Are you about starting a hydroponics greenhouse farm? If YES, here is a complete sample hydroponics farming business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a hydroponics farming business. We also took it further by analyzing and drafting a sample hydroponics farm marketing plan template backed up by actionable guerrilla marketing ideas for hydroponics farming businesses. So let’s proceed to the business planning section.
One of the good trades that one can look into starting is that hydroponics crop farming. This is a viable business that one who is well focused can do well in. In starting this business, adequate market research have got to be carried out. This is so that you do not launch into the industry haphazardly and that might be actually disastrous in the long run.
So after undertaking a thorough research, the next thing that you may consider tinkering with might be in the area of drawing up a detailed business plan. Business plans are like maps, and they help you with charting a great deal of business course for you.
Nonetheless, writing a business plan might not come too easy as you will be required to do a whole lot of work underground. This is one of the reasons why a business plan has been drawn up for you. Here below is a sample hydroponic business plan for your use;
A Sample Hydroponic Greenhouse Farm Business Plan Template
1. Industry Overview
Hydroponics crop farming is line of farming that is classified under hydro – culture; it is a technique of cultivating crops by making use of mineral nutrient solutions, in water, without the support of soil.
As a matter of fact, crops that are basically cultivated on terrestrial soil can successfully be grown with their roots in the mineral solution only, or in a torpid medium, such as perlite or gravel. Basically, the nutrients in hydroponics farming can be generated from fish waste, normal nutrients, or duck manure et al.
Basically, players in the Hydroponics crop farming industry engage in growing plants by using mineral nutrient solutions in water, without soil. Farmers in this industry generally grow food crops under glass or protective cover.
A close observation of the Hydroponic Crop Farming industry shows that the revenue generated in the industry has maintained positive growth due to the fact that more people are embracing this type of farming. In recent time, a growing number of households shifted to healthy eating and consuming organic produce, resulting in high demand from hydroponics farmers.
So as well, extreme weather conditions usually damaged many crops for fresh field farmers, hence grocery stores and farmers markets quickly turned to hydroponic farmers to meet their supplies demand. As revenue and downstream demand continue to expand, the number of hydroponics crop farmers is projected to grow.
As a matter of fact, it is observed that most hydroponics crop farmers will focus exclusively on growing organic fruits and vegetables to help meet the demand of groceries stores and fresh food markets.
The Hydroponic Crop Farming Industry is indeed a fast growing industry and pretty much active in countries such as united states of America, Japan, China, Germany, and Singapore et al. The companies that has dominate market share in the industry are Nature – sweet, Village Farm and Houweling’s.
Statistics has it that in the United States of America alone, there are about 2,307 registered and licensed Hydroponics farming – companies responsible for employing about 7,939 and the industry rakes in a whooping sum of $848 million annually. The industry is projected to enjoy 5.3 percent annual growth.
Research conducted by IBISWORLD shows that, the Hydroponic Crop Farming industry is in the growth stage of its life cycle because of its increasing number of participants, high industry value added (IVA) and rapid growth of customer acceptance.
The report also stated that the industry value-added is expected to grow at an average annual rate of 3.6 percent from 2011 to 2022, which is about the same rate as US GDP growth during the same period, slated to grow at an annualized 2.3 percent during the period.
In addition to steady contribution to the nation’s GDP, industry participation is also increasing, which typically signals a growing industry. In the 10 years to 2022, the total number of industry operators is expected to increase at an average annual rate of 5.7 percent,
One thing is certain about hydroponics crop farming, if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to sell your farm produce because there are always groceries stores, food processing companies and consumers out there who are ready to buy from you.
2. Executive Summary
Spring – Time® Hydroponics Farms, LLC is a registered and licensed agro – allied company that will be based in the outskirt of Springfield Illinois – United States. We have done our detailed market research and feasibility studies and we were able to secure 15 hectares of land to start our hydroponics crop farming. Our hydroponics crop farming business is a going to be standard commercial farms.
At Spring – Time® Hydroponics Farms, LLC we will be involved in the cultivation of organic crops such as; cucumbers, shallots, tomatoes, lettuce, chilies, capsicum, red salad onions and snow peas, Chinese cabbage, lettuce, basil, roses, tomatoes, okra, cantaloupe and bell peppers, watercress, basil, coriander, parsley, lemongrass, sage, beans, peas, kohlrabi, taro, radishes, strawberries, melons, onions, turnips, parsnips, sweet potato, cauliflower, cabbage, broccoli, and eggplant as well as the choys that are used for stir fries.
Aside from the cultivation of crops via hydroponics farming method, we have plans to start our own standard food processing and packaging plant and also start exporting our agriculture produce to other parts of the world. This is why aside from the fact that we’ve secured the required space (farming land) and most of the farming equipment and machines, we have also hired some key employees who are currently undergoing training so as to be able to fit into the ideal picture of the 21st century hydroponics business workforce that we want to build.
Spring – Time® Hydroponics Farms, LLC is in the hydroponics crops farming business because we want to leverage on the vast opportunities available and advancement in the agriculture industry, to contribute our quota in growing the U.S. economy, in national food production, raw materials production for industries, to export agriculture farm produce from the United States to other countries and over and above to make profit.
Spring – Time® Hydroponics Farms, LLC is well positioned to become one of the leading hydroponics crops farms in the United States of America, which is why we have been able to source for the best hands and machines to run the business with. We have put process and strategies in place that will help us employ best practices when it comes to hydroponics farming processes and food processing and packaging as required by the regulating bodies in the United States of America.
Spring – Time® Hydroponics Farms, LLC is a private registered agro – allied company that is owned by Dr. Campbell Hezekiah and his immediate family members. The company will be fully and single handedly managed by the owner – Dr. Campbell Hezekiah and his immediate family members at least for a period of time.
Before starting Spring – Time® Hydroponics Farms, LLC, Dr. Campbell Hezekiah was the Head of a renowned Agriculture Research Institute in The U.S. he worked in the industry for well over 20 years before resigning to start his own hydroponics business.
3. Our Products and Services
Spring – Time® Hydroponics Farms, LLC is an agro – allied company that will be involved in hydroponics crop farming for both the United States’ market and the global market. We are in business to produce organic vegetable and fresh fruits in commercial quantities. We will also ensure that we operate a standard food processing and packaging plant as part of our complimentary business.
We will ensure that we do all that is permitted by the law in the United States of America to maximize profits and achieve our business goals and objectives. These are the areas we will concentrate on in our hydroponics crop farms. If need arises we will definitely add more agriculture produce to our list;
- Hydroponic greenhouse tomato farming
- Hydroponic greenhouse cucumber farming
- Hydroponic greenhouse bell pepper farming
- Other hydroponic greenhouse vegetable farming
- Hydroponic greenhouse fruit production
- Other hydroponic greenhouse vegetable farming
- Hydroponic greenhouse fruit production
4. Our Mission and Vision Statement
Our Vision is to become one of the top 10 hydroponics crop farm brand not just in the United States of America but also on the global stage.
Our mission statement as a hydroponics crops farm is to go into full – time commercial cultivation of vegetables and fruits that will not only be consumed in the United States of America, but also exported to other parts of the world. We want our processed food to flood the nooks and crannies of the United States and other countries of the world.
Our Business Structure
Spring – Time® Hydroponics Farms, LLC is a hydroponics crop farming business that intend starting small in Springfield – Illinois, but hope to grow big in order to compete favorably with leading hydroponics crop farms in the industry both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.
At Spring – Time® Hydroponics Farms, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Operating Officer
- General Farm Manager
- Administrator / Accountant
- Crop (Vegetable) Cultivation Manager / Supervisor
- Sales and Marketing Executive
- Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
General Farm Manager
- Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
- Supervises other section manager
- Ensures compliance during project executions
- Providing advice on the management of farming activities across all section
- Responsible for carrying out risk assessment
- Uses IT systems and software to keep track of people and progress of the growth of crops, fishes, birds and animals
- Responsible for overseeing the accounting, costing and sale of farm produce after harvest
- Represent the organization’s interest at various stakeholders meetings
- Ensures that farming goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Handles all financial transactions for the company
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily farming activities across the various farming sections.
Administrator / Accountant
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Responsible for financial forecasting and risks analysis.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Crop (Vegetable and fruits) Cultivation Manager / Supervisor
- Responsible for managing the crop cultivation section of the hydroponics crop farm
- Handles hydroponic greenhouse tomato farming
- Handles hydroponic greenhouse cucumber farming
- Handles hydroponic greenhouse bell pepper farming
- Handles other hydroponic greenhouse vegetable farming
- Handles hydroponic greenhouse fruit production
- Supervises other workers within the department
- Work closely with the General Manager to achieve the organizations’ goals and objectives
Sales and Marketing Officer
- Identifies, prioritizes, and reaches out to new markets for our agriculture produce, processed food, new partners, and business opportunities within the agro – allied industry
- Develops, executes and evaluates new plans for expanding increase sales of all our agriculture produce and processed foods
- Documents all customer contact and information.
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Front Desk / Customer’s Service Officer
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s farm produce
- Manages administrative duties assigned by the HR manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
6. SWOT Analysis
Spring – Time® Hydroponics Farms, LLC do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard hydroponics crops farm that will favorably compete with leading commercial farms in the United States of America and in the rest part of the world when it comes to cultivating organic and non – organic crops.
As a world – class hydroponics crop farms, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Spring – Time® Hydroponics Farms, LLC;
- Strength:
Our strength as a hydroponics crops farm company is the fact that we have healthy relationships with loads of major players (agriculture merchants) in the agriculture industry; both suppliers and buyers within and outside of the United States. We have some of the latest hydroponics farming machines; tools and equipment that will help us cultivate crops in commercial quantities with less stress.
Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in the hydroponics crop farming line of business in the whole of Springfield – Illinois under our payroll.
- Weakness:
Our weakness could be that we are a new hydroponics crop farming business in the United States, it might take some time for our organization to break into the market and gain acceptance especially from international markets in the already saturated and highly competitive agriculture industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
- Opportunities:
The opportunities that are available to us cannot be quantified, we know that everybody on planet earth eat vegetable and fruits which are our major farm produce. We are ready to take advantage of any opportunity that is available in the industry.
- Threat:
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new hydroponics farm in same location where our target market exist and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
Generally, as hydroponics crop farming growing operations are less vulnerable to weather conditions, the industry’s business locations vary considerably from the broader Vegetable Farming industry. On the other hand, large- scale commercial hydroponic crop production still tends to be concentrated in temperate climates with all year- round sunshine, giving room for the best quality and highest profit margins.
In view of that, large hydroponic crops farms are predominately located in Pennsylvania, California, New York, Vermont and Wisconsin which make up about one half of this industry’s revenue, while comprising about a third of the farms.
It is on records that revenue for the hydroponics crop farming industry has maintained positive growth. This is so because in recent time, a growing number of individuals shifted to healthy eating and consuming organic produce, resulting in high demand. In addition, extreme weather conditions spoiled many crops for fresh field farmers, so grocery stores and farmers markets quickly turned to hydroponic farmers to meet their demand.
One of the common trends in the hydroponics crops farming line of business is that most players in the industry are no longer concentrating only on non – organic farming. They now find it easier to run both organic crop cultivation and non – organic crop cultivation. It is fact that despite that organic food are expensive, the sale for organic food is on the increase and it is indeed profitable.
8. Our Target Market
As you would expect, the target market of those who are the end consumer of hydroponics crops farm produce and also those who benefits from the business value chain of the agriculture industry is all encompassing; it is far – reaching.
Every household consumes produce from hydroponics crops farms be it vegetables, and fruits et al. So also a large chunk of manufacturing companies depends on hydroponics crops farms for some of their raw materials. In essence a hydroponic crops farmer should be able to sell his or her farm produce to as many people as possible.
We will ensure that we position our business to attract consumers of agriculture produce not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our hydroponics crops farm produce either in raw form or processed form to other countries of the world.
Our Competitive Advantage
It is easier to find entrepreneur flocking towards an industry that is known to generate consistent income which is why there are more commercial farmers in the United States of America and of course in most parts of the world.
For example, Statistics has it that there were 2.2 million farms in the United States of America, covering an area of 922 million acres. These goes to show that there are appreciable numbers of farmers in the United States of America but that does not mean that there is stiffer competition in the industry.
As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.
Spring – Time® Hydroponics Farms, LLC is fully aware that there are competitions when it comes to selling hydroponics cum commercial farm produce all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States and in other parts of the world.
We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable farming processes that can help us sell our produce at competitive prices, good network and excellent relationship management.
Our competitive advantage lies in the power of our team; our workforce. We have a team of hardworking and highly proficient farmers, a team with excellent qualifications and experience in various niche areas in the agriculture industry. Aside from the synergy that exists in our carefully selected team members, we have some of the latest and efficient hydroponics crops farm machines and equipment and we will be guided by best practices in the industry.
Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard hydroponics farms that will be involved in diverse areas such as organic and non – organic crop cultivation, and food processing and packaging plant. With this, we will be able to take advantage of all the available opportunities within the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups hydroponics farms in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Spring – Time® Hydroponics Farms, LLC is in the hydroponics crop farming business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.
In essence we are not going to rely only on the sale of our farm produce to generate income for the business. Below are the sources we intend exploring to generate income for Spring – Time® Hydroponics Farms, LLC;
- Hydroponic greenhouse tomato farming
- Hydroponic greenhouse cucumber farming
- Hydroponic greenhouse bell pepper farming
- Other hydroponic greenhouse vegetable farming
- Hydroponic greenhouse fruit production
- Other hydroponic greenhouse vegetable farming
- Hydroponic greenhouse fruit production
10. Sales Forecast
From the survey conducted, we were are able to discover that the sales generated by an average hydroponics commercial farm depends on the size of the farm, and the nature of the hydroponics crops farm
We have perfected our sales and marketing strategies and we are set to hit the ground running and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income / profits from the year of operations and build the business from survival to sustainability.
We have been able to critically examine the agriculture industry cum hydroponics crops farm business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some workable assumptions as well with respect to the nature of hydroponics crops farm that we will be operating.
Below are the projections that we were able to come up with for the first three years of running spring – Time® Hydroponics Farms, LLC;
- First Fiscal Year-: $240,000
- Second Fiscal Year-: $500,000
- Third Fiscal Year-: $950,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are quite aware that the reason why some hydroponics crops farms hardly make good profits is their inability to sell off their farm produce especially perishable crops as at when due. In view of that, we decided to set up a standard food processing plant to help us maximize profits.
Our sales and marketing team will be recruited based on their vast experience in the hydroponics commercial farms industry and they will be trained on a regular basis so as to be well equipped to meet their set targets and the overall business goal of Spring – Time® Hydroponics Farms, LLC.
Our goal is to grow Spring – Time® Hydroponics Farms, LLC to become one of the leading hydroponics crops farms in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Springfield – Illinois but also in other cities in the United States of America and the world at large.
Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and companies that rely on raw materials from the agriculture industry who are likely to become our customers. In summary, Spring – Time® Hydroponics Farms, LLC will adopt the following strategies in marketing our farm produce;
- Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, companies that rely on the agriculture industry for their raw materials, hotels and restaurants and agriculture produce merchants et al.
- Advertise our business and agriculture produce in agro – allied and food related magazines and websites
- List our commercial farms on yellow pages ads
- Attend related agriculture and food expos, seminars, and business fairs et al
- Leverage on the internet to promote our business
- Engage in direct marketing
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.
We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our hydroponics crops farm business. Below are the platforms you can leverage on to boost our hydroponics crops farm brand and to promote and advertise our business;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our business
- Install our Bill Boards on strategic locations all around Springfield – Illinois
- Engage in road show from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- Contact corporate organizations and residence in our target areas by calling them up and informing them of Spring – Time® Hydroponics Farms, LLC and the farm produce we sell
- List our hydroponics crops farm in local directories / yellow pages
- Advertise our hydroponics crops farm in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.
12. Our Pricing Strategy
Some of the factors that will help you sell your farm produce at the right price that will guarantee that you make profit is dependent on your strategy while some of the factors are beyond your control. For example, if the climatic condition is unfavorable and if there are natural disasters in the location where you have your hydroponics crops farm, then it will directly affect the prices of your farm produce.
Over and above, if you want to get the right pricing for your farm produce, then you should ensure that you choose a good location for hydroponics crop farm, choose a good breed / seeds that will guarantee bountiful harvest, cut the cost of running your farm to the barest minimum and of course try as much as possible to attract buyers to your farm as against taking your farm produce to the market to source for buyers; with this, you would have successfully eliminate the cost of transporting the goods to the market and other logistics.
We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our agriculture produce is to sell them at competitive prices hence we will do all we can to ensure that the prices of our farm produces are going to be what other hydroponics crops farmers would look towards beating.
One thing is certain, the nature of hydroponics crops farming makes it possible for farmers to place prices for their farm produces based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your harvest the better for your business.
- Payment Options
The payment policy adopted by Spring – Time® Hydroponics Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payments options that Spring – Time® Hydroponics Farms, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our farm produce.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
When it comes to setting up a hydroponics crops farm business, the resources, supplies and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a hydroponics crops farm; it might differ in other countries due to the value of their money.
However, this is what it would cost us to setup Spring – Time® Hydroponics Farms, LLC in Springfield – Illinois, U.S;
- The Total Fee for incorporating the Business (hydroponics crops farm) in United States of America – $750.
- The budget for key insurance policies, permits and business license – $2,500
- The amount needed to hire business consultants – $2,000
- The amount needed to acquire / lease a farm land – $50,000
- The amount required for preparing the farm land (for crop cultivation and fencing et al) – $30,000
- The cost for acquiring the required working tools and equipment / machines / glass casing et al– $200,000
- The amount required for purchase of seedlings and mineral nutrients solutions – $20,000
- The Cost of Launching an official Website – $600
- The amount required for payment of workers for a period of 3 months – $100,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000
Going by the report from detailed research and feasibility studies conducted, we will need an average of $500,000 to start a medium scale but standard hydroponics crops farm business in the United States of America.
Basically, the nature of hydroponics crops farm does not require an office space, most people that run hydroponics crops farms operate directly from their farms. But we have decide to open a small liaison office; a place where administrative jobs will be carried out.
Generating Funds / Startup Spring – Time® Hydroponics Farms, LLC
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as hydroponics crops farming. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
Spring – Time® Hydroponics Farms, LLC is a family business that will be owned by Dr. Campbell Hezekiah and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Spring – Time® Hydroponics Farms, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our farm produce a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Spring – Time® Hydroponics Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check:>Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Leasing of farm land in Springfield – Illinois: Completed
- Conducting Feasibility Studies: Completed
- Start – up Capital Generation: Completed
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Building /construction of fish ponds, cattle ranch, and poultry: In Progress
- Purchase of the needed working tools, machines and equipment: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Farm land Treatment, Health and Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (agriculture farm produce merchants, transporter / haulage and suppliers of seeds, mineral nutrient solutions, pesticides and insecticides): Completed