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Garden Nursery Business Plan
Start your own garden nursery business plan
Rose Petal Nursery
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.
Rose Petal Nursery is dedicated to providing a quality choice for people looking for plant and garden supplies, as well as serving contractors who need a reliable source of products. Our start-up expenses come to $41,500 which includes the cost of the greenhouses ($38,000) and the cost of rent for the land ($1,000). The start-up costs will be financed entirely by Jim and Dan Forester.
We will offer a wide variety of plants, trees, vegetable plants, along with a selection of garden supplies. Most of the plants we sell will be grown in our greenhouses. With a convenient location Rose Petal Nursery intends to successfully market to the residential customer, as well as contractors and renters.
We would like to see a five to ten percent increase in our customer base each year. Our marketing strategy includes providing a knowledgeable staff, affordable prices, a great location, and top notch customer service.
Rose Petal Nursery has been the dream of owners Jim and Dan Forester for many years, and has been a project in the making for the last five years. Jim and Dan will manage all aspects of operations at Rose Petal Nursery. Dan will oversee the staff and be involved with the ordering of merchandise, while Jim will be responsible for the ordering of the garden supplies and tree stock, as well as the maintenance of the greenhouses.
Rose Petal aims to experience a growth rate of 20% in sales for the second year of operation and build upon that as the company grows. With creative marketing, and a quality choice of plants and garden supplies for our customers Rose Petal Nursery intends to make its presence known in the nursery community.
- Maintain an average gross margin at or above 50%.
- Generate an average of $1,000 of sales each business day of each month.
- Realize an annual growth rate of 10% in Year 2.
Rose Petal Nursery is dedicated to providing a wide variety of plants and trees in an aesthetic setting. Customer service is extremely important. We want each customer to have a pleasant shopping experience, and it is the intention of our staff to answer questions with expertise and to offer advice when we feel it is needed.
1.3 Keys to Success
The primary keys to success for the company will be based on the following factors:
- Sell products of the highest quality with excellent customer service and support.
- Retain customers to generate repeat purchases and make referrals.
- Continue to expand daily sales by adding to the variety of plants we sell.
- Communicate with our customers through creative advertising.
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Plant Nursery Business Plan Template
Written by Dave Lavinsky
Plant Nursery Business Plan
Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their plant nursery businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a plant nursery business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your plant nursery business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a plant nursery business, or grow your existing plant nursery business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your plant nursery business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Plant Nursery Businesses
With regards to funding, the main sources of funding for a plant nursery business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for a plant nursery business.
How to Write a Business Plan for a Plant Nursery
If you want to start a plant nursery business or expand your current one, you need a business plan. Below we detail what should be included in each section of your business plan:
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of plant nursery business you are operating and the status. For example, are you a startup, do you have a plant nursery business that you would like to grow, or are you operating a chain of plant nursery businesses?
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the plant nursery industry. Discuss the type of plant nursery business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of plant nursery business you are operating.
For example, you might operate one of the following types of plant nursery businesses:
- Houseplant Nursery : this type of plant nursery business focuses on providing a selection of popular houseplants for indoor growing.
- Landscaping Nursery: this type of nursery focuses on outdoor plants and supplies for lawn care and landscaping.
- Tree Nursery: this type of nursery specializes in providing a selection of trees for purchase.
In addition to explaining the type of plant nursery business you will operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, number of products sold etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry analysis, you need to provide an overview of the plant nursery industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the plant nursery industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy, particularly if your research identifies market trends.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section:
- How big is the plant nursery industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your plant nursery business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: homeowners, apartment renters and landscapers.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of plant nursery business you operate. Clearly, apartment renters would respond to different marketing promotions than landscapers, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most plant nursery businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other plant nursery businesses.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes landscapers and local plant swaps. You need to mention such competition as well.
With regards to direct competition, you want to describe the other plant nursery businesses with which you compete. Most likely, your direct competitors will be plant nurseries located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What types of plants do they grow and sell?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide better quality and selection of plants?
- Will you provide services that your competitors don’t offer?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a plant nursery, your marketing plan should include the following:
Product : In the product section, you should reiterate the type of plant nursery company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to a plant nursery, will you provide custom landscaping services, educational programs or any other services?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location of your plant nursery company. Document your location and mention how the location will impact your success. For example, is your plant nursery located in a busy retail district or shopping plaza, or is it visible from a busy highway, etc. Discuss how your location might be the ideal location for your customers.
Promotions : The final part of your plant nursery marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Advertising in local papers and magazines
- Reaching out to local websites
- Social media marketing
- Local radio advertising
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your plant nursery business, including tending plants, growing or transporting plants, and helping customers.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 100th plant, or when you hope to reach $X in revenue. It could also be when you expect to expand your plant nursery business to a new city.
To demonstrate your plant nursery business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in managing plant nursery businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing plant nurseries or successfully running small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your plant nursery business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a plant nursery business:
- Location build-out including design fees, construction, etc.
- Cost of equipment and supplies
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your nursery location lease, blueprints of your nursery design or an inventory list.
Putting together a business plan for your plant nursery business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the plant nursery industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful plant nursery business.
Plant Nursery Business Plan FAQs
What is the easiest way to complete my plant nursery business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your plan.
What is the Goal of a Business Plan's Executive Summary?
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of plant nursery you are operating and the status; for example, are you a startup, do you have a plant nursery that you would like to grow, or are you operating a chain of plant nurseries?
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Garden Nursery Business Plan Example
Nursery garden business plan for starting your own business
The plant and greenhouse industry is blooming! IBIS World reports $40 billion in 2018 sales, an enormous number with plenty of room to grow. The sales figures include stock, bedding and garden plants, sod, mushrooms, flowering foliage in pots, and many other products.
Of particularly good news for the budding entrepreneur who is intending to open a new operation is the fact the average horticulture operation has higher sales than the average U.S. farm. This is an industry ripe for innovation whether through the use of technology or through creative thinking. The first step towards startup is the development of a customized, professional nursery garden business plan.
2.1 the business.
People appreciate nice landscapes around homes, apartments, and commercial buildings. They want well-kept parks, nicely maintained natural preserves, and highways bordered with hardy sod and local wildflowers. As the green movement grows, there is also a demand for more products like native varieties which require less watering and care, and plants that offer other benefits like high oxygen production and soil anchoring.
The business plan for plant nursery will address the ”hows and whys” of the operation. It should include all information relevant to startup that will guide decision-making, keep the company on track to fulfill its mission, and entice investors or lenders. Typical company information includes:
The experience level of the entrepreneur and other managers is critical because this is a highly specialized industry catering to well-defined markets. Whereas most consumers and commercial operations need paper, for example, the products sold by the operation are directed at a segmented market.
The overall theme of the nursery will influence the product line. Will the nursery cater to customers who want native plants to create natural ecosystems, green products suitable for particular climate zones, a variety of landscaping items, and/or indoor foliage? Will other items be offered for sale too, like flower pots, garden tools and decorations, and fertilizers?
2.4 Target of the Company
3.1 company owning.
Garden nurseries can be started in areas that are suitably zoned. The entrepreneur should demonstrate that land use regulations are researched and appropriate licenses obtained. The entrepreneur may need funding for land purchase and building and greenhouse construction. Nurseries need an irrigation system, storage buildings, heavy equipment for moving and delivering inventory, a warehouse, sales office, and so on. How much startup capital is needed? When is the nursery expected to start making a profit after accounting for costs?
3.2 Why the Business is being started
The status of local water supplies is a critical issue. What is the source of water? Are there permit requirements? Many areas are going through a drought and installation of efficient watering systems is mandatory.
3.3 How the Business will be started
The options are unlimited and include perennial and annual flowers, shrubs, trees, sod, other products like Christmas trees, agricultural seed products, starter plants, maintenance supplies, and so on. Will plants be grown in containers or rootballed, or sold as bare root or a mixture of production methods? Will the operation deliver to the customers’ sites? If so, it is important to have the right type of delivery equipment available.
The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, is given below:
Services for Customers
If you are thinking about opening a nursery, you must first decide the services which you’ll be providing. Mentioning them clearly in the form of a nursery plant business plan experts for plant nursery is preferable as it can give you an idea about the things which will be needed in starting nursery plant business.
We know it’s confusing to decide which sort of plants and products to showcase, so that everyone can find the things of their interest. Therefore, we’re providing here a sample business plan for plant nursery of a startup, Flora Mart, so that you can get idea about services which can prove profitable these days.
Services listed in nursery plant business plan of Flora Mart are as:
- Bedding Plants: Flora mart will keep seasonal bedding plants by amassing different colored flowers and leaves to create visually appealing flower beds.
- General Vegetation: We’ll be selling seedlings of general indoor and outdoor plants such as spider plant, Dracaena, Jade plant, African Violet, Boston Fern etc.
- Seeds: We’ll keep seeds of all almost types of carnivorous plants, vegetables, fruits, and flowers.
- Landscaping Services: We’ll be providing professional gardeners to set up lawn and vegetation according to customer’s land and space.
- Garden Accessories: We will be keeping all the things that one can need in landscaping and gardening such as water sprinkler, pressure sprayer, seedling trays, lawn mowers, hand diggers, electric dust blowers, hydroponic trays, soils, grass patches, organic & inorganic fertilizers, plastic and sand-made pots of every size and shapes, hanging plant containers and garden stones.
- Purchasing through App & Delivery Services: Customers can also avail our services by making a purchase using our app and get it delivered to their door.
Marketing Analysis of business for plant nursery
4.1 market trends.
In other words, the entrepreneur who wants to start a commercial nursery or greenhouse has many options. The key is to develop an operation capable of generating revenue year round for maximum profitability. For example, the owner could sell spring, summer, and fall flowers and shrubs, pumpkins and fall varieties in October, and Christmas trees in December. These are the types of topics covered in the business plan for plant nurseries.
4.2 Marketing Segmentation
Just owning a nursery isn’t sufficient to generate desired profits. To be successful, you must have to analyze your target customers before you actually start your business for plant nurseries. It can help you in devising policies and in adorning your place.
Also your plant nursery requirements can vary according to your target market. For instance, if you aim at targeting companies then it’ll be good to create a fine reception space and keeping formal and eye-refreshing indoor plants.
Target groups of Flora Mart are given here:
The detailed marketing segmentation of our target audience is as follows:
4.2.1 Home Owners: The first group of our customers will be the people living in our city, Seattle. This group of general population is expected to purchase our products, seeds, and seedlings as well to avail our gardening services to adorn their in and outdoor space with natural beauty.
4.2.2 Institutes: The second category includes research and educational institutes who can buy our plants and will also avail our landscaping services to create refreshing view in their departments.
4.2.3 Companies: Our third target category includes companies and offices who always leave a big space for a beautiful lawn and eye-catching entrance. They are expected to make big purchases with us.
4.2.4 Event Organizers: Our last category to target will be the event organizers in restaurants or in homes. For beautifying space naturally for parties, weddings and other events they’ll be needing our plant beds, prepared grass patches, and our landscaping services.
The detailed market analysis of our potential customers is given in the following table:
4.3 Business Target
Defining measurable, realistic and achievable goals before starting a business plan for plant nurseries can keep you working in a high spirit. Assessing your performance after the time you had set to achieve your goals can also help in bettering the coordination among you and you employees.
Business Targets set by Flora Mart are:
- To earn net profit margin of $20k per month by the end of the first year
- To maintain an average client rating score of 4.5 out of 5 at the end of first year
- To increase our sales by 20% every 2 months
4.4 Product Pricing
Our prices will be just comparable with the other business for plant nurseries running in our vicinity. However, we’ve priced our gardening services a little bit higher because we’ll hire highly experienced staff for it.
Business plan writer for Canadian government
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Plant Nursery Marketing Strategy
5.1 competitive analysis.
Before you think about how to start a business plan for plant nurseries, you must first research what your competitors are doing. Only in that case, you’ll be able to do something different.
To take a lead upon its competitors, Flora Mart will introduce app and delivery system so that customers can choose the plants while sitting at their location and get it delivered in almost no time. Secondly, Flora mart will be providing landscaping services for events and ceremonies which no one in the vicinity is providing. Lastly, the business will ensure exceptional customer service – valuing the client’s satisfaction more than anything else.
5.2 Sales Strategy
The business strategy services you’ll be adopting in order to sell your services must also be covered in your business plan for plant nurseries.
We’re listing some effective measures from sample garden center business plan of Flora Mart which will be taken to bring the target customers to its site.
- Company’s services will be advertised in magazines and local newspaper
- Strong presence on the web and social media will be ensured
- On every shopping above $80, free delivery within 10km distance will be provided
- 20% discount will be offered on our landscaping services for the first two months
5.3 Sales Forecast
Our sales are forecasted in the following column charts:
The detailed information about sales forecast is given in the following table:
5.4 Sales Monthly
5.5 Sales Yearly
Before starting a plant starting a nursery business plan it’s essential to create an effective personnel plan to ensure that you’ll be hiring the right persons while paying them a fair amount. Because it is something that can affect your starting a nursery business plan in the long run.
The personnel plan developed by Denzel Sean, the owner of Flora Mart, is given in this starting a nursery business plan .
6.1 Company Staff
- 2 Accountants to maintain financial records
- 1 Web Developer to run company’s app and websites
- 2 Drivers for providing Home Delivery
- 4 Gardeners to cultivate plants
- 1 Horticulturist to supervise hard-to-grow plants
- 1 Landscaping Expert to set up lawn design ideas
- 1 Sales Executives to market and to find new ventures
- 3 Assistants to do day-to-day tasks
- 3 Cleaners to clean the facility
- 1 Receptionist
6.2 Average Salary of Employees
The last step in making an effective nursery project plan is to make a detailed fianancial plan listing accurate statistics of your investments, expenses, and expected profit margins. For the sake of completeness its good to include at least 3 year forecast in your nursery business model. Your plan should cover details of how you’ll be managing your financial goals and increments in your employee’s salaries within the expected profits. It should also give a clear idea of amount that you can need to increase your product line. Moreover, the strategy to be followed if you fail to generate enough revenue for your starting a nursery business plan must also be included in the financial plan.
7.1 Important Assumptions
7.2 brake-even analysis.
7.3 Projected Profit and Loss
7.3.1 profit monthly.
7.3.2 Profit Yearly
7.3.3 Gross Margin Monthly
7.3.4 Gross Margin Yearly
7.4 Projected Cash Flow
7.5 Projected Balance Sheet
7.6 business ratios.
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Example Business Plan
A. & B. Nursery
John A. Smith 724 Nursery Rd. Anytown, PA 10000 555-555-5555
A. & B. Nursery will be a small part-time ornamental nursery producing four species of quality ornamental trees. The nursery’s target market will be landscape contractors and garden centers. By producing trees for the wholesale market, the owner will be able to operate the business on a part-time basis, enabling him to remain at his current full-time employment and continue operations into retirement.
Currently, landscapers require quality ornamental trees to use for their businesses. The nursery will furnish these trees. The nursery is located in an area of high population growth in the Commonwealth of Pennsylvania. The nursery plans to offer services to area businesses that nurseries outside the area of Adams, Cumberland, and York Counties cannot offer. Since the nursery will be geographically located in the northern portion of Adams County near the border with Cumberland County, the nursery has the advantage of being able to deliver trees to any portion of the two counties within two business days of an order.
A. & B. Nursery plans to produce only four species of trees to enable the owner to concentrate on producing quality trees. The owner has not previously produced ornamental trees, however; the owner was previously engaged in the commercial fruit business. The land used for the nursery was previously part of his fruit growing operation. Because of off-farm employment, depressed apple prices and labor availability, the owner desires to operate the nursery as a part-time operation.
Since the nursery will be small, the owner does not anticipate the need to hire any additional labor. This will eliminate any employee taxes and benefits, as well as any workmen’s compensation insurance. This will reduce or eliminate expenses and overhead costs associated with employees.
In reviewing the business plan concerning the financial statements, the success of a business like A. & B. Nursery depends on offering trees of consistent quality and providing exceptional service. The success will also depend on developing close relationships with customers to determine future needs regarding size, species, and production method. Based on a survey, there are several small nurseries within a fifty-mile radius of the A.& B.'s location, however; these nurseries do not supply the needs of all customers in the area. The owner believes there is a market for the trees he will produce.
By catering to smaller businesses, the owner believes that he can market all of the trees he will produce. A. & B. Nursery will face several challenges. These include:
- the owner has no experience producing ornamental trees
- wholesale sales will not net as much profit as retail sales
- The owner will need to purchase some equipment
- weather conditions, such as drought, can affect the production of trees
- according to a survey conducted by the owner, businesses surveyed preferred to receive trees balled-and-burlapped.
The owner is currently a Penn State Extension employee who will have the resources of the University readily available. The owner also has a close friend who was previously involved in the nursery and landscape business who will serve in an advisory capacity during start-up and operation
To overcome the other challenges, A. & B. Nursery will need to borrow start-up capital for an irrigation system and needed equipment. Over time, the nursery may try to establish an on-farm retail market for a portion of the trees produced. This would expand the initial size of the operation thus spreading the investment in the irrigation system and equipment over a larger number of trees which will reduce the overhead cost per tree sold. To overcome the challenge of customers preferring balled-and-burlapped trees, the owner will either need to purchase a tree spade or contract with a company to harvest the trees or educate the customers about the value of the pot-in-pot system.
The owner has doubts about borrowing money to begin the business at this time because rising interest rates. However, this business plan shows that if the owner installs an irrigation system, the return on the investment will take approximately two years. If the business does not install an irrigation system, the business plan shows the return on investment will be in the fourth year if the nursery can begin marketing trees in three years after business start-up. The break-even analysis performed on a five-year basis, supports this theory. The owner uses a 6% interest rate for the cash-flow analysis of the business. The business should still be viable with moderate interest rates.
After completing this business plan, the owner determines that the business will be viable even without irrigation. However, it will return the initial investment sooner if an irrigation system is installed. The owner will undertake this business opportunity in some form.
Mission, Goals, and Objectives
General description of the business.
A.&B. Nursery is a small nursery, which will specialize in producing deciduous ornamental trees. The business will be a sole proprietorship formed to provide additional income to the owner. The nursery will specialize in four species of trees including Redbud, Elm, Oak, and Locust trees based on current research conducted. These species may change over the course of time as conversations with customers dictate.
This specialization will allow the owner to concentrate on producing quality trees to local landscape contractors and garden centers.
The business plans to produce trees in both the pot-in-pot and balled-and-burlapped method. Initially, by offering both types of products, the business will offer customers the option of purchasing trees as they are accustomed and educate buyers about the benefits of the newer method of pot-in-pot. Potential customers are now purchasing more trees produced by the pot-in-pot method. The pot-in-pot method is a newer, more efficient method of producing trees. The owner plans to offer a small percentage of the inventory of trees balled-and burlapped the first marketing year then only offer trees produced by the pot-in-pot method in subsequent years. Trees produced using the pot-in-pot method do not suffer from replanting shock if sold at the optimal size. Also, the balled-and-burlapped method takes a portion of the operation’s topsoil with the tree when sold. That topsoil then needs to be replaced which adds to the production expense of the tree.
The nursery initially plans to sell all trees on the wholesale market to help alleviate the need for sales personnel and the requirement of having to be at the business during the weekends and evenings. The nursery plans to market trees within a three-county area in south central Pennsylvania. The business will offer wholesale customers the option of purchasing trees at the farm by appointment or the business will offer delivery for a fee within the local area.
The mission of A. & B. Nursery is to produce and market quality select varieties of deciduous ornamental trees at a competitive price for distribution within the local area.
Goals and Objectives
As a business in the development stages, A. & B. Nursery has several goals relating to quality, growth of the business, and survival of the business. These goals and objectives are as follows:
Goal 1: To produce quality trees for market within three years.
- To plant at least three hundred trees each year over the life of the business.
- To produce trees which meet the customer’s specifications over time.
- To have a survival rate above ninety percent for the years the trees are in the nursery.
Goal 2: To produce trees using the Integrated Pest Management (IPM) system.
- By using the IPM system, the business will use fewer pesticides to reduce pollution.
- The IPM system will help reduce the cost of production for the nursery.
- The IPM system will produce healthier trees to help ensure long-term survival of trees.
Goal 3: To ensure repeat customers throughout the life of the business.
- By constantly surveying customer needs and industry trends, the business will adapt to these needs and trends.
- By offering a one-season warranty, customers will develop trust in the business.
- By developing the customer's trust, the business will help ensure repeat business.
Goal 4: To expand the business after five years.
- To establish customer loyalty and develop new customers after breaking into the market.
- To alter or expand the number of species produced to stay current with changing markets.
- To expand the use of available land and use this land to its best economical use.
- Research the potential for on-farm retail sales.
Goal 5: To produce trees at a profit for the business.
- To produce quality trees at the lowest possible cost by monitoring expenses and following best practices.
- To produce species of trees that will command the highest possible price.
- To produce species of trees which are that customer desire.
Goal 6: To supplement the retirement of the owner.
- To continue to expand the customer base to ensure the longevity of the business.
- To continue to expand the business over the next fifteen years.
- To continue to plant trees for sale for the next twenty years.
Background industry information.
According to the IR-4 Project, Robert Prince, of Flushing, New York, opened the first nursery in the United States in 1737. The nursery was operated by four generations of the Price family until it closed sometime around 1865. The first Arbor Day was celebrated in 1872 with over one million trees (primarily fruit trees) planted that day. Fruit trees were overtaken in number by ornamental trees.
With the emphasis on planting and maintaining green spaces and using vegetation to sequester carbon to reduce pollution, the interest in the ornamental industry is growing. Trees also benefit communities by reducing erosion and providing space for nesting birds and other wildlife habitat. In towns and boroughs, they provide shade and help reduce energy costs during the summer months.
According to the United States Census Bureau (July 2020), from 2010 to 2020 the population of Adams County rose 2% with 65 housing units authorized by building permits in 2021. This was a 75% increase from 2020. In Cumberland County, the population change was 10% from 2010 to 2020. New housing units rose by 13% to 989 permits issued in 2021. York County's population rose 5% at the same time and new housing units rose 17% with 91 new homes being constructed.
These figures indicate that the housing industry in the three-county marketing area considered by the researcher is growing. With the growth in the housing industry comes growth in the landscaping industry. New houses, unless they are built in wooded areas, will need some type of landscaping to enhance the exterior aesthetics of the new housing. As stated previously, landscaping also increases the resale value of most homes. If this rate of growth continues throughout the next ten years, existing landscaping companies will need to expand their businesses. With this expansion comes an increased demand for the products they sell or use in their business.
When homeowners purchase existing homes, they may wish to upgrade the curb appeal by replacing existing landscaping with products that they prefer. Increasing the curb appeal prior to putting a property on the market my increase the equity realized in the property. The business may not produce enough volume to service more that residential properties.
A.& B. Nursery will be a sole proprietorship at this stage of the planning. It requires only the expenses of doing business, such as office equipment, phone lines, internet connections, and marketing materials. These items would be available to A&B through the current fruit production business in which the owner is engaged. The owner will pursue the expenses associated with becoming a Limited Liability Company (LLC) to determine if this structure is an option for the business.
Management, Personnel, and Outside Services
The owner of the business represents the "management team."
"I have an Associate Degree in Agricultural Business from Penn State University, and a bachelor's degree in Organizational Management from Eastern University. I was previously a self-employed as a fruit grower for sixteen years and am currently employed by Penn State University. As a businessperson, I possess a strong work ethic, excellent organizational skills, and good written and oral communication skills which will aid in the development of the business. The success of the business will depend on these factors."
Since the business is small and part-time, the business will not require additional labor beyond the first marketing year. Additional labor may be required to harvest the percentage of trees planted in the balled-and burlapped method, but the owner plans to do as much of the works as possible.
Outside services will be needed to operate the business. A consultant or company representative will be needed to make pesticide recommendations. These services are readily available to the business. Extension personnel will also be required to make recommendations on several methods regarding production. Both of these outside services are currently used in the owner's existing business.
Risk Management Strategies
The business will use the diversification of species as its main risk management tool. If irrigation is installed, this will be used as a risk management strategy. Irrigation will help lessen the effects of drought, which has plagued the area in three of the last five years. The owner has examined the possibility of crop insurance for the trees. Nursery crops are covered by crop insurance, but slow or reduced growth of trees is not covered. Failure if the irrigation system is a covered loss as well as drought. The United States Department of Agriculture (USDA), Risk Management Agency (RMA) provides a software package to track species and plant inventories. This software would provide useful information for the business and allow the owner to use the information when purchasing the nursery crop insurance policy.
Another option available to the owner is the Whole Farm Revenue Protection policy. This insurance covers the income and not production. The owner should speak to a local crop insurance provider to determine if he would be eligible for coverage in the first year. To qualify for the insurance, the producer must have filed an Internal Revenue Service (IRS) Schedule F which is income from farming. The owner has rented some of his land to a local farmer for the past years and has filed that income under Schedule F. If available the first year, the owner should seriously consider that option in his risk management strategy. This business will not use all tillable land so a portion will still be rented to a neighboring farm.
This marketing plan will determine the marketing strategies of the small part-time deciduous ornamental nursery. The production plan for the nursery is to produce approximately three hundred trees per year. The nursery plans to distribute quality products to local landscapers and garden centers. The nursery plans to locate in the Adams County area of Pennsylvania and sell the products in the Adams, Cumberland, and York County areas.
The mission of A. & B. Nursery is to produce and sell quality deciduous ornamental trees at a competitive price for distribution in the local area.
Since this business is owned and operated by a single person, the party involved understands the mission statement. The business is started to supplement the income of the owner, and to provide funds for retirement and the education of the owner's children. The owner anticipates the business will take four years to produce trees for sale. This is due to the time anticipated to grow the trees to a marketable size. The owner plans to focus on producing four species of trees, determined by the clientele to be their most sold species or what they determine will be required in the future.
- To provide quality trees at competitive prices.
- To produce no more than four species of trees for sale.
- To limit production to 300 trees per year.
- To provide consistent quality throughout the life of the business.
- To focus on producing marketable trees within four years.
- To retain customer’s respect.
- To provide trees for customers that will meet their standards.
- To provide trees to the customer that will meet their customer’s expectations.
- To provide additional income for the owner.
- To supplement the retirement of the owner.
- The owner has available land at this time.
- The owner has most of the equipment needed to proceed with the business.
- The owner has experience growing fruit trees.
- The owner has a current pesticide license.
- The business requires low input costs.
- The owner has business experience.
- The owner can do the required labor to produce the trees.
- With selling wholesale, advertising costs will be low.
- The owner has a truck that will be used for delivery.
- The owner is currently employed by Penn State University and has the educational resources at his disposal.
- Continued growth of the new housing industry in the target area.
- The owner has no experience producing ornamental trees but does have connections to experienced production and marketing contacts.
- Wholesale sales will not net as much income as retail sales.
- The owner does not have a nursery license but they are easily obtained.
- The owner will need to purchase some equipment.
- With customers preferring balled-and-burlapped trees, the owner will need to purchase topsoil to replace ground removed with the tree.
- The business will require time away from family.
- The owner has many connections to the nursery industry through his employment.
- The owner has a colleague who has indicated interest in purchasing the trees.
- The owner can join the Pennsylvania Landscape and Nursery Association for additional information.
- The owner has a colleague and friend who was formerly a landscaper and nurseryman.
- The business can sell to the retail market if it produces trees in the pot-in-pot growing system.
- Newly built houses and commercial properties usually require products for landscaping.
- Of the last four growing seasons, there have been two years of drought.
- The business may require irrigation to produce the trees, which will be an additional expense.
- There are other suppliers in the area.
- According to the survey, most landscapers and nurseries are satisfied with their current suppliers.
- The market may become saturated with trees.
- The changing consumer demand may cause the business to have unmarketable trees.
The business plans to remain small because of existing employment commitments. The owner does not want to make the business into the sole income source of the family. Because of this, the business plans to specialize in a limited number of species and not sell to the retail market. The retail market will demand the owner to be accessible at all times. The owner will diversify into retail when production experience has increased, and additional time is available.
The target market for the business is landscapers and garden centers in the Adams, Cumberland, and York County area. Before deciding on species to plant, the owner plans to visit with several businesses in the target area to determine the species they are selling. This research will help eliminate the possibility of producing species that will be unmarketable when the trees are to the required size. The owner plans to visit these same businesses to market the trees. This practice will eliminate having to advertise in the traditional sense.
The population in Adams County has been continually growing. Adams County is in the top ten fastest growing Counties in Pennsylvania While Cumberland County is the fastest growing County. The population for the two counties is over 100,000 people and growing. Adams County is growing by over 2% over the last year and Cumberland County has grown over 10% in the same period. York County's population is over 450,000 and grew 5 % in the past year. This sustained growth requires the construction of new houses.
New houses are traditionally being built on land that was previously devoted to agriculture. This land traditionally does not have shade trees existing on the properties. Due to this, most newly constructed houses will need some form of landscaping. The deciduous trees the business plans to produce will complement this need.
The target markets are seeking locally produced trees to lower shipping costs which will lower their input costs. The market is also seeking locally produced trees to ensure survivability of the trees. Trees produced in the area have a higher survivability rate than imported trees. The business will produce trees in the local area to assist in this demand.
The business is located within fifty miles of the target market. This will enable the target market to have better accessibility to trees when they are needed. They will be able to have trees delivered to the job site, or place of business or pick up at the business, within two days. The owner can pull the trees when time permits to have them available when the customer requires the product. This will enable the market to complete jobs quicker and satisfy the customer. With landscapers having to order trees from outside the area, they may have to wait several days or weeks to complete the job for their customer. Having local trees available will benefit the contractors when they bid on jobs.
The business desires to work with other small businesses and help sustain their businesses. This will also help sustain the local economy. With the majority of all proceeds remaining in the local economy, this should help the other local businesses. The business plans to consistently market to small local businesses by word of mouth and reputation. This will help ensure repeat business from customers.
The business is not currently producing trees. The reputation of the business is not yet established. The reputation of the owner as a fair person has been established in the community. In talking with a potential customer, the customer stated that he would purchase as many trees from the owner as possible. This contact owns a garden center and landscape business and may be a primary customer for this business. This is contingent upon the business producing species of trees that this business is currently selling. This business has available land to produce their own trees but does not currently have the required time or labor to do so.
Because of the time required to produce the trees, the business cannot change products easily. This will make changing products difficult. This will also require the business to thoroughly research the species to be produced. The business must have the foresight to predict what species will be desired in four years. Christmas trees will not be an option as they take at least eight years before reaching marketable size. This will make it difficult for the business to expand or contract dramatically or quickly.
The government impacts to the business are requirement of a pesticide license to control pests on the trees, a license to operate a nursery. The Pennsylvania Department of Agriculture (PDA) places these restrictions on the business. The owner has contacts at PDA who will help him through the process of obtaining a nursery license.
The owner realizes that business-to-business marketing relies on a few core customers to sustain the business. These core customers should be a mix of larger and smaller businesses to ensure a good marketing mix. The business plans to establish a long-term customer base and develop a close relationship with these customers. This will help ensure the business keeps in tune with industry trends. If the customers see trends towards other species of trees, they can alert the business of these trends. Pricing trends will be determined by continuous research by the business and monitoring of input costs. The business plans to market trees at competitive prices as long as a profit can be established at these prices. If input costs rise, prices will need to rise accordingly. Record keeping will be key in this decision-making process.
The business plans to market, Redbud, Elm, Oak, and Locust trees. These species have cultivars that are commonly used in homeowner landscapes. According to the survey conducted, these were the top four species sold by the respondents of the survey that will survive within this climate zone. The business plans to market two-inch diameter trees since these are the largest seller among the respondents. The business will offer smaller trees at a lower price if requested by a customer. The business plans to harvest trees when they are needed to ensure quality and freshness.
Most nurseries guarantee the trees for one growing season; the business plans to follow this practice. This practice will need to be monitored to determine if additional warranty is needed. In addition, the plantings need to be monitored by the landscape contractor to determine if proper care for the tree was provided. Continuous monitoring of the customers will determine if quality is of acceptable standards and their customers are happy with the value of the trees. Customer service and care will be an important business policy.
Distribution: The business will offer delivery of the trees to the customer or to the jobsite if desired for landscapers. Garden centers will have the same options of delivery or pickup. The business will charge a modest delivery fee if delivery is needed. The business assumes that most customers will pick up the trees at the place of business.
Promotion of the business will be by direct contact via personal conversations with potential customers. This contact will begin before trees are started in the nursery, so the business knows the market desires before entering the business. This promotional tool will be the most effective and cost-effective for the business.
According to the respondents of the questionnaire, the majority of the trees garden centers and landscapers are purchasing trees that range from $65.00 and up. Production costs are predicted to be approximately $50.00 per tree over a five-year period. This figure does not include an irrigation system. If irrigation is installed, the production costs reduce to $47.00 per tree because of starting to market trees at year three over the same five-year period. This is explained in more detail in the cash flow portion of the plan.
Implementation, Evaluation and Control
When the business is established, if the customers require more trees each year, the business may expand slightly. When the business is more comfortable with the production methods, expansion will be easier. If the business expands beyond the initial customer base, more traditional advertising and promotion will be needed. The owner has not previously been engaged in this business and plans to start small until he becomes proficient in the business. The business plans to begin in the spring of 2023. The owner does not have the required time now to begin the business.
Evaluation of the business will be customer based. If the customers are not satisfied with the quality or service, the business will need to make adjustments to ensure continued customer loyalty. The business knows that it is easier to retain customers than to establish new customers. When a customer is not satisfied, the business needs to notice. A survey of customer satisfaction will accompany each sale.
Record keeping functions.
Because A. & B. Nursery is solely owned and operated by the author, the record keeping functions will be the responsibility of the owner. The owner will keep records of accounts payable, accounts receivable, cash flow, and other related financial records needed. Federal regulations require all pesticide applications to be recorded. Additional production practices will also be tracked to aid in the decision-making concerning any potential changes. For the first three years, if irrigation is not used, there will be no receipts, just expenses. Beginning the fourth-year income will be recorded and financial analysis will be kept.
Other Operations Controls
An accountant will be used to produce income tax reports as needed. The accountant will also perform analysis as a check for the owner to ensure accuracy of records. This procedure will develop a system of "checks and balances" needed by the operation. A qualified crop consultant will periodically scout the nursery for pests. This consultant will then make any recommendations for pest treatment. The business will also consult with Penn State Extension regarding changes needed to improve the business. Cash Flow Assumptions
Cash Flow Assumptions
- The owner will invest $5,000 of personal funds the first year for start-up capital for trees and production supplies.
- No labor will be billed to the business except outside contracted labor. Owner labor will be tracked to determine if the business will be profitable with more hired labor.
- Tree expense is calculated on an average for the species planted and includes shipping saplings to farm.
- Three hundred trees planted with a 5% mortality rate calculated when determining the number of trees sold.
- There is a $100 per acre land fee assessed to offset taxes and insurance costs.
- The nursery will only require one acre of land at start-up.
- Insurance is not calculated since the current policy covering the existing dwelling is adequate for the nursery.
- The use of crop insurance may depend on cost and consultation with a salesperson. No costs are included in the cash flow.
- Separate budgets are developed for non-irrigated and irrigated methods of production.
- The business will need to purchase a small backpack sprayer for $115.00 for applying pesticide.
- The owner now owns a truck and trailer for delivering trees. This equipment will be useful throughout the five-year time period discussed.
- The business will borrow $10,500.00 of start-up capital the first year to cover tree costs, maintenance, and shipping. A loan amount of $6,500 for 3 years to purchase irrigation system. The owner will invest at least $5,000 from personal funds for equipment and startup.
- Interest is calculated a 6% and a 10-year repayment schedule.
- Ten percent per year added to tree sales and tree costs to account for market trends. Production costs, other than shipping should be stable as these costs were rounded up in the initial calculations.
- Cost and Price assumptions - Sales Price $65.00 + Depending on age and size - Production cost $50.00 5-year no irrigation - Production cost $47.00 3-year with irrigation
Analysis for One Acre of production with Four Species
Cash flow projections for five years without irrigation.
Total expenses per tree: $52
Cash Flow Projection for Five Years With Irrigation
Total expenses per tree: $56
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- Grant Writing
- Workforce Development and Retention
- Agricultural Economics, Sociology, and Education
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- Business Plans Handbook
- Business Plans - Volume 07
- Nursery Business Plan
BUSINESS PLAN WONDERLAND NURSERY
416 S. Turner Street Spokane, Washington 99204
This plan outlines how this business will provide Spokane with a specialty nursery and garden center that is stylish, respected, and consistent, and which is intelligently staffed with caring and well-informed employees. An unusual feature of this nursery is its café. This plan was provided by Ameriwest Business Consultants, Inc.
Objectives & goals, and strategies for achieving them, business description, status, & outlook, management & ownership.
- THE SERVICE (AN UNFILLED NEED) & UNIQUENESS OF SERVICE
Marketing strategies, financial plans, business description.
The purpose of Wonderland Nursery is to provide Spokane with a nursery and garden center that is stylish, respected, and consistent, and which is intelligently staffed with caring and well-informed employees. The atmosphere is friendly and open. The nursery displays a new attitude. It treats customers like first-class citizens and tries to make them feel like they are at home. On the premises will also be a café to help our customers extend and enhance their visit to our premises. We offer a variety of related items such as pottery, specialty decorations, etc. The facility has a first-rate greenhouse. The services are offered at a competitive price and pricing will be reviewed periodically.
The nursery is normally open Monday, Tuesday, Wednesday, Thursday, Friday, and Saturday, from 9:00 A.M. through 5:00 P.M., and 10:00 A.M. to 4:00 P.M. on Sunday. The café hours are 9:00 A.M. to 5:00 P.M., Monday through Wednesday, 9:00 A.M. through 8:00 P.M. on Thursday through Saturday, and from 10:00 A.M. to 4:00 P.M. on Sunday.
CURRENT POSITION AND FUTURE OUTLOOK
The business is in a restructure mode. It is currently past due on its mortgage payment. Plans call for infusion of new investment in the amount of approximately $275,000 and a new loan of $800,000. Operations are conducted on a 5-acre site, located at 416 S. Turner Street, Spokane, Washington. On the average we serve from 10,000 to 12,000 customers per year. With new funding we plan to increase this amount by at least 15% per year in the future. This is a conservative estimate considering the past year saw a 25% increase in sales. To attain these goals we will use a combination of media advertising, flyers, and word-of mouth. Upon securing the new funding, the future appears very bright. The customers are there, the experience and ability are there, and with a restructure of the organization we are convinced the profit would be there. The café will only get better in its second full year of operation.
MANAGEMENT AND OWNERSHIP
The company is set up as a corporation with Susan Smyth and her husband Robert owning 100% of all outstanding stock. Susan serves as president, chief executive officer, and manager. She provides the leadership to run this company. She has over 5 years of experience as owner and operator of a nursery. Her retail sales background will continue to provide the guiding light for the operation. Susan oversees the entire operation and concentrates on advertising, legal matters, banking, insurance, purchasing, equipment purchases, public relations, and labor. Robert Smyth serves as treasurer and handles all maintenance and development. Helen Brown, office manager, handles sales, display, and backs up Susan in banking, purchasing, and planning. The business employs up to ten additional employees. These employees will be involved in cooking in the café, waiting on tables, and working as laborers. They will be a combination of part-time and full-time. When volume picks up, additional part-time or full-time employees will be hired as the workload requires. Ameriwest Business Consultants, Inc. will provide help in additional areas such as planning and general business advising when necessary and to supplement Susan's overall business knowledge. The services of an accountant, attorney, and a qualified insurance agent have been retained.
UNIQUENESS AND DIFFERENTIATION OF THE SERVICE
Wonderland Nursery is a specialty nursery and provides the ultimate in service and advice to customers. We tend to appeal to upper-end clientele, serious gardeners, and gardening professionals. Nowhere else in Washington does an operation combine the services of a nursery along with those of a café.
The idea of nursery and café is to provide customers with a informal, social setting, and atmosphere that does not exist in this part of the state. In addition we will cater to private parties and special groups in the café throughout the year.
The growth potential is virtually unlimited for the greater Spokane, Washington, area. The population is growing at an accelerated rate. It is rare in today's business world to find a true market void. That is exactly what Wonderland Nursery has done. It is a nursery along with a café for nursery customers and others in the community. Our facility has little true competition in Spokane.
FUNDS REQUIRED AND USAGE
Restructuring expenses will be approximately $1,075,0000. New investors will furnish approximately $275,000, and a new loan will furnish the balance of $800,000 in new funding.
The new funding will be used as follows: A) $1,000,000 to repay existing debt, B) $20,000 for paving, C) $5,000 for irrigation improvements, D) $10,000 in new inventory, E) $40,000 for reserves and miscellaneous expenses. The paving will make the property much more attractive to both nursery and café customers. The irrigation will save labor and cut losses. The inventory will bring in new customers and help even out the cash flow throughout the year.
PROJECTED 5-YEAR INCOME STATEMENT SUMMARY
- The most likely case assumes 11,000 customers the first year after the restructuring. The optimistic case assumes revenues and expenses will increase 15% over the most likely case. The pessimistic case assumes revenues and expenses will decrease 15% below the most likely case above.
- Cost of goods sold for the nursery will equal 55% of sales and 35% for the cafe.
- To provide a high quality service so that customers will perceive great value and give them the opportunity to interact with our professional staff.
- To service an average of 12,000 customers in 1999 and increase that by about 15% over the next four years.
- To repay the entire loan amount by the end of the fifteenth year and to provide the shareholders with an exceptionally stable income.
- Our goal is to become the premier nursery destination in Spokane, Washington, during the next two years.
- Wonderland Nursery plans to closely monitor changing technology to be certain that the company is using the latest and most cost effective equipment and that it keeps up with current trends in the marketplace.
When growth has stabilized we plan to add extra services for customer convenience such as organic produce, greater selection of products, especially seasonal, and continued growth of the food operations. In addition to the above goals we will survey our customers and make changes in our programs and add services to meet their changing ideas in the marketplace.
To obtain the first two sets of goals we will try to maximize sales with an extensive campaign to promote our services. We will utilize the radio stations and newspaper along with brochures, media advertising, pamphlets, use of coupons, referrals, and a variety of other advertising and marketing tools to reach the customer base of Spokane, Washington. We expect to flood the market with advertising until consumers become aware of us and more comfortable with our company. As we grow, word-of-mouth referrals will bring in increasing numbers of customers and we will reduce our reliance on advertising.
The dominant driving force behind our company will be profit and income and to provide the best possible related products and service.
To become the premier nursery in Spokane, Washington, we will offer outstanding quality, good hours, exceptional service, and reasonable pricing. We will listen to our customers and conduct surveys.
We will offer frequent user discounts. In the future we may consider diversification and enter new market areas such as providing organic produce.
According to the Nursery Retailer , lawn and garden sales nationwide are expected to top $83 billion in 1999. Of this total, nearly $1 billion will be in Washington. In 1998, lawn and garden sales showed its first slow-down in growth since 1968. Even so, sales still topped the 1997 levels. Most experts attribute this aberrant downturn to one reason, namely El Nino. This year's growth rates are expected to return to normal levels of around 6% to 9%. With Spokane's exploding growth in population that has occurred during the last decade, local nursery sales should continue to be well in excess of national averages. In fact, when most nurseries experienced a flat growth rate in 1998, Wonderland Nursery experienced a 25% growth in sales.
Wonderland Nursery is a full service nursery and combines entertainment and limited dining at a competitive price. We have a bigger selection of products, more specialized plant selection and offer a much higher level of service than do our competitors. We try to promote an atmosphere that gives people a comfortable place to spend their time and money. Combining a nursery with a café is a relatively new concept for this part of the country. Susan Smyth will continue to operate the business as a corporation. The principal shareholders will be Susan and her husband. New investors will be brought on board and will assume up to a 49% share in ownership. With our new equipment, inventory selections, and property improvements we will also have definite market advantages. Ultimately, we will expand the business to achieve its full potential.
The biggest problem we face is restructuring the operation to give us the time and money needed to fully implement our plans and achieve our goals.
To maintain operations, the business maintains a nursery license, scale license, seed dealers license, health license, occupational use license, and sales tax license.
The future holds the promise for almost unlimited growth and income as the business matures and considers other markets and products. Complementary products such as organic produce, water gardening, newsletter, additional seasonal products, dances, and other functions at the café also can be considered in the future in response to customer surveys indicating their wants and needs. Enhanced food services will be offered in the future as the needs are demonstrated.
Susan Smyth once was a gardener for upper-class clients. She used this experience to develop Wonderland Nursery. The business was successful until the lease was lost on its original location. This precipitated a move to our present location. The move caused us to open grossly undercapitalized. We have managed to survive the past couple of years, but the restructuring we are planning will put us over the top toward achieving our full potential.
Wonderland Nursery will supplement its skills by using outside consultants in areas such as legal work, income tax preparation, insurance, and general business advising.
The business was set up as a corporation primarily for liability reasons and makes it easier to secure investors. To continue operation, as many as thirteen full-and part-time employees will be utilized to help in areas such as bartending, waiting on tables, and for labor. As the business grows, additional part-time or full-time employees may be added to handle the increased workload.
THE SERVICE (AN UNFILLED NEED) & UNIQUENESS OF THE SERVICE
The growth in families in Washington state is the ninth greatest in the country. The past decade has seen this segment of the population grow by more than thirty percent. It is growing five and a half times as fast as the general population.
The few existing nurseries that cater to our clientele are not nearly as knowledgeable or service oriented. They pay little attention to detail and customer satisfaction. Wonderland Nursery and its ownership will embrace the concept of trying to become a focal point for our clientele.
The timing for such a business is perfect. Given the proper kind of financial restructuring, a significant window of opportunity exists for Wonderland Nursery to take advantage of the huge growth of the area. This business will be providing the "Right Service at the Right Time."
It is rare in today's world that a true market void exists. Our service will meet the "unfilled need" described above by providing customers with competitively priced, high service nursery facilities combined with the services of a café on the premises. We are unique to Spokane, and indeed all of Washington.
Customers will be attracted to the nursery because our atmosphere, pricing, and facilities. They will be made to feel welcome and as part of the family.
Some major advantages Wonderland Nursery will have over potential competition and conventional nurseries are:
- Larger and newer facility
- Lower operating expenses than most
- Full service café on site (new concept)
- 6,000 name mailing list
- Wonderland Nursery will sponsor ethnic festivals and holidays
MARKET OVERVIEW, SIZE, AND SEGMENTS
This market segment has been relatively stable over the past five years.
The market areas we will concentrate on are Central and Western Spokane, Washington. These areas have been growing rapidly for the past several years and should continue for the foreseeable future. Once the concept catches on locally, we feel the potential is unlimited. As we grow we will have the financial capacity to carry on an advertising campaign on a regional basis.
The economy is in the midst of a particularly strong growth period. Many new jobs are being added to the local community. Ever increasing numbers of Californians are coming to this location. All of these factors are cause for a much greater interest in nurseries. All of this activity can only help our attempts to restructure this nursery.
Listed below are just some of the reasons that the Spokane, Washington, area is growing and why it is a good time to be running any kind of business that caters to this growth:
- The local economy is booming and virtually busting at the seams.
- Spokane, Washington, has become a magnet for religious organizations. More than 65 nationally based Christian organizations are headquartered here.
- Spokane, Washington, has a new airport and a nearby Free Trade Enterprise Zone that should grow and attract even more new businesses.
- The new Seattle Airport is open and provides an economic boost to the entire state, including Spokane, Washington.
- Gambling in nearby Oregon continues to draw many visitors and some new businesses.
- Every week, we see articles in the newspapers of California residents and companies relocating here.
- The world-renowned Five Star Hotel has completed an extensive remodeling.
- MCI and Quantum Electronics are undergoing large increases in their operations here that should add many hundreds of employees.
- Many experts predict Spokane, Washington, will become the second fastest growing city in the state between now and the year 2007.
- King County is predicted to become the largest county in the state by the year 2003.
- The local economy is now more diversified than it was when troubles occurred in the local economy in the late 1980s and early 1990s.
The estimated population of King County in 1999 is 500,000 people. The number of households is approaching 200,000. Currently, this market is growing at an annual rate of 3-5%. Projections see this trend continuing for the balance of this decade.
From the above figures it can readily be seen that the potential market for our services is huge. We feel with our pricing and value we will become a price and industry leader within two years.
Our surveys have shown the following mix of patrons for our facilities:
- Majority are women
- Income of typical customers is in the $50,000 and up range
- Large numbers of professional gardeners
- Range of age of clientele is 35-75
- Majority of patrons are in the upper-income brackets
- Majority of our customers come from the 12345, 12346, 12347, 12348, and 12349 Zip code areas
Beyond the local market we could eventually tap into a more regional market. The advantage of our service is that it could appeal to all segments of the community. By expanding the role of the café, we can continue to become an even greater focal point for the local community.
Our primary competition is the nurseries listed below. On a limited basis there are few competitors such as nurseries, landscapers, and related businesses.
The following table summarizes the local competition:
The marketplace is currently shared by the above outlined 3 major participants. This market is stable and increasing about 5-7% per year.
The driving force behind Wonderland Nursery is Susan Smyth. She has able support from her husband, Robert, and from Helen Brown, office manager, and Nancy White, file manager.
Identification of Strengths & Weaknesses
We feel we will have strengths in product features, management, marketing, human resources, quality of service, operations, product mix, reliability, desirability, highly trained sales force, pricing, location, and facilities.
We will have low risk exposure in the areas of technology, inflation/interest rates, regulatory environment, management ability, location, facilities, and suppliers.
We perceive medium risk exposure in the local economy, strategy, and vulnerability to substitutes, finance, and planning. We have retained the services of specialists to help in various areas such as marketing, accounting, legal, and general overall business operation advice.
We have a high degree of risk in this overhead and lack of working capital. With our proposed new funding, we should overcome most of our weaknesses.
PRICING AND VALUE
Our intention is to raise the public's awareness of our company. We plan to review our prices and those of our competitors every three months. We will review direct material costs, direct labor costs, and total overhead expenses. We will continually monitor the cost of providing our service to each customer. We will offer various free or reduced rate programs to get customers acquainted with us.
Numerous package deals will be available to customers. The following examples are various marketing strategies we may try:
- Discounts for larger or repeat purchases
- Special party rates for the café
- We will continue the use of our newsletter to help promote value to our customers
Our company's marketing strategy will incorporate plans to promote our line of services through several different channels and on different levels of use. We will advertise heavily on the popular local radio stations and in newspapers.
We will try to satisfy the market void in this area for indoor entertainment. We will flood the market with advertising and try to go after our specific targets. We will try to capture their attention, pique their interest, and make them feel that they must have our services.
We will offer continuous promotional rates. The results sell themselves. We will offer discounts to frequent users. The more a customer uses our services the cheaper it will become for them.
We also are a MasterCard and Visa charge card merchant which enables us to more readily serve our customers.
In order to market our facility, we shall consider a variety of promotions including:
- Reserve certain hours for unique groups such as children, senior citizens, service clubs, adults, etc.
- Conduct special theme nights, use ethnic holidays, family night, charity promotion night, game night, contest night, etc.
- Cultivate local churches and women's organizations.
- Promote birthday parties.
- Early bird specials.
ADVERTISING, PROMOTION, AND DISTRIBUTION OF SERVICES
We recognize that the key to success at this time requires extensive promotion. Advertising goals include all of the following:
- Position the company as the premier nursery in Central/Western Spokane, Washington.
- Increase public awareness of Wonderland Nursery and its benefits.
- Increase public awareness of our company and establish a professional image.
- Maximize efficiency by continually monitoring media effectiveness.
- Consider a possible credit coupon in some of the advertisements.
- Develop a brochure or pamphlet to explain our service and company.
- Continue use of a distinctive business card and company letterhead.
- Use a mix of media to saturate the marketplace.
We will develop a public relations policy that will help increase awareness of our company and product. To achieve these goals we will consider some or all of the following:
- Develop a press release and a company backgrounder as a public relations tool.
- Develop a telephone script to handle customer and advertiser contact.
- Develop a survey to be completed by customers to help determine the following:
- 1. How did they hear about us?
- 2. What influenced them to use our service?
- 3. How well did our service satisfy their needs?
- 4. How efficient was our service?
- 5. Did they have any problems getting through to us?
- 6. Did they shop competitors before selecting us?
- 7. How did they initially perceive our company and product?
- 8. Where are most of our customers located?
- 9. Do they have suggestions for improving our service or our approach to advertising?
- 10. What additional services would they like us to offer?
- 11. Would they recommend us to others?
- Maintain membership in the Chamber of Commerce to keep abreast of developments in the community and market trends.
Data Sheet #1
Fiscal Year in which Projections/Calculations are to start ..............................................................................................1999
Number of Months in which Projections/Calculations are to start..........................................................................................1
The purpose for this analysis is Business Start-Up, Expansion, or Review ........................................................... START-UP
Owner's contribution to business (include both cash and time in dollar equivalency) ........................................$6,000,000.00
Indicate below if the figures are actual, annualized, or projected for each year in the analysis:
INDICATE THE TYPE OF BUSINESS ENTITY YOU HAVE IN THE BOX TO THE RIGHT: C
Data Sheet #2
Number of Customers Expected to Serve the First Year: 12,000
Average Income received from each Customer: $77.75
Projected First-Year Monthly Budget 1999
Projected Second-Year Monthly Budget 2000
Five-Year Income Statement
Five-Year Balance Statement
Five-Year Cash Flow Statement
Average Monthly Break-Even Analysis 1999
Average Monthly Break-Even Analysis 2000
Break-Even Table Year 1
Break-Even Table Year 2
Rates of Return
Income figures are after taxes Dividend Payout = 50% of After Tax Income Reinvestment rate = 7%
IRR = International rate of return MIRR = Modified rate of return ROI = Rate of return on owner's investment ROA = Rate of return on total assets
IRR = the interest rate received for an investment and income that occur at regular periods. MIRR = adds the cost of funds and interest received on reinvestment of cash to the IRR.
Loan Compliance Covenants
Annual Projections Summary
Income Statement Chart
Balance Sheet Chart
Net Income Growth
Composition of Income - First Year
Breakdown of Expenses - First Year
Selected Key Ratios Chart
Current Ratio is an approximate measure of a firm's ability to meet its current obligations and is calculated as Current Assets divided by Current Liabilities. This ratio shows an upward trend and indicates that if the company meets its goals it will be relatively more stable than the industry in general.
Revenue to Working Capital Ratio is a measure of the margin of protection for current creditors. This ratio is on a downward trend and indicates a good level of safety for creditors.
EBIT to Interest Ratio is a measure of ability to meet annual interest payments. Since this ratio is above industry averages, the company should have no problem servicing its debt and can even service greater amounts of debt.
The Current Maturities Coverage Ratio measures the ability to pay current maturities of long-term debt with cash flow from operations. It is calculated as Net Income Depreciation, Amortization divided by current portion of long-term debt. This ratio shows an upward trend which indicates the company should be better to service its debt than the average company.
The Fixed Assets to Tangible Net Worth Ratio measures the extent to which owner's equity has been invested in the business. Since this ratio is on a downward trend, it provides an even larger "cushion" to creditors in the event of liquidation.
The Debt to Equity Ratio expresses the relationship between capital contributed by creditors and capital contributed by owners. This ratio shows a downward trend which would seem to indicate that if the company meets its goals that it will provide greater long-term financial safety for creditors.
The Earnings before Taxes to Total Assets Ratio expresses the pre-tax return on total assets and measures the effectiveness of management in employing available resources. Since this ratio is above industry averages, the company would be more efficient than the industry in its effective employment of resources.
The Revenue to Total Assets Ratio is a general measure of ability to generate revenue in relation to total assets. This ratio is above industry averages which can indicate that the company is efficient in using available resources to generate revenue as compared to the industry.
The Depreciation, Amortization to Revenue Ratio is a general measure of cost to generate revenue under the matching principal. Since this ratio is consistently below industry averages it would seem to indicate that the company is more efficient generating revenue as compared to the industry.
CONCLUSIONS & SUMMARY
We feel that the type of company and service we are proposing is hitting the market at just the right time. We plan to fully repay the loan by the end of the third year. However, we will schedule repayments over ten years to give us flexibility. By applying our conservative projections, income for the first year is expected to be $21,194 after taxes and debt service. This will rise to $76,822 in the second and $124,363 by the fifth year. The business should be open for business by spring of 1997.
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Plant Nursery Business Plan
Are you thinking of starting a Plant Nursery business We have prepared a solid Plant Nursery business plan sample that guides you on every stage of your business plan writing
If you are a gardening enthusiast and love plants, making it your business might sound appealing to you. After all, who wouldn’t want to be around a hundred varieties of plants and learn the different ways to look after each of them.
Starting a nursery requires a good knowledge of growing and nurturing plants. Apart from that, it also requires a well-written nursery business plan.
If you are planning to start a new plant nursery, the first thing you will need is a business plan . Use our Nature Box – Plant Nursery Business Plan created using Upmetrics business plan software to start writing your business plan in no time.
Before you start writing your business plan for your new plant nursery, spend as much time as you can reading through some samples of agriculture-related business plans
The plant nursery industry stood at a market value of 43.2 billion dollars in 2021 and has grown at a rate of 4.4 percent. Also, with growing luxury gardens and the growing hobby of gardening, it isn’t going to slow down any time soon.
The housing market is steadily rising, and so is the disposable income of people. This has led to people having an increasing number of gardens. Also, as no one has a lot of time in hand people buy potted plants for their gardens to avoid going through the hassle of growing them from seeds.
The plant nursery industry is promising, but for your business to flourish you have to do it the right way.
Things to Consider Before Writing a Plant Nursery Business Plan
Have ideal land for your nursery.
An ideal place is important for your plants and saplings to grow well. Figure out what kind of plants you want to grow and what would be the ideal land and temperature conditions for them.
Looking into this early on saves you from the hassle of moving and changing location.
Figure out which plants you’ll have and how to take care of them
Different plants have different requirements. The amount of water, manure, and sun exposure is different for different plants. So are their planting requirements. Hence, it is important to make a list of all the plants you want to have and note down their requirements, so taking care of them becomes easy and smooth.
Hire skilled employees
Skilled workers who know planting techniques and have a good knowledge of fixing problems while growing plants, and know which nutrients work the best for which plant, would be the biggest asset for your business.
Hence, it is important to have skilled workers who can help your business flourish.
Get the right equipment
You’ll need a lot of equipment for taking care of the plant, storing them properly and so on. You’ll also need to store seeds, manure, and other such things so it is important to have the right equipment.
Apart from figuring out the right equipment, your business plan would help you take care of the business aspect of having a plant nursery.
Chalking out Your Business Plan
A business plan helps you figure out everything from setting up to marketing your business. It makes doing business much easier and smoother.
Reading sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.
We have created this sample Nature Box – Plant Nursery Business Plan for you to get a good idea about how a perfect plant nursery business plan should look like and what details you will need to include in your stunning business plan.
Plant Nursery Business Plan Outline
This is the standard plant nursery business plan outline which will cover all important sections that you should include in your business plan.
- Problem Definition & Validation
- Short Term (1 -3 Years)
- Long Term (3-5 years)
- Mission Statement
- Keys to Success
- 3 Year Highlights
- Company Ownership/Legal Entity
- Interior Operating Facilities
- Hours of Operation
- Start-up Summary
- Hardy Nursery Stock
- Protected Ornamentals
- Bulbs and Outdoor Flowers
- Flower and Plant Growers
- Market Trends
- Competitive Advantage
- SWOT analysis
- Direct Sales
- Trade Publications
- Trade shows
- Targeted Online Advertising
- Positioning Statement
- Online Marketing Channels
- Offline Marketing Channels
- Pricing Strategy
- Organization chart
- Management Team
- Hiring plan
- Important Assumptions
- Brake-even Analysis
- Profit Yearly
- Gross Margin Yearly
- Projected Cash Flow
- Projected Balance Sheet
- Business Ratios
After getting started with Upmetrics , you can copy this plant nursery business plan template into your business plan and modify the required information and download your plant nursery business plan pdf or doc file . It’s the fastest and easiest way to start writing your business plan.
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Plant Nursery Business Plan Template [Updated 2023]
Ii. company overview.
This Section's Contents
Who is [Company Name]?
[company name]’s history, [company name]’s products/services.
[Company Name], located in [insert location here] is a newly established plant nursery that will provide a variety of plant and flower options for purchase. In addition to flowers and plants, the nursery will provide everything for one’s gardening needs including fertilizer, dirt, sod, rocks and outdoor decor.
[Company Name] was founded by [Founder’s Name], a local nurser who has worked in several local nurseries in the area and has made a career out of horticulture. He has studied, grew, and competed with the top nurseries in the country and has solidified his expertise in the industry. [Founder’s Name] has won many top awards and has been featured in multiple gardening magazines and articles.
Throughout his career working with different plant nurseries, [Founder’s Name] has come across several clients who are seeking specific types of plants for their garden and can’t find them to purchase anywhere in the area. [Founder’s Name] knew he could own and operate a successful plant nursery as he has the expertise, management skills, and will have a starting customer base as he will be able to carry many of the highly sought after plants and flowers that are not sold at any other local plant nursery.
Once his market analysis was complete, [Founder’s Name] began surveying the local vacant warehouses with space for an outdoor greenhouse and located an ideal location to house the plant nursery. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [date of incorporation].
Once the lease is finalized on the warehouse space, light construction can begin to build-out the small retail area and outdoor greenhouse.
Since incorporation, the Company has achieved the following milestones:
- Located available warehouse space for rent that is ideal for plant retail sales and enough room for an adjacent outdoor greenhouse
- Developed the company’s name, logo, and website located at [website]
- Hired a general contractor for the build-out of the warehouse, small office, retail showroom, and outdoor greenhouse
- Determined equipment and necessary supplies
- Began recruiting key employees with previous plant nursery experience
Below are [Company Name]’s product offerings:
- House Plants
- Herbaceous plants
- Small trees
- Pots and planters
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Plant Nursery Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
We will offer a wide variety of plants, trees, vegetable plants, along with a selection of garden supplies. Most of the plants we sell will be grown in our
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If you are thinking about opening a nursery, you must first decide the services which you'll be providing. Mentioning them clearly in the form
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Things to Consider Before Writing a Plant Nursery Business Plan · Have ideal land for your nursery · Figure out which plants you'll have and how to take care of
An organized business plan is really a road map to business success, a set of guidelines for operating your nursery business. And your chance of successfully.
[Founder's Name] knew he could own and operate a successful plant nursery as he has the expertise, management skills, and will have a starting
We made business planning easy with prompt help and examples on every step of your business plan writing. See How It Works. Conduct accurate