Company Summary Mixed Greens Salad Gardens, soon to be located in Blue River, OR, is a grower an d seller of exotic salad

field greens. MGSG grows a wide variety of field greens including red leaf, arugula, radicchio, mustard greens, endive, and chicory. MG SG 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 neces sary equipment, and other essentials for growing. The home office equipment will be the largest chunk of the start-up expenses. Th is equipment includes a computer system, fax machine, office supplies, cellular phone, and pager. The computer should have at least a 500 megahertz Celeron/Pent ium 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 requ ired. The greenhouse will need the following equipment: a 25' x 100' greenhouse struct ure 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 dep reciated on a seven year straight-line schedule. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan 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 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan. Create your own business plan 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 Page 1 2 3 4 5 6 7 8 Previous Page Next Page Your business plan can look as polished and professional as this sample plan. It 's fast and easy, with LivePlan. Click here to get started. Read more: http://www.bplans.com/produce_farm_business_plan/company_summary_fc.p hp#ixzz2Q2sU1xk5

Products

MGSG will sell a spring mix of salad field greens. These greens will include but are not limited to: red leaf, arugula, radicchio, mustard greens, endive, and c hicory. These greens are grown for use in salad mixtures, purchased by the end c onsumer as well as by restaurants who then serve it to their patrons. While the greens are washed at the farm, they are not certified washed and the patrons are told to wash them an additional time. Read more: http://www.bplans.com/produce_farm_business_plan/products_fc.php#ixzz 2Q2sghKGk

Market Analysis Summary MGSG will be focusing on two distinct users of greens, individual consumers, and restaurants. The consumer market is seasonal so we will have production shifts during the consumer off season and all of the production will go toward wholesal e restaurant distribution. During the spring and the summer MGSG will be serving both the consumer markets through farmer market stands and the restaurants thro ugh direct distribution. 4.1 Market Segmentation Mixed Greens Salad Gardens has two distinct customers: Individual Consumers. This group of people buy exotic salad greens because t hey have a more sophisticated pallette. Average Americans have been raised on ic eberg lettuce and this is their green of choice (unfortunately). When people fro m this class get a little "crazy" they might even try romaine lettuce. These peo ple are typically unsophisticated or unadventurous in terms of culinary habits. These are NOT the people MGSG serves. MGSG is going after people that appreciate healthier, tastier alternatives to the standby of iceberg lettuce. This group o f consumers is more likely to make their own meals instead of going out, appreci ates fine dining, and generally is from a higher socio/economic class. Mixed Gre ens Salad Gardens' field greens are more expensive than choices like iceberg or romaine, therefore one can conclude that the consumer typically makes more money if they are willing to pay significantly more for their salad greens, and secon d, people with more sophisticated palates typically are more educated. Restaurants. Not all restaurants use exotic field greens mixes, generally it is a restaurant of fine dining that serves the finer greens. To be even more sp ecific, it is typically an adventurous American or nouveau cuisine restaurant as opposed to a nicer French or German restaurant that appreciates the exotic fiel d greens mix. For what ever reason (probably attributable to demand of their cus tomers), the French and German restaurants, even the finer ones tend to serve "p easant greens." The restaurants are a year round customer which is helpful to ba lance the seasonal demand of individual consumers (group 1 above). Another advan tage of having the restaurants as a customer is that even though they get a bett er price, MGSG has a long term contract with them which helps out in terms of st ability. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Growth

CAGR

Individual Consumers Restaurants 8% Other 0% 0 Total 11.99% 12,028 Need real financials?

12% 28 0 13,470

12,000 30 0 15,085

13,440 32 0 16,894

15,053 35 0 18,920

16,859 18,882 12.00% 38 7.93% 0.00% 11.99%

We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan. Create your own business plan 4.2 Target Market Segment Strategy Mixed Greens Salad Gardens' target market segment strategy is fairly easy. Our t wo different customer groups purchase from two distinct locations so it is quite easy to target them individually. Individuals. These customers will be buying MGSG products from the different far mer markets located in Eugene, OR. The main one is "The Farmers Market" held dow ntown twice a week in the spring, summer, and the early autumn. This market gets quite a bit of traffic because there is a nice selection of different farmers a nd products and it is in a central location in the heart of Eugene. Additionally , there are several other smaller farmer markets that exist in outlining communi ties. By setting up a booth in these markets, there is already a steady flow of interested customers. There obviously is a fee to set up a stand, but what you g et for the fee is all of your marketing taken care of and a line of customers. I n addition to individuals frequenting the farmer markets, some restaurants will go there as well. This occurs when a restaurant needs certain ingredients but di d not have the time to order it in advance. Restaurants. MGSG will target these customers by introducing MGSG and their prod ucts to the restaurants through meetings with the buyers at each restaurant. The re are about 25-30 different restaurants in Eugene that use field greens in thei r salad and MGSG intends to approach these to form long-term relationships. 4.3 Industry Analysis There are three different types of competitors that MGSG faces: Supermarkets. These stores sell a salad greens mix to consumers. The advanta ge of the supermarket is convenience. There are many supermarkets around the cit y and they are open many hours during the day. Their disadvantage is price and q uality. The quality and variety lower than the standards set by the offerings of MGSG and other similar local farmers. The cost is higher, usually 15% more. Similar local farmers. These are very similar operations to MGSG, sometimes larger and sometimes smaller. There appears to be room in the market for multipl e farmers as most of the farmers sell out their products each day at the farmer markets. Large distributors. An example of this would be Food Service of America (FSA ) which buys a wide variety of products and quality of produce from farmers and distributes them to restaurants. The produce is not usually local, and is a few more days older from the field compared with the local farmers. The price is com parable and the quality can be comparable, but not necessarily. The disadvantage of a food distributor is the lack of flexibility relative to a local grower whe n serving local customers. Buying patterns are based on the customer's desires. What is meant by this is th at lower-end restaurants (or at least restaurants that are less concerned about quality) will not bother to get greens from local farmers, there is no need for them to. This pattern is similar for the individuals. There are some individuals

that are content with the offerings from supermarkets. There are others that ap preciate the difference in quality and are willing to schedule a trip to the far mers market to meet their weekly needs. Read more: http://www.bplans.com/produce_farm_business_plan/market_analysis_summ ary_fc.php#ixzz2Q2sulff1

Strategy and Implementation Summary MGSG will be aggressively courting the farmer markets to ensure the ability to h ave a booth at the markets. Additionally, MGSG will be aggressive in going after the local restaurants that have a consistent need for the greens. Through an as surance of top-shelf service and superior customer service and reliability, MGSG will continue to grow its number of clients. 5.1 Competitive Edge Mixed Greens Salad Gardens' competitive edge has two main aspects: quality and f lexibility. Quality. While the quality of the other local farmers is quite good, Heidi's extensive educational background and practical experience provides her with to ols to create a superior product. Heidi is a perfectionist and her striving for perfection will lead MGSG to developing a product that will be a notch better th an the competition. Flexibility. With MGSG being both small and local in nature, it will be able to be flexible in meeting customer's demands. For instance, if a local restaura nt has customers that prefer more arugula in their salad mix, MGSG can rapidly s hift production to meet the needs of that customer. Most of the farmers, and all of the distributors, typically have their production schedules set up for maxim um yield and are unable to modify crop production very much. Heidi is less conce rned about maximizing yield, she is more concerned with pleasing the customer. S he believes, rightfully so, that talking care of the customer is the most import ant thing. A combination of quality and flexibility will create a sustainable competitive a dvantage that will allow MGSG to succeed. 5.2 Sales Strategy MGSG's sales strategy will be based on visibility, consistency, and strategic re lationships. Visibility. MGSG will need to generate visibility that sets them apart from the other local farmers that sell at the market. This in part will be done throu gh the use of a colorful, distinct booth set-up that stands out among the other farmers. This visibility will create recognition for MGSG. This is important bec ause the produce of the different farmers appears to be the same. The difference s are discovered upon tasting the produce in your home. If MGSG stands out in te rms of the booth appearance, the repeat customer will more easily make the conne ction between the unusual booth and MGSG's product. Consistency. In addition to product consistency, MGSG will have consistency in regards to their presence at the farmer markets. It is much easier to build a wareness and loyalty if people can reliably expect to see MGSG every week in the same place. Strategic relationships. This will be the key for restaurant sales. As state d before, restaurant sales are a consistent income that help reduce the seasonal

ity of MGSG's sales. Forming mutually beneficial, strategic partnership will be of upmost importance for building a good revenue base. 5.2.1 Sales Forecast The first month will be used to set up the greenhouse and get things underway. T here will not be sales activity until month three when the first greens will be sprouting. Month three will see a steady increase in production and sales, and t his will continue until month nine when the consumer sales will be significantly decreasing due to the closing of the farmer markets. From month nine to 16 Mixe d Greens Salad Gardens will have an increase in restaurant sales to offset the e limination of the consumer sales. By month 17, restaurant sales will decrease sl ightly to accommodate for the ramping up of consumer sales again. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan Sales Forecast Year 1 Year 2 Year 3 Sales Individual Consumers $23,154 Restaurants $58,558 Total Sales $81,712 Direct Cost of Sales Year 1 Individual Consumers $2,778 Restaurants $7,027 $9,838 Subtotal Direct Cost of Sales Need real financials?

$40,519 $70,908 $81,981 $114,774 $122,500 $185,682 Year 2 Year 3 $4,862 $8,509 $13,773 $9,805 $14,700 $22,282

We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan. Create your own business plan 5.3 Milestones MGSG will have several milestones early on: Business plan completion. This will be done as a road map for the organizati on. While we do not need a business plan to raise capital, it will be an indispe nsable tool for the ongoing performance and improvement of the company. Greenhouse set-up. First batch of greens sold. The end of the consumer season and the ramping up of the restaurant supply c ycle. Milestones Milestone Start Date End Date Budget Manager nt Business Plan Completion 1/1/2001 1/1/2001 $0 N/A Greenhouse Setup 1/1/2001 2/1/2001 $0 Heidi First Batch of Greens Sold 4/1/2001 4/1/2001 $0 Departme Heidi N/A everyone

N/A End of the Consumer Season and the Ramping up of the Restaurant Supply Cycle 9/1/2001 9/1/2001 $0 everyone N/A Totals $0 Page 1 2 3 4 5 6 7 8 Previous Page Next Page Your business plan can look as polished and professional as this sample plan. It 's fast and easy, with LivePlan. Read more: http://www.bplans.com/produce_farm_business_plan/strategy_and_impleme ntation_summary_fc.php#ixzz2Q2t6uB9n

Management Summary Heidi Ponic, founder and owner, first became interested in growing vegetables at the age of five. Heidi pursued her love for plants by obtaining a biology degre e at the University of Washington. Throughout her last three years at Washington , she worked in a greenhouse that grew many different types of annuals. Upon gra duation, Heidi went to work for a large grass seed manufacturer. Although the gr owing of grass seed proved to be far less interesting then most other plants, sh e was determined to get management experience, a skill set that she lacked. Afte r two years at Willamette Seed Company, she enrolled in Oregon State University' s Masters of Horticulture program. Having gone through the three years of the Masters program, she realized two thi ngs, 1) she needed to create a job/company for herself, 2) she should follow her passion and grow vegetables. These realizations were the final catalyst to purs ue her lifelong dream of running her own greenhouse operation. Heidi's educational training and her passion creates the ideal combination for a n owner of a start-up company. 6.1 Personnel Plan The staff will consist of Heidi working full time. While the bulk of the time He idi will spend managing the operation, she will always spend a few hours a week tending to the plants. In addition to all of the general management required for the production of the greens, Heidi will be setting up strategic relationships with local restaurants. Mixed Greens Salad Gardens will have hired two full-time gardeners beginning in the middle of the first month, and will hire a part-time helper by month four. The gardeners will be primarily responsible for the raisi ng of the field greens, while the part-time help will be used to help staff the farmers market booth for the consumer selling of the greens. Personnel Plan Year 1 Year 2 Year 3 Heidi $24,000 $24,000 $24,000 Gardener $16,650 $17,500 $18,500 Gardener $16,650 $17,500 $18,500

Part-time Helper $0 Part-time Helper $6,750 Total People 4 5 Total Payroll $64,050 Need real financials?

$9,000 $9,500 $0 $9,000 6 $68,000 $79,500

We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan. Create your own business plan Page 1 2 3 4 5 6 7 8 Previous Page Next Page Your business plan can look as polis Read more: http://www.bplans.com/produce_farm_business_plan/management_summary_f c.php#ixzz2Q2tFTEJQ

Financial Plan The following sections will outline the important financial information. 7.1 Important Assumptions The following table highlights General Assumptions Year 1 Year 2 Year 3 Plan Month 1 2 Current Interest Rate 10.00% Long-term Interest Rate Tax Rate 25.42% 25.00% Other 0 0 0 Need real financials? some of the important financial assumptions. 3 10.00% 10.00% 10.00% 10.00% 10.00% 25.42%

We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan. Create your own business plan 7.2 Break-even Analysis The Break-even Analysis below indicates the monthly sales needed to break even. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan Break-even Analysis Monthly Revenue Break-even $8,294

Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost 7.3 Projected Profit and Loss

12% $7,299

The following table will indicate projected profit and loss. Our losses at start -up are evident, as is the turn of the corner in July when we become profitable. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales $81,712 $122,500 $185,682 Direct Cost of Sales $9,805 $14,700 $22,282 Other $0 $0 $0 Total Cost of Sales $9,805 $14,700 $22,282 Gross Margin $71,906 $107,800 $163,400 Gross Margin % 88.00% 88.00% 88.00% Expenses Payroll $64,050 $68,000 $79,500 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $2,532 $2,532 $2,532 Leased Equipment $0 $0 $0 Utilities $3,000 $3,000 $3,000 Insurance $2,400 $2,400 $2,400 Rent $6,000 $6,000 $6,000 Payroll Taxes $9,608 $10,200 $11,925 Other $0 $0 $0 Total Operating Expenses $87,590 $92,132 $105,357 Profit Before Interest and Taxes ($15,683) $15,668 $58,043 EBITDA ($13,151) $18,200 $60,575 Interest Expense $370 $140 ($20) Taxes Incurred $0 $3,882 $14,758 Net Profit ($16,053) $11,646 $43,305 Net Profit/Sales -19.65% 9.51% 23.32% 7.4 Projected Cash Flow The following chart and table will indicate projected cash flow. Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own bus iness plan. Create your own business plan Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash Received Cash from Operations Cash Sales $32,685 $49,000 $74,273 Cash from Receivables $36,451 $67,222 $101,685 Subtotal Cash from Operations $69,136 $116,223 $175,958 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 $69,136 $116,223 $175,958 Expenditures Year 1 Year 2 Year 3 Expenditures from Operations Cash Spending $64,050 $68,000 $79,500 Bill Payments $29,537 $40,751 $59,778 Subtotal Spent on Operations $93,587 $108,751 $139,278 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $2,400 $2,400 $800 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 $95,987 $111,151 $140,078 Net Cash Flow ($26,851) $5,072 $35,879 Cash Balance $7,849 $12,920 $48,800 7.5 Projected Balance Sheet The following table will indicate the projected Pro Forma Balance Sheet Year 1 Year 2 Year 3 Assets Current Assets Cash $7,849 $12,920 $48,800 Accounts Receivable $12,576 $18,854 Inventory $1,438 $2,156 $3,268 Other Current Assets $500 $500 $500 Total Current Assets $22,363 $34,430 Long-term Assets Long-term Assets $25,300 $25,300 Accumulated Depreciation $2,532 $5,064 Total Long-term Assets $22,768 $20,236 Total Assets $45,131 $54,666 Liabilities and Capital Year 1 Year 2 Current Liabilities Accounts Payable $3,084 $3,373 $5,051 Current Borrowing $2,600 $200 ($600) Other Current Liabilities $0 $0 Subtotal Current Liabilities $5,684 $3,573 balance sheet.

$28,578 $81,145 $25,300 $7,596 $17,704 $98,849 Year 3

$0 $4,451

Long-term Liabilities $0 $0 Total Liabilities $5,684 $3,573 Paid-in Capital $60,600 Retained Earnings ($5,100) Earnings ($16,053) $11,646 Total Capital $39,447 $51,093 Total Liabilities and Capital $45,131 Net Worth $39,447 $51,093 Need real financials?

$0 $4,451 $60,600 $60,600 ($21,153) ($9,507) $43,305 $94,398 $54,666 $98,849 $94,398

We recommend using LivePlan as the easiest way to create automatic financials fo r your own business plan. Create your own business plan 7.6 Business Ratios Business ratios for the years of this plan are shown below. Industry profile rat ios based on the Standard Industrial Classification (SIC) code 0161, Lettuce Far ms, as part of Vegetables and Melons, Not Elsewhere Classified, are shown for co mparison. Ratio Analysis Year 1 Year 2 Year 3 Industry Profile Sales Growth 0.00% 49.92% 51.58% -4.60% Percent of Total Assets Accounts Receivable 27.87% 34.49% 28.91% 12.90% Inventory 3.19% 3.94% 3.31% 14.40% Other Current Assets 1.11% 0.91% 0.51% 28.90% Total Current Assets 49.55% 62.98% 82.09% 56.20% Long-term Assets 50.45% 37.02% 17.91% 43.80% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 12.59% 6.54% 4.50% 31.10% Long-term Liabilities 0.00% 0.00% 0.00% 20.50% Total Liabilities 12.59% 6.54% 4.50% 51.60% Net Worth 87.41% 93.46% 95.50% 48.40% Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 88.00% 88.00% 88.00% 32.00% Selling, General & Administrative Expenses 107.19% 78.41% 64.56% 20.70% Advertising Expenses 0.00% 0.00% 0.00% 0.20% Profit Before Interest and Taxes -19.19% 12.79% 31.26% 1.70% Main Ratios Current 3.93 9.64 18.23 1.65 Quick 3.68 9.03 17.50 0.88 Total Debt to Total Assets 12.59% 6.54% 4.50% 51.60% Pre-tax Return on Net Worth -40.70% 30.39% 61.51% 2.20% Pre-tax Return on Assets -35.57% 28.41% 58.74% 4.50% Additional Ratios Year 1 Year 2 Year 3 Net Profit Margin -19.65% 9.51% 23.32% n.a Return on Equity -40.70% 22.79% 45.88% n.a Activity Ratios Accounts Receivable Turnover 3.90 3.90 3.90 n.a Collection Days 56 78 78 n.a Inventory Turnover 10.89 8.18 8.22 n.a Accounts Payable Turnover 10.58 12.17 12.17 n.a Payment Days 27 29 25 n.a Total Asset Turnover 1.81 2.24 1.88 n.a Debt Ratios Debt to Net Worth 0.14 0.07 0.05 n.a Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios Net Working Capital $16,679 Interest Coverage -42.39 Additional Ratios Assets to Sales 0.55 Current Debt/Total Assets Acid Test 1.47 3.76 Sales/Net Worth 2.07 Dividend Payout 0.00 Page 1 2 3 4 5 6 7 8 Previous Page Next Page

$30,857 111.92 0.00 n.a 0.45 13% 11.08 2.40 0.00 0.53 7% n.a 1.97 0.00 n.a 5% n.a n.a

$76,694

n.a

n.a

Your business plan can look as polished and professional as this sample pla Read more: http://www.bplans.com/produce_farm_business_plan/financial_plan_fc.ph p#ixzz2Q2tU12ae