What you Get With Hemp Farming Business Plan Package
| 6 Chapter Business Plan Template in MS Word | Free Pitch Deck Template in PPT |
| 5 Year Financial Model Template in MS Excel | Free Financial Dashboard Template in MS Excel |
| Immediate Download After Purchase | MAC &PC Compatible, Unlocked, NO VBA Macro |
| Bank/Investor/Grant Ready Package | No Accounting Or Financial Knowledge Needed |
I.- Executive Summary
Problem
Greenway Hemp Farms is addressing a need in the hemp industry and the Asheville, NC area for locally grown premium quality hemp products. As the demand for hemp products continues to increase, there is an underserved niche for locally grown hemp products that are high quality and meet increasingly stringent regulations in the US hemp industry. By providing these service and product offerings, Greenway Hemp Farms will fill the need for more accessible, locally grown hemp products and services in Asheville, NC and beyond.
Solution
Greenway Hemp Farms is the solution to providing premium hemp products and services to customers located in Asheville, North Carolina and beyond. Our product line will include a variety of CBD edibles and oils, non-psychoactive food items, apparel, and other related hemp products. Additionally, we will provide farming services such as land and equipment rental for prospective hemp farmers. Our main goal is to supply locally-grown and high-quality hemp to our customers. We are committed to educating our consumers on the benefits of hemp and its uses in today’s world.
Target Market
Greenway Hemp Farms is targeting a defined customer base who are likely to purchase our products and services. Primarily, our target market are local consumers living in Asheville and the surrounding area who are looking for reliable sources for premium quality hemp products. Our focus will be on providing CBD edibles and oils, non-psychoactive food hemp products, apparel and other related hemp products of the highest quality.
Additionally, we will also be targeting hemp farmers in the local area who may be interested in using our services. Our services will include land and farm equipment rental, as well as other services related to hemp farming. We will be looking to partner with local investors to expand the reach of our products and services in the future.
Competition
Greenway Hemp Farms will be competing in a steadily growing, but still relatively small market that is currently comprised of similar hemp farming businesses and their products. In Asheville, NC, there are a few existing hemp farms, though none that specialize in providing products and services as comprehensive as what Greenway Hemp Farms will offer. There are also several national hemp manufacturers and suppliers that provide hemp-derived products online and in select stores. These businesses sell a variety of items, from edibles and oils to apparel and other related products.
Greenway Hemp Farms will differentiate itself from its competitors by focusing on locally grown, premium quality hemp products and services. We will also strive to increase consumer awareness and appreciation of hemp and its numerous uses in a modern world. Our mission will be to provide first-class customer service, competitive prices, and unparalleled products in order to stay ahead of our competitors.
Financial Summary
Greenway Hemp Farms is a startup that is focused on sourcing and providing premium quality hemp products and crucial services for farmers in and around Asheville, North Carolina. The financial aspects of this business plan provide a brief summary of the key highlights of our financial plan and aim to support the success of Greenway Hemp Farms. These overviews cover our projected costs, sales, and profitability.
- We anticipate that the capital needed to begin operations will amount to $100,000.
- We project that our annual sales will reach $300,000 in the first year, and will grow to $800,000 by the end of five years.
- We expect to maintain a healthy profit margin of 15% throughout the first five years of operations.
- We plan to use the profits generated by Greenway Hemp Farms to contribute to community initiatives and supporting sustainable farming practices.
Funding Requirements
Greenway Hemp Farms is seeking investment of up to $300,000 in order to launch our hemp farming operations in Asheville, NC. This funding will be used primarily to purchase land, rental farm equipment, and supplies necessary for the cultivation and distribution of hemp products. Additionally, some of the funds raised will be allocated to marketing our products and services, such as hiring a marketing specialist, web design, and advertising. The following is an outline of the required funds and their designated uses:
- Land Rental: $100,000
- Farm Equipment Rental: $50,000
- Marketing & Advertising: $20,000
- Startup Supplies & Materials: $30,000
- Payroll & Employee Benefits: $50,000
- General & Administrative: $50,000
Milestones and Traction
Greenway Hemp Farms has set forth a roadmap for creating a prosperous hemp farming business in Asheville, NC. We have identified several milestones that will be crucial in setting the foundation and continuing to grow. Through careful selection of land, infrastructure, and resources, we are able to set these milestones in motion.
The first milestone is to create a fleet of high quality hemp production facilities in a timely manner. This includes finding ideal lands near Asheville, identifying necessary infrastructure, and acquiring the necessary equipment. Following the completion of this milestone, we will be ready to begin producing a range of high quality hemp-based products, such as CBD edibles and oils, non-psychoactive food hemp products, apparel, and other related products.
The second milestone is to gain traction in the local Asheville market by establishing our brand in the minds of customers. A focus on customer education, engaging content, strategically placed advertisements, and engaging with local businesses will be key to reaching our goals. Additionally, developing partnerships with businesses in the hemp industry, such as farm equipment rental companies, will strengthen our overall reach.
As our business grows, we plan to reach additional milestones with the focus of expanding our customer base, strengthening our brand, and creating new and exciting opportunities to drive our business forward. By developing a roadmap and clear timeline of our current progress and our anticipated milestones, Greenway Hemp Farms is well-positioned to become the leader in locally grown hemp products in Asheville, NC.
II.- Products & Services
Problem
The hemp industry is rapidly growing and still ever-evolving; however, many consumers are still hesitant to purchase and consume products derived from hemp due to the lack of information and education about the industry and its various uses. Furthermore, the lack of hemp farms in the Asheville area makes it difficult for local consumers to find locally-grown products that offer assurance of quality and reliability, especially with the rise in popularity of hemp products.
Greenway Hemp Farms will address this problem by providing premium hemp products and services that are locally-sourced, of the highest quality and reliability, and are accompanied by the necessary education about the industry and the various uses of hemp. We will strive to give our customers access to premium hemp products that are grown and processed with sustainability and transparency in mind.
Solution
Greenway Hemp Farms will provide consumers in Asheville, NC and beyond with a full range of high quality hemp products and services. We will specialize in CBD-infused edibles and oils, non-psychoactive food hemp products, apparel, and other related hemp items. Our team is committed to providing goods locally grown with the utmost commitment to quality and standards. Additionally, we will provide land and equipment rental services to those interested in hemp farming.
Greenway Hemp Farms is here to help alleviate the lack of hemp-based product availability and knowledge in the region. We will provide not only our locally grown hemp products of the highest quality but also the latest educational resources so our customers can appreciate the many uses of this versatile plant. We are committed to fostering a growing community centered around hemp in the Asheville region.
Validation of Problem and Solution
The growing demand for hemp products, especially in Asheville, NC is evident from the data that shows hemp sales reaching a new high in 2020. With more and more people becoming aware of the medical benefits and other uses of hemp, there's a lot of untapped potential for Greenway Hemp Farms to bring locally grown prime quality hemp products to the customers.
Research has also shown that the hemp market is currently underserved in the region, with few hemp growers offering services and products in the Asheville area. This presents an opportunity for Greenway Hemp Farms to exploit as the demand for quality hemp products is high and is increasing steadily.
To ensure that our plans are valid, extensive market research has been performed, customer surveys were conducted and interviews were held with industry experts. The data collected has been used to validate the need for a local hemp farming business and its potential to meet the customer's needs.
Product Overview
Greenway Hemp Farms is a startup hemp farming business that provides a premium selection of hemp products and services to customers located in Asheville, North Carolina and beyond. Our comprehensive product line includes CBD edibles and oils, non-psychoactive food hemp products, apparel and other related hemp products. Our farming services include land rental and farm equipment rental, as well as a range of additional services related to hemp farming.
At Greenway Hemp Farms, we are dedicated to providing the highest quality hemp products for our customers. Our products are locally-grown and carefully cultivated to produce superior quality and flavor, ensuring maximum satisfaction for our customers. In addition to offering premium hemp products, we also strive to actively inform our customers about the various benefits and uses of hemp in a modern world.
Competition
The hemp products industry is growing rapidly, with a wide variety of products being offered. Many companies are focused primarily on providing CBD products, which can include oils and edibles. Other companies that focus on hemp for clothing and accessories have seen significant growth in recent years. Our main competitors will be companies located in the Asheville and WNC region that offer similar products and services. However, our distinct offering will be our focus on high-quality, locally-grown hemp products and our commitment to customer satisfaction.
Our company will look to differentiate itself by offering premium hemp products with enhanced educational resources and support. We will be dedicated to providing our customers with the most current information on hemp use and benefits. We are confident that our attention to quality, customer service, and education will set us apart from our competitors.
Roadmap
Greenway Hemp Farms’ roadmap for providing products and services to the Asheville, NC area and beyond is as follows:
Step 1: Establishing the business - We plan to acquire the necessary permits, find an ideal location, and acquire an adequate starting supply of hemp seed and other equipment needed to begin growing hemp.
Step 2: Growing and harvesting hemp - We plan to employ experienced staff and utilize modern methods to cultivate and harvest hemp on our own farm.
Step 3: Manufacturing & Distribution - We plan to partner with local manufacturers in order to process and produce our hemp products according to our quality standards. In addition, we plan to develop a network of retailers and wholesalers in order to distribute our products.
Step 4: Education & Outreach - We plan to offer educational materials, workshops, and events aimed at increasing public awareness of and appreciation for hemp products.
III.- Market Analysis
Market Segmentation
Greenway Hemp Farms is targeting a wide range of customers in Asheville and beyond, providing premium hemp products and services to individuals who understand and appreciate the many potential uses of hemp. In order to best meet the needs of our customer base, we have divided our potential customer population into the following distinct market segments:
- CBD-curious consumers: Individuals who are interested in trying CBD products and learning more about the potential benefits of hemp-based products.
- Hemp-savvy customers: Customers who have a strong understanding of hemp products and are looking for high-quality, locally sourced CBD and hemp products.
- Outdoor Enthusiasts: People who are drawn to the outdoors and appreciate the versatility of hemp apparel and equipment.
- Nutrition Enthusiasts: Those who are interested in incorporating hemp products into their daily diets for nutritional and health benefits.
We have chosen to target these distinct market segments in order to maximize our customer reach, understand customer needs, and create the highest quality products. We believe that by focusing on these four distinct markets we will be able to effectively meet the needs of a wide range of consumer demographics.
Target Market Segment Strategy
Our ideal customer is farmers who have experience in agriculture and are passionate about sustainable practices. Our hemp farming business will provide products and services targeted at farmers interested in hemp farming. The hemp farming products and services that we provide are tailored to the needs of this customer and will enable them to save costs, increase yield and quality, and learn more about sustainable practices.
At Hemp Farming, Inc., we value our customers deeply and ensure that their needs and demands are met to the utmost satisfaction. We strive to keep our customer base informed about our products and services so that they can make an informed decision when choosing us.
Key Customers
The primary customers of our hemp farming business plan will be individuals who recognize the value of hemp and are dedicated to utilizing it as a natural resource. Our ideal customer archetype is a person who wants to be part of the effort to create a sustainable hemp industry and a healthy planet. They will be the main advocate for our business, promoting our products and acting as a leader in their community. We are searching for conscientious people who are knowledgeable about hemp, have a passion for the industry, and are looking to use hemp to improve the quality of their lives.
Future Markets
Based on our market analysis, we believe there is plenty of opportunity for a hemp farming business. This is due to increasing public awareness around the benefits of hemp and its derivatives, as well as the growth of the medical and recreational cannabis markets. With the right business strategy, our hemp farming business can capitalise on these burgeoning markets, offering high-quality hemp for food, medicine and lifestyle products. With our projected growth strategy and industry experience, we are confident that we can capture a significant percentage of a quickly evolving market.
Competition
As with any market, competition is a factor that must be taken into account when planning a business in the hemp farming industry. Although the hemp farming industry is relatively new, there are a few companies that are already established in Asheville, North Carolina and some from nearby regions. To get a better understanding of the competition, we have provided a table below listing the potential competitors and their relevant services.
| Company/ Brand Name | Products & Services |
|---|---|
| Greenway Hemp Farms | CBD edibles and oils, non-psychoactive food hemp products, apparel, and other related hemp products and farming services. |
| Hemp Harvest Solutions | Hemp growing consultancy, hemp seed production and hemp processing equipments. |
| High Country Hemp | Hemp-derived CBD products and hemp-based health supplement products. |
| Mountain Hemp Company | Hemp-based meals and snacks, CBD dietary supplements, pet CBD products and other hemp-based products. |
IV.- Marketing and Sales Plan
Marketing Plan
Greenway Hemp Farms will be engaging multiple marketing and advertising channels in order to bolster brand awareness and increase our customer base in the short and long term. We will be utilizing both digital and traditional marketing strategies to reach our audience. These channels may include:
- Social media and online marketing campaigns through popular platforms such as Facebook, Twitter, and Instagram.
- Print and television campaigns targeting the local Asheville, North Carolina area.
- Testing other digital marketing tools such as retargeting and Google AdWords.
- Organic SEO and search engine marketing.
- Successfully launching a referral program involving our current customer base.
- Business partnerships and sponsorships with like-minded companies.
The costs associated with our marketing plan will depend on the resources needed and the budget allocated. We will obsessively monitor and track analytics to adjust our strategy and identify new opportunities for generating customer engagement.
Our main goal for our marketing and advertising plan will be to create an official online presence for Greenway Hemp Farms, to increase overall brand awareness and educate our customers regarding the various uses of hemp products in a modern world.
Sales Plan
As part of the marketing and sales plan for our hemp farming business, we estimate that based on market conditions, our capacity, pricing strategy, and other factors, we anticipate making approximately 500 sales in our first year of operation. We plan to continuously monitor and adjust our marketing and sales plan throughout the year to ensure that we exceed this estimate. We also plan to leverage digital marketing strategies such as online advertising to maximize our sales potential.
Location and Facilities
Greenway Hemp Farms will be located in Asheville, North Carolina, which provides an ideal climate for hemp growth. We anticipate opening our first farm in 2021 and plan to expand to other farms in the area in the coming years. Our facilities will include a farm headquarters and four hemp fields providing up to 20 acres each of land for hemp cultivation, harvesting, and processing.
In addition to the land required for planting and harvesting, we will also need to secure land for storage facilities, equipment rental, and other related services. We have already identified potential sources for the land we will need, and we have already started negotiating terms with the landowners.
Technology
The new technology that defines our hemp farming business is the ability to farm hemp on a larger scale to meet the needs of the ever-growing industry. Our technology allows for increased efficiency in planting, growing, and harvesting more hemp plants at a faster rate than ever before. With new methods to monitor hemp crops in real-time and to monitor the soil, air, water, and other environmental conditions, our farming will be as efficient and effective as possible. Furthermore, our technology allows us to plug in a variety of data storage systems, such as blockchain technology, to ensure that our hemp crop is safe, secure, and verifiable.
We are also using artificial intelligence (AI) technology to identify and analyze the optimal conditions for the successful cultivation of hemp. Our AI technology can help streamline our farming process by quickly and accurately predicting the right location and conditions needed for the best hemp farming outcomes.
Equipment and Tools
The necessary equipment and tools for operating a hemp farming business includes items for planting and cultivating the hemp hearts, as well as for harvesting and processing for final products. The cost of renting or purchasing this equipment can vary based on the individual preferences of the hemp farmers.
The following outlines the basic essential equipment and their respective costs in a table format:
| Equipment | Cost |
|---|---|
| Tractor | $20,000 |
| Harvester | $15,000 |
| Drying Bin | $2,000 |
| Processing Equipment | $8,000 |
V.- Management and Organization
Organizational Structure
The hemp farming business plan consists of an organizational structure which includes roles and responsibilities of the employees and the flow of information. The structure is presented in the table below.
| Level | Role | Responsibility | Info Flow |
|---|---|---|---|
| Top | Owner/CEO | Overall business decisions and management | Vertical |
| Middle | Head of Cultivation | Development and oversight of hemp farming activities | Horizontal/Vertical |
| Bottom | Farmers | Hemp farming operations | Vertical |
Management Team
Being a large and sophisticated business, we anticipate needing an amazing team of management experts to oversee the day-to-day operations of this hemp farming business. To ensure that the highest level of quality and success is attained, we have identified and proposed an elite team of management candidates in the table below.
Table 1: Potential Management Team Candidates
| Name | Proposed Role | Qualifications/Experience |
|---|---|---|
| John Doe | Chief Operating Officer | 20+ years of managerial experience in the agriculture industry |
| Jane Smith | Chief Financial Officer | 10+ years of financial experience specifically in agricultural and farming businesses |
| Marc Williams | Chief Technology Officer | Industry-leading experience with agricultural technology, responsible for developing revolutionary farm management systems |
Management Team Gaps
The current hemp farming business plan has identified certain positions and areas of expertise that are yet to be filled by qualified candidates. These gaps present challenges to ensure the organization functions efficiently and achieves its objectives. These challenges include the need for personnel to lead operations, sales and marketing, finance, information technology, and research and development.
The current team is working to identify and recruit qualified personnel to fill these positions and anchor the operations of the organization. Until these positions are filled, the management team must either fill the gap with existing personnel or outsource the expertise or service required to ensure the business plan is executed to its fullest potential.
Personnel Plan
In order to run our hemp farming business effectively, we need to establish a personnel plan to decide the roles and responsibilities that need to be filled throughout our organization. Below is a table of potential positions that we anticipate requiring for our business’ success.
| Position | Description |
|---|---|
| Farm Manager | Responsible for managing daily operations and activities of the farm. |
| Agronomist | Responsible for implementing and monitoring growing practices, scouting for pests and diseases, and performing soil tests. |
| Hemp Breeder | Responsible for creating better hemp strains and performing cross-breeding. |
| Hemp Product Developer | Responsible for developing and designing hemp products. |
| Sales & Marketing Manager | Responsible for managing sales and marketing activities, including customer outreach, customer relations, and customer satisfaction. |
| Shipping/Logistics Manager | Responsible for coordinating shipping and delivery of products and materials. |
Company History and Ownership
Greenway Hemp Farms was founded in the late 2020 by five individuals from the Asheville, NC area. The founders had a shared passion for hemp farming, a commitment towards sustainability and the desire to build a successful business that could provide premium hemp products to customers in the area. The founders are more than dedicated to developing a better business model with a focus on quality and customer service. All five founders have extensive experience in the hemp farming industry as well as business ownership and have extensive experience working with land rental. As owners, Greenway Hemp Farms is capable of providing the highest level of commitment to quality and customer service. The primary mission of Greenway Hemp Farms is to provide premium, locally grown hemp products to the Asheville, NC area. The ownership structure of Greenway Hemp farms provides an ideal balance of business acumen, passion, and experience to ensure a successful enterprise.
Milestones
In order to effectively manage and steer our hemp farming business plan, we have crafted a detailed roadmap containing specific goals and objectives that will guide us on our journey. This roadmap is presented in the form of a timeline, with its milestones representing the timeline in which we intend to complete each goal. By clearly establishing milestones and dates of completion, it will allow us to measure and track our progress and ensure that our business plan is feasible and realistic.
Key Metrics
To ensure the overall performance and health of our hemp farming business, we have identified a set of key performance indicators (KPIs) that will help us to track our progress. These KPIs include: production yield, overall plants per acre, labor efficiency, gas and energy usage, products quality, water usage, and market prices of key products. Additionally, we have identified new initiatives that could help boost productivity and performance such as introducing new technologies, offering incentivized programs, and setting specific goals that will improve the overall quality of our production.
What you Get With Hemp Farming Business Plan Package
| 6 Chapter Business Plan Template in MS Word | Free Pitch Deck Template in PPT |
| 5 Year Financial Model Template in MS Excel | Free Financial Dashboard Template in MS Excel |
| Immediate Download After Purchase | MAC &PC Compatible, Unlocked, NO VBA Macro |
| Bank/Investor/Grant Ready Package | No Accounting Or Financial Knowledge Needed |
VI.- Financial Plan and Metrics
Sales Forecast
The projected sales of the hemp farming business for the next three years are outlined in the table below:
| Year | Projected Sales (in dollars) |
|---|---|
| Year 1 | $100,000 |
| Year 2 | $150,000 |
| Year 3 | $200,000 |
Hemp Farming Financial Plan Key Inputs
Expenses
Starting a hemp farming business requires a substantial initial investment and ongoing operational costs. This section will outline the expected startup costs and operational expenses necessary to run the business.
The tables below list the expected costs for startup and operational expenses.
Startup Costs
| Item | Cost |
|---|---|
| Land | $100,000 |
| Equipment & Supplies | $20,000 |
| Licensing Fees | $5,000 |
| Insurance | $2,000 |
| Miscellaneous Expenses | $3,000 |
| Total | $130,000 |
Operational Expenses
| Item | Cost |
|---|---|
| Seed & Material Costs | $50,000 |
| Labor Costs | $20,000 |
| Equipment & Supplies | $15,000 |
| Utilities & Maintenance | $10,000 |
| Miscellaneous Expenses | $5,000 |
| Total | $100,000 |
Financial Plan
This part of the business plan is where you present the three main financial documents of any startup: the income statement, the cash flow statement, and the balance sheet. These documents are important as they are an assessment of the financial health of your business, and provide information to lenders, investors, and potential partners. With the income statement, you can identify all income and expenses relating to the business for the duration of the period. The cash flow statement is a record of cash, cash equivalents, and credit transactions within a particular period. Lastly, the balance sheet provides a financial summary of your business’s net worth. Accurately calculating the financial documents is essential for making future financial projections and mapping out your business’s growth.
Hemp Farming Financial Plan Profit & Loss Statement
Hemp Farming Financial Plan Cash Flow Statement
Hemp Farming Financial Plan Balance Sheet Statement
Personnel Plan
Overseeing the operations of a hemp farming business will require hiring a number of personnel. This personnel plan outlines how and who we intend to hire, what compensation will be, and how employees will fit into business operations.
We plan to hire an operations manager who will supervise the hemp farming process, be responsible for ensuring contract compliance, and monitor the day-to-day operations of the farm. Additionally, we will hire a sales and marketing manager to oversee efforts to get our product onto the market, manage customer relations, and increase brand awareness. In addition to these two staff members, we will employ farmhands to do the day-to-day work of the hemp farm, such as planting and harvesting hemp crops, maintaining the farm, and processing crops for market.
Compensation for each position will be commensurate with experience and industry standards. We plan to offer both salary and benefit packages, as well as occasional bonuses based on performance. We will also provide our personnel with opportunities to learn and advance in their fields, as well as offering leadership training to those in management positions.
The personnel we hire will play a crucial role in the success of our business. They will be vital in helping us to achieve our business objectives, taking our hemp farm from the start-up phase to a thriving enterprise.
Capital Requirements and Use of Funds
The capital requirements for our hemp farming business plan must reflect how much money is needed to raise, how it will be used, and how much is required from investors. This information is meant to provide clarity for potential investors and lenders regarding the financial needs of our business.
We are seeking to raise $500,000 in capital, which will cover the cost of acquiring land and the necessary equipment to begin farming hemp. This includes tractors, seeders, storage silos, and other items necessary for production and harvesting. Additionally, these funds will be used to cover any start-up costs such as licensing and legal fees, as well as to fund any necessary research and development.
We are seeking investment from a variety of sources, including private investors, angel investors, and venture capital firms. We believe that our business plan and associated financials demonstrate an attractive opportunity for investors and lenders who are looking for a profitable and sustainable farming industry.
Exit Strategy
The exit strategy for our hemp farming business plan is to be acquired. We plan on finding the right partner that is willing to purchase the entire business at a profitable price. We have put in the work to build a sustainable and profitable enterprise so that it can be attractive for a potential acquirer. We understand the importance of making sure the sale is done in a way that is beneficial for both our company and the buyer, and as such we will take the necessary steps to ensure that the best deal is reached.
