The creation of a greenhouse economy today is one of the most promising areas of farming.
The main goal of the project is the year-round cultivation of vegetables or other agricultural products for the purpose of its further sale. Read about how to build your own greenhouse business here .
Greenhouse business plan: the pros of this business idea
Today, in Russia, with the correct organization of the greenhouse complex, you can get 3-5 crops, depending on the region and type of product.
The main advantages of a greenhouse business plan include the following factors:
1) Starting investments in business. Relatively small initial costs compared to the creation of production. Especially when you consider that the property has a suitable land.
2) Possibility of gradual business expansion. You can start a business with one or two greenhouses, gradually expanding the economy (as income increases).
3) State support. High demand for products in all regions of Russia — there is always a need. That is why, and also because of the pursuit of strategic interests, agriculture always enjoys the primary support of the state.
Greenhouse Business Plan: Project Cost
When compiling a business plan for a greenhouse, you need to immediately decide:
- with the scale of the project;
- organizational and legal form;
- the quantity and composition of agricultural machinery used;
- the amount of initial costs;
- the expected number of employees;
- the presence of engineering structures and communications, as well as the need for their summing up and connection.
Approximately, the initial costs for launching and opening a greenhouse facility will be 400-500 thousand dollars per 150 m2.
Main items of expenditure
Firstly, the initial costs will largely depend on whose land the greenhouse is planned to be built on:
- own site;
- or purchased
When compiling a business plan for a greenhouse, the region should also be taken into account, since fluctuations in land prices can be very different.
Secondly, you need to consider:
- availability of infrastructure;
- communications and engineering structures (water supply, gas, electricity, etc.).
- proximity to the main sales market (large settlements).
The main items of expenditure include:
1) business registration — from $800 to $4,000;
2) purchase of industrial greenhouses — 36 m2 — $140,000;
3) lease or purchase of a land plot;
4) summing up lighting, organization of heating, watering, ventilation;
5) purchase of seeds or seedlings, chemicals and so on;
6) wages to workers during the first season;
7) other expenses.
Also, it should be provided for how and by whom the protection of the greenhouse complex will be carried out.
Greenhouse business plan: the main risks of the project
- First, the main risk of greenhouse farming is yield. Its level depends both on natural conditions and the presence of various insect pests.
- Secondly, sales of products .
- Thirdly, the loss of part of the crop due to the dishonesty of the working staff.
- Fourth, competition.
To reduce all these risks to a minimum, it is necessary to predict them, as well as develop a plan of preventive measures in case these risks occur.
Greenhouse business plan: project implementation stages
Each greenhouse business plan should include the main stages of the project:
- assessment of the real situation in this area in a particular region;
- objective assessment of sales opportunities;
- conducting marketing research;
- creation of partnership relations with wholesale consumers;
- business registration;
- purchase or lease of land;
- purchase or construction of greenhouses;
- conducting communications and connecting to water supply networks, electricity supply and so on;
- organization of access roads;
- arrangement of the territory;
- purchase of seeds, seedlings, fertilizers and so on;
- organization of work on the cultivation of agricultural products;
If the greenhouse business plan is drawn up correctly and all the points are met during implementation, then the profitability should be at least 15-20%.
In this case, the payback of the project will be about 2 years.