How to Start a Greenhouse Business
Homeowners, business owners, and even some apartment tenants shop at greenhouses. These businesses typically sells plants, flowers, vegetables, seeds and items related to gardening/landscaping.
Learn how to start your own Greenhouse Business and whether it is the right fit for you.
Ready to form your LLC? Check out the Top LLC Formation Services .
Start a greenhouse business by following these 10 steps:
- Plan your Greenhouse Business
- Form your Greenhouse Business into a Legal Entity
- Register your Greenhouse Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Greenhouse Business
- Get the Necessary Permits & Licenses for your Greenhouse Business
- Get Greenhouse Business Insurance
- Define your Greenhouse Business Brand
- Create your Greenhouse Business Website
- Set up your Business Phone System
We have put together this simple guide to starting your greenhouse business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas .
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
What will you name your business?
- What are the startup and ongoing costs?
- Who is your target market?
How much can you charge customers?
Luckily we have done a lot of this research for you.
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Greenhouse Business Name Generator
If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name , we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability .
It's very important to secure your domain name before someone else does.
Find a Domain Now
Powered by godaddy.com, what are the costs involved in opening a greenhouse business.
Money must be spent on the construction or rental of the greenhouse, as well as inventory, irrigation, fertilizer, fans and hoses, benches and tables, cash registers, insurance, and employee wages.
What are the ongoing expenses for a greenhouse business?
You can purchase property for your greenhouse, or rent an existing building. Such a space will likely cost a significant sum of money. Expect to pay upwards of a couple hundred thousand dollars to purchase the amount of land necessary for an expansive greenhouse. If you rent such a space, it will likely cost several thousand dollars per month, simply because an abundance of space is required to develop and present your inventory.
You will have to purchase all sorts of plants, flowers, produce, seeds, and other items relating to gardening and landscaping. Expect to spend $5,000-$10,000 or more in initial inventory, and at least $500-$1,000 each month in recurring inventory costs. The exact figure hinges on the size of your greenhouse.
Utilities, including water and electric, will likely cost several hundred dollars per month. Budget in at least a couple hundred dollars per month for marketing costs. Employees will require wages of at least $10 per hour, which could certainly be higher in some areas. If you eventually hire marketing and accounting professionals, they will likely command yearly salaries of $35,000-$50,000.
Who is the target market?
The ideal customer is a business owner who requires a diverse array of flowers and plants. Examples include farmers, nursery owners, grocers, florists, etc. Greenhouse business owners also prefer to sell to homeowners who have green thumbs. The aim is to sell a wide array of inventory to each customer in order to maintain a consistent flow of flowers, plants, produce and other vegetables so inventory stays as fresh as possible.
How does a greenhouse business make money?
Greenhouse businesses make money by selling plants, flowers, produce, and other gardening and landscaping items to customers.
The prices of greenhouse products vary by plant quality, desirability, lifespan, and a number of other factors. Plants, flowers, and produce can be sold for amounts ranging from a couple dollars, to $100 and more. Seeds typically cost between 75 cents and a few dollars per packet. Gardening and landscaping supplies typically run between $5 and $50.
How much profit can a greenhouse business make?
A greenhouse can make a tidy profit in its initial years, especially if located in an area where people have a passion for gardening, greenery, and nature. It is not out of the question for a greenhouse to generate a profit of $50,000-$100,000 per year. If the greenhouse owner expands operations and opens additional locations, profits can reach several hundred thousand dollars or more per year.
How can you make your business more profitable?
A greenhouse owner can sell items related to gardening and landscaping such as hand trowels, sprinklers, gardening gloves, hoes, shovels, shears, loppers, pitchforks, tillers, cultivators, soil, mulch, peat moss, etc. Additional profit can be obtained by selling vegetable and/or flower seeds. Some greenhouse owners make extra money by charging for deliveries.
STEP 2: Form a legal entity
The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your greenhouse business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Have a Professional Service Form your LLC for You
Two such reliable services:
You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Get a business credit card
Getting a business credit card helps you:
- Separate personal and business expenses by putting your business' expenses all in one place.
- Build your company's credit history , which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a greenhouse business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .
Certificate of Occupancy
Businesses operating out of a physical location, like a greenhouse, typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws, and government regulations have been met.
- If you plan to lease a greenhouse :
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a greenhouse business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a greenhouse :
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your greenhouse business will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
FInd out what types of insurance your Greenhouse Business needs and how much it will cost you by reading our guide Business Insurance for Greenhouse Business.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.
Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a greenhouse business
Advertise your greenhouse business in a number of different mediums, from local papers to radio spots, billboards, local TV commercials, and beyond. It will also help to have an intuitive website that showcases your extensive inventory. Invest in a search engine optimization (SEO) campaign to increase traffic to your website, blog, and social media platforms.
It is critically important that you establish your greenhouse as a legitimate brand that is worthy of customer trust and loyalty. Please your initial customers and they will spread the word about your greenhouse to friends, family, and coworkers. This is the best form of marketing: completely free and highly effective.
How to keep customers coming back
The best way to attract and retain customers is to develop a sterling reputation within the community. If your inventory is top-notch, your prices are competitive and your team is friendly, locals will show up in droves. It is imperative that your plants and flowers stand the test of time. If they perish in the days following purchase, customers will spread the word throughout the community that your products are low-quality and not worth purchasing.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business .
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .
Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
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Is this Business Right For You?
If you have a “green thumb”, this is the ideal business. You should have an in-depth knowledge of flowers, plants, vegetables, seeds, and gardening equipment. Furthermore, you should have a passion for cultivating everything green. The best greenhouse business owners understand the intricacies of growing plants, flowers, produce, and just about everything else that comes out of the ground.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
Entrepreneurship Quiz
What happens during a typical day at a greenhouse business?
Greenhouse business owners enjoy diverse workdays with a plethora of activities. They do everything from ordering inventory to situating products for display, advertising the business, directing staff, assisting customers, establishing relationships with vendors, assessing profit margins, and beyond.
What are some skills and experiences that will help you build a successful greenhouse business?
A genuine interest in the growing process is critically important to the success of your greenhouse business. You should understand the merits of specific plants, flowers, and produce. You should also be able to answer questions about the growing process, and how to properly care for greenery. It also helps to have marketing savviness. If you can advertise your greenhouse business in a low-cost manner, you will enjoy a steady stream of customers.
What is the growth potential for a greenhouse business?
The growth potential for this business hinges on the number of interested customers in the greenhouse's locale. A greenhouse situated in an upscale suburb will likely grow quickly, as will one in a rural area that can be accessed by a large number of people without a lengthy commute. It is possible to grow a small greenhouse business into an enterprise with numerous locations in less than five years. If your greenhouse business generates a considerable profit, you can regionalize the business and expand across a portion of your state, or even open new locations in other states.
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Take the Next Step
Find a business mentor.
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a greenhouse business?
Presentation is essential to success. The placement of your inventory matters a great deal. Customers are swayed by the aesthetics of your plants, so sweat the small stuff when considering how to best present your inventory. It will also help to hire knowledgeable staff who can educate interested parties about the nuances and merits of specific items.
Be sure to reach out to your local zoning authority to find out the specific rules governing greenhouses in the area. Opt for a location that has plenty of parking. It is also prudent to select land that has a reliable water supply, high-quality soil, allows for run-off, provides unfettered access to utilities and sources of shade. Conduct research on the optimal growing conditions, soil types, planting times, run-off requirements and so on. Research the merits of solar greenhouses to boot. Though all greenhouses collect energy from the sun, certain types are better at collecting and storing this energy than others.
It is worth noting that greenhouse owners who sell organic produce must keep their land free of pesticides for a minimum of three consecutive years, so find out how your land was used in the past if you wish to offer organics. It is also necessary to certify your produce. Finally, make sure your greenhouse has sufficient windows to improve ventilation during hot summer months.
How and when to build a team
A greenhouse owner will likely require employees from the start. It is not typically possible for one person to do all of the work. Employees are necessary to work the cash register, water plants, replenish stock, provide customer service, order inventory, market the business, and handle accounting. Though the business owner can initially handle some of these responsibilities, it will be necessary to delegate work as the business grows.
Read our greenhouse business hiring guide to learn about the different roles a greenhouse business typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.
Useful Links
Truic resources.
- TRUiC's Greenhouse Business Hiring Guide
Industry Opportunities
- Got Produce Franchise opportunity
- National Greenhouse Manufacturers Association
Real World Examples
- Landscape greenhouse
- Plant greenhouse
Further Reading
- Tips for Starting a Greenhouse Business
- Starting Your Own Greenhouse
Have a Question? Leave a Comment!
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Greenhouse Business
Back to All Business Ideas
How to Start a Greenhouse Business
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Updated on May 8, 2023
Investment range
$17,000 - $100,000
Revenue potential
$93,600 - $312,000 p.a.
Time to build
Profit potential
$56,000 - $94,000 p.a.
Industry trend
- Decide if the Business Is Right for You
- Hone Your Idea
- Brainstorm a Greenhouse Business Name
- Create a Greenhouse Business Plan
- Register Your Business
- Register for Taxes
- Fund your Business
- Apply for Greenhouse Business Licenses and Permits
- Open a Business Bank Account
- Get Business Insurance
- Prepare to Launch
- Build Your Team
- Run a Greenhouse Business - Start Making Money!
Greenhouse Business FAQs
Do you want to take your gardening to the next level? The greenhouse industry is set to grow more than 80% by 2027, so you could jump in on this booming market by starting your own greenhouse business. If you have property, you could build your greenhouse on it and open it to the public if you can get the proper permitting. If you don’t have property, you could purchase a small piece of land and build. You’d be doing what you enjoy and making good money while providing people with fresh, healthy produce or plants to beautify their yards.
Before you get started on that greenhouse construction, though, you need to gain some business know-how. Fortunately, you’ll get all the entrepreneurial knowledge and skills you need by reading this step-by-step guide, designed to put you on the garden path to greenhouse success.
Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.
Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .
Step 1: Decide if the Business Is Right for You
Pros and cons.
Starting a greenhouse business has pros and cons to consider before deciding if it’s right for you.
- Great Lifestyle – Do what you love every day
- Good Money – Profit margins on items you grow will be high
- Promote Health – Grow healthy, fresh produce to enrich people’s lives
- High Startup Costs – Greenhouse construction costs money
- Crowded Market – Compete with greenhouses and large garden stores
Greenhouse industry trends
Industry size and growth.
- Industry size and past growth – The commercial greenhouse market was worth an impressive $26.88 billion in 2019.(( https://www.verifiedmarketresearch.com/product/global-commercial-greenhouse-market/ ))
- Growth forecast – The commercial greenhouse market is projected to grow more than 80% by 2027 to reach $49.3 billion.
Trends and challenges
Trends in the greenhouse industry include:
- Greenhouse manufacturers are producing greenhouses that are more energy-efficient, which helps greenhouse businesses save money, particularly in light of rising energy prices.
- Automated irrigation systems, pH sensors, and climate control software are being used to solve problems faced by greenhouse growers, such as disease prevention and pest management.
Challenges in the greenhouse industry include:
- Labor shortages are making it difficult for greenhouse growers to find employees.
- Rising energy prices are a challenge for greenhouse growers who cannot afford the most up-to-date greenhouse technology.
Demand hotspots
- Most popular states – The most popular states for greenhouse growers are North Dakota, Kansas, and Washington . (( https://www.zippia.com/greenhouse-worker-jobs/best-states/ ))
- Least popular states – The least popular states for greenhouse growers are Arkansas, the District of Columbia, and Mississippi.
What kind of people work in greenhouses?
- Gender – 54.9% of greenhouse workers are female, while 42% are male.(( https://www.zippia.com/greenhouse-worker-jobs/demographics/ ))
- Average level of education – The average greenhouse worker is high school educated.
- Average age – The average greenhouse worker in the US is 40.7 years old.
How much does it cost to start a greenhouse business?
Startup costs for a small greenhouse business are about $17,000. Costs include the construction of the greenhouse and equipment. With a small greenhouse, you could sell your items at local markets, or from a farmer’s market stand. To start a larger greenhouse that you could open to the public could cost $100,000 or more.
You’ll need a handful of items to successfully launch your greenhouse business, including:
- Irrigation system
- Fans and hoses
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business name and corporation | $150 - $200 | $175 |
| Business licenses and permits | $100 - $300 | $200 |
| Insurance | $100-$300 | $200 |
| Business cards and brochures | $200 - $300 | $250 |
| Website setup | $1,000 - $3,000 | $2,000 |
| Greenhouse construction | $10,000 - $70,000 | $40,000 |
| Greenhouse equipment | $5,000 - $20,000 | $12,500 |
| Seeds, fertilizer, pots | $1,000 - $5,000 | $3,000 |
| Total | $17,550 - $99,100 | $58,325 |
How much can you earn from a greenhouse business?
Prices for your items will depend on the types of items that you grow. These calculations will assume that you’ll have a large enough greenhouse to allow people to come and shop, and that your average total sale per person will be $20. Your profit margin after energy and other growing costs should be about 60%.
In your first year or two, you might get 15 customers a day 6 days a week, bringing in $93,600 in annual revenue. This would mean $56,000 in profit, assuming that 60% margin. As you gain traction and get repeat business, you might have 50 customers a day. At this stage, you’d hire staff, reducing your profit margin to around 30%. With annual revenue of $312,000, you’d make a tidy profit of around $94,000.
What barriers to entry are there?
There are a few barriers to entry for a greenhouse business. Your biggest challenges will be:
- The land required to build a greenhouse
- The costs of greenhouse construction and equipment
Related Business Ideas
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Step 2: hone your idea.
Now that you know what’s involved in starting a greenhouse business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Why? Identify an opportunity
Research greenhouse businesses in your area to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a greenhouse that sells vegetables that include head lettuce, brussel sprouts, and tomatoes. Or it might be missing a greenhouse that sells bedding plants.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as decorative plants or fresh produce.
This could jumpstart your word-of-mouth marketing and attract clients right away.
What? Determine your products or services
You’ll just need to decide what products you want to grow, and what you have space for in your greenhouse. You could also make products like homemade tomato sauce that you package in jars.
How much should you charge for greenhouse products?
Your prices will completely depend on the products you grow. You should check your local area for prices on similar items. You should aim for a profit margin of 60% when you’re working by yourself.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Who? Identify your target market
Your target market will be broad, so you should spread out your marketing to include sites like TikTok, Instagram, and Facebook.
Where to locate your greenhouse?
When choosing a location for a greenhouse business, several key factors must be taken into account.
First, consider the climate, land and soil quality, and the accessibility of the location. A suitable climate will reduce costs for climate control, while fertile land is essential for plant growth and greenhouse structure.
Easy access to transportation, employees, and customers is crucial for the success of your business.
Also, ensure that the area has access to resources like water, electricity, and natural gas, which are vital for maintaining greenhouse conditions.
Additionally, look into local zoning and regulations, infrastructure, orientation and topography, and the size of the land to accommodate your greenhouse and potential expansion.
Keep in mind the security and labor availability in the area, as well as the level of competition.
Lastly, ensure that the cost of the land, taxes, and other expenses align with your budget and business plan.
By carefully considering these factors, you can select an ideal location for your greenhouse business that promotes long-term success.
Step 3: Brainstorm a Greenhouse Business Name
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
- Short, unique, and catchy names tend to stand out
- Names that are easy to say and spell tend to do better
- Name should be relevant to your product or service offerings
- Ask around — family, friends, colleagues, social media — for suggestions
- Including keywords, such as “greenhouse” or “greenhouse produce”, boosts SEO
- Name should allow for expansion, for ex: “Blooming Botanicals” over “Cactus Kingdom”
- Avoid location-based names that might hinder future expansion
- Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Find a Domain
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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Step 4: Create a Greenhouse Business Plan
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
- Executive Summary : Brief overview of the entire business plan; should be written after the plan is complete.
- Business Overview : Overview of the company, vision, mission, ownership, and corporate goals.
- Product and Services : Describe your offerings in detail.
- Market Analysis : Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis .
- Competitive Analysis : Analyze main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
- Sales and Marketing : Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
- Management Team : Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
- Operations Plan : Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
- Financial Plan : Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
- Appendix : Include any additional financial or business-related documents.
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Step 5: Register Your Business
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Choose where to register your company
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to greenhouse businesses.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Choose your business structure
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your greenhouse business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
- Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
- General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
- Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
- C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
- S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.
Form Your LLC
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We recommend ZenBusiness as the Best LLC Service for 2023
Step 6: Register for Taxes
The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist , and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.
Step 7: Fund your Business
Securing financing is your next step and there are plenty of ways to raise capital:
- Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
- SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
- Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
- Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
- Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
- Personal: Self-fund your business via your savings or the sale of property or other assets.
Bank and SBA loans are probably the best option, other than friends and family, for funding a greenhouse business. You might also try crowdfunding if you have an innovative concept.
Step 8: Apply for Greenhouse Business Licenses and Permits
Starting a greenhouse business requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Step 9: Open a Business Bank Account
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your greenhouse business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Step 10: Get Business Insurance
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
- General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
- Business Property: Provides coverage for your equipment and supplies.
- Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
- Worker’s compensation: Provides compensation to employees injured on the job.
- Property: Covers your physical space, whether it is a cart, storefront, or office.
- Commercial auto: Protection for your company-owned vehicle.
- Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
- Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.
Step 11: Prepare to Launch
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Essential software and tools
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as et GROW , redbud , or Velosio , to manage your costs, inventory, ordering, invoices, and payments.
- Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
- If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.
Develop your website
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using services like WordPress , Wix , or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Some of your business will come from the casual passerby or online visitors, but you should still invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness.
Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products:
- Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area.
- Instagram: Same benefits as Facebook but with different target audiences.
- Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Now”. This can sharply increase purchases.
- Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers.
Kickstart Marketing
Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include:
- Signage – Put up eye-catching signage at your greenhouse and website
- Flyering – Distribute flyers in your neighborhood
- In-Person Sales – Offer your greenhouse products at local markets
- Start a blog – Start a blog and post regularly. Change up your content and share on multiple sites.
- Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
- Pay – per-click marketing – Use Google AdWords to perform better in searches. Research your keywords first.
Focus on USPs
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your greenhouse business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your greenhouse business could be:
- Fresh, organic produce straight from the greenhouse to your table
- Healthy, organically grown plants to beautify your landscape
- Start your vegetable garden with our young, healthy plants
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a greenhouse business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in greenhouses for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in greenhouses. You’ll probably generate new customers or find companies with which you could establish a partnership.
Step 12: Build Your Team
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a greenhouse business include:
- Greenhouse Workers – care for plants, make sales, customer service
- General Manager – scheduling, ordering, accounting
- Marketing Lead – SEO strategies, social media
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Step 13: Run a Greenhouse Business – Start Making Money!
If you’ve got a green thumb, a greenhouse business could be a fabulous opportunity for you to follow your passion and make good money at the same time. The greenhouse industry is booming as demand for healthy produce grows in a more health-conscious world. It does take a bit of investment and commitment to get started, but the returns are considerable.
You understand the business side of things now, so you’re ready to start growing your way to entrepreneurial success!
Yes, you can make a relatively good profit margin on greenhouse items. You just need to focus on growing high-quality items that a large market of people want to buy.
The possibilities are endless since so many plants can grow well in a greenhouse. It’s probably best to specialize in either greenhouse produce or decorative plants that people will buy for their landscaping.
The most profitable greenhouse product depends on factors such as location, demand, and market trends. Some popular greenhouse crops that can be profitable include tomatoes, cucumbers, peppers, lettuce, and herbs.
The cheapest way to heat a greenhouse is to use passive solar heating techniques such as insulation, thermal mass, and glazing. Additionally, you could consider using a wood-burning stove or a propane heater or installing a geothermal or solar heating system.
A greenhouse does not necessarily need sun all day, but it does need sufficient light to support plant growth. Ideally, a greenhouse should receive at least 6 hours of direct sunlight per day, although this can vary depending on the type of plants being grown and the climate in your area.
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Greenhouse Business Plan Template
JUN.10, 2021
Greenhouse business plan for starting your own business
If you are looking to start a new business, one that can be profitable always, without being impacted by any external factor, this business plan for green house is what you need. As long as there are humans on this planet, they’ll need to eat and that’s the reason this field can never go out of business.
This business will be even more profitable for ones who own their own land and don’t have to lease it. Making it the best business plan for landlord . Let’s now see how to write a business plan for a greenhouse so that you can enter this business and make money.
Executive Summary
2.1 the business.
Candyland Greenhouse will be a registered and licensed greenhouse farming company in Ohio, USA. This business will be used as an example of starting greenhouse business plan. The aim of this business will be to provide all greenhouse crops to the state.
2.2 Management of Greenhouse Business
Before you learn more about how to start a greenhouse business, you need to learn how the business will be managed. The greenhouse business start up will be owned and presided by John Candy. He will hire three managers for operations, liaison, and procurement to handle the day-to-day operations of the greenhouse.
The supreme authority in the business will reside with John Candy himself. Any matter of significant importance must be brought to his notice. This business plan and management structure of the farm is created by professional business plan writers and is designed to be applicable to any greenhouse business in any part of the world. One thing must be kept in mind that unlike a microbrewery business plan , this business will need a lot of starting capital.
2.3 Customers of Greenhouse Business
As greenhouses produce food, everyone with a beating heart is technically a customer. We will be providing our products to the following customers:
- Retail customers.
- Grocery stores.
- Restaurants.
- Supermarkets.
2.4 Business Target
The business target we have set for this venture are the following:
- Starting to generate a revenue of more than $201,161 by year 2.
- Expanding to two other states by year 5.
Company Summary
3.1 company owner.
The owner of this vegetable greenhouse business plan, will be John Candy. John is an agriculture engineer and has been providing consultancy services for progressive farming for the last 10 years. He has immense interest in new farming techniques, and the capital needed to start the business.
3.2 Why the Greenhouse Farming Business is being started.
The reason John is starting this business is that there is a serious gap between the supply and demand of greenhouse crops in the area. People go through a lot of trouble just to get non-seasonal veggies and fruits and can only get them in frozen form, fresh ones are not available.
This sample greenhouse business plan aims to target this market gap and make a lot of money while we are at it. Let’s now explore more details of this greenhouse farming business plan doc. Before that, if you want to get into the food business here’s a seafood restaurant business plan .
3.3 How the Greenhouse Business will be started.
Step1: Planning
The first step of starting this business will be planning. We need to make a solid plan starting from where the farm will be located to the buyers, we’ll be supplying the product to. All the planning aspects of the business will be discussed in this greenhouse farming business plan.
Step2: Building a Brand
One of the main practical things to do, one which needs to be started even before the physical structure of the farm comes into existence is the brand building.
Step3: Establish Your Corporate Office
Jack decided to rent a building in Manhattan to establish his business office. He will procure the latest cleaning equipment and inventory to set his business. Just like a gourmet food store business plan , we need to make sure that we have a brand that people know before we actually start the business.
Step4: Going Online
As people tend to buy a lot of stuff online, we’ll be offering our products on our online store. For this, an e-commerce website and social media pages will be created.
Step5: Promote and Market
Lastly, we’ll promote our brand via all advertisement channels so that people know the name.
| Legal | $245,000 |
| Consultants | $0 |
| Insurance | $28,000 |
| Rent | $31,000 |
| Research and Development | $22,000 |
| Expensed Equipment | $57,000 |
| Signs | $4,000 |
| Start-up Assets | $344,000 |
| Cash Required | $355,000 |
| Start-up Inventory | $42,000 |
| Other Current Assets | $233,000 |
| Long-term Assets | $271,000 |
| Start-up Expenses to Fund | $387,000 |
| Start-up Assets to Fund | $1,245,000 |
| Assets | |
| Non-cash Assets from Start-up | $1,631,000 |
| Cash Requirements from Start-up | $385,000 |
| Additional Cash Raised | $53,000 |
| Cash Balance on Starting Date | $36,000 |
| Liabilities and Capital | |
| Liabilities | $28,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $47,000 |
| Other Current Liabilities (interest-free) | $0 |
| Capital | |
| Planned Investment | $1,632,000 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| Loss at Start-up (Start-up Expenses) | $473,000 |
The next big thing that we need to discuss in this organic greenhouse business plan is the services we will be providing. This is necessary to complete this greenhouse business example. The thing that we need to be clear on before actually starting greenhouse business is that this is more of a products business than a services one. All the services provided by this business will be based on the products that we will provide to the customers.
The main services that we will provide after opening a greenhouse business will be the following:
- Organic Food Provision
We will be providing organic food delivery services to businesses as well as individual customers. As the trend of organic food is on the rise, this will help us make a lot of money.
- Non-Seasonal Veggies Provision
This is one of the most obvious services for the greenhouse. We will grow and supply veggies that are not in the season and this will be another of the main income streams for the business.
- Exotic Fruits
Another of the services of this greenhouse business plan example will be exotic fruits. We will grow and supply fresh exotic fruits, something that is not available on the market.
- Farm Outlet Shop
Last, but not the least, we will establish a farm outlet and provide all our product for sale there.
These are just the services we are providing as a starting point of our greenhouse business plan template and we will add more services later.
Let’s now see more aspects of this tomato greenhouse business plan pdf.
Marketing Analysis of Greenhouse Business
Marketing analysis is the name given to the extensive research of the market you are about to enter. This organic greenhouse business plan covers this aspect too. This is very important for starting greenhouse business because any business started without proper research of the market fails miserably. Opening a greenhouse business is not a big deal but if you want to make it profitable, you need to know the market inside out.
One thing can be safely assumed in this greenhouse business plan example and that is; the greenhouse business is not going anywhere anytime soon. People no longer want to be bound to eating just the seasonal vegetables. If we can create a way of providing all vegetables all-year-long, sky is the limit for us. Just like a distillery business plan , this business has a very low chance of failure.
5.1 Market Trends
If we have a look at the size and growth rate of this industry, it is mind boggling. The greenhouse industry was worth $17 billion in 2019 in USA alone. It is expected to show a combined annual growth rate of a whopping 10%. This means that in just 5 years from now this industry will be worth over $50 billion dollar.
That is the kind of growth that you do not see everywhere. Now is the time to enter this industry and make money while we can. Like we said in the brewery business plan , such opportunities are rare, and you need to catch them if you can.
5.2 Marketing Segmentation
The market segmentation of the greenhouse farming business will be the following:
5.2.1 Retail customers
These will be the people who want to buy the products for their personal use. We will open a farm shop just outside the farm to cater the needs of these customers. The size of these sales will be small, but the large number of sales will make up for it.
5.2.2 Retailers
Grocery stores and retailers will also be one of the market segments that we will be targeting. These will be our regular customers. We will offer this market segment discounted rates to make them our permanent customers and to advertise our name through them.
5.2.3 Restaurants
Restaurants that offer non-seasonal vegetable and fruit dishes and need fresh products for that will also be our customers. We will give them discounts to make them our long-term customers.
5.2.4 Supermarkets
Supermarkets that have fruit and vegetable stalls and need to have fresh fruits and vegetables for sale will also make a major segment of our target market.
| Potential Customers | Growth | ||||||
| Retail customers | 32% | 37,000 | 38,000 | 40,000 | 42,000 | 44,000 | 10.00% |
| Grocery Stores | 25% | 25,000 | 26,000 | 27,000 | 28,000 | 30,000 | 10.00% |
| Restaurants | 23% | 20,000 | 21,000 | 22,000 | 24,000 | 25,000 | 10.00% |
| Supermarkets | 20% | 16,000 | 17,000 | 19,000 | 21,000 | 23,000 | 11.00% |
| 10% |
5.3 Business Target
- To become the leading supplier of greenhouse products in the area.
- To expand to other states by the end of year 2.
- To experiment and improve the techniques of growing crops in a greenhouse.
- To be the leading greenhouse business in the USA by the end of year5.
5.4 Product Pricing
We will price our products a bit lower than the competitors to get permanent customers. Once we make a loyal customer base, we will then move on to competitive pricing.
Marketing Strategy
If you really want to know how to open a greenhouse, one of the most important things to have is a strong marketing strategy for the business. Your marketing strategy is what helps you get on top of the game and outperform the competition. Let’s see how to open a greenhouse business with a winning marketing strategy.
The marketing strategy we are adopting for this greenhouse business model is simple; make it known to everyone and offers products and services not given by any competitor.
6.1 Competitive Analysis
After an extensive research of the market, we’ve determined that Candyland Greenhouse will have the following competitive edges:
- No business is providing fresh non-seasonal fruits and vegetables in the area, and we will be the first one to do so.
- Exotic fruits being sold in the area are imported and are sold a week or so after being picked from the farms. We will provide fresh ones.
- Organic non-seasonal fruits and veggies are not available in the area and we will be the first company to provide these products.
6.2 Sales Strategy
- We will use multiple channels to advertise out products and services.
- We’ll arrange giveaways at the time of the launch to make it known to the potential customers that we provide quality products.
- We’ll provide a 25% discount on all cash orders for the first 2 months.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Unit Sales | |||
| Organic Food Provision | 44,000 | 46,640 | 49,438 |
| Non-Seasonal Veggies Provision | 46,000 | 48,760 | 51,686 |
| Exotic Fruits | 42,000 | 44,520 | 47,191 |
| Farm Outlet Shop | 40,000 | 42,400 | 44,944 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Organic Food Provision | $45.00 | $52.20 | $60.55 |
| Non-Seasonal Veggies Provision | $52.00 | $60.32 | $69.97 |
| Exotic Fruits | $60.00 | $69.60 | $80.74 |
| Farm Outlet Shop | $47.00 | $54.52 | $63.24 |
| Sales | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Organic Food Provision | $43.00 | $49.00 | $56.00 |
| Non-Seasonal Veggies Provision | $50.00 | $57.00 | $65.00 |
| Exotic Fruits | $58.00 | $66.00 | $76.00 |
| Farm Outlet Shop | $45.00 | $51.00 | $59.00 |
| Direct Cost of Sales | |||
Personnel plan
The next important thing to mention in this business plan for greenhouse farming is the detail of the staff that will be needed to run the business. As agriculture is a labor-intensive business, we’ll have to hire quite a bit of staff for the farm to run smoothly. This is not a butcher shop business plan where you can make do with a couple of men.
7.1 Company Staff
- John Candy will be the CEO of the company.
- 3 Managers for operations, liaison, and procurement.
- 8 Farm workers.
- 1 Technician.
- 1 Accountants.
- 2 Shopkeepers for farm outlet
- 1 Software engineer for the online store and social media presence management.
- 3 Delivery drivers.
- 2 Security guards.
7.2 Average Salary of Employees
| Operation Manager | $14,000 | $15,400 | $16,940 |
| Liaison Manager | $13,000 | $14,300 | $15,730 |
| Procurement Manager | $13,000 | $14,300 | $15,730 |
| Farm Workers | $65,000 | $71,500 | $78,650 |
| Technician | $8,000 | $8,800 | $9,680 |
| Accountant | $10,000 | $11,000 | $12,100 |
| Shopkeepers | $16,000 | $17,600 | $19,360 |
| Software Engineer | $9,000 | $9,900 | $10,890 |
| Delivery Drivers | $24,000 | $26,400 | $29,040 |
| Security Guards | $16,000 | $17,600 | $19,360 |
Financial Plan
A strong financial plan is also one of the very important things required to complete a commercial greenhouse business plan. This part of the business plan elaborates the costs that will be incurred by the owner of the business in order to start it and run it until it starts making profit.
The expenses will include:
- Money needed to buy the land for the greenhouse.
- Price of constructing the greenhouse.
- Running expenses of the farm before it starts making profit.
- Salaries of the employees for the first 6 months.
- Prices of delivery vehicles.
- Cost of setting up the outlet.
8.1 Important Assumptions
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.16% | 8.19% | 8.26% |
| Long-term Interest Rate | 8.39% | 8.48% | 8.52% |
| Tax Rate | 24.20% | 24.45% | 25.80% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Monthly Units Break-even | 5341 |
| Monthly Revenue Break-even | $130,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $235.00 |
| Average Per-Unit Variable Cost | $0.69 |
| Estimated Monthly Fixed Cost | $165,000 |
8.3 Projected Profit and Loss
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | |||
| Expenses | |||
| Payroll | $188,000 | $206,800 | $227,480 |
| Sales and Marketing and Other Expenses | $120,000 | $125,000 | $130,000 |
| Depreciation | $2,130 | $2,200 | $2,300 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $3,000 | $3,100 | $3,200 |
| Payroll Taxes | $26,000 | $27,000 | $29,000 |
| Other | $0 | $0 | $0 |
| Profit Before Interest and Taxes | ($130) | $251,451 | $499,007 |
| EBITDA | ($130) | $251,451 | $499,007 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | ($26) | $50,290 | $99,801 |
| Net Profit | ($104) | $201,161 | $399,206 |
| Net Profit/Sales | 0.00% | 1.87% | 3.01% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $56,000 | $60,480 | $65,318 |
| Cash from Receivables | $21,000 | $22,680 | $24,494 |
| SUBTOTAL CASH FROM OPERATIONS | |||
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | |||
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $37,000 | $39,000 | $41,000 |
| Bill Payments | $19,000 | $24,000 | $27,000 |
| SUBTOTAL SPENT ON OPERATIONS | |||
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | |||
| Net Cash Flow | $20,000 | $20,000 | $22,000 |
| Cash Balance | $30,000 | $31,000 | $33,000 |
8.5 Projected Balance Sheet
| Assets | |||
| Current Assets | |||
| Cash | $271,000 | $303,520 | $333,872 |
| Accounts Receivable | $25,000 | $28,000 | $31,472 |
| Inventory | $4,400 | $4,928 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | |||
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $18,800 | $21,056 | $23,688 |
| TOTAL LONG-TERM ASSETS | |||
| TOTAL ASSETS | |||
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $19,000 | $21,280 | $23,919 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | |||
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | |||
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $50,000 | $54,500 | $59,950 |
| Earnings | $191,000 | $208,190 | $229,009 |
| TOTAL CAPITAL | |||
| TOTAL LIABILITIES AND CAPITAL | |||
| Net Worth | $293,000 | $319,370 | $351,307 |
8.6 Business Ratios
| Sales Growth | 7.22% | 8.00% | 8.86% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.28% | 10.28% | 11.39% | 9.80% |
| Inventory | 5.46% | 6.05% | 6.70% | 9.90% |
| Other Current Assets | 2.18% | 2.42% | 2.68% | 2.40% |
| Total Current Assets | 150.09% | 152.00% | 152.00% | 158.00% |
| Long-term Assets | 11.60% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | ||||
| Current Liabilities | 4.96% | 5.00% | 5.05% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.66% | 7.72% | 7.79% | 7.38% |
| NET WORTH | ||||
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 95.55% | 98.13% | 100.88% | 99.00% |
| Selling, General & Administrative Expenses | 93.95% | 96.49% | 99.19% | 97.80% |
| Advertising Expenses | 1.51% | 1.55% | 1.59% | 1.40% |
| Profit Before Interest and Taxes | 41.70% | 42.83% | 44.03% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 32 | 32.4 | 33.21 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.70% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 94.24% | 98.95% | 103.90% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.00% | 34.02% | 35.08% | N.A. |
| Return on Equity | 55.74% | 57.47% | 59.25% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 31 | 32.55 | 33 | N.A. |
| Accounts Payable Turnover | 15 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $245,000 | $258,720 | $273,208 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.86 | 0.87 | 0.87 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29.1 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.3 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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Greenhouse Farming Business Plan Sample
Greenhouse farming business plan guide.
Are you an entrepreneur interested in investing in the greenhouse agricultural sector?
Have you wondered how you could write a comprehensive and detailed business plan for this business venture?
If your answer to these questions is yes, then you are in the right place. This article will provide answers to these questions as it will make available all the necessary steps involved in writing a good greenhouse farming business plan.
With this sample, all the entrepreneur needs to do is to simply follow the format, while brainstorming on the realities of his business enterprise. Using this business plan sample, a compelling and detailed business plan is assured for your business.
Here is a sample business plan for starting a commercial greenhouse farm.
Executive Summary
Products and services, vision statement, mission statement, competitive advantage, target market, our sources of revenue, sales projection, payment channels, publicity and advert strategies.
All Season’s Farms is a commercial greenhouse farm to be located in Illinois . Specialized in the production of a wide variety of crops ranging from crops, flowers, and other agro-related products, All Season’s Farms is poised to provide the best variety of profitable greenhouse crops , produced under the best conditions for the open market.
Some of the crops we will be cultivating include okra, sweet potato, cauliflower, parsley, coriander, tomatoes, lettuce, strawberries, melon, varieties of onions and several other crop types.
In the nearest future, we plan on embarking on the export of these products. This means that we will be increasing our production capacity to cover both the domestic market and also exporting some.
To achieve this, we have bought machineries to mechanize our production. This is in addition to skilled labor which will be coordinating the whole process from cultivation to harvesting and eventually taking these products to consumers.
The products and services that will be available at All Season’s Farms will include the provision of training services to interested individuals or organizations who will like to learn our production technology. This is in addition to the provision of consultancy services to these clients.
Our products include the production of sweet potato, cauliflower, onions, lettuce, tomatoes, coriander, parsnips, red salad onions, lemon grass, and strawberries, among several others.
At All Season’s Farms, we have the vision of creating a well respected brand that will be reckoned with both within the United States and the world.
This will be possible through the provision of unparalleled services to our clients and also the production of the best crops through the adoption of the best farming technologies.
Our Mission is to eventually diversify our services to include the processing of some of our products to create value addition.
Also, we will be exporting our products to other countries, leading to full blown commercial greenhouse farming.
Our competitive advantage at All Season’s Farms is the quality of our workforce which we have painstaking selected.
These are selected from a pool of the best experts in the agricultural sector, with specialty in the greenhouse farming sector. These will form the bulk of our workforce, as they would be engaged in particular fields they have expertise in.
Also, our quality control unit will be headed by these experts that will ensure that every product that leaves our farms pass a stringent quality control test.
We will have an attractive remuneration package for all our employees, plus the best working conditions to ensure that our workforce brings out the best in them, which will eventually contribute positively to our business.
Our target market is broad. This is so because food is consumed by everyone. Because of this, our products are very essential to life.
Our main target markets will include households, businesses, and food processing industries (in the interim before the commencement of our food processing arm).
These, especially households will form the primary market for our products.
Our sources of revenue will come primarily from the products and services we will be providing. The training and consultancy services we will be providing our clients will form part of our revenue source.
The sale of our agro products that include tomatoes, peppers, onions carrots, peas, cauliflowers, lettuce, and coriander, among several other products will form a part of our revenue source.
To ascertain the profit potential in the greenhouse farming sector, we have carried out some research, which have shown promise in sales.
Using these, a three year sales projection has been arrived at, that will see our sales jumping significantly. Factors used at arriving at these projections do not include natural disasters and economic recession.
The chart below summarizes our findings;
- First Year $250,000
- Second Year $390,000
- Third Year $560,000
We have come up with an innovative way of making payments which involves the introduction of all the payment options to cater for the unique payment preferences of our clients.
This ensures that the client needs are taken into consideration while providing the best services.
The publicity and advert strategies to be adopted will include the placement of paid advertisement in both print and electronic media, the printing of fliers and handbills for distribution, mounting of billboards bearing our services and also the use of social media channels to spread our services.
A website containing all the services and products rendered by us will be available for easy access.
This article has been written as a guide for interested entrepreneurs who plan on starting a greenhouse farming business but have little or no knowledge on how to write a good business plan for their businesses.
Following the sample provided, the entrepreneur is assured of success in producing a good and effective business plan.
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Vegetable Greenhouse: this type of business focuses on growing vegetables to sell to various grocers and markets, restaurants, or direct-to-consumer at farmer’s markets. Potted Plant Greenhouse: this type of greenhouse propagates and grows potted plants to sell, either to plant shops and nurseries or direct-to-consumer.
Start a greenhouse business by following these 10 steps: Plan your Greenhouse Business. Form your Greenhouse Business into a Legal Entity. Register your Greenhouse Business for Taxes. Open a Business Bank Account & Credit Card. Set up Accounting for your Greenhouse Business. Get the Necessary Permits & Licenses for your Greenhouse Business.
Startup costs for a small greenhouse business are about $17,000. Costs include the construction of the greenhouse and equipment. With a small greenhouse, you could sell your items at local markets, or from a farmer’s market stand. To start a larger greenhouse that you could open to the public could cost $100,000 or more.
This sample greenhouse business plan aims to target this market gap and make a lot of money while we are at it. Let’s now explore more details of this greenhouse farming business plan doc. Before that, if you want to get into the food business here’s a seafood restaurant business plan. 3.3 How the Greenhouse Business will be started.
Your Farm's Business Plan. A good farm business plan is your roadmap to start-up, profitability, and growth, and provides the foundation for your conversation with USDA about how our programs can complement your operation. Your business plan will be a living document that you can change as your vision and circumstances shift.
Here is a sample business plan for starting a commercial greenhouse farm. Executive Summary Products and Services Vision Statement Mission Statement Competitive Advantage Target Market Our Sources of Revenue Sales Projection Payment Channels Publicity and Advert Strategies Executive Summary