Greenhouse business plan

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:

1. with the scale of the project;
2. organizational and legal form;
3. the quantity and composition of agricultural machinery used;
4. the amount of initial costs;
5. the expected number of employees;
6. 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;
• rented;
• 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.

Good luck with your business!