Organic Farm Business Plan

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ORGANIC FARM BUSINESS PLAN (BUSINESS NAME)

(COMPANY NAME) (STREET ADDRESS) (CITY, STATE ZIP CODE)

(CREATION DATE)

Here's Your Your FAST Sample Sample Business Plan

This Organic Farm Business Plan has been written to use a starting point for developing your own business plan. You are free to edit and use this business business plan and its contents within your organization; however we do as! that you don"t distribute this business plan on the web without e#plicit permission from us.

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Organic Farm Business Plan

TABLE OF CONTENTS 1.0

Eecu!i Eecu!i"e "e Summar Summar#..... #............ ............. ............. .............. .............. ............. ............. .............. ............. ............. .............. .............. ............. .............. ................$ ........$

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Business Business Ob%ectives.... Ob%ectives.............. ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... .................& ......& (ission (ission )tatement..... )tatement............... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... ............................* ..................* ,uiding Principles.. Principles............ ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... .....................* ..........* -eys to )uccess..... )uccess................ ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .....................* ...........*

Compan Compan# # &escrip! &escrip!ion.. ion........ ............. .............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. ..................... ................ ..

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Ownership... Ownership............. ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .......................................... ................................ /egal Form............. Form....................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ...............................0 .....................0 )tart12p )tart12p )ummary......... )ummary.................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .............0 ...0 /ocation /ocation and Facilities..... Facilities............... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... ...............................0 .....................0

Pro)uc Pro)uc!s... !s.......... .............. ............. ............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. .............. ................ .......................* ..............*

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Products3)e Products3)ervice rvicess 4escription 4escriptions......... s................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... .........................5 ...............5 6ompetitive 6ompetitive 6omparison 6omparison.......... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... .......................5 .............5 Product3)er Product3)ervice vice )ourcing.... )ourcing............... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ............................7 ..................7 8nvento 8nventory ry (anage (anagemen ment... t....... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ .............. ............. .......7 .7 9areho 9arehousing using and Fulfillment.... Fulfillment.............. ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... .................................7 ......................7 Future Products3)e Products3)ervice rvices....... s.................. ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..........................7 ................7

+ar,e! +ar,e! Anal#s Anal#sis.. is......... .............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. ............... .............................10 .....................10

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8ndustry 8ndustry :nalysis.. :nalysis............ ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... .....................$ ..........$ (ar!et (ar!et )ize............. )ize....................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ...................................$$ ........................$$ 8ndustry 8ndustry Participants Participants.......... .................... .................... ..................... ..................... ..................... ..................... .................... ..................... .............................................$$ ..................................$$ (ain 6ompetitors.. 6ompetitors............ .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ....................................$$ .........................$$ (ar!et (ar!et )egments....... )egments.................. ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .........................................$+ ...............................$+ (ar!et (ar!et Tests.... Tests............... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ....................................$+ .........................$+ Target Target (ar!et (ar!et )egment )egment )trategy....... )trategy.................. ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... .......................$& ............$& (ar!et (ar!et
+ar,e!in +ar,e!ing g S!ra!eg S!ra!eg# # an) an) mplem mplemen!a en!a!ion !ion....... ............. ............. .............. .............. ............. ............. .............. .................. .................1 ......1

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Threats................ .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ...................$0 ........$0 )trategy )trategy Pyramid........ Pyramid.................. ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .........................$5 ...............$5 2ni=ue 2ni=ue )elling )elling Propos Propositio ition n >2)P?. >2)P?..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ........... ............. ..............$ .......$5 5 6ompetitive 6ompetitive @dge........... @dge..................... ..................... ..................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ...............................$5 .....................$5 (ar!eting (ar!eting )trategy )trategy and Positioning.. Positioning............. ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... .......................$5 ............$5 Positioning Positioning )tatement...... )tatement................ ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ....................................$7 .........................$7 Pricing Pricing )trategy...... )trategy................. ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..............$7 ....$7 Promotion Promotion and :dvertisin :dvertising g )trategy )trategy.......... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ....................$7 ..........$7 9ebsite 9ebsite.......... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .......................$7 .............$7 (ar!eting (ar!eting Programs.... 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Programs.............. .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................' ........' /egal........... /egal..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... .....................'$ ..........'$

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TABLE OF CONTENTS 1.0

Eecu!i Eecu!i"e "e Summar Summar#..... #............ ............. ............. .............. .............. ............. ............. .............. ............. ............. .............. .............. ............. .............. ................$ ........$

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Business Business Ob%ectives.... Ob%ectives.............. ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... .................& ......& (ission (ission )tatement..... )tatement............... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... ............................* ..................* ,uiding Principles.. Principles............ ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... .....................* ..........* -eys to )uccess..... )uccess................ ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .....................* ...........*

Compan Compan# # &escrip! &escrip!ion.. ion........ ............. .............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. ..................... ................ ..

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Ownership... Ownership............. ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .......................................... ................................ /egal Form............. Form....................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ...............................0 .....................0 )tart12p )tart12p )ummary......... )ummary.................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .............0 ...0 /ocation /ocation and Facilities..... Facilities............... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... ...............................0 .....................0

Pro)uc Pro)uc!s... !s.......... .............. ............. ............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. .............. ................ .......................* ..............*

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Products3)e Products3)ervice rvicess 4escription 4escriptions......... s................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... .........................5 ...............5 6ompetitive 6ompetitive 6omparison 6omparison.......... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... .......................5 .............5 Product3)er Product3)ervice vice )ourcing.... )ourcing............... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ............................7 ..................7 8nvento 8nventory ry (anage (anagemen ment... t....... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ .............. ............. .......7 .7 9areho 9arehousing using and Fulfillment.... Fulfillment.............. ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... .................................7 ......................7 Future Products3)e Products3)ervice rvices....... s.................. ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..........................7 ................7

+ar,e! +ar,e! Anal#s Anal#sis.. is......... .............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. ............... .............................10 .....................10

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+ar,e!in +ar,e!ing g S!ra!eg S!ra!eg# # an) an) mplem mplemen!a en!a!ion !ion....... ............. ............. .............. .............. ............. ............. .............. .................. .................1 ......1

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Threats................ .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ...................$0 ........$0 )trategy )trategy Pyramid........ Pyramid.................. ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .........................$5 ...............$5 2ni=ue 2ni=ue )elling )elling Propos Propositio ition n >2)P?. >2)P?..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ........... ............. ..............$ .......$5 5 6ompetitive 6ompetitive @dge........... @dge..................... ..................... ..................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ...............................$5 .....................$5 (ar!eting (ar!eting )trategy )trategy and Positioning.. Positioning............. ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... .......................$5 ............$5 Positioning Positioning )tatement...... )tatement................ ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ....................................$7 .........................$7 Pricing Pricing )trategy...... )trategy................. ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..............$7 ....$7 Promotion Promotion and :dvertisin :dvertising g )trategy )trategy.......... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ....................$7 ..........$7 9ebsite 9ebsite.......... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .......................$7 .............$7 (ar!eting (ar!eting Programs.... Programs.............. ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ....................' ..........'  )ales )trategy...... )trategy................ .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... ................................' ......................' )ales Forecast... Forecast.............. ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ....................' ..........'  )ales Programs.... Programs.............. .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................' ........' /egal........... /egal..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... .....................'$ ..........'$

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Organizatio Organizational nal )tructure.. )tructure............. ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ....................'$ .........'$ (anagement (anagement Team...... Team................. ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................................'' ........................'' (anagement (anagement Team Team ,aps............ ,aps...................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..............................'' ....................'' Personnel Personnel Plan............ Plan....................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... .........................'' ..............'' Board of 4irectors... 4irectors.............. ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ............................'' .................''

Financi Financial al Plan...... Plan............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. .............. .............. ............. ............. .............. .........%% ..%%

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8mport 8mportant ant :ssum :ssumpti ptions ons.... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ .......... ............ ............. ............. ........'+ ..'+ )tart12p )tart12p 6osts........... 6osts..................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... ....................................'+ ..........................'+ )ource )ource and 2se of Funds......... Funds.................... ..................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ......................'& ...........'& Brea!1@ven Brea!1@ven :nalysis..... :nalysis................ ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ................................'* ......................'* Pro%ections Pro%ections.......... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... .......................' ............' Pro%ected Pro%ected Profit Profit and /oss........... /oss...................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..........................' ...............' Pro%ected Pro%ected 6ash Flow............. Flow........................ ..................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..............................'5 ....................'5 Pro%ected Pro%ected Balance Balance )heet........... )heet...................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... .................'5 .......'5 Business Business Aatios.......... Aatios.................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... ...................................'7 .........................'7

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1.0 Eecu!i"e Summar# Once the humble family vegetable garden Fran!s Organic Farm is today a one acre wor!ing farm with over + varieties of vegetables. 9hen Fran! Burns was laid off from his corporate position three years ago he first he turned to the vegetable garden for money saving 3 economic reasons. But with the uncertainty of recent events in the (iddle @ast the energy crisis the long term effects of reliance on fossil fuels and his personal philosophies on conservation Fran! Burns and his wife -athy turned this family vegetable patch into a thriving certified organic produce business.

Fran!s Organic Farm is based on the sound principles of conserving natural resources limiting the carbon footprint growing hiring and eating locally grown and prepared foods and ma!ing the world a better place to live in. This uni=ue perspective clearly shows in the =uality of the produce the well cared for gardens and natural friendliness and ease of its owners. Fran!s Organic Farm was created to meet the growing needs of a community that shares these same views and is concerned about what they eat and feed their children. This is a community that is tired of freshC tomatoes bought at the local grocery store. 9hen more than li!ely the DfreshE tomatoes were pic!ed while still unripe shipped + miles over several days3wee!s and then artificially ripened using ethylene gas thus robbing it of practically all of its nutritional value. Fran!s Organic Farm is a 6ommunity )upported :griculture >DCSAE? Business entity. 6): is both a mar!eting strategy and a philosophy. The farmers sell shares >subscriptions? in the ne#t seasonCs produce usually before the season begins. @ach wee! of the season the member receives a shareC of produce from the farm. 8n some cases the members are involved in decision1ma!ing of all aspects of the operation; in others the farmer ma!es all the decisions. @ach 6): is as uni=ue to the farmer and the community it serves. (embers may pic! up their bo#es at the farm at delivery sites or home delivery may be offered. The purpose of this business plan is to provide a blueprint for near term and long term goals. The business plan will be utilized as a tool to gauge how well the farm is doing in the future compared to their initial goals and !eep them on target. The business plan is also a tool for lenders e#plaining the need for initial financing the source and use of funds and debt repayment capabilities. 1.1 Business O2ec!i"es Fran!s Organic Farm has simple ob%ectivesG provide healthy and delicious tasting vegetables while simultaneously leaving a minimal carbon footprint. 8n order to accomplish this the farm plans toG • •

)ell  shares by Year ' and have full1time income or 7 shares sold by Year +. 8n Year & Fran!s Organic Farm plans to purchase an additional 7 acres for a total of $' acres. The initial + years of operations will provide the e#cellent credit history and trac! record necessary for this large purchase.

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1.% +ission S!a!emen! Fran!s Organic FarmCs mission is to raise the best tasting and finest =uality fruits and vegetables for the local community. Fran!s Organic Farm uses only natural and sustainable farming methods free from pesticides or fertilizers.
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Superla!i"e Communica!ion I Fran!s Organic Farm !eeps its members current on all aspects of the farm I through its wee!ly newsletters and blog updates on what is happening during the winter months such as new and e#citing vegetable offerings being planted in the greenhouse. :dditionally Fran!s Organic Farm encourages member feedbac! and input and has its members complete surveys and =uestionnaires regarding how the farm is doing and what can be done to improve operations. Heal!6ier Foo) C6oices 1 :ll vegetables are 2)4: certified organic. The vegetables are pesticide free and chemical free and no preservatives are used. Suppor! !6e Local Econom# 7 )tatistically more than 0 percent of the local food supply is grown outside the state. Buying from Fran!s Organic Farm ensures that its members buy locally and creates %obs that support the local mar!et. O44er Personali/e) Selec!ions 7 Fran!s Organic Farm strives to be the leading 6): farm supplier of choice by providing customized offerings to its members. 8f say a member wants a cucuzzi fruit I Fran!s Organic Farm will grow this item if the soil and temperatures can accommodate this item. By providing foods the customers want >and will actually eat? cuts down on waste and ma!es the planet a better place for everyone. Home &eli"er#. Fran!s Organic Farm will establish wee!ly delivery times that are convenient for its customers. This saves customers time and gas money I ma!ing everyone happy. :lternatively customers will also have the option to pic! up directly at the farm.

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%.0 Compan# &escrip!ion Fran! and -athy Burns run manage and operate Fran!s Organic Farm. The company initially sold farm to mar!et then =uic!ly began supporting local restaurants with surplus >waste? sold at the local farmers mar!et. Fran! and -athy are operating the business as a 6): a business for the first time this year.

The Burns selected the 6): model in which both the farmer and the members have a mutual interest in the crop. :nd because the shares are essentially presold prior to planting the wasteC factor >or e#cess crops ris!? are eliminated. Based on their success at the farmerCs mar!et and local restaurants the Burns have already sold $ percent of their + shares. Fran!s Organic Farm is located on one of three acres located at the BurnsC primary residence in Plymouth 9isconsin. 4uring the off season the owners of Fran!s Organic Farm will actively target and mar!et n ew members engage in public spea!ing events and complete their forthcoming @ Boo!s. %.1

O8ners6ip Fran!s Organic Farm is a 616orporation formed in the )tate of 9isconsin and is wholly owned by Fran! and -athy Burns.

Fran! Burns a former Human Aesources 4irector at )argento 6heese was recently downsized.
Legal Form Fran!s Organic Farm is 616orporation formed in the )tate of 9isconsin. The entity is wholly owned by Fran! and -athy Burns.

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S!ar!79p Summar# The Burns have been managing the family farm successfully for the last fifteen years. Aecently the owners installed a greenhouse with warming lights for early starts. They also invested in a pic!up truc! >'* Ford F$*? for delivering vegetables to the members. (ost recently they purchased a tractor and borrowed their neighborCs attachments as needed for harvest.

/ast year Fran!s Organic Farm passed the stringent re=uirements needed to =ualify as certified organic as deemed by the 2)4:. This allows them to mar!et all produce as organic and can also bring higher margins when surplus produce is sold outside the 6): or to restaurants or mar!et stands. The Burns realized that although consumers may not understand all the re=uirements associated with the organic label >such as pesticide control and fertilizers? the consumer is comfortable with the label. This is one of the !eys they believe which will set Fran!s Organic Farm apart from its peers. :ll pre1harvest and harvest supplies have been paid for out1of1poc!et. The owners have already spent in e#cess of L& to start their farm business. 9hen the owners announced they were becoming a 6): the news traveled fast and demand for their products was so great that they have already presold $ percent of their shares for the upcoming growing season. 8n order to meet these demands and meet the opportunity for growth the owners are see!ing an operating loan from the 2)4:Cs Farm )ervice :gency 8nsurance 6ompany or private investor. The credit facility will be used to meet operating and cash flow needs for the pre harvest and harvest season. The L$&* credit facility will be secured by a first lien position on the + acre plot of land all buildings and improvements >a greenhouse?. The land is valued at L+ and is currently owned free and clear by the Burns. The land is ad%acent to the BurnCs primary residence. %.$ Loca!ion an) Facili!ies Fran!s Organic Farm is located in Plymouth 9isconsin located in )heboygan 6ounty 9isconsin. )heboygan 6ounty is located in east1central 9isconsin. )heboygan 6ounty is a one1 hour drive to (ilwau!ee and ,reen Bay and less than a + hour trip 6hicago. 8nterstate &+ and )tate Highways '+ and *0 ma!e are the main highways.

)heboygan 6ountyCs population is $$0*. 8t has grown &.& percent between ' and '7. The 6ounty is e#pected to continue to grow by a similar rate until '$* when it reaches a population of $'+'7. (a%or employers includeG -ohler 6ompany Bemis (anufacturing :urora Health 6are Mohnsonville )ausage Aoc!line 8ndustries and )argento Foods. The 6ity of Plymouth is located in west1central )heboygan 6ounty along )tate Highways '+ *0 and 0. 8t is the second largest municipality in )heboygan 6ounty and one of the fastest growing in the 6ounty. >)heboygan 6ounty @conomic 4evelopment 6orporation?.

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(.0 Pro)uc!s (.1 Pro)uc!s:Ser"ices &escrip!ions Fran!s Organic FarmCs growing season will start in early (ay and end in October with the goal of ' wee!s. )hares will be comprised appro#imately $1$* different crops every 5 wee!s of in1 season produce. Here is an e#ample of types of produce throughout the seasonG

)pringG Beets Broccoli 6abbage 6arrots ,arlic ,reen Onions -ale /ettuce >several varieties? Aadishes Peas )pinach )ummerG Beans 6arrots 6ucumbers @ggplant ,reen Onions /ee!s (elons Onions )weet Peppers )ummer )=uash Tomatoes Nucchini FallG Beans Beets Broccoli 6auliflower 6ucumbers 6hard /ettuce >several varieties? Potatoes Aed Onions )pinach 9inter )=uash. :ll share sales are sold in advance. : Full )hare will provide a family of four vegetables for a wee!. >estimate?. /i!ewise a Half )hare provides a wee! of vegetables for two people. Full )hares are L0* and Half )hares are L+0* for the season. >The owners are currently only considering the sale of Full )hares at this time?. The Burns will utilize a detailed planting schedule which historically has helped immensely especially in the hectic summer planting season. The detailed guide begins with the plantings that tolerate the coldest spring and these are started in their greenhouse. )ummer crops will be shaded with cloths if necessary >li!e spinach for instance?. The farmers will plant many tomatoes >which are very popular? and only some eggplant which is less popular. Other considerations that are detailed in the planting calend ar will be the amount of produce that is needed. One way to plant more is to plant smaller amounts more often. @#amples include broccoli carrots scallions and summer s=uash. The Burns have learned that planting these items two or three times during the growing season yields more crop and the surplus can readily be sold at the farmers mar!et. Pic!ing peas is difficult at harvest time so the Burns always plan to plant surplus to ma!e harvest time worthwhile. 8t is e#pected that any surplus can be sold at the farmers mar!et. (.%

Compe!i!i"e Comparison Plymouth 9isconsin reports si# 6): entities of which three represent direct competition for the sub%ect.

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Pro)uc!:Ser"ice Sourcing :ll produce will be grown on Fran!s Organic Farm. Fran! and -athy Burns will both actively wor! and manage the farm.

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4istribution :t Fran!s Organic Farm members have the option for home delivery or to travel to the farm on the scheduled pic!up day. The home delivery choice is what most members prefer and allows the Burns to deliver the farm fresh produce directly. This distribution method has the least carbon footprint with one driver and one truc!. 8t is obviously the most intensive for the Burns and with busy summer season this can be too time consuming for them. 8tems are delivered in reusable bo#es. This distribution method represents any easy way to deal with any shortfalls in produce the Burns will simply mi# and matchC items for the members. :lternatively the members have the option to pic! up the produce directly at the farm. The Burns en%oy this option especially during the busy season because it frees up some of their time. This option re=uires that the driveway be easily accessible to the members and that the farm appears in good condition at all times. This onsite setup allows members to view firsthand what is growing the condition of the plants and soil. The members will also be aware of any draught issues for e#ample and what remediation efforts the farmers are ta!ing to care for the crops. On pic!up day the Burns have setup a stand and a buffet1 styleC layout in which members can pic! and choose up to a specific limit of produce for that wee!. This option creates a festiveC environment on the farm in which members can interact with each other the farmers and e#change recipes. 8f any shortfalls e#ist this mi# and match buffet style provides the solution. Must li!e home delivery members are given a one bo# to fill and refill wee!ly with their selections for the duration of the growing season. (.$

n"en!or# +anagemen! <3:. The 6): farm concept is all about freshness. The produce is delivered immediately from the farm to the >memberCs? table

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;are6ousing an) Ful4illmen! <3:

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Fu!ure Pro)uc!s:Ser"ices The owners of the farm have plans to introduce honey bees the following season • and offer honey as another organic product. •

On occasion Fran!s Organic Farm partners with its neighboring dairy farm and an organic ba!ery in town. From time to time members will find fresh cheeses and organic breads in their wee!ly selection bo#es. Fran!s Organic Farm owners are currently considering %oining forces with a local orchard company as well. The orchard will supply apple butter and %ams.

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9ithin one year Fran!s Organic Farm plans to utilize an additional acre and add + more families to their growing share program. They plan to add + more families >shares? by Year Three. Fran!s Organic Farm has long term plans to purchase an additional 7 acres or a total of + shares. To support the farm they will hire apprentice farmers part1time delivery drivers and a boo!!eeper. The Burns would then be able to focus their efforts on crop research mar!eting trends and their members. Part of the focus of organic growing is returning bac! to the community. :ll employees will earn fair wages for wor! performed. Other future plans include accessing the internet to increase awareness and the importance of local and community farming. -athy Burns is compiling a recipe @1 boo! which will supplement cash flow during non1productive months. 8n his spare time Fran! Burns is also compiling an @1Boo! to sell on Fran!s Organic Farm website. The boo! will focus on modern organic farming techni=ues for the novice farmer. : second boo! is forthcoming dealing with environmental concerns and social responsibility. :dditionally Fran!s Organic Farm will publish a wee!ly newsletter to be included in the memberCs bo# as well as the website. The newsletter will identify what is in the wee!ly bo# what is happening on the farm and recipes. The newsletter will educate members to seasonal eating and sustainable principles. Fran!s Organic Farm has future plans for constructing a vegetable processing area with electricity and water. The facility will have a wal! in cooler a washing and grading area stainless steel tables and two scales. :dditional capital e#penditures will be for the purchase of a newer >used? pic!up truc! and attachments for their tractor. >6urrently they borrow their neighborCs?.

$.0 +ar,e! Anal#sis )heboygan 6ountyCs cost of living is lower than the national average and housing costs are much lower than the national average. :t the same time )heboygan 6ounty personal income is greater than the national average. 8n other words this community not only has a high demand for organic items but it can afford them as well.

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n)us!r# Anal#sis

This analysis is based on the D<:86)E? $$$775G :griculture I :ll Other (iscellaneous 6rop Farming. The 2) crop production industry includes about $ million farms with combined annual revenue of about L'* billion. (a%or companies include 4ole Food 6ompany 6hi=uita Brands 8nternational and )un!ist ,rowers. 6rop farming is the growing and harvesting of field crops such as grain

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oilseeds tobacco dry beans potatoes vegetables and melons fruits and nuts and floriculture.

,lobal crop production revenue e#ceeds L$ trillion. The 2) and 6hina are among the top crop producers. /arge companies outside the 2) include Fresh 4el (onte Produce >head=uartered in 6ayman 8slands?; Total Produce >8reland?; and :maggi @#portao e 8mportao >Brazil?. 4emand is driven by federal agricultural policy programs food consumption trends and the grain and oilseed e#port mar!et. The profitability of individual companies depends on ma#imizing crop yield and minimizing disease ris!. /arge companies have advantages in highly automated technologies and access to the latest in seed and crop technologies. )mall operations can compete effectively by harvesting heirloom non1genetically modified >,(? or specialty products. The industry is capital1intensiveG average annual revenue per employee is about L+7. >First Aesearch? The 6): ma!es the following generalizations3guidelines regarding its industryG •

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L$*1L& per share wee!ly? >6): I (ichigan '$'? +ar,e! Si/e The 2) crop production industry includes about $ million farms with combined annual revenue of about L'* billion. >First Aesearch?

:lthough the 2)4: does not have official statistics on 2.). organic retail sales information is available from industry sources. 2.). sales of organic products were L'$.$ billion in '511over + percent of total food sales and were e#pected to reach L'+. billion in '7. >
n)us!r# Par!icipan!s (a%or participants include 4ole Food 6ompany 6hi=uita Brands 8nternational and )un!ist ,rowers. >First Aesearch?

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+ain Compe!i!ors Plymouth 9isconsin reports si# 6): entities of which three represent direct competition for the sub%ect.

Backyard Bounty W487 County !"y # $lymout%& W' ()7 %ttp*++l,comerford-"ordpress-com+

This is a '' acre family owned farm and has been operating as a 6): for several years. 8n addition to its offerings of organic fruits and vegetables this farm also sells organic poultry and eggs. The farm had mi#ed reviews by its members. .ilert/s Acres 0((7( County 1oad 22 $lymout%& W' ()7 %ttp*++"""-eilertsacres-com+

Owned by @dward and -ay @ilert this farm began business as a 6): in '$$. The farm provides many of the same vegetables as the sub%ect as well as providing farm to door delivery service. Sprin3dale Farms W7)( Silver Sprin3 Lane $lymout%& W' ()7 %ttp*++"""-sprin3dalefarmcsa-or3+

This 6): farm is the most established in the direct mar!et and has been in e#istence 'K years. )pringdale Farm has various pic! up sites in the greater )heboygan ():. Based on the farmCs website members are not given the option to select specialty vegetables and instead members are encouraged to trade1inC any unwanted produce bac! to the community to share and thus avoid waste. This has not proven to be a deterrent for the farmCs following. For the most recent growing season the farm has a waiting list. The following are 6): businesses that compete indirectly with the sub%ectG 5ld $lank Farm W)68 County 1oad C $lymout%& W' ()7 %ttp*++"""-oldplankfarm-com+

This entity only sells its goods at a local farm stand; it does not sell shares. 8n addition this indirect competitor sells organic eggs at its farm stand. Based on its

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limited selection and differing offerings this indirect competitor attracts individuals who are only see!ing small specialty =uantities of produce but do not want to commit to purchasing shares for a full season. Lo3 Cain 5rc%ard 0477 County 1d . $lymout%& W' ()7 """-lo3cainorc%ard-com

This indirect competitor is a fruit orchard selling apples pears plums hone y apple and maple syrup fresh apple cider and apple butter. 8n the fall this 6): generally offers 21Pic! apples options. 4ue its differing selection of products this entity is not a direct competitor. 1ed T"i3 Farm %ttp*++redt"i3farm-"ordpress-com+

This entity only sells to ,oodside 6o1op and Trust /ocal Foods; because this 6): farm differs in its target client it is does not represent a direct competitor for the sub%ect. $.1.$

+ar,e! Segmen!s '5 )heboygan 6ountyCs median household in1come was L*$5$ and the mean household income was estimated to be L$557.

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+ar,e! Tes!s 9hile selling produce to local restaurants (r. Burns realized that the 6): option could potentially come to fruition. Historically the restaurant patrons always as!ed the source of the beautiful and delicate lettuces and =uality tomatoes. Aealizing the popularity of his

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produce (r. Burns while continuing on a =uest for global carbon footprint reduction began researching the possibility of beginning a 6): effort. 9ith the help of his restaurant partners (r. Burns posted fliers and brochures in their lobbies. By the end of the summer Fran!s Organic Farm had presold $ percent of the shares for the upcoming growing season.

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Targe! +ar,e! Segmen! S!ra!eg# Fran!s Organic Farm is targeting households with earnings in e#cess of L* in the greater )heboygan 6ounty. :ppro#imately *$ percent of the population resides in this category. Other farmers have missed this target by focusing on traditional farming methods while Fran!s Organic Farm has obtained the 6ertified Organic stamp of approval. :dditionally Fran!s Organic Farm will focus its energies primarily on its members and provide services e#ceeding e#pectations by offering farm to door delivery service providing supplemental local organic products and by providing a festive li!e atmosphere at the farm I especially on harvest day and other special occasions.

The following chart depicts the target mar!etG

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+ar,e! Nee)s

:ccording to a 2)4: survey of mar!et managers >Organic Produce Price Premiums and @co1/abeling in 2.). Farmers" (ar!ets :pril '&? found that demand for organic products was strong or moderate in most of the farmers" mar!ets surveyed around the country and that the managers felt more organic farmers were needed to meet consumer demand in many states. >2)4: updated 3$73$'?

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:s demonstrated on the national map )heboygan 6ounty represents a strong demand for organic produce. D5r3anicallyE grownC is the !ey. The term DorganicE is now legally defined and can only be used to describe produce that is grown in accordance with the 2)4: rules and is certified as such by an independent agency. $.(.%

+ar,e! Tren)s 9hile consumers may not understand all the re=uirements associated with being certified organic they are comfortable with the label. 9hich is why Fran!s Organic Farm sought the services of the independent certification agency and has earned the distinction to be labeled an organic farm. 6omparatively their 6): counterparts that continue to operate by traditional farming methods Fran!s Organic Farm holds itself to a higher standard which in time they believe will attract and !eep new members.

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+ar,e! 3ro8!6 2.). sales of organic products were L'$.$ billion in '5 1 over + percent of total food sales1 and were e#pected to reach L'+. billion in '7 >
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Posi!ioning Fran!s Organic Farm is aware that its members are crucial to its survival and growth. The owners will ma!e certain each member feels that Fran!s Organic Farm is indeed his3her farmQ :fter all they do own a portion of the farmQ The Burns will encourage its members to stop by to see operations. 8n addition the owners will host an open house at harvest time to celebrate the seasonCs bounty.

To further ensure its members are satisfied and encourage retention the owners will use surveys and =uestionnaires as tools to gauge member satisfaction. The surveys3=uestionnaires will allow members to e#press feedbac! and also represent additional opportunities to communicate with Fran!s Organic Farm. -.0 +ar,e!ing S!ra!eg# an) mplemen!a!ion Fran!s Organic Farm is targeting households with earnings in e#cess of L* in the greater )heboygan 6ounty. Other farmers have missed this target by focusing on traditional farming methods while Fran!s Organic Farm has obtained the 6ertified Organic stamp of approval. :dditionally Fran!s Organic Farm will focus its energies primarily on its members and provide services e#ceeding e#pectations by offering farm to door delivery service providing supplemental local organic products and by providing a festive li!e atmosphere at the farm I especially on harvest day and other special occasions.

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-.1 S;OT Anal#sis )9OT stands for strengths wea!nesses opportunities and threats. The following is the )9OT analysis for Fran!s Organic Farm. -.1.1

S!reng!6s •

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;ea,nesses •

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Fran!s Organic Farm receives share proceeds prior to start of the season which helps to pay for seeds supplies and inputs 4uring the off1season the owners of Fran!s Organic Farm can mar!et and recruit new members and complete their @ Boo!s Fran!s Organic Farm will establish long term relationships with its members lasting at least one season (embers share in the financial ris!s of the farm /ow capital re=uirements relatively ine#pensive startup business

:s many as + or more different crops must be grown to provide diversity to members throughout the season /ocation1if the farm is not close to its customers it becomes burdensome for the farmer to ma!e deliveries /abor intensive I during the season crops are continually being planted harvested cleaned sorted and pac!ed I leaving little e#tra time for the farmer (ember retention is !ey I if the member is not happy the li!elihood of returning ne#t season or providing a good recommendation is not good.

Oppor!uni!ies The greater )heboygan 6ounty is a prime location for organic produce with • an historically high demand. Because many farmers still utilize traditional farming methods >pesticide and • herbicide applications? Fran!s Organic Farm stands out from the crowd with its 6ertified Organic stamp of approval T6rea!s said? competitors. 9eather storms pests I can damage or even destroy crops. • The farm is economically tied and in inflationary times consumers could • revert bac! to traditional methods of buying fruits and vegetables at the local grocery store.

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-.% S!ra!eg# P#rami) )trategy 6reate awareness that Fran!s Organic Farm delivers a wide variety of =uality wholesome and healthy vegetables on a consistent basis. Tactics 6reate a specific detailed planting guide planting several times over the growing season. Programs Post fliers and brochures at local restaurants and locally owned and operated organic3natural item stores in town.

)trategy Tactics Programs

6reate a community of awareness to thin! globally act locally. 6onstant communication with members will foster the awareness who in turn will relate these ideals to the local community. Host open house events at Fran!s Organic Farm for special events such as Harvest Time and @arth 4ay.

-.( 9ni -athy and Fran! Burns stand out from the competitionG They are e#perienced operators and have demonstrated ability to grow large =uantities of many different vegetables. They have demonstrated their ability to manage the crops harvest pac! and deliver to their customers. They are doing business as a 6):. :nd unli!e their conventional farming peers Fran!s Organic Farm has met the stringent re=uirements to be designated 6ertified Organic. -.$ Compe!i!i"e E)ge 6): farming differs greatly from traditional farming due to the fact that members have ownership shares in the farm. Bearing this in mind Fran!s Organic Farm will wholeheartedly focus on this vital aspect to retain members. The owners will constantly stay in touch with their members and encourage them to come and visit theirC farm.

2nli!e its traditional farm stand competitors Fran!s Organic Farm will offer a variety of selections 1 up to + different types of produce during season. 8t should be noted that variety is a double edged swordG (any members will %oin a 6): because of the variety of offerings. 8t is important to have plenty of the basics li!e green b eans tomatoes and carrots. 6onversely too little a selection will be disappointing. To meet this balance the Burns have created a =uestionnaire as!ing members what they prefer. The Burns also provide wee!ly recipes and meal planning tips to coincide with the wee!ly bo#es. 6ustomers li!e the convenience of !nowing how to prepare the items they are pic!ing up from theirC farm. -.- +ar,e!ing S!ra!eg# an) Posi!ioning Fran!s Organic Farm will utilize product differentiation to stand apart from the competition. By growing wholesome organic produce offering farm to door service and

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actively engaging with its members Fran!s Organic Farm will go above and beyond to maintain and grow its member base. -.-.1

Posi!ioning S!a!emen! Fran!s Organic Farm will be the premier organic 6): in the greater )heboygan 6ounty by offering at least + of the most delicious and mouth watering organic vegetables available in the local growing area and by providing e#ceptional relationships with its members its community and the planet.

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Pricing S!ra!eg# Fran!s Organic Farm will utilize a fair price for a fair value. )ome research suggests that the 6): farm is usually lower in price than organically grown food from local mar!ets and is often less than foods from the supermar!et. This could be a selling point for attracting new members however it also important to note this in not about cheap food.

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Promo!ion an) A)"er!ising S!ra!eg# The best strategy is word of mouth advertising. 9hen people are happy with their shares they tell friends.

Fran!s Organic Farm will place brochures with other 6): businesses such as the local organic ba!ery and neighboring dairy farm. Fran!s Organic FarmCs website will provide additional mar!eting information. 8n addition to its map and location Fran!s Organic Farm will be listed with other 6): organizations such as national 6): and the 2)4:. 8n the off season the Fran! Burns will provide lectures to civic and environmental groups. 4uring harvest time the farm will be open to the public to browse and purchase surplus from the harvest bounty. They will also host special events such as @arth 4ay. -.-.$

;esi!e Fran!s Organic FarmCs website will be a vital !ey in mar!eting. 8n addition to providing its history location and contact information the site will also have lin!s to its 6): affiliations the 2)4: website and current organic industry topics. The website will also have lin!s to the current wee!ly newsletter >during season? and off season the owners will maintain a blog of what items are currently going to seedlings in the greenhouse and what new and e#citing produce will be available in the upcoming season.

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:dditionally the site will have lin!s to -athy and Fran!Cs forthcoming @1boo!s which will provide additional cash flow during the non1production months. The site will also ta!e advantage of social media and have a Faceboo! lin! as well. -.-.-

+ar,e!ing Programs Fran!s Organic Farm will actively wor! to engage its members and local community byG 6reating fliers and brochures and posting in community gathering places • such as churches community centers farmers mar!ets and other environmentally centric business. Fran!s Organic FarmCs website with emphasis on its 2)4: 6ertified Organic • stamp of approval; the website will also have lin!s to the 2)4: website and the national 6): website. 9ord of (outh will play an important role •

-. Sales S!ra!eg# Fran!s Organic Farm has already sold all + of its shares for the upcoming season with future plans to sell  shares in Year Two and 7 shares in Year Three. 8n order to meet these goals the farmers will continue to rely on advertising fliers its online presence and most importantly word of mouth. The word of mouth recommendation from a satisfied member not only generates an opportunity for repeat business but also is beneficial in recruiting new members. -..1

Sales Forecas! The following table represents the annual sales forecast for the initial three years of operationsG Tale -..1

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Annual Sales Forecas!

Sales Programs Fran!s Organic FarmCs primary sales program is the sale of shares. :dditional sales programs will come from the sale of their forthcoming boo!s. Honey production is e#pected to come online by Year Three.

4uring the slow winter months both Fran! and -athy Burns will actively mar!et their Fran!s Organic Farm by providing spea!ing engagements at local events

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becoming involved in the local community primarily its environmental issues and writing and publishing papers supporting locally grown businesses. This slower time will also be utilized to create the wee!ly newsletter templates which coincide with the wee!ly deliveries. Historically the members love the newsletters I which facilitate additional contact between farmer and member. The wee!ly newsletter summarizes what is included in the wee!ly delivery offers recipes and coo!ing suggestions and summarizes what activities are transpiring at the farm. >This will be helpful especially during the busy summer months when there is little time available to write the wee!ly newsletters?. -. Legal Fran!s Organic Farm is a 616orporation doing business in the )tate of 9isconsin. -.* +iles!ones The following chart depicts the (ilestones Fran!s Organic Farm anticipates achievingG Tale -.*

+iles!ones

-.? Ei! S!ra!eg# 8n the event that Fran!s Organic Farm will cease operations all assets >farm e=uipment tools scales? will be sold at auction. Proceeds from the sale will be first be used to pay off the financial obligation to the operating capital loan and the remaining proceeds will be paid to the members >if any obligations remain?. .0 Organi/a!ion an) +anagemen! .1 Organi/a!ional S!ruc!ure Fran!s Organic Farm will be wholly owned and operated by Fran! and -athy Burns. (r. Burns will perform all office and accounting functions such as calculating the initial garden costs seed costs and planting times. Both owners will harvest the crop. Fran!s Organic Farm will hire one apprentice farmer for each additional acre that is cultivated. Over time they have plans to hire part1time delivery drivers as well as boo!!eeper.

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+anagemen! Team

Fran! Burns will actively manage the farm. Farm management duties will include the creation of a detailed planting guide and building a living soil. Only sustainable and organic farming methods will be used with no reliance on off1farm inputs and chemical pesticides3fertilizers. ,rowing methods include crop rotation planting cover crops applying finished compost and mulches and encouraging beneficial insects weed management irrigation and harvesting. (r. Burns will also be responsibility for preparing detailed accounting records for their ta# accountant.

-athy Burns will also actively participate in managing the c rop during the busy summer months. 4uring the slower winter months both will wor! to complete their @1boo!s which will be sold on line and supplement revenue. They will also actively mar!et Fran!s Organic Farm by spea!ing to local civic groups providing tours of the farm and drafting the wee!ly newsletters. .( +anagemen! Team 3aps Fran!s Organic Farm will rely on its Ta# :ccountant to assist with ta# reporting. .$ Personnel Plan The following is a summary of Fran!s Organic FarmCs Personnel Plan. Tale .$

Personnel Plan

.- Boar) o4 &irec!ors <3: .0 Financial Plan The financial plan will cover the followingG Ae=uired 6ost of )tart12p • Profit and /oss • 6ash Flow • Balance )heet •

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Financial Aatios

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mpor!an! Assump!ions Aevenues increase *R Year One and ++R Year Two • The following variable e#penses are tied to volumes and will increase the same • amount as revenueG salaries fuel charges postage repairs and maintenance and supplies The loan e#ample is based on traditional lending I with a collateralized wor!ing • capital loan fully amortizing with a three year pay down. The loan interest rate is based on the Prime /ending Aate plus &.R; 9all )treet • Mournal Prime at this writing is +.'*R

.% S!ar!79p Cos!s The following chart summarizes start1up e#pensesG

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Tale .%


S!ar!79p Cos!s

.( Source an) 9se o4 Fun)s To date the owners have come out of poc!et appro#imately L& or 0& percent of the pro%ectCs total costs. The following chart summarizes the source and use of fundsG

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Brea,7E"en Anal#sis

Total fi#ed costs are estimated to be L$5&+0. The variable costs >salaries fuel charges postage repairs and maintenance and supplies? are estimated to be L$7.0& per unit >full share?. 2nits are considered full shares for analysis purposes and do not consider half shares. Based on the assumption of L0* as the average share price the brea!even revenue then is L'$*70 or & units >shares?. This is further depicted in the Table Below and the ,raph that followsG

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Pro2ec!ions

Pro2ec!e) Pro4i! an) Loss Fran!s Organic FarmCs estimated profit and loss for the initial three years of operations is reflected belowG Tale .-.1

Pro Forma Pro4i! an) Loss

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Pro2ec!e) Cas6 Flo8 The statement of cash flow shows the incoming and outgoing cash of Fran!s Organic FarmG Tale .-.%

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Pro Forma Cas6 Flo8

Pro2ec!e) Balance S6ee!

The following chart depicts the proforma balance sheetG

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. Business @a!ios The following ratios are based on the <:86)? code $$$775I :ll Other (iscellaneous 6rop Farming. The ratio analysis compares the sub%ect to industry peers based on similar asset size and revenues.

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Tale .


@a!io Anal#sis

This business plan template can be downloaded atG httpG33www.fastbusinessplans.com3business1plan1template.html Free sample business plans are available atG httpG33www.fastbusinessplans.com3sample1business1plans.html.

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Organic Farm Business Plan

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