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.
| Start-up | |
| Requirements | |
| 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 |
| Assets | |
| 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 | |
| Liabilities | |
| Current Borrowing | $5,000 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $5,000 |
| Capital | |
| 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 |
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