Cut Flower Farm Business Plan [Sample Template]

Are you about starting a cut flower farm? If YES, here’s a complete sample cut flower farm business plan template & feasibility report you can use for FREE to raise money.

Cut flower farming is known to be a profitable business and over the years, it has evolved from the backyard garden to a global industry in all countries where it’s carried out. Countries in the Caribbean, South America, North America, Europe, Asia, Australia and Africa are known to be in the forefront when it comes to cultivating flowers.

It is important to state that starting such business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture. An aspiring entrepreneur can either choose to start on a small scale or on a large scale depending on their financial status.

So, if you have decided to go into cut flower farming, then you should carry out thorough feasibility studies and also market survey. Here is a sample cut flower farm business plan template that can guide you to come up with yours within record time.

A Sample Cut Flower Farm Business Plan Template

1. Industry Overview

Cut flower farm business is categorized under the Plant & Flower Growing industry and players in this industry grow nursery plants, such as trees and shrubs; flowering plants, such as foliage plants, cut flowers, flower seeds and ornamentals; and short rotation woody trees, such as Christmas trees and cottonwoods et al. These flower and nursery plants can either be grown under cover or in an open field.

Report published by IBISWORLD shows that the Plant and Flower Growing industry has fared poorly. The report also stated that the influx of low-cost cut flower imports from Colombia and Ecuador has had a staggering negative effect on domestic farmers, decreasing industry revenue.

The report also projected that in the coming years; the revenue generated in this industry will decline, hampered by weak demand from florists and nurseries and by import competition. While the overall US economy is no longer in a recession, weak discretionary spending will continue to strain flower sales throughout the year.

The Plant and Flower Growing industry is indeed a fast growing industry and pretty much active in countries such as united states of America, Columbia, China, Ecuador, Italy, France, United Kingdom and Singapore et al.

Statistics has it that in the United States of America alone, there are about 45,619 registered and licensed plant and flower growing companies responsible for employing about 163,403 people and the industry rakes in a whooping sum of $14 billion annually.

The industry is projected to enjoy -0.7 percent annual growth between 2013 and 2018. It is important to state that there is no company with a lion share of the available market in this industry in the United States of America

A recent report published by IBISWorld reveals that on the average, the Plant and Flower Growing industry spends about $0.07 on capital for each dollar spent on labor. This is representative of the industry’s low, but rising, level of capital intensity.

Over time, the industry has become more reliant on machines and technology as opposed to field workers. Although technology is increasingly taking over operations within nursery plant and flower production, the industry is still highly reliant on labor inputs.

According to the 2012 Census of Agriculture (latest data available), the average nursery and floriculture establishment spends about $75,155 on machinery and equipment annually, which is lower than the crop farming sector average of $154,425. This is due to the delicate nature of flowers and foliage plants.

One thing is certain about cut flower farming business, if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to sell your cut flowers because there is always a ready market for products from this industry.

2. Executive Summary

Baroness Roseanne® Flower Farms, LLC is a licensed plant and flower growing company that will based in Albuquerque, New Mexico and we will have active presence in other cities in and around New Mexico because we know that our products will be in high demand due to the demographic composition of New Mexico.

Apart from cut flowers, Baroness Roseanne® Flower Farms will also be involved in growing other plants such as; nursery stock crops, annual bedding and garden plants, potted flowering plants, foliage plants, potted herbaceous perennials, Christmas trees, cut cultivated greens and propagative floriculture materials.

We are well positioned to become one of the leading cut flowers farmers, which is why we sourced for the best hands and resources to run the business with. We have put process and strategies in place that will help us employ best practices when it comes to bringing out the best in this line of business.

Baroness Roseanne® Flower Farms is a private registered company that is owned by Baroness Roseanne Cephas and her husband Ruddy Cephas. The company will be fully managed and financed by the owners for a period of time.

3. Our Products and Services

Baroness Roseanne® Flower Farms will be involved in cut flowers farming for the United States’ market. 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 in our cut flower farming business. If need arises we will definitely add more produce to our list;

Cut flowers and cut cultivated greens
Christmas Trees
Nursery stock crops
Annual bedding and garden plants
Potted flowering plants
Foliage plants
Potted herbaceous perennials
Propagative floriculture materials

4. Our Mission and Vision Statement

Our Vision is to become one of the top 10 cut flower farmers not just in the United States of America but also on a global stage.
Our mission statement as a cut flower farm is to go into full – time commercial cultivation of cut flowers and other similar nursery plants and flowers that will not only be patronized in the United States, but also exported to other parts of the world.

Our Business Structure

Baroness Roseanne® Flower Farm intends to start small in Albuquerque – New Mexico, but hopes to grow big in order to compete favorably with leading flower growing companies in the United States. 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.

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 stakeholders.

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
Farm Workers/Field Workers
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 and developing incentives
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.
Accountable for fixing prices and signing business deals
Responsible for providing direction for the business
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 managers
Provides advice on the management of farming activities across all sections
Ensures that farming goals are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied.
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
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.
Accountable 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

Farm Workers/Field Workers

Responsible for carrying out farming activities
Responsible for pruning, shearing / maintenance of cut flowers and other nursery plants and flowers
Handles Sod installation / hydro – seeding
Handles weeding or fertilizer and / or pest control application
Handles tree care / maintenance services
Assists in transport working tools and equipment from the office (store) to site and back to the office
Works closely with the General Farm Manager to achieve the organizations’ goals and objectives

Sales and Marketing Officer

Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develops, executes and evaluates new plans for expanding sales
Documents all customer contacts 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

Baroness Roseanne® Flower Farms intends to conduct a proper SWOT analysis so as to create the foundation that will help us build a standard business that will favorably compete with leading flower growers in the United States of America.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Baroness Roseanne® Flower Farms, LLC;

Strength:

Our strength as a cut flower farming company is the fact that we have healthy relationships with loads of major players in the industry. We have some of the latest nursery plants and flower farming equipment that will help us grow these plants in commercial quantities with less stress.

Aside from our relationship and equipment, we can confidently boast that we have some the most experienced hands in the cut flower farming business in the whole of Albuquerque – New Mexico under our payroll.

Weakness:

Our weakness could be that we are a new cut flower farming business, and it might take some time for our organization to break into the market and gain acceptance especially from well – established companies in the highly competitive industry. 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 a large percentage of the population in the United States of America decorate their houses with cut flowers during festive seasons and that loads of households, religious and corporate organizations plant flowers around their premises. We are ready to take advantage of any opportunity that is available in the industry.

Threat:

The influx of low-cost cut flower imports from Colombia and Ecuador has challenged the domestic industry’s price competitiveness, increased efficiency in transportation has led to nationwide price competition and imports will likely continue to hamper the industry.

Also, economic downturn is a threat for our business. Another threat that may likely confront us is the arrival of a new cut flower farming company in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

Market Trends

Report published by IBISWORLD shows that the Plant and Flower Growing industry has fared poorly. The report also stated that the influx of low-cost flower imports from Colombia and Ecuador has had a staggering negative effect on domestic farmers, decreasing industry revenue.

It is on records that revenue generated by the cut flower industry has maintained positive growth because a growing number of individuals earned additional income, resulting in high demand. As a matter of fact, external factors such as Demand from florists and Per capita disposable income in the Plant & Flower Growing industry impact industry performance.

Another common trend in the business is that most players are no longer concentrating only on cut flower farming. They now find it easier to add other related plants such as; nursery stock crops, annual bedding and garden plants, potted flowering plants, foliage plants, potted herbaceous perennials, Christmas trees, cut cultivated greens, and propagative floriculture materials.

8. Our Target Market

As you would expect, the end users of cut flowers, nursery plants and also those who benefit from the business value chain of the industry are all encompassing. In view of that, we have created strategies that will enable us reach out to various households and organizations that would need our flowers. Below is a list of the people and organizations that we will market our products to;

Florists
Flower shops
Funeral homes
Households
Churches
Government agencies
Landscapers
Interior and exterior décor companies
Facility and Estate managers

Our competitive advantage

Baroness Roseanne® Flower Farms is fully aware that there are competitions when it comes to selling cut flowers, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in Albuquerque – New Mexico.

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.

Economies of scale, production of premium goods and ability to alter goods and services produced in favor of market conditions are part of what we will be bringing to the table. Also, our competitive advantage lies in the power of team and we have healthy relationships with loads of major players in the industry.

We have some of the latest cut flowers, nursery plants and flower farming tools and equipment that will help us grow these plants in commercial quantities with less stress. Aside from our relationship and equipment, we can confidently boast that we have some the most experienced hands in the cut flower farming business in the whole of Albuquerque – New Mexico under our payroll.

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 business that will also engage in nursery stock crops, annual bedding and garden plants, potted flowering plants, foliage plants, potted herbaceous perennials, Christmas trees and cut cultivated greens, and propagative floriculture materials.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category 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

Baroness Roseanne® Flower Farms is in the 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. Below are the sources we intend exploring to generate income for Baroness Roseanne® Flower Farms, LLC;

Cut flowers and cut cultivated greens
Christmas Trees
Nursery stock crops
Annual bedding and garden plants
Potted flowering plants
Foliage plants
Potted herbaceous perennials
Propagative floriculture materials

10. Sales Forecast

From the survey conducted, we were able to discover that the sales generated by an average cut flower farm depends on the size of the farm, and other related plants that they are involved in.

We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set sales target of generating enough profits from the year of operation and build the business from survival to sustainability.

We have been able to examine the industry, 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 as the nature of the company that we will be operating.

Below are the projections that we were able to come up with for the first three years of running Baroness Roseanne® Flower Farms, LLC;

First Fiscal Year: $140,000
Second Fiscal Year: $300,000
Third Fiscal Year: $750,000

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 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

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet the overall business goal of Baroness Roseanne® Flower Farms.

Our goal is to grow Baroness Roseanne® Flower Farms to become one of the leading cut flower farming companies 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. In summary, Baroness Roseanne® Flower Farms will adopt the following strategies in marketing our cut flower;

Introduce our cut flower farming company by sending introductory letters alongside our brochure to households, landscaping and lawn care companies and other key stake holders in the beautification industry.
Advertise our business in relevant business magazines, newspapers, TV and radio stations
List our business on yellow pages’ ads (local directories)
Attend relevant international and local expos, seminars, and business fairs et al
Leverage on the internet to promote our business
Engage in direct marketing approach
Join local chambers of commerce and industries with the aim of marketing our products
Encourage word of mouth marketing from loyal and satisfied clients

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 willing to utilize every available means to advertise and promote their business. 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 cut flower farming business.

Below are the platforms you can leverage on to boost our cut flower farm brand and to promote and advertise your business;

Place adverts on both print (newspapers and magazines) and electronic media platforms
Sponsor relevant community based events
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote your business
Install your billboards in strategic locations all around
Engage in roadshows from time to time in targeted neighborhoods
Distribute our fliers and handbills in target areas
List our cut flower farm in local directories / yellow pages
Advertise our cut flower 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 branded with our company logo

12. Our Pricing Strategy

Some of the factors that will help you sell your cut flowers 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 in the location where you have your farm, then it will directly affect the prices of your farm produce.

If you want to get the right pricing for your cut flowers, then you should ensure that you choose a good location, choose a good breed 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.

One of the easiest means of penetrating the market and acquiring loads of customers is to sell our flowers at competitive prices hence we will do all we can to ensure that the prices of our farm produce are going to be what other cut flower farmers would look towards beating.

One thing is certain, the nature of cut flower farming business 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 Baroness Roseanne® Flower 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 Baroness Roseanne® Flower 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)

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.

13. Startup Expenditure (Budget)

From all available statistics, we have been able to come up with an estimate of what we intend spending in the bid to establish our cut flower farm in Albuquerque – New Mexico. This is what it would cost us to setup Baroness Roseanne® Flower Farms in Albuquerque – New Mexico;

The Total Fee for incorporating the Business (cut flower 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 cut flowers, nursery plants and flower cultivation and fencing et al) – $30,000
The cost for acquiring the required working tools and equipment / machines / flower pots 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 this report, we will need an average of $300,000 to start a medium scale but standard cut flower farm business in the United States of America. A cut flower farm does not require an office space, as most people that run cut flower farms operate directly from their farms. But we have decided to open a small liaison office; a place where administrative jobs will be carried out.

Generating Startup Capital for Baroness Roseanne® Flower Farms

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 cut flower farming business.

Baroness Roseanne® Flower Farms is a family business that will be owned by Baroness Roseanne Cephas and her immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources. These are the areas we intend generating our startup capital;

Generate part of the startup capital from personal savings and sale of his stocks
Generate part of the startup capital from friends and other extended family members
Generate a larger chunk of the startup capital from the bank

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have 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 number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Baroness Roseanne® Flower 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 cut flowers, nursery plants and flowers 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.

Baroness Roseanne® Flower 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 retraining of our workforce is at the top burner of our business strategy.

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: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Leasing of farm land in Albuquerque – New Mexico: Completed
Conducting Feasibility Studies: Completed
Startup Capital Generation: Completed
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Design of The Company’s Logo: Completed
Printing of Packaging and Promotional Materials: Completed
Recruitment of employees: 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: Completed