5 21 business plan

Introduction to Horticulture

Plant: Photinia

Term: Business plan

PhotiniaRed-tip

• Plant type: Evergreen Tree or shrub• USDA Hardiness Zones: 7b to 9a • Height: 15 to 25’ and 10 to 20’ wide" • Exposure: full sun • Leaf Color: Green, Purple • Growth Rate: Quickly out grows small spaces • Landscape Uses: Hedge, Screen,

Standard, Specimen, Street tree

Business Management

• Business Plan: – A formal statement of a set of business goals– the reasons why they are believed attainable– the plan for reaching those goals. – Background information about the organization

• Retail – Selling flowers or plants to consumers• Service Company – Lawn or Landscape• Grower/Producer – Sell wholesale

Business Plans

• Write a business plan before you start your business.

• “Failing to plan is planning to Fail”

• 1/3 of all new businesses fail the 1st year

• Helps you to thoroughly consider details of a business before you start

• Necessary for applying for credit

Parts of a business plan

• Executive Summary – put the basic idea upfront to capture the attention of the reader – it needs to be interesting and positive

• Mission and objective – Explain your business and what you hope it will do for you.

• Company & Industry – How did you think up your business idea? What are other ______ doing?

• Products & Services – What will you do or sell? Why will your business standout?

• Market & Competition – List all other ______ businesses in your area. How will you compete?

• Management – Describe the background and qualifications of the key members of your team

• Marketing Strategy – Estimate your sales. How much of the market will you control?

• Operations plan – Describe your shop, its size, and the equipment you will need. How much will it cost? Who will you need to hire and why?

• Overall Schedule – Make a plan to build, buy, or rent your shop and staff your business. Identify the stages for completion.

• Critical risks and problems – What worries you about your plan? What could go wrong?

• Financial projections – Make a budget that explains how much you will need to start your business and how much you need to stay in business. How much money will come in and go out every day, week, month?

• Exit strategy – Explain how investors will be paid back

Think of an Ag/Hort Business

• Write in your notebook:– Mission & Objective:– What are similar businesses doing?– How could you standout?– How could you prepare for this business?– What would a typical start-up schedule be?– What could go wrong?– How much money do you think you need to

start-up?

SBA

• www.sba.gov

• Tremendous resource for business planning

Today

• Turn in notebooks

• Reminder – we still have 3 weeks and lots to do.