Greenhouse Business Plan

* The calculations use the average data for the World

Growing greens is a business that you can do on your own site by building a greenhouse on it. He does not promise superprofits, but he is perfect as a side job.

1. SUMMARY OF THE PROJECT

The goal of the project is the organization of a greenhouse for growing greenery for its implementation in the Rostov region. The main target audience is concentrated in Rostov-on-Don. The target audience is small wholesale buyers who sell their products among the population of the city aged 20 to 50 years with different income levels.

The growing demand for fresh vegetables and greens, a healthy diet and state support for agriculture have led to the active development of the greenhouse business. In the Russian greenhouse economy, it is advantageous to grow fresh greens for sale - it is more unpretentious than vegetables, and does not require constant care. As market research shows, the need for salad greens every year increases by 10%.

Thus, the idea of ​​organizing a greenhouse for growing greens is relevant. This business has the following advantages:

- greens are growing rapidly, which allows you to take several crops a year and quickly earn income;

- high and regular demand for products, which allows you to find distribution channels;

- simple business organization;

- small starting capital;

- for growing greenery it is not necessary to have specialized knowledge;

- the opportunity to organize a business at home;

- preferential terms of doing business, which relates to agriculture;

For the implementation of the project uses its own land plot with a total area of ​​50 sq.m. A personal garden plot is located in the Rostov Region, 25 km from the enterprise is the city of Rostov-on-Don.

The volume of initial investments is 182, 000 rubles. Investment costs are directed to the construction and equipping of greenhouses, advertising promotion, the formation of a working capital fund until the project reaches a return on investment. The bulk of the required investment, 68%, is in the construction and equipping of greenhouses. Own funds will be used to implement the project.

Financial calculations cover the two-year period of operation of the project. It is anticipated that after this time expansion of the business will be required. According to the calculations, the initial investment will pay off for the ninth month of operation. According to the results of the first year of operation, net profit of 513, 800 rubles and a return on sales of 47.8% are projected.

2. DESCRIPTION OF THE INDUSTRY AND COMPANY

The greenhouse business in Russia is a promising area, which is explained by the growing demand for fresh vegetables and greens, a fashion for healthy nutrition, and a state priority for the development of agriculture in the country. Today, the state is increasingly focusing on the development of the industry, helping beginners and existing farmers, allocating land at preferential rates, subsidizing interest rates on loans and providing grants for the development of greenhouses. However, the main problem holding back the development of the industry remains high utility tariffs.

Currently, the greenhouse business continues to grow rapidly, increasing the production of vegetables and herbs in domestic greenhouses - due to the construction of new greenhouses and the modernization of old production facilities. As a result, the gross harvest of vegetables and greenery of the protected soil over the past two years has grown by 17.7%. Despite this, the need for Russians in the production of greenhouses produced in the country, satisfied only 26%. About 600 thousand tons of vegetables are harvested from closed ground in Russia with a demand of 3 million tons. And this need increases annually by 10-15%.

In the Russian greenhouse business, it is beneficial to grow fresh herbs for sale. This product does not require as much light and heat as vegetables, it is more unpretentious and does not require constant care. Practice shows that growing herbs is 5 times more profitable than vegetables.

In addition, according to market research, the need of people to include various varieties of greens in the diet increases by 10% every year, which creates a significant demand for these products among consumers.

Thus, the cultivation of greenhouse greens is a promising area of ​​business. A feature of greenhouse growing of greens is the possibility of year-round production, under any climatic conditions. Table 1 shows the key advantages and disadvantages of growing greenhouse greens, which should be considered when planning a business. With proper development, a business is able to bring stable and high income.

Table 1. Advantages and disadvantages of greenhouse growing herbs

Benefits

disadvantages

- greens are growing rapidly, which allows you to take several crops a year and quickly earn income;

- high and regular demand for products, which allows you to find distribution channels;

- Both wholesale and retail sales are possible;

- simple business organization;

- greens unpretentious in care and does not require a lot of attention;

- small starting capital;

- for growing greenery it is not necessary to have specialized knowledge;

- the opportunity to organize a business at home;

- quick payback

- high level of competition in the market;

- the market depends on seasonality;

- short shelf life of products and rapid loss of presentation;

- To grow greens year-round, an expensive greenhouse is required;

- it is impossible to sell products through stores without obtaining permits;

- low price for products

When organizing a greenhouse business, it should be borne in mind that it is profitable only if the production is located in the southern or central regions of the country. It is more profitable to pay for the transportation of products to the northern territories than to engage in the greenhouse business there, paying significant heating costs.

Thus, we can talk about the attractiveness of this business. Growing a greenhouse business can become a profitable and highly profitable business. A thoroughly worked out business plan for growing greenery in a greenhouse will help to avoid problems when starting a business.

3. DESCRIPTION OF GOODS OF GREENHOUSE FOR GROWING GREEN

Leafy vegetables include lettuce, parsley, dill, onions, cilantro, basil, garlic and several other crops. The greatest demand is salad, onion and dill. The most profitable type of greenery for growing is onion, as it is an unpretentious and fast-growing crop. However, with its implementation, it may be difficult to find buyers, since many grow onions. The most profitable greens are lettuce. Recently, growing arugula is gaining popularity.

It is recommended to start with the cultivation of several crops and gradually expand the range. When selecting crops for cultivation, the following parameters should be taken into account: the growing season, the required area for sowing, the conditions of greenhouse cultivation, endurance, demand, price. Table 2 presents a comparative description of various types of herbs, which will help to properly formulate the assortment.

Table 2. Characteristics of the types of greenery for growing

Types of greenery

Greenhouse cultivation

Vegetation period

Price

Endurance

Required space

Long-term storage

Parsley

+

-

-

+

+

-

Dill

+

+

-

+

+

+

Salad

+

+

+

+

+

+

Basil

+

-

+

+

-

+

Feather bow

+

+

-

+

-

-

Cilantro

+

-

-

+

+

-

Arugula

+

+

+

+

+

+

Spinach

-

-

+

+

+

+

This project involves the cultivation of the following types of herbs: parsley, dill, lettuce, and onion. All products meet the requirements of GOST (GOST R 55904-2013, GOST 32856-2014, GOST 33985-2016 and GOST R 55652-2013, respectively). As packaging for fresh products, transparent plastic containers are used, as well as cone bags, which can improve the presentation of the product and simplify transportation. Packing 100-150 gr. It is also planned to produce products in the form of assorted sets, which includes at least two types of greens.

The products are sold at room temperature, refrigerated and intended for sale in retail and wholesale distribution networks, in catering and for industrial processing.

Small wholesale prices for herbs vary in the range of 50-150 rubles. per kilogram. It should be borne in mind that the price of greens varies depending on the season. On average, the price is 80 rubles. per kilogram at retail prices of 200 rubles. per kilogram.

4. SALES AND MARKETING OF GREEN GROWING BUSINESS

The peculiarity of the greenhouse growing business is that the target audience is not the end consumer, but wholesale buyers, product distributors, represented mainly by various vegetable and grocery stores. At the same time, the advertising strategy should take into account the requirements of the end user in order to plan production and predict the volume of sales. Portrait of the final consumer of products: the population of the city aged 20 to 50 years with different income levels; gender and occupation as such do not play a role.

Thus, the project’s marketing policy covers both end-user assessment and promotion methods among flower distributors. Advertising is aimed at establishing long-term cooperation and developing a customer base.

The most difficult task in the greenhouse business is finding a market. Greens is a perishable product, therefore, a well-functioning system of distribution channels and a competent marketing strategy are required. In order to create sales channels, a novice entrepreneur should:

- analyze the competitive environment, assess the level of demand for products, develop their competitive advantages;

- conduct a price analysis of the market and offer more favorable conditions as a supplier: lower cost, flexible system of discounts for wholesale buyers, guarantees, etc .;

- release a catalog of finished products on paper and on the Internet. Create a list of potential buyers and send out commercial offers.

Fresh greenery sales channels can be:

  • retail grocery stores with a wide range of products;

  • network grocery networks;

  • vegetable bases;

  • farm stalls that specialize in the sale of environmentally friendly products made in Russia;

  • institutions of the HoReCa segment - restaurants and cafes.

Promising markets include online stores, which have recently gained popularity and offer customers fresh, farm products. To develop this sales market, you can team up with vegetable cooperatives represented on Internet sites. In the future, with proper advertising of its products, it is possible to open its own outlet.

Each distribution channel has its advantages and disadvantages, which relate to the total cost of greenery, volumes of sold parties, terms of cooperation, etc. In order to establish sales channels and not suffer losses from overproduction, it is necessary to create a stable sales network a few months before harvesting. It should be noted that the search for new customers and the development of sales markets is an ongoing process, therefore, to implement this function, a sales specialist is required. His responsibilities will include attracting clients and working with them, as well as advertising support for the project and analysis of the effectiveness of using the advertising budget.

Promotion is carried out in various ways. The advertising budget is 30, 000 rubles and consists of the following types of costs:

- Creation of a product catalog (commercial offer) and printing of advertising material (including business cards) - 10, 000;

- Direct marketing is a way to increase sales by sending sales letters to potential customers. Effective direct marketing is ensured by narrowing the target audience and a quality mailing list that may interest the client. The same group of expenses includes the costs of promotion on the Internet, the implementation of call-promotion and transportation costs - 20, 000 rubles.

It is also expected to participate in various thematic fairs and business events.

The competitiveness of the project is ensured by high quality products. In all advertising events, attention is focused on the merits of purchasing goods from a domestic manufacturer (saving transportation costs, lower prices, reduced risk of supply disruptions, guarantees, flexible system of discounts, high quality products, which is achieved by reducing delivery time).

When planning the volume of sales, production capacities should be taken into account, since the maximum volume of production depends on the area of ​​greenhouses, growing conditions, varieties of greenery, etc.

The maximum production volume is calculated based on the area of ​​greenhouses - 50 square meters. m., the average ripening period of 30 days and the average yield of salad crops - up to 4 kg per 1 square. m. In total, the annual yield of the greenhouse will be about 2400 kg a year, and 200 kg a month. This indicator should be guided when planning sales.

How much can you earn from growing herbs? With an established sales system and an average retail price of 200 rubles. sales will amount to 40, 000 rubles per month. In winter, when the price of greens increases substantially, monthly income may double.

5. PLAN OF PRODUCTION OF THE ECONOMY FOR GROWING GREEN

How to open a green growing business from scratch? The project organization algorithm involves the following steps:

  • Register a business as LLC or IP;

  • Decide on a place and technology for growing greens;

  • Purchase specialized equipment;

  • Hire skilled workers;

  • Establish distribution channels for products and calculate production volumes;

  • Plant seed.

Let us dwell on each item in more detail.

The organization of the green growing business includes the following steps:

1) Registration with state bodies. This project focuses on growing greenery and positions itself as a personal homestead farm. Its activities are not taxed and does not require registration. This option is suitable for small production, which plans to cooperate with small distributors.

The company is located on a personal plot of 50 square meters. meters, located in the Rostov region. 25 km from the enterprise is the city of Rostov-on-Don. Because the area of ​​the plot does not exceed 2 hectares, for the organization of business it is enough to get only a certificate from the local administration that this plot belongs to you and is used for growing greenery. With small volumes of production, it is not necessary to be formalized as an entrepreneur: in this case, you sell the products yourself or hand them over to resellers at wholesale prices. In the event that in the future it is planned to sell products through grocery stores or vegetable bases, business registration will be required.

2) Production technology. The production technology provides for the creation of two greenhouses (total area - 50 sq. Meters), the use of irrigation equipment. The process of planting seedlings, some care operations, as well as harvesting is carried out manually. The production cycle should be planned on the basis that the first crop is expected 30-40 days after transplanting.

There are different technologies for growing greenery in a greenhouse:

- hydroponics (growing plants without soil in liquid media using fertilizers). The cost of 1 hydroponic installation is about 1, 500 rubles. for one installation;

- “intermediate” (peat, hydroponics and ordinary soil are used). This method is 3 times more expensive than conventional hydroponics.

There are also various types of soils that can be used in conjunction with hydroponics. Each soil has its own characteristics (table 3).

Table 3. Types of soil for greenhouse growing greens

Type of soil

pros

Minuses

Cost

Sawdust

lack of an unpleasant smell, plants do not decay, low price

require care (need to be poured with hot water and placed in a container).

from 300 rub. for 1 cubic meter

Priming

high availability

Needs the entry of various fertilizers and nutrients.

from 700 rub. for 1 cubic meter

Expanded clay

Keeps moisture, easy, reasonable price

does not contain nutrients, therefore it is necessary to regularly fertilize

from 1400 rub. for 1 cubic meter

Gravel

practical economical option; good air permeability

heavy and does not retain moisture.

from 50 rub. per kg

Coconut flakes

eco-friendly, durable, universal soil

high price.

from 100 rub. per kg

Hydrogel

retains moisture long enough, passes water, does not harm plants

high price

from 1500 rub. per kg

The choice of soil depends on many factors, including the characteristics of growing crops, from which the assortment is formed. Features of the cultivation of selected types of greens are shown in table 4.

Table 4. Features of growing various types of greens

Type of greenery

Growing Features

Parsley

  • Recommended varieties: - Prima, Sugar, Curly or Harvest (the most early and fruitful)

  • After the emergence of seedlings before the harvest takes about 25-30 days.

  • Watering is plentiful and frequent, and after cutting, fertilizing with fertilizers is required.

  • With overcast, additional illumination is needed, in winter we also re-illuminate with phytolamps (3-4 hours).

Dill

  • The most unpretentious culture

  • Recommended varieties: - Kaskelen, Mushroom, Uzbek-243.

  • Seeds germinate for 2-3 weeks, harvesting 40-50 days after emergence

  • Short shelf life, requires additional lighting in winter

Salad

  • Recommended varieties: Curly, Pepper, Broadleaf.

  • Seedlings for 5-7 days; Harvesting - in 10-12 days.

  • Unpretentious.

  • After cutting the leaves need feeding

Feather bow

  • Recommended varieties: Leek, Shallot, Slime onion, Onion Storied

  • Harvesting in 25-30 days

  • It does not require special conditions and special care, but to increase productivity, onions need to be regularly watered and fed with fertilizers

3) Purchase of equipment. Another important issue when implementing a business project is how to choose a greenhouse for growing greens? The construction of a greenhouse is a very important stage in the organization of this business. The quality of the manufactured products, and hence the success of the business, depends on how efficiently and technologically competently the greenhouse is designed.

For growing greenery at home all year round capital facilities on a solid foundation are suitable. The most effective greenhouse system for growing greens is a thermos greenhouse. This design due to the double coating and solar collector allows you to do without heating. Greenhouses with a wooden frame, coating (roof - polycarbonate, walls - thick film) with a total area of ​​50 sq.m. will cost, on average, 60-70 thousand rubles.

The amount of investment needed to create greenhouses is 122, 000 rubles. Of these, 80, 000 rubles. - funds for the construction of greenhouses, and 42, 000 rubles. - the acquisition of greenhouse equipment, a list of which is given in table 5.

Industrial greenhouses most often use hydroponic technology. They can significantly save space and reduce the cost of finished products. Plants are grown in liquid nutrient solutions, without the use of soil. The cost of a hydroponic kit for a greenhouse is about 70, 000 rubles. For soil cultivation, greenhouses should be equipped with a drip irrigation system. The cost of an automatic drip irrigation system for greenhouses of 150 sq.m. - 12, 000 rubles.

Lighting for greenhouses is provided by LED lamps, which have spectral characteristics that are completely identical to sunlight. Due to this, the normal process of photosynthesis in plants is ensured. In addition, LED lamps can save up to 60% of energy and do not heat up.

Table 5. The list of farm equipment

No.

Name

Cost, rub.

Greenhouse construction

one

Greenhouse thermos

65, 000

2

Installation of equipment

15, 000

Irrigation equipment

3

Automatic drip irrigation system

12, 000

Lighting equipment

four

Led grow light 90w UFO

10, 000

five

Other equipment

20, 000

Total:

122, 000

The expenses also include the purchase of seeds, but they can be grown independently, due to which it will be possible to save. You should also provide for the costs of biofertilizers - this item of expenditure will amount to 7, 000 rubles.

4) Search for sales channels. The green growing business will bring stable profits throughout the year only if sales channels are established. Therefore, it is necessary to pay special attention to the stage of searching for customers and establishing commercial cooperation. Wholesale greens - this is the best option for organizing sales. The basis of successful sales is a competent pricing policy and a flexible system of working with customers.

5) Recruitment. At the first stages of work, an entrepreneur can perform all the actions independently. In the future, he will need the help of a sales representative who will look for new sales channels for the products, as well as an assistant working in the greenhouse.

6. ORGANIZATIONAL PLAN

In the first year of work, it is planned that the entrepreneur will independently organize the production process. It is allowed to attract third-party assistants at certain stages (for example, during high sales).

7. FINANCIAL PLAN

The financial plan takes into account all the income and expenses of the greenhouse, the planning horizon is 2 years. It is planned that after this period expansion of the business will be required.

To launch the project, it is necessary to calculate the amount of initial investments, which include: expenses for the purchase of equipment, advertising on the market, the formation of working capital, which will cover the losses of the initial periods.

The initial investment for the greenhouse for growing herbs is 182, 000 rubles. Of these, 68% accounted for the construction and equipping of greenhouses, 16% for advertising, and 16% for working capital. The project is funded by equity. The main items of investment costs are shown in table 6.

Table 6. Investment costs

No.

Name

Amount, rub.

The property

one

Greenhouse Construction

80, 000

Equipment

2

Greenhouse equipment

42000

Intangible assets

3

Starting advertising campaign

30, 000

Current assets

four

Seedlings, fertilizers, etc.

10, 000

five

Current assets

20000

Total:

182 000 ₽

Variable expenses consist of the spent capacities for irrigation, heating, as well as consumables (seedlings, fertilizers, etc.). In this case, utility costs are categorized as variables. It is also necessary to calculate the cost of production. Practice shows that the cost of growing herbs is 10-60 rubles (depending on the crop). To simplify financial calculations, the value of variable costs is calculated as the average value of the cost of growing herbs - 25 rubles.

Fixed costs consist of advertising costs, depreciation and bio-fertilizer costs. Lack of staff allows to exclude staff costs. The amount of depreciation is determined by the linear method, based on the useful life of fixed assets of 3 years.

Table 7. Monthly expenses

Name

Amount, rub.

Advertising, marketing

5000

Depreciation

3500

Unexpected expenses

5000

Biofertilizers

3500

Total expenses:

17000

Thus, fixed monthly expenses of 17, 000 rubles were determined.

8. EVALUATION OF EFFICIENCY

The project payback period for initial investments of 202, 000 rubles is 10 months. The net monthly profit of the project upon reaching the planned sales volumes will be 18, 000 rubles. The planned sales volume is planned for the fifth month of operation. The return on sales in the first year of operation is 47.8%. High profitability is achieved due to the high margins on products. The annual volume of net profit for the first year of sale will amount to 245 575 rubles.

9. POSSIBLE RISKS

To assess the risk component of the greenhouse rose growing project, it is necessary to analyze the external and internal factors. External factors include threats related to the economic situation in the country and markets. To internal - the effectiveness of managing the organization.

Among the internal risks are:

- greens are perishable goods that cannot be stored for long. In order to avoid losses, it is necessary to constantly monitor the market and forecast demand;

- Errors in the estimation of sales volumes, which can lead to the disposal of products. It is possible to reduce the likelihood of this risk by creating a clearly streamlined sales system;

- product quality that does not meet the stated requirements and market requirements: constant monitoring of quality and identification of deviations is required (non-compliance with the technology or poor-quality seed);

- Errors in the process of growing products on which the quality of the product and the yield depend. Permanent monitoring and competent work in greenhouses will reduce the risk.

External factors include:

- the presence of a variety of pests that can not only spoil, but also completely destroy the crop. This can be avoided if continuous pest protection is provided;

- climatic conditions that complicate the process of growing products and incur additional costs (in the case of a cold winter - for insulation of the premises, in the case of an arid, hot summer - for watering). This risk is the most specific for this type of business and is almost not subject to management. The only thing that an entrepreneur should do is to have a supply of funds in order to timely respond to the problem and eliminate it;

- high level of competition in the market. It is possible to reduce this risk with a well-thought-out marketing strategy and the achievement of certain competitive advantages (due to a more favorable price, special conditions, guarantees, additional services);

- termination of cooperation, entailing financial losses (reduced profits, increased costs for finding new partners, etc.) The occurrence of this problem may occur due to inadequate product quality, supply disruption, the emergence of a competitor willing to offer more favorable conditions. One way or another, an entrepreneur should always take this risk into account and create such conditions of cooperation that would be beneficial to both parties.

Evgenia Yurkina

(c) www.clogicsecure.com - a portal to small business business plans and guides

08/18/2019

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