attract and maintain customers. When we adhere to this maxim, everything else will fall in to
place. Our services will exceed the expectations of our customers.
2.0 Company Summary
Mixed Greens Salad Gardens, soon to be located in Blue River, OR, is a grower and seller of
exotic salad field greens. MGSG grows a wide variety of field greens including red leaf, arugula,
radicchio, mustard greens, endive, and chicory. MGSG sells the greens both at farmer markets
as well as direct to restaurants.
The business will be based out of Heidi Ponic's home. The office will be within her home and the
greenhouse will be on her adjoining 20 acres of land.
Page 2
2.1 Company Ownership
Mixed Greens Salad Gardens will be a sole proprietorship with Heidi Ponic as the founder and
owner. Heidi will be funding the business with a $50,000 investment of her own. An additional
$10,000 will be invested by family member O.G. Tylthe with exit/repayment initially scheduled
for year five.
2.2 Start-up Summary
Mixed Greens Salad Gardens' start-up costs will include all the equipment needed for the home-
based office, the construction of the greenhouse and all the necessary equipment, and other
essentials for growing.
The home office equipment will be the largest chunk of the start-up expenses. This equipment
includes a computer system, fax machine, office supplies, cellular phone, and pager. The
computer should have at least a 500 megahertz Celeron/Pentium processor, 64 megabytes of
RAM (preferably 128), 6 gigabyte hard drive, and a rewritable CD-ROM for backing up the
system. The home office will also require a few pieces of furniture such as a desk, chair, and
book shelf to transform a standard room into an office. Lastly, an additional land phone line will
be required.
The greenhouse will need the following equipment: a 25' x 100' greenhouse structure made out
of poly carbonate, a ventilation system, a heater, a mister system, supplemental lighting,
fertilizer injector, pruners, pots, trays, soil, seeds, and assorted chemicals.
Please note that of the $25,300 of long-term assets, $20,000 will be depreciated straight line
for 27.5 years (real estate) and the remaining $5,300 will be depreciated on a seven year
straight-line schedule.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $300
Stationery $200
Insurance $200
Untilities Upgrades $150
Rent $250
Expensed Computer Equipment $3,500
Other $500
Total Start-up Expenses $5,100
Start-up Assets
Cash Required $34,700
Start-up Inventory $0
Other Current Assets $500
Long-term Assets $25,300
Total Assets $60,500
Total Requirements $65,600
Page 3
Chart: Start-up
Start-up
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Expenses Assets Investment Loans
Page 4
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $5,100
Start-up Assets to Fund $60,500
Total Funding Required $65,600
Assets
Non-cash Assets from Start-up $25,800
Cash Requirements from Start-up $34,700
Additional Cash Raised $0
Cash Balance on Starting Date $34,700
Total Assets $60,500
Liabilities and Capital
Liabilities
Current Borrowing $5,000
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $5,000
Capital
Planned Investment
Heidi Ponic $50,000
Investor 2 $10,000
Other $0
Additional Investment Requirement $600
Total Planned Investment $60,600
Loss at Start-up (Start-up Expenses) ($5,100)

Total Capital $55,500
Total Capital and Liabilities $60,500
Total Funding $65,600
3.0 Products
MGSG will sell a spring mix of salad field greens. These greens will include but are not limited
to: red leaf, arugula, radicchio, mustard greens, endive, and chicory. These greens are grown
for use in salad mixtures, purchased by the end consumer as well as by restaurants who then
serve it to their patrons. While the greens are washed at the farm, they are not
certified washed and the patrons are told to wash them an additional time.
4.0 Market Analysis Summary
MGSG will be focusing on two distinct users of greens, individual consumers, and
restaurants. The consumer market is seasonal so we will have production shifts during the
consumer off season and all of the production will go toward wholesale restaurant
distribution. During the spring and the summer MGSG will be serving both the consumer
markets through farmer market stands and the restaurants through direct distribution.
Page 5
4.1 Market Segmentation
Mixed Greens Salad Gardens has two distinct customers:
1. Individual Consumers. This group of people buy exotic salad greens because they have a
more sophisticated pallette. Average Americans have been raised on iceberg lettuce and this
is their green of choice (unfortunately). When people from this class get a little "crazy" they
might even try romaine lettuce. These people are typically unsophisticated or
unadventurous in terms of culinary habits. These are NOT the people MGSG serves. MGSG
is going after people that appreciate healthier, tastier alternatives to the standby of iceberg
lettuce. This group of consumers is more likely to make their own meals instead of going
out, appreciates fine dining, and generally is from a higher socio/economic class. Mixed
Greens Salad Gardens' field greens are more expensive than choices like iceberg or
romaine, therefore one can conclude that the consumer typically makes more money if they
are willing to pay significantly more for their salad greens, and second, people with more
sophisticated palates typically are more educated.
2. Restaurants. Not all restaurants use exotic field greens mixes, generally it is a restaurant
of fine dining that serves the finer greens. To be even more specific, it is typically an
adventurous American or nouveau cuisine restaurant as opposed to a nicer French or
German restaurant that appreciates the exotic field greens mix. For what ever reason
(probably attributable to demand of their customers), the French and German restaurants,
even the finer ones tend to serve "peasant greens." The restaurants are a year round
customer which is helpful to balance the seasonal demand of individual consumers (group 1
above). Another advantage of having the restaurants as a customer is that even though
they get a better price, MGSG has a long term contract with them which helps out in terms
of stability.
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Individual Consumers 12% 12,000 13,440 15,053 16,859 18,882 12.00%
Restaurants 8% 28 30 32 35 38 7.93%
Other 0% 0 0 0 0 0 0.00%
Total 11.99% 12,028 13,470 15,085 16,894 18,920 11.99%
Page 6
Chart: Market Analysis (Pie)
Market Analysis (Pie)
Individual Consumers
Restaurants
Other
4.2 Target Market Segment Strategy
Mixed Greens Salad Gardens' target market segment strategy is fairly easy. Our two different
customer groups purchase from two distinct locations so it is quite easy to target them
individually.
Individuals. These customers will be buying MGSG products from the different farmer markets
located in Eugene, OR. The main one is "The Farmers Market" held downtown twice a week in
the spring, summer, and the early autumn. This market gets quite a bit of traffic because there
is a nice selection of different farmers and products and it is in a central location in the heart of
Eugene. Additionally, there are several other smaller farmer markets that exist in outlining
communities. By setting up a booth in these markets, there is already a steady flow of
interested customers. There obviously is a fee to set up a stand, but what you get for the fee is
all of your marketing taken care of and a line of customers. In addition to individuals
frequenting the farmer markets, some restaurants will go there as well. This occurs when a
restaurant needs certain ingredients but did not have the time to order it in advance.
Restaurants. MGSG will target these customers by introducing MGSG and their products to the
restaurants through meetings with the buyers at each restaurant. There are about 25-30
different restaurants in Eugene that use field greens in their salad and MGSG intends to
approach these to form long-term relationships.
Page 7
4.3 Industry Analysis
There are three different types of competitors that MGSG faces:
1. Supermarkets. These stores sell a salad greens mix to consumers. The advantage of the
supermarket is convenience. There are many supermarkets around the city and they are
open many hours during the day. Their disadvantage is price and quality. The quality and
variety lower than the standards set by the offerings of MGSG and other similar local
farmers. The cost is higher, usually 15% more.
2. Similar local farmers. These are very similar operations to MGSG, sometimes larger and
sometimes smaller. There appears to be room in the market for multiple farmers as most of
the farmers sell out their products each day at the farmer markets.
3. Large distributors. An example of this would be Food Service of America (FSA) which buys
a wide variety of products and quality of produce from farmers and distributes them to
restaurants. The produce is not usually local, and is a few more days older from the field
compared with the local farmers. The price is comparable and the quality can be
comparable, but not necessarily. The disadvantage of a food distributor is the lack of
flexibility relative to a local grower when serving local customers.
Buying patterns are based on the customer's desires. What is meant by this is that lower-end
restaurants (or at least restaurants that are less concerned about quality) will not bother to get
greens from local farmers, there is no need for them to. This pattern is similar for the
individuals. There are some individuals that are content with the offerings from supermarkets.
There are others that appreciate the difference in quality and are willing to schedule a trip to
the farmers market to meet their weekly needs.
5.0 Strategy and Implementation Summary
MGSG will be aggressively courting the farmer markets to ensure the ability to have a booth at
the markets. Additionally, MGSG will be aggressive in going after the local restaurants that
have a consistent need for the greens. Through an assurance of top-shelf service and superior
customer service and reliability, MGSG will continue to grow its number of clients.
5.1 Competitive Edge
Mixed Greens Salad Gardens' competitive edge has two main aspects: quality and flexibility.
1. Quality. While the quality of the other local farmers is quite good, Heidi's extensive
educational background and practical experience provides her with tools to create a
superior product. Heidi is a perfectionist and her striving for perfection will lead MGSG to
developing a product that will be a notch better than the competition.
2. Flexibility. With MGSG being both small and local in nature, it will be able to be flexible in
meeting customer's demands. For instance, if a local restaurant has customers that prefer
more arugula in their salad mix, MGSG can rapidly shift production to meet the needs
of that customer. Most of the farmers, and all of the distributors, typically have their
production schedules set up for maximum yield and are unable to modify crop
production very much. Heidi is less concerned about maximizing yield, she is more
Page 8
concerned with pleasing the customer. She believes, rightfully so, that talking care of the
customer is the most important thing.
A combination of quality and flexibility will create a sustainable competitive advantage that will
allow MGSG to succeed.
5.2 Sales Strategy
MGSG's sales strategy will be based on visibility, consistency, and strategic relationships.
 Visibility. MGSG will need to generate visibility that sets them apart from the other local
farmers that sell at the market. This in part will be done through the use of a colorful,
distinct booth set-up that stands out among the other farmers. This visibility will create
recognition for MGSG. This is important because the produce of the different farmers
appears to be the same. The differences are discovered upon tasting the produce in your
home. If MGSG stands out in terms of the booth appearance, the repeat customer will more
easily make the connection between the unusual booth and MGSG's product.
 Consistency. In addition to product consistency, MGSG will have consistency in regards to

their presence at the farmer markets. It is much easier to build awareness and loyalty if
people can reliably expect to see MGSG every week in the same place.
 Strategic relationships. This will be the key for restaurant sales. As stated before,
restaurant sales are a consistent income that help reduce the seasonality of MGSG's
sales. Forming mutually beneficial, strategic partnership will be of upmost importance for
building a good revenue base.
5.2.1 Sales Forecast
The first month will be used to set up the greenhouse and get things underway. There will not
be sales activity until month three when the first greens will be sprouting. Month three will see
a steady increase in production and sales, and this will continue until month nine when the
consumer sales will be significantly decreasing due to the closing of the farmer markets. From
month nine to 16 Mixed Greens Salad Gardens will have an increase in restaurant sales to
offset the elimination of the consumer sales. By month 17, restaurant sales will decrease
slightly to accommodate for the ramping up of consumer sales again.
Page 9
2 Mont
1 Month 3
MonthMonth
Chart: Sales Monthly
Sales Monthly
$10,000
$8,000
Individual Consumers
$6,000
Restaurants
$4,000
$2,000
$0
Chart: Sales by Year
Sales by Year
$200,000
$180,000
$160,000
$140,000
$120,000 Individual Consumers
$100,000 Restaurants
$80,000
$60,000
$40,000
$20,000
$0
Page 10
Table: Sales Forecast
Sales Forecast
Sales
Individual Consumers $23,154 $40,519 $70,908
Restaurants $58,558 $81,981 $114,774
Total Sales $81,712 $122,500 $185,682
Direct Cost of Sales Year 1 Year 2 Year 3

Individual Consumers $2,778 $4,862 $8,509
Restaurants $7,027 $9,838 $13,773
Subtotal Direct Cost of Sales $9,805 $14,700 $22,282
5.3 Milestones
MGSG will have several milestones early on:
1. Business plan completion. This will be done as a road map for the organization. While we do
not need a business plan to raise capital, it will be an indispensable tool for the ongoing
performance and improvement of the company.
2. Greenhouse set-up.
3. First batch of greens sold.
4. The end of the consumer season and the ramping up of the restaurant supply cycle.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department

Business Plan Completion 1/1/2001 1/1/2001 $0 Heidi N/A
Greenhouse Setup 1/1/2001 2/1/2001 $0 Heidi N/A
First Batch of Greens Sold 4/1/2001 4/1/2001 $0 everyone N/A
End of the Consumer Season and 9/1/2001 9/1/2001 $0 everyone N/A
the Ramping up of the Restaurant
Supply Cycle
Totals $0
Page 11
6.0 Management Summary
Heidi Ponic, founder and owner, first became interested in growing vegetables at the age of
five. Heidi pursued her love for plants by obtaining a biology degree at the University of
Washington. Throughout her last three years at Washington, she worked in a greenhouse that
grew many different types of annuals. Upon graduation, Heidi went to work for a large grass
seed manufacturer. Although the growing of grass seed proved to be far less interesting then
most other plants, she was determined to get management experience, a skill set that she
lacked. After two years at Willamette Seed Company, she enrolled in Oregon State University's
Masters of Horticulture program.
Having gone through the three years of the Masters program, she realized two things, 1) she
needed to create a job/company for herself, 2) she should follow her passion and grow
vegetables. These realizations were the final catalyst to pursue her lifelong dream of running
her own greenhouse operation.
Heidi's educational training and her passion creates the ideal combination for an owner of a
start-up company.
6.1 Personnel Plan
The staff will consist of Heidi working full time. While the bulk of the time Heidi will spend
managing the operation, she will always spend a few hours a week tending to the plants. In
addition to all of the general management required for the production of the greens, Heidi will
be setting up strategic relationships with local restaurants. Mixed Greens Salad Gardens will
have hired two full-time gardeners beginning in the middle of the first month, and will hire a
part-time helper by month four. The gardeners will be primarily responsible for the raising of
the field greens, while the part-time help will be used to help staff the farmers market booth for
the consumer selling of the greens.
Table: Personnel
Personnel Plan
Heidi $24,000 $24,000 $24,000
Gardener $16,650 $17,500 $18,500
Gardener $16,650 $17,500 $18,500
Part-time Helper $0 $9,000 $9,500
Part-time Helper $6,750 $0 $9,000
Total People 4 5 6
Total Payroll $64,050 $68,000 $79,500
Page 12
7.0 Financial Plan
The following sections will outline the important financial information.
7.1 Important Assumptions
The following table highlights some of the important financial assumptions.
Table: General Assumptions
General Assumptions
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0
Page 13
7.2 Break-even Analysis

The Break-even Analysis below indicates the monthly sales needed to break even.
Chart: Break-even Analysis
Break-even Analysis
$3,000
$2,000
$1,000
$0
($1,000)
($2,000)
($3,000)
($4,000)
($5,000)
($6,000)
($7,000)
$0 $2,000 $4,000 $6,000 $8,000 $10,000
$1,000 $3,000 $5,000 $7,000 $9,000 $11,000
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $8,294
Assumptions:
Average Percent Variable Cost 12%
Estimated Monthly Fixed Cost $7,299
Page 14
7.3 Projected Profit and Loss
The following table will indicate projected profit and loss. Our losses at start-up are evident, as
is the turn of the corner in July when we become profitable.
Chart: Profit Monthly
Profit Monthly
$2,000
$1,000
$0
($1,000)
($2,000)
($3,000)
($4,000)
($5,000)
($6,000)
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

Chart: Profit Yearly
Profit Yearly
$40,000
$30,000
$20,000
$10,000
$0
($10,000)
Page 15
Chart: Gross Margin Monthly
Gross Margin Monthly

$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Chart: Gross Margin Yearly
Gross Margin Yearly
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Page 16
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $81,712 $122,500 $185,682
Direct Cost of Sales $9,805 $14,700 $22,282
Other $0 $0 $0
Total Cost of Sales $9,805 $14,700 $22,282
Gross Margin $71,906 $107,800 $163,400

Gross Margin % 88.00% 88.00% 88.00%
Expenses
Payroll $64,050 $68,000 $79,500
Sales and Marketing and Other Expenses $0 $0 $0
Depreciation $2,532 $2,532 $2,532
Leased Equipment $0 $0 $0
Utilities $3,000 $3,000 $3,000
Insurance $2,400 $2,400 $2,400
Rent $6,000 $6,000 $6,000
Payroll Taxes $9,608 $10,200 $11,925
Other $0 $0 $0
Total Operating Expenses $87,590 $92,132 $105,357
Profit Before Interest and Taxes ($15,683) $15,668 $58,043

EBITDA ($13,151) $18,200 $60,575
Interest Expense $370 $140 ($20)
Taxes Incurred $0 $3,882 $14,758
Net Profit ($16,053) $11,646 $43,305

Net Profit/Sales -19.65% 9.51% 23.32%
Page 17
7.4 Projected Cash Flow
The following chart and table will indicate projected cash flow.
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $32,685 $49,000 $74,273
Cash from Receivables $36,451 $67,222 $101,685
Subtotal Cash from Operations $69,136 $116,223 $175,958
Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $69,136 $116,223 $175,958
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations

Cash Spending $64,050 $68,000 $79,500
Bill Payments $29,537 $40,629 $59,736
Subtotal Spent on Operations $93,587 $108,629 $139,236
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $2,400 $2,400 $800
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $95,987 $111,029 $140,036
Net Cash Flow ($26,851) $5,194 $35,922

Cash Balance $7,849 $13,042 $48,964
Page 18
Chart: Cash
Cash
$32,000
$28,000
$24,000
$20,000
$16,000
Net Cash Flow
$12,000
Cash Balance
$8,000
$4,000
$0
($4,000)

Page 19
7.5 Projected Balance Sheet
The following table will indicate the projected balance sheet.
Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Current Assets
Cash $7,849 $13,042 $48,964
Accounts Receivable $12,576 $18,854 $28,578
Inventory $1,438 $2,023 $3,101
Other Current Assets $500 $500 $500
Total Current Assets $22,363 $34,419 $81,143
Long-term Assets
Long-term Assets $25,300 $25,300 $25,300
Accumulated Depreciation $2,532 $5,064 $7,596
Total Long-term Assets $22,768 $20,236 $17,704
Total Assets $45,131 $54,655 $98,847
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $3,084 $3,362 $5,048
Current Borrowing $2,600 $200 ($600)
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $5,684 $3,562 $4,448
Long-term Liabilities $0 $0 $0
Total Liabilities $5,684 $3,562 $4,448
Paid-in Capital $60,600 $60,600 $60,600

Retained Earnings ($5,100) ($21,153) ($9,507)
Earnings ($16,053) $11,646 $43,305
Total Capital $39,447 $51,093 $94,398
Total Liabilities and Capital $45,131 $54,655 $98,847
Net Worth $39,447 $51,093 $94,398
7.6 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 0161, Lettuce Farms, as part of Vegetables and
Melons, Not Elsewhere Classified, are shown for comparison.
Page 20
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 49.92% 51.58% -4.60%
Percent of Total Assets

Accounts Receivable 27.87% 34.50% 28.91% 12.90%
Inventory 3.19% 3.70% 3.14% 14.40%
Other Current Assets 1.11% 0.91% 0.51% 28.90%
Total Current Assets 49.55% 62.98% 82.09% 56.20%
Long-term Assets 50.45% 37.02% 17.91% 43.80%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 12.59% 6.52% 4.50% 31.10%

Long-term Liabilities 0.00% 0.00% 0.00% 20.50%
Total Liabilities 12.59% 6.52% 4.50% 51.60%
Net Worth 87.41% 93.48% 95.50% 48.40%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 88.00% 88.00% 88.00% 32.00%
Selling, General & Administrative Expenses 107.19% 78.41% 64.56% 20.70%
Advertising Expenses 0.00% 0.00% 0.00% 0.20%
Profit Before Interest and Taxes -19.19% 12.79% 31.26% 1.70%
Main Ratios
Current 3.93 9.66 18.24 1.65
Quick 3.68 9.09 17.54 0.88
Total Debt to Total Assets 12.59% 6.52% 4.50% 51.60%
Pre-tax Return on Net Worth -40.70% 30.39% 61.51% 2.20%
Pre-tax Return on Assets -35.57% 28.41% 58.74% 4.50%
Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin -19.65% 9.51% 23.32% n.a
Return on Equity -40.70% 22.79% 45.88% n.a
Activity Ratios
Accounts Receivable Turnover 3.90 3.90 3.90 n.a
Collection Days 56 78 78 n.a
Inventory Turnover 10.89 8.49 8.70 n.a
Accounts Payable Turnover 10.58 12.17 12.17 n.a
Payment Days 27 29 25 n.a
Total Asset Turnover 1.81 2.24 1.88 n.a
Debt Ratios
Debt to Net Worth 0.14 0.07 0.05 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $16,679 $30,857 $76,694 n.a
Interest Coverage -42.39 111.92 0.00 n.a
Additional Ratios
Assets to Sales 0.55 0.45 0.53 n.a
Current Debt/Total Assets 13% 7% 5% n.a
Acid Test 1.47 3.80 11.12 n.a
Sales/Net Worth 2.07 2.40 1.97 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 21
Appendix
Table: Sales Forecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Individual Consumers 0% $0 $0 $0 $2,956 $3,354 $3,789 $3,458 $3,687 $2,847 $2,063 $1,000 $0
Restaurants 0% $0 $0 $0 $2,974 $3,654 $4,545 $5,588 $6,245 $7,258 $7,987 $9,412 $10,895
Total Sales $0 $0 $0 $5,930 $7,008 $8,334 $9,046 $9,932 $10,105 $10,050 $10,412 $10,895
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Individual Consumers $0 $0 $0 $355 $402 $455 $415 $442 $342 $248 $120 $0
Restaurants $0 $0 $0 $357 $438 $545 $671 $749 $871 $958 $1,129 $1,307
Subtotal Direct Cost of Sales $0 $0 $0 $712 $841 $1,000 $1,086 $1,192 $1,213 $1,206 $1,249 $1,307
Page 1
Appendix
Table: Personnel
Personnel Plan
Heidi 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Gardener 0% $700 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450
Gardener 0% $700 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450 $1,450
Part-time Helper 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Part-time Helper 0% $0 $0 $0 $750 $750 $750 $750 $750 $750 $750 $750 $750
Total People 0 3 3 4 4 4 4 4 4 4 4 4
Total Payroll $3,400 $4,900 $4,900 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $0 $0 $0 $5,930 $7,008 $8,334 $9,046 $9,932 $10,105 $10,050 $10,412 $10,895
Direct Cost of Sales $0 $0 $0 $712 $841 $1,000 $1,086 $1,192 $1,213 $1,206 $1,249 $1,307
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $712 $841 $1,000 $1,086 $1,192 $1,213 $1,206 $1,249 $1,307
Gross Margin $0 $0 $0 $5,218 $6,167 $7,334 $7,960 $8,740 $8,892 $8,844 $9,163 $9,588
Gross Margin % 0.00% 0.00% 0.00% 88.00% 88.00% 88.00% 88.00% 88.00% 88.00% 88.00% 88.00% 88.00%
Expenses
Payroll $3,400 $4,900 $4,900 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650
Sales and Marketing and Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
Depreciation $211 $211 $211 $211 $211 $211 $211 $211 $211 $211 $211 $211
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Insurance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Payroll Taxes 15% $510 $735 $735 $848 $848 $848 $848 $848 $848 $848 $848 $848
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $5,071 $6,796 $6,796 $7,659 $7,659 $7,659 $7,659 $7,659 $7,659 $7,659 $7,659 $7,659
Profit Before Interest and Taxes ($5,071) ($6,796) ($6,796) ($2,440) ($1,491) ($325) $302 $1,082 $1,234 $1,186 $1,504 $1,929
EBITDA ($4,860) ($6,585) ($6,585) ($2,229) ($1,280) ($114) $513 $1,293 $1,445 $1,397 $1,715 $2,140
Interest Expense $40 $38 $37 $35 $33 $32 $30 $28 $27 $25 $23 $22
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($5,111) ($6,834) ($6,833) ($2,475) ($1,525) ($356) $272 $1,053 $1,207 $1,161 $1,481 $1,907
Net Profit/Sales 0.00% 0.00% 0.00% -41.75% -21.76% -4.27% 3.01% 10.61% 11.95% 11.55% 14.22% 17.51%
Page 4
Appendix
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $0 $0 $0 $2,372 $2,803 $3,334 $3,618 $3,973 $4,042 $4,020 $4,165 $4,358
Cash from Receivables $0 $0 $0 $0 $119 $3,579 $4,231 $5,015 $5,445 $5,963 $6,062 $6,037
Subtotal Cash from Operations $0 $0 $0 $2,372 $2,922 $6,913 $7,850 $8,987 $9,487 $9,983 $10,227 $10,395
Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $0 $0 $2,372 $2,922 $6,913 $7,850 $8,987 $9,487 $9,983 $10,227 $10,395
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations

Cash Spending $3,400 $4,900 $4,900 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650 $5,650
Bill Payments $50 $1,507 $1,723 $1,775 $3,310 $2,836 $2,988 $3,011 $3,132 $3,058 $3,024 $3,120
Subtotal Spent on Operations $3,450 $6,407 $6,623 $7,425 $8,960 $8,486 $8,638 $8,661 $8,782 $8,708 $8,674 $8,770
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $3,650 $6,607 $6,823 $7,625 $9,160 $8,686 $8,838 $8,861 $8,982 $8,908 $8,874 $8,970
Net Cash Flow ($3,650) ($6,607) ($6,823) ($5,253) ($6,238) ($1,773) ($989) $126 $505 $1,074 $1,352 $1,425
Page 5
Appendix
Cash Balance $31,050 $24,443 $17,619 $12,366 $6,128 $4,354 $3,366 $3,492 $3,997 $5,072 $6,424 $7,849
Table: Balance Sheet
Pro Forma Balance Sheet

Assets Starting Balances
Current Assets
Cash $34,700 $31,050 $24,443 $17,619 $12,366 $6,128 $4,354 $3,366 $3,492 $3,997 $5,072 $6,424 $7,849
Accounts Receivable $0 $0 $0 $0 $3,558 $7,644 $9,065 $10,261 $11,206 $11,824 $11,891 $12,076 $12,576
Inventory $0 $0 $0 $0 $783 $942 $1,100 $1,194 $1,311 $1,334 $1,327 $1,374 $1,438
Other Current Assets $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Total Current Assets $35,200 $31,550 $24,943 $18,119 $17,207 $15,213 $15,020 $15,321 $16,509 $17,655 $18,789 $20,374 $22,363
Long-term Assets
Long-term Assets $25,300 $25,300 $25,300 $25,300 $25,300 $25,300 $25,300 $25,300 $25,300 $25,300 $25,300 $25,300 $25,300
Accumulated Depreciation $0 $211 $422 $633 $844 $1,055 $1,266 $1,477 $1,688 $1,899 $2,110 $2,321 $2,532
Total Long-term Assets $25,300 $25,089 $24,878 $24,667 $24,456 $24,245 $24,034 $23,823 $23,612 $23,401 $23,190 $22,979 $22,768
Total Assets $60,500 $56,639 $49,821 $42,786 $41,663 $39,458 $39,054 $39,144 $40,121 $41,056 $41,979 $43,353 $45,131
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $1,450 $1,666 $1,664 $3,216 $2,736 $2,888 $2,907 $3,030 $2,958 $2,921 $3,014 $3,084
Current Borrowing $5,000 $4,800 $4,600 $4,400 $4,200 $4,000 $3,800 $3,600 $3,400 $3,200 $3,000 $2,800 $2,600
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $5,000 $6,250 $6,266 $6,064 $7,416 $6,736 $6,688 $6,507 $6,430 $6,158 $5,921 $5,814 $5,684
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $5,000 $6,250 $6,266 $6,064 $7,416 $6,736 $6,688 $6,507 $6,430 $6,158 $5,921 $5,814 $5,684
Paid-in Capital $60,600 $60,600 $60,600 $60,600 $60,600 $60,600 $60,600 $60,600 $60,600 $60,600 $60,600 $60,600 $60,600
Retained Earnings ($5,100) ($5,100) ($5,100) ($5,100) ($5,100) ($5,100) ($5,100) ($5,100) ($5,100) ($5,100) ($5,100) ($5,100) ($5,100)
Earnings $0 ($5,111) ($11,945) ($18,778) ($21,253) ($22,778) ($23,134) ($22,862) ($21,809) ($20,602) ($19,441) ($17,961) ($16,053)
Total Capital $55,500 $50,389 $43,555 $36,722 $34,247 $32,722 $32,366 $32,638 $33,691 $34,898 $36,059 $37,539 $39,447
Total Liabilities and Capital $60,500 $56,639 $49,821 $42,786 $41,663 $39,458 $39,054 $39,144 $40,121 $41,056 $41,979 $43,353 $45,131
Net Worth $55,500 $50,389 $43,555 $36,722 $34,247 $32,722 $32,366 $32,638 $33,691 $34,898 $36,059 $37,539 $39,447
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1.0 Executive Summary.................................................................................................................... .1

Chart: Cash.................................................................................................................................. .19

1.0 Executive Summary

Year 1 Year 2 Year 3

The objectives for the first three years of operation include:

1. To create a product-based company whose goal is to exceed customers' expectations.

2.0 Company Summary

2.1 Company Ownership

2.2 Start-up Summary

Total Requirements $65,600

Table: Start-up Funding

Liabilities and Capital

Loss at Start-up (Start-up Expenses) ($5,100)

Total Capital and Liabilities $60,500

Total Funding $65,600

4.0 Market Analysis Summary

4.1 Market Segmentation

Mixed Greens Salad Gardens has two distinct customers:

Table: Market Analysis

Chart: Market Analysis (Pie)

Market Analysis (Pie)

4.2 Target Market Segment Strategy

4.3 Industry Analysis

There are three different types of competitors that MGSG faces:

5.0 Strategy and Implementation Summary

5.1 Competitive Edge

5.2 Sales Strategy

 Consistency. In addition to product consistency, MGSG will have consistency in regards to

5.2.1 Sales Forecast

Chart: Sales by Year

$120,000 Individual Consumers

Table: Sales Forecast

Direct Cost of Sales Year 1 Year 2 Year 3

MGSG will have several milestones early on:

Milestone Start Date End Date Budget Manager Department

6.0 Management Summary

6.1 Personnel Plan

Total Payroll $64,050 $68,000 $79,500

7.0 Financial Plan

The following sections will outline the important financial information.

7.1 Important Assumptions

The following table highlights some of the important financial assumptions.

Table: General Assumptions

7.2 Break-even Analysis

Chart: Break-even Analysis

Table: Break-even Analysis

Monthly Revenue Break-even $8,294

7.3 Projected Profit and Loss

Chart: Profit Monthly

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

Chart: Profit Yearly

Year 1 Year 2 Year 3

Chart: Gross Margin Monthly

Gross Margin Monthly

Chart: Gross Margin Yearly

Gross Margin Yearly