The financial plan is outlined in the following tables and charts. With initial loans, we can construct the hydroponics facilities and begin crop development. Based on the high demand for these products, we expect solid sales in the first year, with improving margins.
FynbosFarm needs to fund its start-up requirements. The owner will provide personal investment, and is seeking long-term borrowing, using as collateral two other successful agricultural ventures he owns.
Based upon our monthly fixed costs we need to sell the number units, shown below, each month to break-even. Given the high demand for these products and our expertise in this industry, we should exceed this amount even in the first month of the plan, after our initial start-up period for construction and first crop growth.
The following table and charts show our projected Profit and Loss statement. Monthly details for the first year can be found in the appendix.
The following table and chart show our projected cash flow, including estimate repayments of the principal borrowing amount.
The Balance Sheet shows a steady increase in Net Worth over the next five years.
The following table outlines some of the more important ratios from the Hydroponic Crops Grown Under Cover industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 0182.9902.
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