How To Write A Mushroom Farming Business Plan (Sample Template)
How To Write A Mushroom Farming Business Plan (Sample Template)
Americans like taking their mushrooms fresh, dried or canned. The good thing
with growing mushrooms is the fact they grow so fast and if you are adept at
selling your produce as soon as they are harvested, you are on your way to
making tons of money.
One necessary document that is important for you in starting this business is a
business plan. The aim of a business plan is not only for investors to see how
well you intend to run the business, but it is also meant to act as a guide
towards running your business with few hitches as possible. Below is a sample
plan to aid you in writing and starting your own mushroom business;
Major developing nations have begun to see an increase in the demand for
mushrooms especially as income levels in countries such as Canada, Thailand,
and India. Countries like China are nearly taking over the global marketplace as
they are selling their mushrooms at rates lower than what can be obtained in
the United States, Germany as well as France.
As at 2013, mushrooms globally were valued at over $29 million, and were
projected to grow at about 9.5% in 2019 to reach a value of $50 million. The
global market as at 2013 was dominated by Europe closely followed by the
Asia-Pacific region.
Factors that drive the mushroom business globally are consumer shift towards
nutritional foods, high demand for organic foods and development in high
yield systems and the increasing power of the supermarkets.
2. Executive Summary
Mushy Forage Farms LLC is established and recognized as a major supplier of
gourmet quality mushrooms in Springfield – Missouri and in the United States
of America. We will grow and sell all the different kinds of mushrooms
consumed in the United States of America to our variety of customers.
Our aim as a business is not only to make profit but also become a leading
company that can compete favorably with other mushroom business in
Missouri and also in the whole of the United States of America. To be able to
effectively compete against our competitors, we intend to ensure that we hire
the best professionals in the industry so as to build the perfect business
structure.
Due to the fact that mushrooms are edible products, we intend to ensure that
our mushrooms are grown in an environment that is conducive and hygienic.
We are also growing the mushrooms organically as we intend to ensure that
our mushrooms pack a high dose of nutrition.
Because we know how important our employees are to the growth of the
organization, we intend to ensure that we create a conducive environment for
them to work and also provide welfare packages that are aimed at ensuring
that their productivity rate is increased.
One of our strongest factors at Mushy Forage Farms LLC apart from producing
and selling organic mushrooms is the excellent customer care we provide to
our customers which has led to a high retention rate for us and an overall
healthy bottom line for our business.
Our proficient uses of the internet to intensify awareness about our business
and the products and services we offer are part of the sustainable practices
that is obtainable at Mushy Forage Farms LLC.
Mushy Forage Farms LLC is owned and run by Lisa Shaw. Lisa has a B. Sc in
Food Technology and started growing mushrooms as a hobby before turning it
into a business. She is bringing in her wealth of experience into the business.
Having a business structure is very important as it will help the business follow
the vision which it has determined for itself. At Mushy Mushrooms Forage, we
have perfected the plans that will ensure that we get it right by employing only
the best and competent hands to come and work in our firm to enable us
attain the goals and objectives which we have set for ourselves.
Asides the fact that we intend to sell our mushrooms fresh and processed,
there are other services that we would be offering as well to boost our earnings
and so these services will need competent hands to ensure that all our
operations run smoothly at Mushy Forage Farms.
Purchasing Manager
Responsible for purchasing all the raw materials needed by the business
Sources for reliable vendors and distributors for the company
Keeps an accurate database of all purchases and vendors
Administrative Manager
Ensures that the business runs smoothly with as less hitches as possible
Ensures that employees have great welfare packages and better working
environments
Assigns and delegates tasks to employees and ensures that they are
carried out accordingly
Ensure the farm and the entire premises are kept clean at all times
Ensures that the restroom for customers and employees are kept neat
at all times
Ensures that cleaning supplies are always in stock
6. SWOT Analysis
Because we know that it takes serious work before a business can become a
leader in the industry, we have conducted a SWOT (Strength, Weakness,
Opportunities, Threat) analysis so that we could effectively draft a strategy that
will not only allow us compete favorably with our competitors in the
marketplace but also ensure that our business stands out and is unique from
that of our competitors.
Due to the fact that we wanted to have the best analysis, we hired a reputable
business consultant here in Springfield – Missouri to help us determine if the
odds were against us and if the business was worthwhile for us to go into. The
results were favorable as the strengths and opportunities available to us far
outweighed the threats and weaknesses we had or were likely to encounter.
Below is a of the SWOT analysis that was conducted on behalf of Mushy Forage
Farms LLC;
Strengths
The strength of our business lies in the fact that we would be growing various
kinds of edible mushrooms to be able to reach a wide number of customers
here in Springfield –Missouri and also in the whole of the United States of
America. We have a huge mushroom farm that is able to meet with the
demands of our customers and have structures in place to meet with
increasing demands.
Asides, offering fresh and processed mushrooms to our various customers, we
will also offer training to intending mushroom farmers as well as consultancy
services as well. Also, we have carefully chosen and perfected all our channels
of distributions, so that our mushrooms can conveniently reach all our
customers.
Weaknesses
The mushroom business isn’t new, which means that there are other
established mushroom businesses in and around our location in Springfield –
Missouri. While this might be termed a weakness, we have however put
strategies in place to ensure that we create the right awareness with potential
customers and also ensure that our mushrooms are of the highest quality, as
this we believe will effectively combat the other competitors.
Opportunities
Because mushrooms are a healthy meal for everyone, there are loads of
opportunities that abound in this field, from those who are looking to start this
business and need guidance. Also, because we are always on the lookout for
new innovations and technologies in this field, we would be the perfect
consultants for those who are new in the business and are looking for better
ways to grow their business.
Threats
Every business faces threats every now and then and we acknowledge that we
are going to face threats likely in the arrival of new competitors to our same
location. The threat brought by this action can be curbed as we have strategies
in place to combat any new strong competitor’s arrival.
7. MARKET ANALYSIS
Market Trends
The major challenge to the mushroom business has always been the limited
shelf life but even that would soon change as there are several improving
technologies, innovations as well as researches being constantly carried out to
ensure that more people can have their mushrooms stay in their homes longer
as well as more farmers storing their harvested mushrooms without worrying
due to spoilage.
This would also help us to be able to draft effective strategies to conquer these
target markets in and around Springfield – Missouri and also in all other
locations where we intend for our mushrooms to be sold at. The market
research was done with the aid of a farm business consultant who has vast
experience in the mushroom market, leading us to identify the markets that
would patronize our products.
Also, we intend to have welfare packages in place that will show our employees
that we care about their welfare. Customers are the most important reasons a
business succeeds, especially loyal customers. We intend to have an excellent
customer service where all the enquiries, complaints and orders will be
promptly attended to.
We also intend to have an incentive referral program for our loyal customers
and even our first timers, this will ensure that our customers retain their loyalty
to our brand, thereby giving us the competitive advantage we would need to
become industry leaders.
Because we know hoe internet inclined the world has become, we intend to
push our business via the internet as well, by ensuring we build a user friendly
website where all our products and services will be displayed.
We will ensure we hire the best web consultant to deploy Search Engine
Optimization (SEO) for our website so that our website will appear amongst top
leads, for users searching for mushroom businesses. Also, we intend to remain
active through our social media platforms such as Facebook, Instagram and
Twitter.
Mushy Forage Farms LLC has been established with the intention of
making profit through growing and selling of mushrooms in Missouri and in
the United States of America. We intend to grow and sell different kinds of
mushrooms, such as Shiitake, Oysters, Medicinal Reishi, Lions mane and
maitake, so as to be able to take a large share of the market.
We at Mushy Forage Farms LLC intend to generate income for our business
from different sources such as;
Our intention of growing all the kinds of mushroom consumed in the United
States of America is enough to not only solidify our position as a leading brand
in the business but also means that we would meet our sales target within a
year of growing and running the business.
We carried out a critical evaluation of our target market via the help of a hired
business consultant and we were able to effectively gather facts in the industry
that not only analyzed our chances of success but also showed how we intend
to make our revenue and profit generation possible in Springfield – Missouri
and in the United States of America.
The table below shows the sales projection for Mushy Forage Farms LLC
conducted on our behalf by our sales consultant, which took various factors
such as location and type of business into cognizance:
N.B: It should be noted that the sales projection were conducted with several
other factors in mind such as that the demand for mushrooms remains stable
or increases, and also that there was no downturn in the economy, and that
our strategic location would remain the same. This means that if conditions
change, the sales projection might increase or decrease.
In successfully marketing your product, you would need to ensure that your
products and or services are well packaged, branded and of the highest quality.
This would then determine what price you would set for the product and or
service after considering all the costs incurred to produce and deliver.
This is where the purchasing, accounting, producing and marketing team all
work together to ensure that the appropriate prices are set so that it becomes
affordable to the customer whilst also not causing the company any loss.
In ensuring that our products and services reach as many of our target market
as possible, we will ensure that we sell our products directly to the public via
farmers’ market and special food festivals. Our products can also be sold via
wholesalers and through our official website online. All our channels of
distribution will be carefully chosen so that we can effectively penetrate the
market.
Our marketing and sales team has been fully empowered to ensure that our
corporate sales and marketing goals are fully achieved. Most of the strategies
that would be used by our marketing team are those that will take cognizance
of our overall organizational objectives.
Mushy Forage Farms LLC will ensure that they use the following strategies
below to effectively market our different kinds of mushrooms to our different
customers;
Creating a website and ensuring that our products and services offered
are prominently displayed
Using social media platforms such as Facebook, Instagram to effectively
market our goods
Sending out weekly or monthly newsletters to existing and potential
customers about mushrooms and its benefits
Networking with other mushroom farmers to ensure that Mushy Forage
Farms LLC is well known
Distribute flyers in strategic locations
Advertise our mushroom business via television, radio and newspapers
Engage in word of mouth marketing
Reward our customers with incentives if they refer customers to us
Sponsor relevant activities and events in the local community
Use letter drops and mail outs to effectively promote our mushroom
business
11. Publicity and Advertising Strategy
Every business needs a bit of publicity and advertising to survive, and the
mushroom business is no different. Our aim at Mushy Forage Farms LLC as a
standard company is to ensure that we can favorably compete with other
leading mushroom farms in Missouri and the whole of United States by
ensuring that we draft strategies that will publicize and advertise our
mushroom business.
Because we know how beneficial it would be for our mushroom business when
we publicize and advertise rightly, we have hired an online publicity consultant
to help draft publicity and advertising strategies that we ensure that we sell our
mushrooms to all nooks and crannies in other cities of the United States of
America asides from Missouri.
It would be noteworthy to state that not only are we carrying out publicity to
increase our brand awareness and encourage more patronage from our
customers but also to ensure that we communicate the message of our brand
effectively. Some of the platforms we intend to use in publicizing and
advertising our mushroom farm business include;
The prices for our mushrooms will totally depend on the kind of mushrooms as
some breed demand more attention than others. We would also cut down
costs where necessary so that we do not fix an unnecessary cost into our final
price. This means that we would be fair to our customers and ourselves as
regarding the price we would set for our mushrooms.
Payment Options
We at Mushy Forage Farm LLC know how important it is for our customers to
have an easy payment option and not be unduly stressed when intending to
make payments. We are also aware that because people are different, there
are preferences for different payment options that would suit their tastes and
lifestyle.
In view of this, here are the payment options available to our customers;
Cash payment
Payment via credit card
Payment via Point of Sale (POS) Machine
Payment via check
Payment via online transfer
The key areas where we will expect to spend our start-up capital on are;
Total Fees for registering the business in the United States of America
– $700
Fees for obtaining several licenses and permits required to run the
business – $500
Cost of hiring business consultants and marketing analysts – $2,000
Cost of start-up inventory (spawn, substrate, growing bags, packaging
materials) – $5,000
Cost of store equipment (racks, bin, shelves) – $2,000
Insurance coverage (produce insurance, general liability, workers’
compensation) – $1,500
Operational costs for the first three months (utility bills, employees
salaries) – $10,000
Purchase of fairly used vehicle – $5,000
Other start-up expenses (stationeries, furniture, computer, phone,
printer) – $1,500
Marketing expenses for at least six months including promotion
expenses for opening ceremony of Mushy Forage Farms LLC – $2,000
Cost of launching an official website – $300
Cost of hosting the opening party – $2,000
Miscellaneous – $3,000
Mushy Forage Farms LLC is a business owned by Lisa Shaw – a married woman
and a mother of one. Growing mushrooms and farming in general has always
been Lisa’s passion till she decided to turn it into a full-time business. Due to
her passion for mushrooms, she doesn’t intend to bring in any external
investors whilst generating funds for her mushroom business.
Due to this fact she is just sticking to three sources of generating capital. Listed
below are the three options she is using to generate her start-up capital:
One of our major goals is to hire competent employees that will not only have
vast experience in the field needed to grow the company, but will also believe
in the vision of the company and aim to actualize this vision by carrying out
their various roles and responsibilities perfectly.
We will also ensure that our management staff benefit from our profits. We
also intend to constantly train our employees so that they will remain updated
on new innovations and technologies needed to make growing and selling
mushrooms easier.
All these put in place will ensure that we attain our sustainability and
expansion dreams while also achieving our goals and objectives of becoming
industry leaders.