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Microgreens Business Plan [Sample Template]

How to Start a Microgreen Business

A microgreens business involves the cultivation of a wide range of microgreen varieties, such as arugula, kale, broccoli, radish, basil, and many others.

The business typically operates in a controlled indoor environment, such as a greenhouse or vertical farm, to ensure optimal growing conditions and year-round production.

Starting a microgreens business involves setting up a suitable growing space, acquiring the necessary equipment and supplies, sourcing high-quality seeds, and implementing efficient cultivation techniques.

The business owner needs to have knowledge of proper seed selection, germination methods, watering, lighting, and harvesting techniques to produce healthy and flavorful microgreens.

Steps to Write a Microgreens Business Plan

  1. Executive Summary

Green Life® Microgreens Company, Inc. is a start-up venture based in Greeley, Colorado, dedicated to providing high-quality, nutritious microgreens to the local community. Our business focuses on indoor cultivation using sustainable and environmentally friendly practices, ensuring year-round production of fresh and flavorful microgreens.

Green Life® Microgreens Company, Inc. differentiates itself through its commitment to sustainability, quality, and customer satisfaction.

We utilize controlled indoor growing techniques, minimizing water usage and reducing our environmental impact. By prioritizing sustainable practices, we aim to attract environmentally conscious consumers who value ethically produced, locally sourced microgreens.

Green Life® Microgreens Company, Inc. is poised to tap into the growing demand for fresh, nutritious microgreens in the Greeley market. Our commitment to sustainability, quality, and customer satisfaction sets us apart from competitors.

With a strong marketing strategy, efficient operations, and a skilled team, we are confident in our ability to establish Green Life® as the preferred microgreens supplier in Greeley, Colorado. Francis Powel is the founder and CEO of Green Life® Microgreens Company, Inc.

  1. Company Profile

a. Our Products and Services

We offer a diverse range of microgreens, including arugula, kale, broccoli, radish, basil, and more. Our cultivation methods prioritize quality and consistency, ensuring that each harvest delivers vibrant, nutrient-rich microgreens. Through strategic partnerships with local restaurants, catering companies, grocery stores, and farmers’ markets, we aim to become the go-to supplier for microgreens in the Greeley area.

b. Nature of the Business

Our microgreens company will operate both the business-to-consumer business model and the business-to-business business model for retailers and distributors.

c. The Industry

Green Life® Microgreens Company, Inc. will operate in the agriculture and specialty food industry.

d. Mission Statement

At Green Life® Microgreens Company, Inc., our mission is to provide the local community in Greeley, Colorado, with fresh, nutritious, and sustainably grown microgreens. We are dedicated to cultivating vibrant and flavorful microgreens using environmentally friendly practices, ensuring our customers have access to high-quality ingredients that promote healthy and sustainable living.

Through our commitment to excellence, innovation, and community partnerships, we strive to be a trusted source of premium microgreens, supporting a greener and healthier future.

e. Vision Statement

Our vision at Green Life® Microgreens Company, Inc. is to be the leading provider of premium microgreens in Greeley, Colorado, and beyond. We aim to revolutionize the way people perceive and consume microgreens by offering a diverse range of exceptional quality products.

f. Our Tagline (Slogan)

Green Life® Microgreens Company, Inc. – Growing Fresh. Nurturing Health.!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Green Life® Microgreens Company, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.

h. Our Organizational Structure
  • Chief Executive Officer (Owner)
  • Operations Manager
  • Quality Control Officer
  • Accountant (Cashier)
  • Cultivation Officer
  • Packaging and Distribution Officer.
i. Ownership/Shareholder Structure and Board Members
  • Francis Powel (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
  • Rowland Atkinson (Board Member) 18 Percent Shares
  • Williams Tims (Board Member) 10 Percent Shares
  • O’Brien Johnson (Board Member) 10 Percent Shares
  • Elham Samson (Board Member and Sectary) 10 Percent Shares.
  1. SWOT Analysis

a. Strength
  • Green Life® Microgreens Company, Inc. cultivates and delivers premium, vibrant, and flavorful microgreens that meet the highest quality standards.
  • The company’s commitment to sustainable agriculture and environmentally friendly cultivation methods sets it apart from the competition
  • Green Life® Microgreens Company, Inc. has established strong relationships with local restaurants, catering companies, grocery stores, and farmers’ markets, giving it a competitive advantage in the Greeley market.
  • The company has a dedicated team of experienced growers who possess expertise in microgreen cultivation techniques, ensuring consistent production and quality control.
b. Weakness
  • Depending on the size of the facility, Green Life® Microgreens Company, Inc. may face limitations in meeting the growing demand for microgreens, potentially leading to supply shortages.
  • While the local market presents opportunities, relying heavily on one geographic area could pose risks if market conditions change or competition intensifies.
  • Starting and scaling a microgreens business requires a significant upfront investment, and managing cash flow during the early stages of the business can be challenging.
c. Opportunities
  • The increasing trend of health-conscious consumers seeking fresh, locally sourced ingredients presents a significant opportunity for Green Life® Microgreens Company, Inc. to capture a larger market share.
  • There is potential to expand beyond Greeley, Colorado, by establishing partnerships with restaurants, retailers, and distributors in nearby cities or exploring online sales platforms.
  • Partnering with local farms or establishing relationships with organic growers can provide access to a wider range of microgreen varieties and enhance product offerings.
i. How Big is the Industry?

The microgreens industry is indeed a big industry. As consumer awareness and demand continue to rise, opportunities for growth and innovation within the microgreens sector are likely to expand.

ii. Is the Industry Growing or Declining?

The microgreens industry has experienced significant growth in recent years, driven by increasing consumer demand for fresh, nutritious, and specialty food products. Microgreens are now more readily available through various distribution channels.

They can be found in high-end restaurants, grocery stores, farmers’ markets, and specialty food stores. Additionally, online platforms have facilitated the direct purchase of microgreens, expanding accessibility for consumers.

iii. What are the Future Trends in the Industry

Microgreens align with several emerging food trends, including plant-based diets, sustainable agriculture, and farm-to-table movements. These trends contribute to the growth and market potential of the microgreens industry.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the microgreens business because the microgreens business is a niche idea in the agriculture and specialty food industry.

v. Can You Sell a Franchise of Your Business in the Future?

Green Life® Microgreens Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving farming markets in the United States of America.

d. Threats
  • The microgreens market is becoming more competitive, with new entrants and existing suppliers vying for market share. Competitors with established brands or lower pricing may pose a challenge.
  • Factors such as seed prices, energy costs, and packaging materials can be subject to fluctuations, impacting production costs and profitability.
  • Changes in food safety regulations or compliance requirements could impose additional costs or operational challenges for Green Life® Microgreens Company, Inc.
i. Who are the Major Competitors?
  • Gotham Greens
  • BrightFarms
  • Fresh Origins
  • One
  • Mighty Microgreens
  • Urban Produce Farms
  • Hamama
  • Infinite Harvest
  • AeroFarms
  • Local Roots Farms
  • Square Roots
  • Harvest2U
  • The Chef’s Garden
  • Square Mile Farms
  • City-Hydro
  • City Greens
  • Brooklyn Grange
  • Fork & Greens
  • Local Leaf
  • Urban Kabin.
ii. Is There a Franchise for Microgreens Business?

Yes, there are franchise opportunities for microgreens business and they are:

  • Urban Greens
  • Freshii
  • Greenbelt Microgreens
  • The Salad House
  • Hydroponic Greens
  • Lettuce B. Frank
  • Sprout Healthy Vending
  • Saladworks
  • Hydroponic Harvest
  • Fresh & Co.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Microgreens Business?

In the United States, the policies, regulations, and zoning laws that affect microgreens businesses can vary depending on the state, county, and municipality where the business operates.

Microgreens’ businesses are typically subject to food safety regulations to ensure the production and handling of safe and hygienic products. These regulations may include adherence to proper sanitation practices, labeling requirements, and inspections by health departments or regulatory agencies.

If a microgreens business wishes to label its products as organic, it must comply with the U.S. Department of Agriculture’s National Organic Program (NOP) standards and obtain organic certification from an accredited certifying agent.

Microgreens’ businesses may need to comply with local zoning requirements, which could include restrictions on agricultural activities or the operation of commercial farms in certain zones.

Depending on the region, there may be regulations and policies related to water usage and conservation. Microgreens businesses that utilize hydroponic or irrigation systems may need to comply with local water management rules and obtain necessary permits.

If pesticides or herbicides are used in the cultivation process, microgreens businesses must adhere to applicable federal, state, and local regulations regarding their use, storage, and disposal.

  1. Marketing Plan

a. Who is Your Target Audience?
i. Age Range

Our target market comprises people 18 years and above.

ii. Level of Educational

We don’t have any restrictions on the level of education of those who we are ready to sell our microgreens.

iii. Income Level

There is no cap on the income level of those who are looking to sell microgreens products.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that will purchase microgreens from us.

v. Language

There is no restriction when it comes to the language spoken by the people that will purchase microgreens from us.

vi. Geographical Location

Anybody from any geographical location is free to purchase microgreens products from us.

vii. Lifestyle

Green Life® Microgreens Company, Inc. will not restrict any customer from purchasing microgreens products from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies
  • Build Relationships with players in the agriculture industry.
  • Deliberately Brand All Our Vans and Delivery Bikes.
  • Develop Your Business Directory Profiles
  • Tap Into Text Marketing
  • Make Use of Bill Boards.
  • Share Your Events in Local Groups and Pages.
  • Turn Your Social Media Channels into a Resource
i. Traditional Marketing Strategies
  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • Out-of-Home” marketing (OOH marketing) – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
  • Social Media Marketing Platforms.
  • Influencer Marketing.
  • Email Marketing.
  • Content Marketing.
  • Search Engine Optimization (SEO) Marketing.
  • Affiliate Marketing
  • Mobile Marketing.
iii. Social Media Marketing Plan
  • Start using chatbots.
  • Create a personalized experience for our customers.
  • Create an efficient content marketing strategy.
  • Create a community for our target market and potential target market.
  • Gear up our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on relevant social media channels.
  • Run cross-channel campaigns.
c. Pricing Strategy

When working out our pricing strategy, Green Life® Microgreens Company, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package.

In all our pricing strategy will reflect;

  • Penetration Pricing
  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.
  1. Sales and Distribution Plan

a. Sales Channels

To effectively reach our target market, we will employ a multi-faceted marketing strategy. This will include a strong online presence through our website and social media channels, participation in local food events and farmers’ markets, and direct engagement with potential customers through tastings and demonstrations. We will also establish partnerships with local restaurants and grocery stores to secure consistent sales channels.

Greeley, with its vibrant food scene and growing population, presents a significant market opportunity for Green Life® Microgreens Company, Inc. to establish itself as a trusted supplier of premium microgreens.

b. Inventory Strategy

The fact that we will need raw materials for producing microgreens means that Green Life® Microgreens Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology to follow for ordering, maintaining, and processing items in our warehouse.

We will prioritize freshness, quality, and timely availability while minimizing waste and optimizing costs. Green Life® Microgreens Company, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Green Life® Microgreens Company, Inc. will make available to her clients;

  • Bank Transfers
  • Cash
  • Credit or Debit Card
  • Checks
  • Electronic Payment Systems such as PayPal or Venmo
d. Return Policy, Incentives, and Guarantees

At Green Life® Microgreens Company, Inc., our customers are our top priority hence if you receive a microgreens product that is different from your order, we will sincerely apologize and receive the product back. But the microgreens must be unopened, unused, and in their original packaging for a return or exchange to be eligible.

We will implement a loyalty program where customers earn points for their purchases, which can be redeemed for discounts or free products in the future. We will also offer special discounts or bundle deals where customers can purchase multiple microgreens products at a reduced price.

We will provide a satisfaction guarantee that assures customers that if they are not satisfied with the product’s performance, they can receive a refund or exchange.

e. Customer Support Strategy

Customer support is a crucial aspect of any business, including Green Life® Microgreens Company, Inc. Hence we will make sure to provide multiple channels for customers to reach out and seek support. This can include a dedicated customer support phone line, email address, and online chat option on the company’s website. Ensure that these channels are easily accessible and prominently displayed.

We will implement a system that allows customers to track their orders and receive regular updates on the status of their deliveries. This transparency helps build trust and reduces customer anxiety about the progress of their purchases.

We will create a detailed Frequently Asked Questions (FAQ) section on the company’s website that addresses common customer queries. This can help customers find answers to their questions quickly and reduce the need for direct support.

Offer downloadable resources, such as care guides or recipe suggestions, to provide additional value to customers. We will regularly evaluate and analyze customer support metrics, such as response times, customer satisfaction scores, and complaint resolution rates.

  1. Operational Plan

Our operational plan will cover detail of the day-to-day operations of the business, including the cultivation process, harvesting, packaging, distribution, staffing, and customer service.

a. What Happens During a Typical Day at a Microgreens Business?
  • The business opens for the day
  • Throughout the day, tasks related to crop maintenance are performed. This includes watering the trays or using hydroponic systems to provide the necessary moisture for optimal growth. Additionally, regular monitoring is carried out to ensure the temperature and humidity levels are appropriate for the specific microgreen varieties being grown.
  • The packed orders are shipped to customers or dispatched to distribution centers or retail stores.
  • Various administrative tasks are performed to keep the business running smoothly. These can include managing finances, tracking expenses and revenue, maintaining records, and ordering necessary supplies like seeds, growing trays, packaging materials, or equipment.
  • The business is closed for the day.
b. Production Process

Our production facility will be equipped with state-of-the-art indoor farming technology, allowing for year-round cultivation and optimal growing conditions. As the microgreens reach the desired stage of growth, they are carefully harvested. This involves cutting the greens just above the soil or growing medium. After harvesting, the microgreens are cleaned, sorted, and packaged in appropriate containers or clamshells, ready for sale.

c. Service Procedure

The service procedure involves keeping track of seed quantities, monitoring the growth stages of various batches, and ensuring a consistent supply of fresh microgreens to meet customer demands. Orders received from customers, distributors, or retailers are processed and prepared for shipment. The appropriate quantities of microgreens are packed, and shipping labels and documentation are prepared.

d. The Supply Chain

The supply chain of our microgreens business involves coordinating with suppliers of raw materials and distributors of microgreens products.

e. Sources of Income

Green Life® Microgreens Company, Inc. will make money from selling a comprehensive range of microgreens products and also from farm consulting.

  1. Financial Plan

a. Amount Needed to Start Your Microgreens Company?

Green Life® Microgreens Company, Inc. would need an estimate of $150,000 successfully set up our microgreens manufacturing company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?
  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $1,300.
  • Marketing, Branding, and Promotions – $3,000.
  • Business Consultant Fee – $2,500.
  • Insurance – $2,400.
  • Rent/Lease – $55,000.
  • Other start-up expenses like commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
  • Operational Cost (salaries of employees, payments of bills et al) – $30,000
  • Start-up Inventory – $25,000
  • Store Equipment (cash register, security, ventilation, signage) – $1,750
  • Furnishing and Equipping – $45,500
  • Website: $600
  • Opening party: $5,000
  • Miscellaneous: $5,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?

Green Life® Microgreens Company, Inc. will not build a new facility for our microgreens company; we intend to start with a long-term lease and after 8 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Microgreens  Company?
  • Raw materials.
  • Labor costs
  • Utilities (electricity, water, heating, ventilation, and air conditioning (HVAC) systems necessary for running the production facility)
  • Equipment maintenance
  • Marketing and advertising
  • Rent or mortgage
  • Insurance property damage, product liability, and workers’ compensation
  • Administrative and overhead costs such as office supplies, software licenses, professional services (legal, accounting), permits, licenses, and other overhead costs associated with running the business.
e. What is the Average Salary of your Staff?
  • Chief Executive Officer – $68,000 Per Year
  • Operations Manager – $50,000 Per Year
  • Accountant – $40,000 Per Year
  • Cultivation Officer – $36,500 Per Year
  • Packaging and Distribution Officer -$36,000 Per Year.
f. How Do You Get Funding to Start a Microgreens Business?
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
  • Source for soft loans from your family members and friends.
  1. Financial Projection

a. How Much Should You Charge for Your Product/Service?

On average, the price of a small container or clamshell (usually around 2 to 4 ounces) of microgreens can range from $3 to $7. However, prices can be higher for certain gourmet or rare varieties. Some premium microgreens may even cost around $30 per pound or more.

b. Sales Forecast?
  • First Fiscal Year (FY1): $245,000
  • Second Fiscal Year (FY2): $360,000
  • Third Fiscal Year (FY3): $550,000
c. Estimated Profit You Will Make a Year?
  • First Fiscal Year (FY1) (Profit After Tax): $120,000
  • Second Fiscal Year (FY2) (Profit After Tax): $180,000
  • Third Fiscal Year (FY3) (Profit After Tax): $320,000
d. Profit Margin of a Microgreens Company 

The ideal profit margin we hope to make at Green Life® Microgreens Company, Inc. will be between 15 and 35 percent depending on the packaging size.

  1. Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a Franchise?

Green Life® Microgreens Company, Inc. will grow our microgreens manufacturing company by first opening other production plants in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why?

Green Life® Microgreens Company, Inc. plans to expand to the following cities.

  • Des Moines, Iowa
  • Kansas City, Missouri
  • Asheville, North Carolina
  • Seattle, Washington
  • Sacramento, California
  • Portland, Oregon
  • Austin, Texas
  • Burlington, Vermont
  • Madison, Wisconsin
  • Ithaca, New York.

We are expanding to these cities because these cities have a high demand for microgreens.

  1. Exit Plan

The founder of Green Life® Microgreens Company, Inc. plans to exit the business via family succession. We have positioned structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without difficulties.

The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor. This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.