The Highlights A Plan To Operate 10 Hectares In Establishing Greenhouse Business Plan Sample

Published: 2021-06-25 19:50:04
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Category: Finance, Business, Planning, Development, Marketing, Industry, Company, Flowers

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Business Plan
Executive summary
The company will carry out its operation under the name, Rosa Roses. It will involve John Tedds and Paul Scotts and each will own a 50% share.
The construction of greenhouse will effectively take place 10 months after the release of funds by the donors and other stakeholders.
- Mission Statement
- Goals
- Production must be associated with obtaining optimal yields through training workers and application of bio-technology.
- Business background
The owners of the Rosa Roses Company studied the trends of production and demand for the specific flowers in the past one year. The trend predicted an increasing demand in the coming years. This provided the rationale to develop a floriculture greenhouse which will solve the future demand. The owners, John Tedd and Paul Scotts, have an experience since John has knowledge on production and technology whereas Scotts has already developed a network of buyers.
- Business structure
The business will be popularly known as Rosa Roses Company and it will the partnership of John Tedd and Paul Scotts. Each partner will own a 50% share. The partnership will help to ease reporting, transferring assets as well as controlling the decisions of business
- Organization chart
- Owners
The company is owned by two partners who have a vast experience in the greenhouse sector. They have worked in the sectors for many years thus their can manage the company comfortably.
- Product description
The main aim of the business is to focus on the production of the high quality freesia, roses and alstroemeria. To ensure the vigor of the product and customer satisfaction, cutting will be sourced from the highest quality industry sources.
- Research and development activities
The business owners will be utilizing bio technology to make sure that they are updated with the newest and the highest breeds of the freesia, roses and alstroemeria. Furthermore, the partners will be in the frontline of developing facility adaptation and new greenhouse equipment technology through consulting the government and floriculture industry experts, and attending the agricultural seminars and workshops.
- Market research and analysis
- Industry analysis
The statistics provided by the Canadian floriculture industry, the farms estimate in 2013 was $798 million produced by 854 hectares of green houses.
- Industry target and issues
Over 60% of all the Rosa Roses flowers will be exported to various countries through the United Flower Growers Auction.
The demand for the cut flowers is expected to rise with 22 percent globally and with 19 percent in Canada according to the industry report.
New growers in the industry require a large amount of startup capital creating the need for riskier debt and high leverage condition.
- Target market
The target for the buyers is anticipated to reach at 25% daily and annual prices, and a sale of $320,000. The target for the wholesale will be expected to be 24% premium above auction price, $230,000 in sales and 6% annual sales growth Due to well established local and global competition, strategies of high quality flowers, good selection and mix color, attractive packages, prompt service promotion, new lines and increased off season production will be put into place.
- Political, legal and regulatory factors
Under the environment regulations regarding waste management, the firm is expected to keep open communication with the municipalities and town enforcement agencies. The pesticide application certificate requires the firm to apply for necessary permits in timely fashion.
- Marketing activities
- Product strategy
The firm will ensure the delivery of fresh cut and high quality lowers by using adequate refrigerated shipping and transport channels. A full guarantee will cover all flowers with the usual industry limitations and standards. The owners will ensure timely and full supply of the products to the consumers.
- Pricing
The historic price per stem of cut rose, Freesia and Alstroemeria is an average of $1.2, $3.3 and $3.1 respectively for the past five years. According to this pricing, the current pricing per stem for the cut rose, Freesia and Alstroemeria will be $1.1, $2.9 and $3.1 respectively.
- Promotion and advertising
The methods of promotions that will be used to target both retail and wholesale buyers are trade show booth, online ads, direct brochures, community newspaper ads, sign and displays. The budget for the promotion and advertisement will be $10,500 per year.
- Land and buildings
- Equipment
Heating and climate control $142,500
Irrigation system 10,000
Recycling system 16,000
Lighting system 90,000
CO, emitters 12,000
High pressuremist 40,000
Auxiliary power (power take off)
Scales, meters and tools 4,500
Rototiller, netting and bulb digger 9,500
Tractor and truck 35,000
- Production strategies
Description target yields Barriers response
- Political, legal and community aspects of production
The owners have
- Applied for facilities development permits
- applied for environmental permits related to the land development
- applied for a business license
- communicated with the municipal and town council the plans to develop the
- greenhouse
- complied with waste management regulations
- Funds Requested, sources and their Uses
Rosa roses plan to establish 10 hectares for the commercial production of roses. On this land, greenhouses where the flowers will be grown shall be constructed. The constructions will be modern and with the necessary facilities to ensure that the progress of the business is not hampered and that the intended objectives are fully or almost attained in case there will be any deviations either in form of finances or any other resources. The finances required will be used as follows:
- $50000 for land buying
- $50000 shall be used as operating capital
- $850000 used to establish and maintain the business
- $385000 needed for building and improvement
- $365000 for equipment
- $350000 shall be required as borrowed capital that shall be secured through mortgage.
- $500000 shall be devoted as equity capital by owners.
Employees shall be trained from time to time to improve their awareness and knowledge. The management shall also be taking good care of its employees by ensuring that the working environment is appealing. Their productivity and job performance shall also be boosted.
- Income statement
10th October 2013 to 10th October 2015
Assets 10th October 2013 to 10th October 2015
Current assets
Fixed assets
The business may undergo financial difficulties from time to time. If this happens, it will not hesitate to source for any external source of finance as shall be appropriate. Due to the fact that the flowers are a highly perishable, the business shall not limit itself when looking for money to cater for the transportation of the product to the various markets.
Abrams, R. M. (2003). The successful business plan: Secrets & strategies. Palto Alto, Calif: Planning Shop.
Canada (2002). Canada's agriculture, food and beverage industry. Ottawa: Govt. of Canada.

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