The agriculture industry is a vast industry and investing in it brings good fortune. This bio-organic fertilizer business plan sample will help you take the best steps for initiating your own business. Firstly you can decide which product you want to produce. For this, you can get an idea through market research and analysis. Secondly, you will work on market strategies in order to penetrate the market and get the maximum business share.
Thirdly, budgeting is a mandatory part of the organic farm business plan and this plan helps you make an excellent financial plan to map out all the transactions. Lastly, you can obtain a profitable market plan to confidently enter the agriculture market. You can find more samples too like Garlic Farm Business Plan.
The Greenpro Organic Fertilizer is starting a fertilizer business for producing organic fertilizer through the process of daily food waste recycling. This idea reduces the utilization of chemical fertilizers ultimately protecting the ecosystem from the harmful impact of toxic chemicals.
Organic fertilizers, produced by Greenpro Organic Fertilizer, not only make the environment clean but also resolve problems aroused by food waste produced by our daily consumption and food industries.
Technically, our raw material source is food waste for producing organic fertilizers. So our business will be producing cash practically from the trash. It significantly decreases the material production cost.
Start your Business Plan Now Start My Business PlanThe development of an Agriculture Farm Business Plan for organic animal feed and organic fertilizer manufacturing will serve a multitude of markets such as small-scale to large-scale farm producers, farming cooperatives, gardeners, and institutional agricultural departments.
The plantation and agriculture sectors are the major clients who require huge amounts of fertilizers to boost their productivity. We will also put our efforts into educating farmers as well as household individuals to expend organic fertilizers for the purposes of plantation and all houseplants.
The Greenpro Organic Fertilizer’s financial projections show a viable business having the potential of generating significant profit in the upcoming years.
Business plan for an employment-based, first-preference visa to a non-citizen of extraordinary ability who is an outstanding professor or researcher or is a certain multinational executive or manager.
The Greenpro Organic Fertilizer will be established as a manufacturer for transforming food waste into organic fertilizers through the fermentation method. We ensured our business location in an accessible area that enables us to grow and offer better services than existing similar businesses.
We will always go the extra mile to make our customers satisfied with our services and products. We will promote our business by conducting seminars, conferences, TVC ads, and distributing pamphlets and advertising boards all across the country.
Our IT department will maintain our website with all the necessary information available on it. We will strengthen our presence on Social media channels such as Facebook, Instagram, Twitter, and LinkedIn.
Greenpro Organic Fertilizer is owned and managed by Mr. Alex Mag. He holds a Masters’s degree in agriculture as well as Masters’s degree in Business Management. He has worked for almost 18 years in the field of agriculture with different companies.
Mr. Alex Mag, based on his interest and extensive experience, took the initiative of starting his own business organic fertilizer. He has a good understanding of how to start a manure business or organic fertilizer business, and how it can contribute to making our environment safe for humankind.
This organic fertilizer production project will be started as an environment-friendly business to provide chemical-free organic products to clients & educate people about organic fertilizer significance.
The company hierarchy outlines all employees such as the General manager, Production Manager, Operations Manager, Engineering head, and workers. They will be responsible for the production of high-quality organic fertilizers meeting customer needs.
IT and Marketing department will promote our business and products through online or print media, Word of mouth & seminars, to attract a huge number of clients.
The finance department will maintain all startup costs, budgets, marketing expenses, and profits. This organic fertilizer business plan template includes all the details to successfully initiate a business.
| Start-up Expenses | |
| Legal | $116,800 |
| Consultants | $0 |
| Insurance | $12,000 |
| Rent | $30,000 |
| Research and Development | $10,000 |
| Expensed Equipment | $28,000 |
| Signs | $3,000 |
| TOTAL START-UP EXPENSES | $199,800 |
| Start-up Assets | $250,000 |
| Cash Required | $165,000 |
| Start-up Inventory | $40,000 |
| Other Current Assets | $220,000 |
| Long-term Assets | $235,600 |
| TOTAL ASSETS | $910,600 |
| Total Requirements | $1,110,400 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $199,800 |
| Start-up Assets to Fund | $910,600 |
| TOTAL FUNDING REQUIRED | $1,110,400 |
| Assets | |
| Non-cash Assets from Start-up | $1,200,600 |
| Cash Requirements from Start-up | $296,500 |
| Additional Cash Raised | $48,000 |
| Cash Balance on Starting Date | $36,000 |
| TOTAL ASSETS | $1,581,100 |
| Liabilities and Capital | |
| Liabilities | $18,500 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $70,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $88,500 |
| Capital | |
| Planned Investment | $1,110,400 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,110,400 |
| Loss at Start-up (Start-up Expenses) | $382,200 |
| TOTAL CAPITAL | $1,492,600 |
| TOTAL CAPITAL AND LIABILITIES | $1,581,100 |
| Total Funding | $1,110,400 |
This sample business plan for organic fertilizer highlights various services offered by the Greenpro Organic Fertilizer.
Marketing analysis discovers the needs of the people, the trend of the market, and tells how to make commercial organic fertilizer, the target market & segments, competition strategy, and pricing trend.
Marketing analysis is an important part of the marketing plan for organic fertilizer that gives insights into how many customers can be attracted at a time and how our products can compete with the market-leading brands.
Had a great experience with OGS, especial ly Alex. Understood exactly what I wanted and did the job when promised. I was little skeptical about them at first but they definitely were amazing. Very happy with the work. I highly recommend them!
Organic products and organic fertilizer is rising day by day. The focus of nutritionists on organic food has sparked the fortune of organic fertilizer industries. Organic fertilizers have a huge importance for organic crop cultivation.
Our Greenpro Organic Fertilizer has categorized the targetted customers of organic fertilizers into four segments organic farmers, inorganic farmers, estate owners and retailers. Estate owners are selected because of the huge plantation and they need fertilizers in bulk.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Organic Farmers | 33% | 40,000 | 48,000 | 57,600 | 69,120 | 82,944 | 10.00% |
| Inorganic Farmers | 32% | 35,000 | 42,000 | 50,400 | 60,480 | 72,576 | 10.00% |
| Retailers | 20% | 25,000 | 30,000 | 36,000 | 43,200 | 51,840 | 10.00% |
| Estate Owners | 15% | 15,000 | 18,000 | 21,600 | 25,920 | 31,104 | 11.00% |
| Total | 100% | 115,000 | 138,000 | 165,600 | 198,720 | 238,464 | 10% |
The organic fertilizer market is undoubtedly huge as it has uses in various segments. Based on our market research we will be providing organic fertilizers to organic and non-organic crop farmers and estate owners through retailers and wholesalers. This is because the major business chunk lies here.
Like other markets, the pricing trend also keeps on changing in the organic fertilizer industry. Greenpro Organic Fertilizer has also designated the prices based on the sizes and packages.
We will be following the penetration pricing strategy initially for at least 12 months. This will lower our profit margins but it will greatly help us to maintain shelf level in the market.
The marketing strategy for how to sell fertilizer to farmers, gardeners, and other related customers is derived from marketing analysis. Marketing strategy helps to gain our desired results by properly focusing on the set targets.
The organic fertilizer commercial industry has become notably competitive. You must come up with an innovation in order to gain a good share of the market. Moreover, keep a constant eye on the competition so that they will not engage your customers.
Sales Strategy includes selling our products into properly packaged fertilizer bags such as 10kg, 25kg,50kg, and above based on targeted customers. These will be sold to different retail stores/wholesalers of organic fertilizers. Furthermore, engage customers through social media accounts. A compensation plan can be offered to attract more clients such as bonus on bulk purchases.
Targeted Monthly sales should be maintained as follows;
Targeted yearly sales should be maintained as follows;
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Manufacturing & Setting Up Solar Cells | 5,000 | 5,300 | 5,618 |
| Organic Farmers | 1,500 | 1,590 | 1,685 |
| In-organic Farmers | 900 | 954 | 1,011 |
| Awarness campaign | 3,300 | 3,498 | 3,708 |
| TOTAL UNIT SALES | 10,700 | 11,342 | 12,023 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Organic Farmers | $985.00 | $1,142.60 | $1,325.42 |
| In-organic Farmers | $1,540.00 | $1,786.40 | $2,072.22 |
| Retailers | $2,000.00 | $2,320.00 | $2,691.20 |
| Awarness campaign | $800.00 | $928.00 | $1,076.48 |
| Sales | |||
| Organic Farmers | $4,925,000.00 | $6,055,780.00 | $7,446,187.09 |
| In-organic Farmers | $2,310,000.00 | $2,840,376.00 | $3,492,526.33 |
| Retailers | $1,800,000.00 | $2,213,280.00 | $2,721,449.09 |
| Awarness campaign | $2,640,000.00 | $3,246,144.00 | $3,991,458.66 |
| TOTAL SALES | $11,675,000.00 | $14,355,580.00 | $17,651,621.17 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Organic Farmers | $974.00 | $1,071.40 | $1,124.97 |
| In-organic Farmers | $1,490.00 | $1,639.00 | $1,720.95 |
| Retailers | $1,990.00 | $2,189.00 | $2,298.45 |
| Awarness campaign | $795.00 | $874.50 | $918.23 |
| Direct Cost of Sales | |||
| Manufacturing & Setting Up Solar Cells | $4,870,000.00 | $5,678,420.00 | $6,320,081.46 |
| Organic Farmers | $2,235,000.00 | $2,606,010.00 | $2,900,489.13 |
| In-organic Farmers | $1,791,000.00 | $2,088,306.00 | $2,324,284.58 |
| Retailers | $2,623,500.00 | $3,059,001.00 | $3,404,668.11 |
| Subtotal Direct Cost of Sales | $11,519,500.00 | $13,431,737.00 | $14,949,523.28 |
OTher supporting staff includes
Moreover, there must be a field staff of the company as follows;
This hierarchy can be used for multiple businesses such as State Farm Agent Business Plan.
Any questions? Get in TouchThe average salary for sports agency employees is $60,000. The salary is based on the average salary of all employees, including those in administration, marketing, and sales.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| CEO | $40,000 | $44,000 | $48,400 |
| CFO | $38,000 | $41,800 | $45,980 |
| COO | $39,000 | $42,900 | $47,190 |
| Management | $150,000 | $165,000 | $181,500 |
| Field Staff | $75,000 | $82,500 | $90,750 |
| Supporting Staff | $100,000 | $110,000 | $121,000 |
| Drivers | $30,000 | $33,000 | $36,300 |
| Total Salaries | $472,000 | $519,200 | $571,120 |
Financials of the organic fertilizer production business plan should be calculated carefully in order to correctly estimate the costs, expenses, and profits. Financial reports should be regularly generated to keep proper records. CEO will monitor the financial statements on monthly basis to check all transactions.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 7.11% | 7.11% | 7.19% |
| Long-term Interest Rate | 7.35% | 7.35% | 7.44% |
| Tax Rate | 23.01% | 23.01% | 23.09% |
| Other | 0 | 0 | 0 |
It is expected that variances will be kept to levels that will not negatively impact the organic fertilizer company’s major financial goals.
| Break-Even Analysis | |
| Monthly Units Break-even | 5339 |
| Monthly Revenue Break-even | $131,850 |
| Assumptions: | |
| Average Per-Unit Revenue | $233.00 |
| Average Per-Unit Variable Cost | $0.68 |
| Estimated Monthly Fixed Cost | $166,200 |
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $11,675,000 | $14,355,580 | $17,651,621 |
| Direct Cost of Sales | $11,519,500 | $13,431,737 | $14,949,523 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $11,519,500 | $13,431,737 | $14,949,523 |
| Gross Margin | $155,500 | $923,843 | $2,702,098 |
| Gross Margin % | 1.33% | 6.44% | 15.31% |
| Expenses | |||
| Payroll | $472,000 | $519,200 | $571,120 |
| Sales and Marketing and Other Expenses | $133,000 | $136,000 | $138,000 |
| Depreciation | $2,100 | $2,200 | $2,400 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,800 | $2,900 | $3,000 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $3,400 | $3,500 | $3,600 |
| Payroll Taxes | $22,000 | $23,000 | $24,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $637,400 | $688,900 | $744,220 |
| Profit Before Interest and Taxes | ($481,900) | $234,943 | $1,957,878 |
| EBITDA | ($481,900) | $234,943 | $1,957,878 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | ($96,380) | $46,989 | $391,576 |
| Net Profit | ($385,520) | $187,954 | $1,566,302 |
| Net Profit/Sales | -3.30% | 1.31% | 8.87% |
An organic fertilizer company’s pro forma cash flow is shown in the following table. General assumptions are included in the cash flow statement.
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $50,000 | $54,000 | $58,320 |
| Cash from Receivables | $25,000 | $27,000 | $29,160 |
| SUBTOTAL CASH FROM OPERATIONS | $75,000 | $81,750 | $88,290 |
| 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 | $80,000 | $87,000 | $93,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $37,000 | $38,000 | $40,000 |
| Bill Payments | $24,000 | $27,000 | $28,000 |
| SUBTOTAL SPENT ON OPERATIONS | $61,000 | $65,000 | $68,000 |
| 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 | $62,000 | $66,960 | $72,317 |
| Net Cash Flow | $21,000 | $24,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $32,000 |
As shown in the following balance sheet, the pro forma balance sheet of the anorganic fertilizer company shows the total assets, total liabilities, current subtotal liabilities, total capital, and total liabilities.
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $291,142 | $326,079 | $358,687 |
| Accounts Receivable | $25,877 | $28,982 | $32,576 |
| Inventory | $6,511 | $7,292 | $4,900 |
| Other Current Assets | $2,907 | $2,507 | $2,507 |
| TOTAL CURRENT ASSETS | $326,437 | $364,861 | $398,670 |
| Long-term Assets | |||
| Long-term Assets | $9,755 | $9,755 | $9,755 |
| Accumulated Depreciation | $18,222 | $20,409 | $22,960 |
| TOTAL LONG-TERM ASSETS | $28,300 | $31,696 | $35,658 |
| TOTAL ASSETS | $354,737 | $396,557 | $434,328 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $19,800 | $22,176 | $24,926 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,800 | $22,176 | $24,926 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $16,700 | $18,704 | $21,023 |
| Paid-in Capital | $49,237 | $61,372 | $63,662 |
| Retained Earnings | $58,500 | $63,765 | $70,142 |
| Earnings | $174,000 | $189,660 | $208,626 |
| TOTAL CAPITAL | $338,037 | $377,853 | $413,304 |
| TOTAL LIABILITIES AND CAPITAL | $354,737 | $396,557 | $434,328 |
| Net Worth | $298,760 | $325,648 | $358,213 |
An organic fertilizer company’s business ratios, ratio analysis, and total assets are shown in the following table.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 6.26% | 6.94% | 7.69% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 8.25% | 9.14% | 10.13% | 9.80% |
| Inventory | 5.00% | 5.54% | 6.14% | 9.90% |
| Other Current Assets | 2.25% | 2.49% | 2.76% | 2.40% |
| Total Current Assets | 140.30% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 12.58% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.58% | 4.62% | 4.66% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.51% | 7.57% | 7.64% | 7.38% |
| NET WORTH | 100.03% | 100.83% | 101.76% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 91.65% | 94.12% | 96.76% | 99.00% |
| Selling, General & Administrative Expenses | 93.80% | 96.33% | 99.03% | 97.80% |
| Advertising Expenses | 1.44% | 1.48% | 1.52% | 1.40% |
| Profit Before Interest and Taxes | 38.90% | 39.95% | 41.07% | 33.90% |
| Main Ratios | ||||
| Current | 33 | 34 | 35 | 33 |
| Quick | 32 | 33.2 | 34.03 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 72.68% | 74.24% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.88% | 101.72% | 106.81% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 35.51% | 36.61% | 37.75% | N.A. |
| Return on Equity | 57.20% | 58.97% | 60.80% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.7 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 28.3 | 29.715 | 32 | N.A. |
| Accounts Payable Turnover | 14.9 | 16 | 16.3 | N.A. |
| Payment Days | 28 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.6 | 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 | $238,000 | $251,328 | $265,402 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 28.06 | 28.13 | 28.77 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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