MUSHROOM PRODUCTION BUSINESS PLAN SAMPLE
No doubt mushroom farming is a profitable business to do, but the problem is that a lot of people don’t know about how to start a mushroom farm and profit from it. I wrote this article to solve that problem.
This article is going to explain all the necessary things you need to do and put in place before you can start a mushroom farm.
Getting the right information required to start a mushroom business is the first essential step you must take if you want to succeed with the farm. You need to have the right information that will help you to make the right decisions and necessary plans before you start a mushroom farm. You need to know about the processes required to start a mushroom farm.
FIND OUT: Can you grow mushrooms at home?
This will help you to ascertain if mushroom farming is something you will love to do or not. You also need information about the financial cost of starting a mushroom farm. This will help you to know if you can afford to start a mushroom farm or not.
Another important information you need to know is your target market. Don’t just assume people will buy your mushrooms, find out if they want to buy. There are different types of mushrooms you can grow on your farm, so you will have to find out the particular type your target market needs. You also need information about your competitors to discover how you can have a competitive edge over them.
So the first step to take when you want to start a mushroom farm is not raising capital or purchasing necessary materials and tools. The first step you will need to take is getting as much information as you can about mushroom farming and developing your mushroom farm business plan.
No matter the amount of the right information you have, if you don’t have the skills required to start a mushroom farm, you may fumble. This is why you must acquire the necessary skills you will need through training.
To get trained on how to start a mushroom farm, you will have to go to a reputable mushroom farm and either pay or volunteer to learn under them. Working in an established mushroom farm will help you get the skills and experience you need to start your mushroom farm the right way.
While you are acquiring the needed skills and experience, you can decide to learn on the job by starting a small mushroom farm. Get a small portion of land and start your mushroom farm. You can even negotiate with the person you are learning from to give you a small portion of land on his farm which you can use to start your mushroom farm as this will help you practice what you are learning.
Don’t try to snatch the customers of the person training you, go out and look for your customers. However, you can ask your trainer to teach you the marketing strategies he is using to get customers. Starting a small mushroom farm will help you to assess how much you are learning and what to improve on. It will also prevent you from making avoidable mistakes when you finally start a mushroom farm on a large scale.
How much money can be made growing mushrooms? Do you know that you can have buyers on the ground to buy from you even before you start your mushroom farm? Yes, it is very possible. You don’t have to wait until you harvest your mushroom before sourcing for buyers, you can start sourcing for them even before you start planting the mushroom.
How do you do this? By familiarizing yourself with your potential buyers. Reach out to them, go to where they are, show that you care, consistently offer them values and then presell to them.
For example, restaurant owners are one of your potential buyers, study what they are in real need of, (e.g. better but more economical ways of preparing mushroom that their customers will pay for), find a solution to this need and organize a free training for them on how to do it. Invite them for the training and make sure you over-deliver than you promised.
After this, presell your mushroom to them, have them book down mushroom by offering irresistible discounts to those who do so. Also, encourage them to bring referrals by offering incentives. After the training, build a relationship with them and continue to follow them up at regular intervals. By the time you harvest your mushroom, you will have buyers waiting.
To start your mushroom farm, these are some of the steps you will need to take:
- Register your Farm
Register your mushroom farm with the appropriate agency. This will give your farm legal backing and facilitate easy transactions with corporate buyers.
- Get a Land
You can either purchase or rent land. A mushroom grows in moist and damp places, so keep this in mind when getting the land to start your mushroom farm.
- Get the Equipment and Materials
Some of the materials you will need are mushroom spawn, medium, substrate, sawdust, etc. Some of the equipment you will need are logs of wood, mush comb, and compost hoper.
- Employ Competent Workers
Make sure the people you want the employees have prior experience of what they want them to do.
- Plant the Mushrooms
There are different varieties of mushrooms you can plant, but the best one to start with is oyster mushroom. It is easy to plant and grow.
- Market and Sell your Mushroom
Like, I have said earlier, you don’t have to wait till you harvest your mushrooms before you start selling them. After planting the mushroom, begin to create awareness of your product. Meet with your potential customers and start marketing to them.
MUSHROOM PRODUCTION BUSINESS PLAN EXAMPLE
Here is a sample business plan for starting a mushroom farm and a free feasibility study you can use.
With attractive investment prospects, the Mushroom farming sector, an agro-allied business continues to draw the attention of entrepreneurs who have an interest in farming.
However, these entrepreneurs may or may not have the requisite skills needed to put in place all the requirements for starting this business. An important tool needed for any business, including Mushroom farming is the business plan.
This is the reason this article focuses on this area, providing the necessary guidance to entrepreneurs to successfully write a sound business plan that will chart a promising future for their business. This article will be written under the following headlines;
Table of Contents
- Executive Summary
- Products and Services
- Our Vision Statement
- Our Mission Statement
- Target Market
- Source of Revenue
- Competitive Advantage
- Sales Projection
- Payment Channels
- Publicity and Advert Strategies
Bernard’s Mushroom Farms to be located in Texas will be involved in the cultivation of mushrooms for the American and export markets. The exportation of our mushrooms will commence five years from the time of the commencement of business operations.
Providing high-quality products and services, we plan on competing favorably with established mushroom farms through hiring the most competent hands that will drive the expansion plans of this business to achieve our desired goals.
Our mushrooms will be grown and distributed to the market using an extensive distribution network designed by professionals in this industry. Also, by adopting hygienic production and processing techniques, our products will adhere to the highest regulatory standards.
Products and Services
The channels for distributing our products and services will be varied. The adoption of the right legal framework will be used in the distribution of these products and services. Our products and services will include the production of fresh mushrooms of different varieties, some of which will include lion’s mane, portabellas, oysters, and medicinal reishi amongst others.
Also, we will be offering services that include the provision of advisory and consultancy services in addition to training programs organized for interested farmers willing to learn the skills of mushroom production. In addition to these, we will be processing some of our mushroom products to increase their shelf life.
Our Vision Statement
Our vision is to establish a mushroom farm that will be reputed for producing the best mushroom in the United States. We aim to have an efficient distribution mechanism that will ensure our products reach their desired destination both domestically and internationally.
Our Mission Statement
To provide hygienically packaged mushroom products in keeping with regulatory guidelines and also promoting the food and health needs of Americans.
There is a huge market for mushrooms and this has considerably increased the prospects of mushroom farmers, as there are a lot of mushroom demands to fill. Our target markets will include households, hotels, restaurants, and agricultural produce markets, food stores among other markets consisting of both consumers and retailers.
Source of Revenue
Our source of revenue will come from the products and services we offer which consist of our variety of mushroom products in addition to the consultancy and advisory services we provide. A fee will be charged for these services, including the training programs organized for interested farmers.
We will be adopting strategies in our business that will give us an edge over our competition. Because of our intention to compete favorably with other well-established businesses offering similar services, we will be recruiting a workforce that will consist of well-experienced professionals. Their years of experience will be drawn upon to chart the way forward for our business.
Also, our work environment will be conducive for our workforce as a measure to ensure that they can easily contribute their best through the use of a work-friendly environment. The remuneration packages of our workforce will be attractive to act as bolster/incentive to encourage them to perform efficiently.
With the current industry trends and happenings, we have researched the market and emerged with findings that look promising to our business. Using a 3-year projection model, we have projected sales/profits to grow significantly. The factors used at arriving at these findings discounts natural disasters and high inflation. The chart below summarizes these findings;
- First Year $150,000
- Second Year $290,000
- Third Year $440,500
We will be adopting a robust payment strategy that will be deploying the use of several platforms. This is aimed at offering the customer an increased choice of payment options. This significantly simplifies the payment process.
These channels include the use of the POS machines for payment, acceptance of cash payments, credit cards, mobile payments, the use of internet banking, among other varied payment channels to be included.
Publicity and Advert Strategies
We will publicize our products and services to a wide section of the consuming public, including other target groups such as trainees and other farmers in need of advisory services. There will be paid adverts in both national and regional media, using both electronic and print platforms.
Others include printing of banners and fliers, and also other strategies that prove efficient.
This article has made available a sample mushroom business plan for the interested entrepreneur to use. Following the general guideline provided, it is believed that the user will write a compelling and insightful business plan.