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A Sample Food Hub Business Plan Template

Are you about starting a food hub business? If YES, here’s a complete sample food hub business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a food hub business. We also took it further by analyzing and drafting a sample food hub marketing plan template backed up by actionable guerrilla marketing ideas for food hub businesses. So let’s proceed to the business planning section.

Why Start a Food Hub Business?

It can be truly challenging starting any business, but one business that you could start with little challenges and wide market coverage is a food hub business. A food hub business is a business that involves dealing with agricultural produce. Food hubs are a part of the agricultural industry value chain model and often share common values relating to conservation, sustainability, healthy food access, and supporting local farmers in getting good returns for their produce.

It is important to state that starting a food hub business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture. An aspiring entrepreneur can either choose to start a food hub business on a small scale dealing with a few farm produce or on a large scale depending on their financial status.

So, if you have decided to open a food hub business, then you should ensure that you carry out thorough feasibility studies and also market survey. This will enable you properly locate the business in a good location and then hit the ground running. Business plan is yet another very important business document that you should not take for granted in the bid to launch your own food hub business.

Below is a sample food hub business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Food Hub Business Plan Template

  • Industry Overview

The Agribusiness industry includes businesses that directly engage in or directly benefit from the agricultural value chain. Businesses in this industry may produce agricultural commodities; buy agricultural produce or supply goods and services to farms and the agriculture industry. It is important to state the core aim of this industry is to focus on the food-supply chain from farmers to wholesalers and to retailers.

Basically, the Agribusiness industry is a combination of a wide variety of agricultural-based industries. These industries are either directly involved in the business of growing agricultural commodities, or directly benefit from these growers by buying from them or selling to them and that is where food hub business comes in.

A food hub, as defined by the USDA, is “a centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/or marketing of locally/regionally produced food products. Food hubs also fill gaps in food systems infrastructure, such as transportation, product storage, and product processing.

There are 3 types of food hubs and they are Retail or Farm to Consumer (F2C): This model gives farmers more access to high-value markets by distributing products directly to consumers online, in a retail space, or via a community-supported agriculture (CSA) subscription.

Wholesale or Farm to Business/Institution (F2B): This model gives farmers access to high-volume markets such as schools, grocery stores, hospitals, and restaurants that they couldn’t normally obtain on their own due to lack of volume or consistency.

This method of gathering products to meet higher volume needs is more efficient for buyers and makes it easier for them to buy regionally throughout the year. And lastly the Hybrid: This model consists of both retail and wholesale operations. A food hub may be set up as a non-profit organization, for-profit business, or a cooperative.

The Agribusiness industry of which food hub line of business is subset of is indeed a very large industry and pretty much thriving in all parts of the world especially in countries such as China, Russia, Bulgaria, United States of America, Romania, United Kingdom, Germany, Australia and France et al.

Statistics has it that in the United States of America alone, there are about 2,752,324 licensed and registered standard Agribusiness companies (food hubs inclusive) responsible for employing about 7,195,078 employees and the industry rakes in a whooping sum of $2 trillion annually with an annual growth rate projected at 0.5 percent. On the global stage, no player in this industry can boast of having a giant market share in this industry but Archer Daniels Midland Company and Cargill Inc. are the leaders in the United States of America.

In recent time, large multinational companies are increasingly getting in on the agribusiness act. These corporations are encouraging vertical integration in the industry and are actively boosting the industry’s profitability as a whole. The Agribusiness industry has experienced increasing interest in biofuel, strong growth in the number of free-trade agreements signed by the federal government and a rise in the prevalence of genetically modified seeds. These trends are forecast to continue over the next half a decade.

Over and above, a food hub business is indeed a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale without a storage / warehouse or you can choose to start on a large scale with standard storage facilities/warehouse, large business network, dozens of distribution trucks/vans and a strong online presence.

Food Hub Business Plan – Executive Summary

Abraham Adamson Food Hub Company®, LLC is a standard and registered food hub company that will be involved in the distribution of farm produce to wholesale distributors and retailers. Our warehouse cum storage facility will be located close to one of the largest farming community in Lincoln – Nebraska.

We have been able to lease a warehouse cum storage facility that is big enough to fit into the design of the kind of food Hub Company that we intend launching and the facility is centrally located in the heart of town with easy delivery network.

Abraham Adamson Food Hub Company®, LLC will deal in a wide range of farm produce from various farmers all across Lincoln – Nebraska and neighboring cities. We will engage in the wholesale distribution of farm produce such as soybean and corn, frozen foods, beef, margarine and cooking oil processing, corn and wheat wholesaling, dairy product and milk, fruit and vegetable wholesaling amongst others.

We are aware that there are several large and small food hubs and even well – established farm markets all around Lincoln – Nebraska that are also into farm produce wholesale, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have robust collection and distribution network, strong online presence and modern storage facilities and we are armed with the various payments of options available in the United States.

Beyond selling the farm produce of some of the leading farms in the United States, our customer care is going to be second to none in the whole of Lincoln – Nebraska and our deliveries will be timely and highly reliable. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our products.

Abraham Adamson Food Hub Company®, LLC will ensure that all our customers are given first class treatment whenever they visit our food hub. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base and distribution network may grow to. We will ensure that we get our customers involved in the selection of farm produce that they want us to be involved in distributing and also when making some business decisions that directly affects them.

Abraham Adamson Food Hub Company®, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Abraham Adamson Food Hub Company®, LLC is a family business that is owned by Abraham Adamson and his immediate family members. Abraham Adamson has a B.Sc. in Business Administration, with over 8 years of hands on experience in the agribusiness industry, retailing and distribution industry, working for some of the leading brands in the United States. Although the business is launching out by focusing on Lincoln – Nebraska, but there is a plan to expand our distribution network all across the state of Nebraska.

  • Our Products and Services Offering

Abraham Adamson Food Hub Company®, LLC is in an agribusiness industry cum food hub line of business and we will ensure we go all the way to be involved in the distribution of a wide range of farm produce such as, soybean and corn, frozen foods, beef, margarine and cooking oil processing, corn, soybean and wheat wholesaling, dairy product and milk, fruit and vegetable wholesaling amongst others from top farms in and around Lincoln – Nebraska.

We are in the agribusiness industry cum food hub line of business to make profits and we will ensure that we do all that is permitted by the law in the United States to achieve our business aims and objectives. Our products and services offerings are listed below;

  • Aggregation: Compile products from different suppliers/farms to distribute through a single channel
  • Distribution: Store products and transport them to the customer
  • Marketing and sales: Find buyers, sell and advertise farm produce, and promote farms’ brand identities

Our Vision Statement

Our vision is to become one of the leading brands in the food hub line of business in the whole of Lincoln – Nebraska.

  • Our Mission Statement

Our mission is to establish a food hub business that will distribute a wide range of farm produce from top farming brands at affordable prices to wholesalers and retailers in Lincoln and other cities in Nebraska where we intend marketing our services and products.

  • Our Business Structure

Abraham Adamson Food Hub Company®, LLC do not intend to start a food hub business like the usual mom and pop business around the street corner; our intention of starting a food hub business is to build a standard and one stop food hub cum farm produce distribution business in Lincoln – Nebraska. We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will make sure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Abraham Adamson Food Hub Company®, LLC;

  • Chief Executive Officer (Owner)
  • Warehouse/Storage Facility Manager
  • Human Resources and Admin Manager
  • Merchandize Manager
  • Sales and Marketing Manager
  • Information Technologist
  • Accountants/Cashiers
  • Customer Services Executive
  • Drivers/Distributors

Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Warehouse cum Storage Facility Manager:

  • Responsible for organizing the safe and efficient receipt, storage and dispatch of warehoused goods (farm produce)
  • Responsible for liaising with customers, suppliers and transport companies
  • In charge of planning, coordinating and monitoring the receipt, order assembly and dispatch of goods (farm produce)
  • Responsible for using space and mechanical handling equipment efficiently and making sure quality, budgetary targets and environmental objectives are met
  • In charge of coordinating the use of automated and computerized systems where necessary
  • Responsible for keeping stock control systems up to date and making sure inventories are accurate
  • Responsible for producing regular reports and statistics on a daily, weekly and monthly basis
  • In charge of overseeing the planned maintenance of vehicles, machinery and equipment
  • Ensures that proper records of goods are kept and warehouse does not run out of products
  • Ensures that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
  • Interfaces with third – party suppliers (farmers)
  • Controls farm produce distribution and supply inventory
  • Supervises the workforce in the warehouse floor

Merchandise Manager

  • Manages vendor relations, farm cum market visits, and the ongoing education and development of the organizations’ buying teams
  • Responsible for the purchase of farm produce directly from farmers for the organizations
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget

Sales and Marketing Manager

  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identify, prioritize, and reach out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develop, execute and evaluate new plans for expanding increase sales
  • Document all customer contact and information
  • Represent the company in strategic meetings
  • Help increase sales and growth for the company

Information Technologist

  • Manages the organization website
  • Handles eCommerce aspect of the business
  • Responsible for installing and maintenance of computer software and hardware for the organization
  • Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
  • Manages the organization’s CCTV
  • Handles any other technological and IT related duties

Accountant/Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
  • Responsible for financial forecasting and risks analysis
  • Performs cash management, general ledger accounting and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

Distribution Truck Drivers

  • Assists in loading and unloading farm produce
  • Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
  • Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
  • Assists the transport and logistics manager in planning their route according to a distribution schedule.
  • Local-delivery drivers may be required to sell farm produce or services to stores and businesses on their route, obtain signatures from recipients and collect cash
  • Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
  • Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
  • Collects and verify delivery instructions
  • Reports defects, accidents or violations

Food Hub Business Plan – SWOT Analysis

Our intention of starting out in Lincoln and work with farmers only within Lincoln – Nebraska is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open our food hubs in major cities throughout the United States of America.

We are quite aware that there are several large and small scale food hubs and even well – organized farm markets all over Lincoln and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Abraham Adamson Food Hub Company®, LLC employed the services of an expert HR and Business Analyst with bias in agribusiness industry to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Abraham Adamson Food Hub Company®, LLC;

  • Strength:

Our location, the business model we will be operating on (robust collection and distribution network), varieties of payment options, wide range of farm produce from top farm brands and our excellent customer service culture will definitely count as a strong strength for Abraham Adamson Food Hub Company®, LLC. So, also our management team members are people who have what it takes to grow a business from start – up to profitability within a record time.

  • Weakness:

A major weakness that may count against us is the fact that we are a new food hub business and we don’t have the financial capacity to compete with leaders in the industry for now.

  • Opportunities:

The fact that we are going to be operating our food hub business in Lincoln – Nebraska which happens to be among the top 5 food producing states in the US provides us with unlimited opportunities to sell our farm produce to a large number of wholesale distributors and retailers cum businesses.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our products and services; we are well positioned to take on the opportunities that will come our way. We are also aware that free-trade agreements and interest in biofuels benefit industry performance, and continued vertical integration of the farm process will open more opportunities for us.

  • Threat:

Some of the threats and challenges that we are likely going to face when we start our own food hub business are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the arrival of a competitor (a new food hub or even well – organized farm market) within same location where we have our food hub.

Food Hub Business Plan – MARKET ANALYSIS

  • Market Trends

In recent time, large multinational companies are increasingly getting in on the agribusiness act. These corporations are encouraging vertical integration in the industry and are actively boosting the industry’s profitability as a whole. The Agribusiness industry has experienced increasing interest in biofuel, strong growth in the number of free-trade agreements signed by the federal government and a rise in the prevalence of genetically modified seeds. These trends are forecast to continue over the next half a decade.

Distribution of goods as wholesalers to retailers has been in existence for as long as humans started trading goods, but one thing is certain, the food hub line of business cum distribution industry is still evolving. The introduction of technology has indeed helped in reshaping the industry.

Lastly, it is now a common phenomenon for food hubs cum distribution companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their business to meet their needs; in essence, the use of technology help businesses like food hubs to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help food hubs serve them better.

  • Our Target Market

The agribusiness industry cum food hub line of business has a wide range of customers; everybody on planet earth consumes different types of food and it is difficult to find people around who don’t.

In view of that, we have positioned our food hub company to service businesses In Lincoln – Nebraska who deal in food cum farm produce and every other location we will cover all over the state of Nebraska. We have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to engage in wholesale distribution of a wide range of farm produce/food from different farmers to the following businesses;

  • Retailers of farm produce
  • Grocery Stores
  • Super Markets
  • Wholesale Distributors of Farm Produce

Our Competitive Advantage

A close study of the agribusiness industry cum food hub line of business reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are well prepared to compete favorably with other leading food hubs in and around Lincoln – Nebraska.

Abraham Adamson Food Hub Company®, LLC is launching a standard food hub business that will indeed become the preferred choice of retailers, wholesale distributors, grocery stores and supermarkets et al in Lincoln – Nebraska.

One thing is certain; we will ensure that we have a wide range of farm produce cum food products available in our warehouse/storage facility at all times. One of our business goals is to make Abraham Adamson Food Hub Company®, LLC a one stop food hub company. Our excellent customer service culture, timely and reliable delivery services, online presence, and various payment options will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups food hubs and related businesses) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

Food Hub Business Plan – SALES AND MARKETING STRATEGY

  • Sources of Income

Abraham Adamson Food Hub Company®, LLC is in business to engage in the wholesale distribution of a wide range of farm produce cum foods such as soybean and corn, frozen foods, beef, margarine and cooking oil processing, corn, soybean and wheat wholesaling, dairy product and milk, fruit and vegetable from top farmers in Lincoln – Nebraska. We are in the agribusiness industry cum food hub line of business to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the wholesale distribution of a wide range of farm produce/foods at affordable prices. We will generate income for the business by;

  • Aggregation: Compiling products from different suppliers/farms to distribute through a single channel
  • Distribution: Store products and transport them to the customer
  • Marketing and sales: Find buyers, sell and advertise farm produce, and promote farms’ brand identities.

Sales Forecast

One thing is certain when it comes to food hub business, if your business is centrally positioned coupled with an effective and reliable storage facility, robust collection and distribution network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Lincoln – Nebraska and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the agribusiness industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Lincoln – Nebraska.

Below are the sales projections for Abraham Adamson Food Hub Company®, LLC, it is based on the location of our business and other factors as it relates to agribusiness cum food hub start – ups in the United States;

  • First Fiscal Year-: $340,000
  • Second Fiscal Year-: $650,000
  • Third Fiscal Year-: $1 million

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products, home delivery services and customer care services as we do within same location.

  • Marketing Strategy and Sales Strategy

Before choosing a location for Abraham Adamson Food Hub Company®, LLC, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for farm produce wholesale distributors, retailers, grocery stores and supermarkets in and around Lincoln – Nebraska. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the retailing and distribution industry to help us develop marketing strategies that will help us achieve our business goal of winning a large percentage of the available market in and around Lincoln – Nebraska.

In other to continue to be in business and grow, we must continue to distribute farm produce which is why we will go all out to empower our sales and marketing team to deliver. In summary, Abraham Adamson Food Hub Company®, LLC will adopt the following sales and marketing approach to win customers over;

  • Open our business in a grand style with a party for all.
  • Introduce our business by sending introductory letters alongside our brochure to farm produce cum food wholesale distributors, retailers, grocery stores, supermarkets and other key stakeholders in and around Lincoln – Nebraska
  • Ensure that we have a wide range of farm produce from different farm brands within and outside Lincoln – Nebraska at all times
  • Make use of attractive hand bills to create awareness
  • Position our signage/flexi banners at strategic places around Lincoln – Nebraska
  • Position our greeters to welcome and direct potential customers
  • Create a loyalty plan that will enable us reward our regular customers
  • Engage in roadshows within our neighborhood to create awareness for our food hub business

Food Hub Business Plan – Publicity and Advertising Strategy

Despite the fact that our food hub business is well structured and well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote the business.

Abraham Adamson Food Hub Company®, LLC has a long-term plan of opening distribution channels all around the state of Nebraska and key cities throughout the United States which is why we will deliberately build our brand to be well accepted in Lincoln before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand.

Here are the platforms we intend leveraging on to promote and advertise Abraham Adamson Food Hub Company®, LLC;

  • Place adverts on community based newspapers, radio stations and TV stations
  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business
  • Ensure that we position our banners and billboards in strategic positions all around Lincoln – Nebraska
  • Distribute our fliers and handbills in target areas in and around our neighborhood
  • Contact farm produce/food wholesale distributors, retailers, grocery stores and supermarkets by calling them up and informing them of Abraham Adamson Food Hub Company®, LLC and the farm produce we sell/distribute
  • Advertise our food hub business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and distribution vans/trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals

Our Pricing Strategy

Pricing is one of the key factors that gives leverage to wholesale distributors and retailers, it is normal for retailers to purchase products from distribution companies at a cheaper price. We will work towards ensuring that all the farm produce in our food hub are distributed at highly competitive prices compared to what is obtainable in the United States of America.

We also have plans in place to discount our farm produce once in a while and also to reward our loyal customers from time to time.

  • Payment Options

The payment policy adopted by Abraham Adamson Food Hub Company®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Abraham Adamson Food Hub Company®, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via POS machines
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payments for farm produce purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

  • Start – Up Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a food hub business; it might differ in other countries due to the value of their money.

These are the key areas we will spend our start-up capital on;

  • The total fee for registering the business in the United States of America – $750
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300
  • Marketing promotion expenses for the grand opening of Abraham Adamson Food Hub Company®, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580
  • The cost for a hiring business consultant – $2,500
  • The cost for insurance (general liability, workers’ compensation and property casualty) at a total premium – $2,400
  • The cost for payment of rent for 12 months of $1.76 per square feet warehouse facility in the total amount of $105,600
  • The total cost for warehouse facility remodeling (construction of racks and shelves) – $20,000
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500)
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory (stocking with a wide range of farm produce) – $200,000
  • Storage hardware (bins, rack, shelves, food case) – $3,720
  • The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs – $5,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000
  • The cost for the purchase of distribution vans/trucks – $25,000
  • The cost of launching a website – $600
  • The cost for our opening party – $7,000
  • Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our food hub business in Lincoln – Nebraska. Please note that this amount includes the salaries of all the staff for the first three months of operation.

Generating Funds/Startup Capital for Abraham Adamson Food Hub Company®, LLC

Abraham Adamson Food Hub Company®, LLC is a private business that is solely owned and financed by Abraham Adamson and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start-up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

Food Hub Business Plan – Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all these factors are missing from a business (company), then it won’t be too long before the business closes shop.

One of our major goals of starting Abraham Adamson Food Hub Company®, LLC is to build a business that will survive off its own cash flow without the need of injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail/distribute our farm produce a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Abraham Adamson Food Hub Company®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry and they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of warehouse facility and remodeling the facility: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Application for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packagin, Marketing/Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Purchase of distribution vans: Completed
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party/launching party planning: In Progress
  • Compilation of list of products that we will distribute: Completed
  • Establishing business relationship with farmers within and outside of Lincoln – Nebraska: In Progress
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