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Mixed Greens Salad Gardens

Company Summary

Mixed Greens Salad Gardens, soon to be located in Blue River, OR, is a grower and seller of exotic salad field greens. MGSG grows a wide variety of field greens including red leaf, arugula, radicchio, mustard greens, endive, and chicory. MGSG sells the greens both at farmer markets as well as direct to restaurants.

The business will be based out of Heidi Ponic’s home. The office will be within her home and the greenhouse will be on her adjoining 20 acres of land.

2.1 Company Ownership

Mixed Greens Salad Gardens will be a sole proprietorship with Heidi Ponic as the founder and owner. Heidi will be funding the business with a $50,000 investment of her own. An additional $10,000 will be invested by family member O.G. Tylthe with exit/repayment initially scheduled for year five.

2.2 Start-up Summary

Mixed Greens Salad Gardens’ start-up costs will include all the equipment needed for the home-based office, the construction of the greenhouse and all the necessary equipment, and other essentials for growing.

The home office equipment will be the largest chunk of the start-up expenses. This equipment includes a computer system, fax machine, office supplies, cellular phone, and pager. The computer should have at least a 500 megahertz Celeron/Pentium processor, 64 megabytes of RAM (preferably 128), 6 gigabyte hard drive, and a rewritable CD-ROM for backing up the system. The home office will also require a few pieces of furniture such as a desk, chair, and book shelf to transform a standard room into an office. Lastly, an additional land phone line will be required.

The greenhouse will need the following equipment: a 25′ x 100′ greenhouse structure made out of poly carbonate, a ventilation system, a heater, a mister system, supplemental lighting, fertilizer injector, pruners, pots, trays, soil, seeds, and assorted chemicals.

Please note that of the $25,300 of long-term assets, $20,000 will be depreciated straight line for 27.5 years (real estate) and the remaining $5,300 will be depreciated on a seven year straight-line schedule.

Produce farm business plan, company summary chart image

Start-up Expenses
Legal $300
Stationery $200
Insurance $200
Untilities Upgrades $150
Rent $250
Expensed Computer Equipment $3,500
Other $500
Total Start-up Expenses $5,100
Start-up Assets
Cash Required $34,700
Start-up Inventory $0
Other Current Assets $500
Long-term Assets $25,300
Total Assets $60,500
Total Requirements $65,600
Start-up Funding
Start-up Expenses to Fund $5,100
Start-up Assets to Fund $60,500
Total Funding Required $65,600
Non-cash Assets from Start-up $25,800
Cash Requirements from Start-up $34,700
Additional Cash Raised $0
Cash Balance on Starting Date $34,700
Total Assets $60,500
Liabilities and Capital
Current Borrowing $5,000
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $5,000
Planned Investment
Heidi Ponic $50,000
Investor 2 $10,000
Other $0
Additional Investment Requirement $600
Total Planned Investment $60,600
Loss at Start-up (Start-up Expenses) ($5,100)
Total Capital $55,500
Total Capital and Liabilities $60,500
Total Funding $65,600