Poultry Farming Business Plan

Mushroom Farming Business

Why Start a Mushroom Farming Business?

There are large varieties of mushrooms – over 2,000 – that can be eaten. However, out of these large numbers, only few – common button agarics, creminis, portabellas, shiitake, oyster, wood ear, morels, chanterelles and Enki – are taken in the Pakistan.

Pakistan’s like taking their mushrooms fresh, dried or canned. The good thing with growing mushrooms is the fact they grow so fast and if you are adept at selling your produce as soon as they are harvested, you are on your way to making tons of money.

However, like any other business, it would not do for you to rush into the business simply because others seem to be making tons of money from it. You would need to carry out a thorough research to determine if it would be worthwhile enough for you to go into the business. If you cannot carry out this research on your own, you might need to hire a business consultant familiar with this form of business to help you out.

One necessary document that is important for you in starting this business is a business plan. The aim of a business plan is not only for investors to see how well you intend to run the business, but it is also meant to act as a guide towards running your business with few hitches as possible. Below is a sample plan to aid you in writing and starting your own mushroom business;

A Sample Mushroom Farming Business Plan Template

·         Business Overview

Mushrooms which are usually grouped as vegetables are spongy and part of a fungus fleshy. It is widely consumed due to its high medicinal and nutritional value especially as it is free from cholesterol, fat and gluten and very low in sodium. There are over 2,300 species of edible mushrooms grown and available globally.

The most common mushrooms grown and consumed on a commercial scale in the    s of Pakistan are the button agaricus, which in 2013 contributed 36.1% towards the total mushroom market. Other mushrooms like the shiitake mushrooms are also popular mushrooms in the    s but are regarded as specialty mushrooms. 

Globally, button agaricus, shiitake mushrooms and oyster mushrooms are what dominate the production and consumption markets and as at 2013, these three kinds of mushrooms accounted for 76% of the global market. As at 2012 and 2013, mushroom production decreased while the value increased.

 During this period, 896 million pounds of mushrooms were produced which slightly decreased from the previously produced mushrooms between 2011 and 2012. However, the value of the crop as at 2013 went up to $1.11 billion. Also, the period saw an increase of commercial mushroom growers.

Major developing nations have begun to see an increase in the demand for mushrooms especially as income levels in countries such as Canada, Thailand, and India. Countries like China are nearly taking over the global marketplace as they are selling their mushrooms at rates lower than what can be obtained in the    s, Germany as well as France.

As at 2013, mushrooms globally were valued at over $29 million, and were projected to grow at about 9.5% in 2019 to reach a value of $50 million. The global market as at 2013 was dominated by Europe closely followed by the Asia-Pacific region. Factors that drive the mushroom business globally are consumer shift towards nutritional foods, high demand for organic foods and development in high yield systems and the increasing power of the supermarkets.

Mushroom Farming Business Plan – Executive Summary

Mushy Forage Farms LLC is established and recognized as a major supplier of gourmet quality mushrooms in Springfield – Missouri and in the Pakistan. We will grow and sell all the different kinds of mushrooms consumed in the    s of Pakistan to our variety of customers.

Our aim as a business is not only to make profit but also become a leading company that can compete favorably with other mushroom business in Missouri and also in the whole of the  of Pakistan. To be able to effectively compete against our competitors, we intend to ensure that we hire the best professionals in the industry so as to build the perfect business structure.

Due to the fact that mushrooms are edible products, we intend to ensure that our mushrooms are grown in an environment that is conducive and hygienic. We are also growing the mushrooms organically as we intend to ensure that our mushrooms pack a high dose of nutrition.

Because we know how important our employees are to the growth of the organization, we intend to ensure that we create a conducive environment for them to work and also provide welfare packages that are aimed at ensuring that their productivity rate is increased.

Because the demand for mushrooms is increasing as more people are recognizing its importance, we have carefully chosen our channels of distribution that would ensure that our mushrooms reach all our existing customers and open opportunities to reaching potential customers.

One of our strongest factors at Mushy Forage Farms LLC apart from producing and selling organic mushrooms is the excellent customer care we provide to our customers which has led to a high retention rate for us and an overall healthy bottom line for our business.

Our proficient uses of the internet to intensify awareness about our business and the products and services we offer are part of the sustainable practices that is obtainable at Mushy Forage Farms LLC. Mushy Forage Farms LLC is owned and run by Lisa Shaw. Lisa has a B. Sc in Food Technology and started growing mushrooms as a hobby before turning it into a business. She is bringing in her wealth of experience into the business.

·         Our Products and Services

We intend to grow and sell all the kinds of mushroom that is being consumed in Pakistan. Mushy Forage Farms LLC is an establishment that will ensure that all our mushrooms are sold via our different outlets and even directly from the farm.

Because we know how important it is to ensure that our business remains afloat, we intend to ensure that we create multiple sources of income that is in line with our corporate culture as well as business’ goals and objectives. We however would like to stress that all the routes we would take to make profit would be legal and within the permissible laws of the    s of Pakistan.

Some of the products and services we intend to engage in are:

·         Fresh mushrooms such as common button agaricus, criminis, portabellas, shiitake, oysters, medicinal reishi, lions mane, wood ear, enoki and maitake.

·         Processed mushrooms (dried, canned, frozen)

·         Offer consultancy and advisory services

·         Sell eBooks for intending new farmers

·         Give trainings

Our Vision ment

Our vision is to be a major supplier of quality gourmet mushrooms in Springfield – Missouri and be recognized throughout the    s of Pakistan.

·         Our Mission  ment

To achieve our set vision, we intend to practice sustainable farming practices by growing our edible gourmet mushrooms in a controlled environment and using organic substrates as much as we can.

·         Our Business Structure

Having a business structure is very important as it will help the business follow the vision which it has determined for itself. At Mushy Mushrooms Forage, we have perfected the plans that will ensure that we get it right by employing only the best and competent hands to come and work in our firm to enable us attain the goals and objectives which we have set for ourselves.

Because we have a vision of ourselves becoming the brand leader in this industry, we knew we had to get all the right things done, from carrying out a feasibility study about the business, to writing a business plan that helped us determine the right capital that would be needed to start our business and creating roles and responsibilities so that we could employ just the right employees for our mushroom business.

Asides the fact that we intend to sell our mushrooms fresh and processed, there are other services that we would be offering as well to boost our earnings and so these services will need competent hands to ensure that all our operations run smoothly at Mushy Forage Farms.

Listed below is the business structure we intend to use in building our mushroom business;

·         Chief Executive Officer

·         Mushroom Farm Manager

·         Purchasing Manager

·         Administrative Manager

·         Sales and Marketing Team

·         Store Manager

·         Front Desk Officer

·         Accountant/cashier

·         Delivery Driver

·         Cleaner

Roles and Responsibilities

Chief Executive Officer

·         Responsible for the overall direction of the company

·         Networks with other mushroom businesses and high powered clients on behalf of the company

·         Oversees the management staff so as to increase their effectiveness.

Mushroom Farm Manager

·         Responsible for growing the mushrooms

·         Checks the mushrooms daily for defective ones

·         Harvests the mushrooms when it is time

Purchasing Manager

·         Responsible for purchasing all the raw materials needed by the business

·         Sources for reliable vendors and distributors for the company

·         Keeps an accurate database of all purchases and vendors

Administrative Manager

·         Ensures that the business runs smoothly with as less hitches as possible

·         Ensures that employees have great welfare packages and better working environments

·         Assigns and delegates tasks to employees and ensures that they are carried out accordingly

Sales and Marketing Team

·         Responsible for drafting marketing strategies and policies that will bring in sales for the company

·         Continually research on target markets so as to identify new market opportunities for the company

·         Engages in mushroom retailing to customers

Store Manager

·         Ensures that the store is kept clean and well ventilated at all times

·         Checks level of inventory so as to know when to replenish stock

·         Keeps accurate report of all stocks in the store

Front Desk Officer

·         Is responsible for picking customer calls and taking down order requests or receiving complaints

·         Receives customers on behalf of staff and direct them to the appropriate quarters

·         Keeps an accurate database of customers for future profiling purposes

Accountant/cashier

·         Is responsible for all accurate financial records carried out by the business

·         Ensures availability of cash for running operations and ensures that proper records are kept

·         Carry out end of month reconciliation between the cash book and bank  ment

Delivery Driver

·         Delivers mushrooms to various accurate destinations using reliable routes

·         Carry out light repair on delivery vehicle as well as regular maintenance as well

·         Keeps an accurate logbook of distances travelled and also obeys all   and traffic laws

Cleaner

·         Ensure the farm and the entire premises are kept clean at all times

·         Ensures that the restroom for customers and employees are kept neat at all times

·         Ensures that cleaning supplies are always in stock

Mushroom Farming Business Plan – SWOT Analysis

Because we know that it takes serious work before a business can become a leader in the industry, we have conducted a SWOT (Strength, Weakness, Opportunities, Threat) analysis so that we could effectively draft a strategy that will not only allow us compete favorably with our competitors in the marketplace but also ensure that our business stands out and is unique from that of our competitors.

Due to the fact that we wanted to have the best analysis, we hired a reputable business consultant here in Springfield – Missouri to help us determine if the odds were against us and if the business was worthwhile for us to go into. The results were favorable as the strengths and opportunities available to us far outweighed the threats and weaknesses we had or were likely to encounter.’

·         Strengths

The strength of our business lies in the fact that we would be growing various kinds of edible mushrooms to be able to reach a wide number of customers here in Springfield –Missouri and also in the whole of the of Pakistan. We have a huge mushroom farm that is able to meet with the demands of our customers and have structures in place to meet with increasing demands.

Asides, offering fresh and processed mushrooms to our various customers, we will also offer training to intending mushroom farmers as well as consultancy services as well. Also, we have carefully chosen and perfected all our channels of distributions, so that our mushrooms can conveniently reach all our customers.

Because we know how important customers are to a business, we are offering an excellent customer service that will attend to the needs of our customers by attending to their requests, enquiries and orders and promptly resolving any complaints.

·         Weaknesses

The mushroom business isn’t new, which means that there are other established mushroom businesses in and around our location in Springfield – Missouri. While this might be termed a weakness, we have however put strategies in place to ensure that we create the right awareness with potential customers and also ensure that our mushrooms are of the highest quality, as this we believe will effectively combat the other competitors.

·         Opportunities

Because mushrooms are a healthy meal for everyone, there are loads of opportunities that abound in this field, from those who are looking to start this business and need guidance. Also, because we are always on the lookout for new innovations and technologies in this field, we would be the perfect consultants for those who are new in the business and are looking for better ways to grow their business.

·         Threats

Every business faces threats every now and then and we acknowledge that we are going to face threats likely in the arrival of new competitors to our same location. The threat brought by this action can be curbed as we have strategies in place to combat any new strong competitor’s arrival.

Mushroom Farming Business Plan – MARKET ANALYSIS

·         Market Trends

The mushroom market which has grown tremendously and is expected to continue is majorly drive by Pakistan’s love for consuming food that is healthy. Also, other trends include, increase in the processed food consumption and the ease of growing mushrooms.

This does not however mean that it is all rosy for the mushroom farmers as the limited shelf life of mushrooms is a serious hindrance to the business. The mushroom market is filled with intense competitors – small, medium and large scale – who apply various strategies to attract potential customers while also aiming to retain their own customers as well.

Another trend is the fact that mushrooms have multi-functional benefits especially as they are rich in proteins and have low or no fat and cholesterol. These nutritional values have nearly equated mushrooms as super foods. Also, mushrooms have been widely adopted by most growers in the    s, with most selling their products in the farmer’s market.

The major challenge to the mushroom business has always been the limited shelf life but even that would soon change as there are several improving technologies, innovations as well as researches being constantly carried out to ensure that more people can have their mushrooms stay in their homes longer as well as more farmers storing their harvested mushrooms without worrying due to spoilage.

·         Our Target Market

Mushrooms are a favorite of many homes in the    s of Pakistan, and so we know that we have a huge target market available to buy our mushrooms. However, because we do not want to be limited by our idea of target market, we have also decided to carry out an in depth research into what to expect from our target market.

This would also help us to be able to draft effective strategies to conquer these target markets in and around Springfield – Missouri and also in all other locations where we intend for our mushrooms to be sold at. The market research was done with the aid of a farm business consultant who has vast experience in the mushroom market, leading us to identify the markets that would patronize our products.

Asides selling mushrooms in retail, we also intend to sell them wholesale to the following groups of people;

·         Local health food stores

·         Households

·         Farmers’ markets

·         Supermarkets

·         Restaurants (Regular and oriental)

·         Hotels

·         Factory cafeterias

·         College cafeterias

·         Produce places

·         Caterers and catering services

·         Food coops

·         Health spas

·         Our Competitive Advantage

Our vision of establishing Mushy Forage Farms LLC is so as to meet the needs of mushroom loving customers by growing all the different mushrooms consumed in Pakistan and also to become the leading mushroom business not only in Springfield – Missouri but in the whole Pakistan as well.

However to attain our vision we would need to have competitive advantage so as to compete favorably with already established mushroom farms while remaining proactive in competing against new mushroom farms that would spring up.

Our major competitive advantage is in ensuring that we have hired and competent hands on board to ensure that work on our farm goes on smoothly. Our hired employees will work in an environment that is conducive so as to ensure that they attain a high level of productivity. Also, we intend to have welfare packages in place that will show our employees that we care about their welfare.

Customers are the most important reasons a business succeeds, especially loyal customers. We intend to have an excellent customer service where all the enquiries, complaints and orders will be promptly attended to. We also intend to have an incentive referral program for our loyal customers and even our first timers, this will ensure that our customers retain their loyalty to our brand, thereby giving us the competitive advantage we would need to become industry leaders.

Because we know hoe internet inclined the world has become, we intend to push our business via the internet as well, by ensuring we build a user friendly website where all our products and services will be displayed. We will ensure we hire the best web consultant to deploy Search Engine Optimization (SEO) for our website so that our website will appear amongst top leads, for users searching for mushroom businesses. Also, we intend to remain active through our social media platforms such as Facebook, Instagram and Twitter.