Do you want to start an agave farm and need to write a plan? If YES, here is a sample agave farming business plan template & FREE feasibility report.
Agave is another source of mixed fructans that boost of numerous economic importance, most especially in the production of gin. Starting an agave farm may not be as easy as expected but it can be worth it when done right. If you’re looking to start from scratch, remember to include five years of living expenses to your start-up projections.
Expect to pay $10 to $20 per tree and be planting 100-400 trees per acre depending on the size of the plant. Note that you will need to spend about $5 per tree per year on pesticides, pruning, and fertilizer. Of course, you’ll need to purchase the land in the first place.
A small farm for your agave will only need five to ten acres at minimum, but if you’re going to make a decent profit, you’ll want to consider 50 to 100 acres for planting purposes. Note that your expenses will be focused on paying for fertilizer, pest control, and harvesting.
You will need to replace some of your trees on a regular basis to maintain the health and vitality of the entire farm. Payroll during the harvest season will also make a large dent in the checking account.
How Much Can You Make from Agave Farming?
The retail prices of fruits or plants vary over time and in different markets. Typical agave pricing runs from ten cents a pound when selling direct to a distributor and up to two dollars per pound when selling retail direct to a single market customer.
Nonetheless, if you hope to sell the entire harvest at your farm stand, expect to see a significant percentage fail to move. In the right climate, agave can generate impressive income when used for their valuable by product. Expect not to clear a profit for the first three fruit-bearing years as the farm pays for the trees and maintenance.
After that, you will still be making payments on harvesting equipment. As a side-line, a healthy small farm of five to ten acres can generate $10,000 a year, but expenses must be deducted before you see profit. The profit margin increases for industrial sized farms where the cost of machinery is shared over more trees.
A Sample Agave Farming Business Plan Template
1. Industry Overview
Blue agave is also known as Weber Azul a part of Agave tequilana species. The blue agaves boost of numerous economic importance and is mostly cultivated in South America and south africa. The blue agave extract is the primary raw material used for the production of tequila drink native to the region consumed globally and other distilled beverages.
The presence of fructose in the core of the stem makes it economical important as it is used in the production of nectar and natural sweetener ingredient. The Blue agave market is projected to enjoy substantial growth over the forecast period. The market will be driven by the growing demand for alternative sweetener and alcoholic beverages over the forecast period.
Howbeit, segmentation on the basis of nature in the blue agave market is organic and conventional. The conventional segment is projected to dominate the global market in terms of volume share due to the easier availability and cheaper price point over organically grown blue agave.
The organic segment is expected to experience comparatively higher CAGR over the forecast period resulted in the large adoption of organic food in developed regions. In terms of end-product, the global blue agave market is segmented into tequila, sweetener and nectar.
The tequila segment is projected to dominate the global blue agave market due to larger demand base for the alcoholic products, globally. The sweetener segment will experience substantial demand over the forecast period due to the rapid adoption of natural alternative sweetener over the food and beverage industry.
In terms of the end–use, the blue agave market is segmented into food and beverage, pharmaceutical, nutraceutical, and others. The food and beverage segment is further segmented into confectionary, dressings, bakery, dairy, and beverage.
According to experts, the food and beverage sector is projected to dominate the global blue agave market over the forecast period resulted by the larger application of the products in the sector. The nutraceutical sector is also projected to capture a substantial volume share in the global market owing to the increasing adoption of supplement based lifestyle over the developed and developing regions, globally.
North America is projected to dominate the global blue agave market resulted in higher demand for alternative sweeteners from the food industry. Europe will follow due to mature consumer base for the natural sweetener and nectar which is projected to boost demand for blue agave products over the forecast period.
The Asia Pacific will form an attractive market to play for the manufacturers of blue agave products due to the increasing purchasing power of the consumer in the region and raising awareness over natural based products. The Latin America Region will witness a steady market due to the fact that the region is a traditional market for the blue agave products.
Meanwhile, the market is expected to be driven by the benefits of the product usage such as a natural alternative to harmful sweeteners in process foods. It will be driven by the growing demand for distilled products such as tequila at a global scale.
Robust investment into innovative growing techniques for the blue agave plant is expected to drop down the price and increase per unit yield of the crop. Restriction to growing condition and slow crop cycles is expected to cause restraint for the blue agave market over the forecast period.
2. Executive Summary
Perennial Groove® Agave Farm, Inc.® Agave Farm, Inc. is an urban botanical farm in Detroit dedicated to the production of botanical perennials for use in the alcoholic industry. Our aim is to work hard to become a leading producer of botanical plants for the alcoholic industry as well as plant nurseries.
An initial 25-acre site will begin with eight growing spaces and a shared hoop house, later adding features such as an orchard, more hoop houses, additional small farms and related indoor facilities. Initial capital needs are estimated at approximately $450,000 to cover land acquisition, soil remediation and preparation, common facilities and equipment.
Our farm will help transform the city of Detroit from a food desert to a hub of local food production and a driver of economic and community development. We will continue to research varieties and the market for new varieties and production techniques.
We will use minimal inputs and utilise our nutrient management plan to be more efficient. We also plan to use scouting and IPM for pest and disease control. We will offer a much specialised service and product that other businesses may not have the time or labour to grow. We are also going to use high tunnels which are relatively new production practice.
Creating farms on vacant land on Detroit has been widely supported by a variety of planning activities and implementation projects.
The city’s vast supply of available land – combined with a weak market for housing and other development – has prompted multiple concepts for alternative development. Agricultural and related uses have been recommended in multiple Detroit plans and projects.
At Perennial Groove® Agave Farm, Inc., we possess three keys that will be instrumental in our farms success. The first is the implementation of strict financial controls. By having the proper controls, production efficiency will be maximized.
The second key will be the never ending pursuit for the industry’s highest concentration levels of botanical ingredients in each plant.
The third key is the recognition and implementation of the philosophy that 100 percent customer satisfaction is required to ensure a profitable business. Profits are a by product of satisfying customers, not the other way around. Perennial Groove® Agave Farm, Inc. will have a strong connection to the local community and reflect Detroit’s African American heritage.
We will actively develop our farm and recruit workers from the city and other surrounding neighbourhoods, and will include community programming so that the farm complex becomes an integral partner with local residents, community organisations, schools, distillation businesses, and others. With time, Perennial Farms will help create a healthy, economically vibrant and safe neighbourhood.
3. Our Products and Services
At Perennial Groove® Agave Farm, Inc., we will plant and offer a range of botanical perennials (plants where the root structure remains, allowing the plant to keep growing every year). These perennials were chosen for two main reasons.
The first is the economical value that they offer; therefore the plants have a positive contribution to the society by meeting the demand for alcoholic fruits. The second reason is that the market for alcoholic beverages is a very strong industry with excellent growth, ensuring demand for our crops. We will offer the following excellent crops:
Blue agave is also known as Weber Azul a part of Agave tequilana species. The blue agaves boost of numerous economic importance and is mostly cultivated in South America and south africa.
The blue agave extract is the primary raw material used for the production of tequila drink native to the region consumed globally and other distilled beverages. The presence of fructose in the core of the stem makes it economical important as it is used in the production of nectar and natural sweetener ingredient.
- Juniper Berries
A juniper berry is the female seed cone produced by the various species of junipers. Although it is not a true berry but a cone with unusually fleshy and merged scales, which gives it a berry-like appearance. Note that these cones from a handful of species, especially Juniperus communis, are used as a spice, particularly in European cuisine, and also give gin its distinctive flavour. Juniper berries may be the only spice derived from conifers.
Juice extracted from the crushed pineapple core and the inner seeded cover contains sufficient sugar to produce 6.5 to 7 percent alcohol after fermentation. With the addition of extra sugar, however, the alcohol content can be increased to 10 percent.
A total of 25 litres of over 90 percent concentration alcohol can be distilled from 200 litres of discarded wines and 100 litres of fermented pineapple waste extract.
4. Our Mission and Vision Statement
- Our vision for the farm is to provide unique and wholesome produce that is enjoyable and sustainable.
- We work harmoniously with nature and the land to grow quality, perennial fruits to supply local wineries and distillers all over Chicago.
- Our mission at Perennial Groove® Agave Farm, Inc. is to cultivate in very large quantities botanical perennial fruits for the united states alcohol market and the world at large.
- We also want to build community connections, create local wealth, support distillers and develop a stronger local economy.
Our Business Structure
At Perennial Groove® Agave Farm, Inc., we plan to hire the required numbers of employees that will help us build a farm that will meet the demand for assorted alcohol making and spicing fruits in the region. We would also be hiring workers at intervals to help us achieve our farm goals, while giving our customers the best in each stroke. Outlined below is the business structure of Perennial Groove® Agave Farm, Inc.:
- Chief Operating Officer
- Farm General Manager
- Business Accountant
- Research Agronomist
- Loss Prevention Manager
- Marketing and Sales Executive
- Farm Worker
- Seasonal Farm Labourer
5. Job Roles and Responsibilities
Chief Operating Officer
- Will be in charge of providing direction for the business
- Will be in charge of Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Will be in charge of the day to day running of the farm
- Will be in charge of handling high profile clients and deals
- Will be in charge of fixing prices and signing business deals
- Will be in charge of signing checks and documents on behalf of the company
- In charge of calculating the success of the farm at regular interval
Farm General Manager
- Will be in charge of the planning, management and coordinating all farm activities across the various sections on behalf of the organization
- In charge of supervising other section manager
- Ensures compliance during project executions
- Obligated to provide advice on the management of farming activities across all section
- In charge of carrying out risk assessment
- Should be able to use IT systems and software to keep track of people and progress of the growth of crops
- In charge of overseeing the accounting, costing and sale of farm produce after harvest
- Is charged with representing the organization’s interest at various stakeholders meetings
- Makes sure that farming goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are used and different interests involved are satisfied. In charge of preparing financial reports, budgets, and financial statements for the farm
- In charge of overseeing the smooth running of HR and administrative tasks for the organization
- Is tasked with handling all financial transactions for the farm
- It’s obligated to define the job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- In charge of training, evaluation and assessment of employees
- In charge of overseeing the smooth running of the daily farming activities across the various farming sections.
- In charge of overseeing the smooth running of HR and administrative tasks for the organization
- Tasked with defining job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- In charge of training, evaluation and assessment of employees
- In charge of preparing financial reports, budgets, and financial statements for the organization
- In charge of financial forecasting and risks analysis.
- In charge of developing and managing financial systems and policies
- In charge of administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
- Design innovative ecologically based cropping systems that protect and enhance soil and water resources and are economically competitive and sustainable.
- Quantify agronomic responses of diverse cropping systems, including profitability.
- Quantify the impact of diverse cropping systems on water and nutrient use efficiency.
- Quantify carbon and nutrient cycling in diverse cropping systems.
- Utilize crop models to evaluate the potential impacts of diverse and innovative systems on productivity and ecosystem services over a range of spatial-temporal scales.
Loss Prevention Manager
- Direct installation of covert surveillance equipment, such as security cameras.
- Maintain documentation of all loss prevention activity.
- Perform cash audits and deposit investigations to fully account for farm cash.
- Advise the farm on development of loss-investigation procedures.
- Collaborate with law enforcement to investigate and solve external theft or fraud cases.
- Monitor and review paperwork procedures and systems to prevent error-related shortages.
- Investigate or interview individuals suspected of shoplifting or internal theft.
- Visit farm to ensure compliance with company policies and procedures.
- Supervise surveillance, detection, or criminal processing related to theft and criminal cases.
- Recommend improvements in loss prevention programs, staffing, scheduling, or training.
Marketing and Sales Officer
- In charge of Identifying, prioritizing, and reaching out to new markets for our agriculture produce, processed food, new partners, and business opportunities within the agro – allied industry
- In charge of Developing, executing and evaluating new plans for expanding increase sales of all our agriculture produce and processed foods
- Tasked with documenting all customer contact and information.
- Represents the company in strategic meetings
- Aid to increase sales and growth for the company
- Works as semi-skilled farm labourer on an institutional farm; performs duties such as ploughing, harrowing, cultivating, fertilizing, irrigating, and harvesting farm crops on assigned plots and acreage.
- Operates a picker, combine, tractor, moving and spraying equipment, chain saws, carry all, front end loader, milking machines, and other common and specialized equipment used in general farming operations.
- Mixes soil, sand, and fertilizers according to specifications; prepares insecticide solutions and operates spray equipment on assigned plots and acreage for insect control.
- Changes oil, greases, and make limited repairs to farm equipment and machinery; assists in the general repair and maintenance of farm buildings.
Seasonal Farm Labourer
- Daily operation and maintenance of the sprinkler systems.
- Field duties include the daily operation and maintenance of the farm equipment that is used in the production of the crops.
- This involves operating equipment to prepare plant, spray and harvest the crops.
- Equipment involved is tractors, swathers, sprayers, balers, hay wagons, combines and other smaller farm implements.
- Repairs to the equipment are performed and might include mechanical repairs on engines and structure, welding, or other simple repairs or part replacement.
- Other duties include the general clean-up, construction and maintenance of company property or facilities associated with the research farms as instructed by the Manager
- In charge of protecting the farm and its environs
- Controls traffic and organize parking
- Tasked with giving security tips when necessary
- Patrols around the farm on a 24 hours basis
- Presents security reports weekly
6. SWOT Analysis
At Perennial Groove® Agave Farm, Inc., we understand most urban soil includes contaminants including lead from old house paint.
Former industrial sites and gas stations may include more serious contamination and/or underground storage tanks. That is why we insist that proper analysis and soil testing is essential to determine the viability and cost of all our potential sites.
Although many parcels in Detroit are contaminated, the costs of remediation of our own very site will need to be built into the development budget to have a full sense of capital costs. Due to the prevalence of past uses and possible contamination in our farm location, it is likely that some remediation expenses will be needed to create a large enough area for the development of our farm and crops.
We’ve developed our site design and pleased development plan for targeted properties. We have developed plans for start-up and long term development of our farm. Below is the result of our thorough analysis of Perennial Groove® Agave Farm, Inc.;
Perennial Groove® Agave Farm, Inc. have purchased some of the latest urban farming technologies, machines; tools and equipment that will aid us plant perennial fruits with ease. Aside these, we have also employed experienced hands to helps us pilot our farm to its designated position. Also, our dedication to the farm and our commitment to quality and success will set us apart in this business.
Our major weakness will be the time and labour that is always an issue at peak times. Finances are also limited due to property purchase and start up costs.
According to research, the United States agricultural industry is undoubtedly one of the industries with a steady history of trade export surpluses. It was estimated that farm cash receipts peaked $301.8 billion just in the first three halves of 2010. The US agricultural industry has a good chance for growth if you are interested in agriculture.
Our major threat in this business will be the ever changing consumer tastes and preferences. Also, distribution cost and slow rising disposable income of our city will count as a threat to our business when not managed well.
7. MARKET ANALYSIS
- Market Trends
Since people prefer to drink less alcohol, beer and cider brands with lower alcohol content will conquer supermarket shelves in the future. According to reports, companies especially, when they produce beer and cider now have new opportunities if they invest in innovative flavours, organic ingredients and healthier recipes.
Cloudy beer and cider combined with functional drinks such as kombucha or tea reach consumers who are looking for drinks with health benefits. The New Belgium “The Hemperor HPA” Beer was positioned in the USA as a hop beer with hemp seeds and a natural taste.
These new product developments mean that craft beer has developed from a niche product to a popular mass product: According to research, craft beer sales increase by five percent in the U.S. in 2018. In 2007, there were only 1,511 craft beer breweries in the U.S., while the number has risen to around 7,000 in 2019.
Although for spirits the demand for high quality products is significantly increasing. According to industry reports, sales of spirits from the “Super Premium” and “High End Premium” brands increased by six and seven percent in 2018.
While classic vodka has always enjoyed great popularity, in future it will increasingly be presented in reduced-sugar versions but also spiced up with unusual flavours such as yuzu or kumquat. A range of new, innovative flavours can also be expected for whiskey.
The classic gin and tonic will be enhanced with premium tonics in the future. Less sugar is also the credo as an original overall positioning that is exciting, interesting and “made for Instagram”!It will also be exciting when more and more classic alcoholic beverages such as sherries, vermouths or sakés with less or no alcohol find their way into the Supermarket branches.
Notably, for alcoholic beverages in future: More naturalness and less artificial additives is the key to success. Anyone who relies not only on natural, plant-based ingredients, but also on environmentally friendly packaging will hit the taste buds of conscious consumers and will also conquer their hearts.
8. Our Target Market
At Perennial Groove® Agave Farm, Inc., we have identified three different target market segments which we will sell to:
- Distillers and Wineries
This customer group manufactures alcoholic beverages for their own label products. The companies purchase the fruits and extract the active ingredients and transform them into sellable products for their own brand. There are a handful of large companies that operate in this market space.
These customers purchase the plants, extract the active ingredients and either sell the concentrated products to the winemakers or they produce the drinks and sell the final product to other companies for their private label products.
In essence they are the subcontractor for the alcoholic beverage companies. These companies therefore are one layer within the manufacturing system and do not sell to the end consumer. They act as a supplier/processor for the retail brands.
- Other Nurseries/Garden Centres
This customer group purchases the plants which they in turn sell at retail to the individual end consumer. The typical consumers are agricultural enthusiasts who prefer to grow plants for the fun.
Our Competitive Advantage
We at Perennial Groove® Agave Farm, Inc. will leverage our competitive advantages in order to gain significant market share. Our competitive advantage is our ability to consistently grow perennial fruits with high active botanical percentages as well as a high ratio of healthy plants (sellable).
The aim of our marketing strategy will be to increase awareness and visibility of our industry-leading percentages of active botanicals. Our strategy will communicate the fact that our fruits and plants will yield a significantly higher amount of botanicals measured per plant.
Our sales strategy will constantly reinforce our competitive advantage; will seek to qualify leads by concentrating on our ability to perform reliably on long-term contracts, becoming a stable supplier to the larger companies that need a steady supply stream.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Perennial Groove® Agave Farm, Inc. is a privately owned farm that was established with the aim of serving the alcoholic beverage industry by providing agave, Juniper berries and Pineapples for fermentation. We will generate revenue from selling a range of botanical perennials (plants where the root structure remains, allowing the plant to keep growing every year).
These perennials were chosen for two main reasons. The first is the economical value that they offer; therefore the plants have a positive contribution to the society by meeting the demand for alcoholic fruits.
10. Sales Forecast
Our sales forecast at Perennial Groove® Agave Farm, Inc. shows that growth will be slow but steady. Growth will be slow because of the time and effort needed to develop the clientele base. Production is not the slowing element as Perennial Groove® Agave Farm, Inc. has been in production for a couple of years.
As long as we are not producing at the same level, or for that matter with the same goal of business efficiency, but nonetheless we will be able to reasonably raise production to meet the sales needs. Note that within the wet months of the year, the forecast reflects a tapering of sales as production will fall during these months.
There will however be some sales and production which will be moved inside to the greenhouses. We also believe there are risks that could hamper our sales at Perennial Groove® Agave Farm, Inc.. The first is weather.
Plants are dependent on the weather. A poor growing season will have a serious effect on production. Although this risk is spread amongst all of the producers in the region meaning the weather risk is imposed on everyone, generally not a specific farmer.
Another risk that could affect sales is some sort of pest that could unexpectedly negatively affect the crops. That is why by planting multiple botanical fruits and choosing them based on their heartiness relative to the growing climate, we will be able to minimize these risks as much as possible.
- Marketing Strategy and Sales Strategy
Our sales and marketing strategy will focus on identifying qualified leads and turning them into paying customers. The key sales effort that we plan to undertake is the reinforcement of the fact that all our fruits and plants have the industry’s highest percentage of botanicals.
We believe that this will be quite appealing to the buyers as this is exactly what they want, more botanicals per plant. Coupled with selling our competitive advantage to our clients, we will also create an emphasis on our ability to perform on long-term contracts.
Meanwhile, we also recognize that the transactions should not be thought of as individual sales, but as long-term relationships.
This is a reasonable assumption based on the fact that our clients are in the business of utilizing botanical and our fruits for their alcoholic beverages, that they will continually have the need for the products, and that it is far less expensive to establish a relationship with one vendor than to continually have to find new vendors that can meet their needs.
Aside the above, below are the basic sales and marketing strategies we will be adopted ongoing at Perennial Groove® Agave Farm, Inc.:
- We will be introducing our farm and products by sending introductory letters alongside our brochure to stake holders in the alcoholic beverage industry, companies that rely on the agriculture industry for their raw materials.
- We will also advertise our farm and agriculture produce in related magazines and websites
- We will also list our commercial farms on yellow pages ads
- We will strive to attend related agriculture and food expos, seminars, and business fairs et al
- We also plan to make use of the internet to promote our business
- We also plan to engage in direct marketing
- We will also Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Our publicity and advertising strategy will be based on generating awareness and visibility of Perennial Groove® Agave Farm, Inc. and our ability to produce the highest percentages of botanicals. Note that this strategy will focus on several different forms of communication.
The main form is participation in the numerous trade shows for the industry. The trade shows are where everyone from the industry gathers to meet and transact business. This is a wonderful place to network as well as learn about new developments in the industry. However, our other form of publicity will be the use of advertisements.
The main venues for advertisements will be industry trade magazines. The trade magazines are a well read source of information that buyers and sellers refer to for many different transactions. Summarized below are the strategies we have decided to use:
- We plan to encourage our loyal customers to help with Word of Mouth mode of advertisement (referrals)
- We also plan to advertise our commercial farm business in relevant magazines (agriculture and food related magazines), local newspaper, local TV stations and local radio station
- We will also promote our commercial farm business online via your official website
- We will list our farm business on local directories (yellow pages ads)
- We will make use of the internet and social media platforms like; Instagram, Google+, LinkedIn, Badoo, Facebook , twitter, et al to promote our commercial farm business
- We will also make use of direct coupon mailing approach to market our commercial farm produce
- We plan to distribute our fliers and handbills in target areas (farm markets) at regular intervals.
12. Our Pricing Strategy
At Perennial Groove® Agave Farm, Inc., we believe that to get the right pricing for our farm produce, we need to make sure that we choose a good location for our botanical perennial farm, choose good seeds that will bring forth bountiful harvest, reduce the cost of running our farm to the barest minimum and make sure we attract buyers to our farm, as against taking your farm produce to the market to source for buyers.
With this, we would have successfully removed the cost of transporting the goods to the market and other logistics from the equation. Also, the nature of commercial farming has made it possible for farmers to place prices on their farm produce based on their discretion without any outlined procedure in the industry.
- Payment Options
We all at Perennial Groove® Agave Farm, Inc. after our extensive research and thorough discussion are aware that different customers prefer different payment options as it suits them but at different times and ways.
We plan to make sure that we provide them with payment options that will make their transactions less stressful and very open. Listed below are the payment options we at Perennial Groove® Agave Farm, Inc. plan to be making available to our customers;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
13. Startup Expenditure (Budget)
A three year budget was created to determine the financial feasibility of creating a sustainable business strategy. The budget starts with an estimate of where we propose to spend our business capital. Based in experiences of similar urban farms in the region, including Ripe Seeds, People Feeds, and the experience of our founding members, the upfront expenses are properly analysed below:
- The price for incorporating our farm in United States of America – $750.
- Our budget for key insurance policies, permits and business license – $4,000
- The cost of acquiring / leasing a farm land – $55,000
- The budget for preparing the farm land (for Environmental cost, security and fencing, hoop House and soil preparation et al – $25,000
- The price for acquiring the required working tools and equipment / machines / tractors et al– $140,000
- The price of Launching an official Website – $600
- The budget for paying our workers for 1 year – $120,000
- Other business requirements (Business cards, Signage, Adverts and Promotions et al) – $2,000
- Miscellaneous – $5,000
As you can see from our above cost analysis, we will need about$400,000 to start Perennial Groove® Agave Farm, Inc. Here also are the few equipment s we believe that are necessary in starting Perennial Groove® Agave Farm, Inc.;
- Planter and tractor
- Soil cultivator
- Plough and Harrow (e.g. Spike harrow, Drag harrow, Disk harrow)
- Stone / Rock / Debris removal implement (e.g. Destoner, Rock windrower / rock rake, Stone picker / picker)
- Broadcast seedier (alternatively: broadcast spreader, fertilizer spreader, or Air seedier)
- Plastic mulch layer and Potato planter
- Seed drill (e.g. Precision drill)
- Transplanter (e.g. Seed Transplanter)
- Sprinkler system irrigation, Mower, Sickle, and Winnower
- Wheel Barrow and trucks
Generating Funding / Start-up Capital for Perennial Groove® Agave Farm, Inc.
The total estimate for our capital expenses is $400,000. Ideally, all of this upfront capital is raised through a combination of:
- Private grants targeted to urban farming, food systems and/or workforce development
- Public grants
- TIF funding for infrastructure, site clean-up and environmental remediation.
If it’s not possible to raise all of the capital expenses upfront, a 10 year loan of $83,500 at 5 percent interest would result in a $10,664 annual payment.
14. Sustainability and Expansion Strategy
Perennial Groove® Agave Farm, Inc. is an urban botanical farm in Detroit dedicated to the production of botanical perennials for use in the alcoholic industry. Our aim is to work hard to become a leading producer of botanical plants for the alcoholic industry as well as plant nurseries.
We also plan to continuously train of our employees (both full-time staff and part – time workers) to prepare them for any situation they find themselves in during their time with us Perennial Groove® Agave Farm, Inc. believe that our employees are the backbone of our business without them we won’t be able to achieve our desired goal, so we plan to keep them happy and satisfied.
Perennial Groove® Agave Farm, Inc. also understand that producing good and healthy farm produce, boosting our integrity, zeal, trust and good relationship management will go a long way to make us the talk of the town and prepare us to achieve everything we hope to achieve.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start – up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress