Opportunity
Problem
The growth of the health and vitamin industry is rapid. Customers want to have natural and plant alternatives to medication. They are starting to believe the body is a temple. They don’t want to pollute with chemicals. The industry needs botanical plants that are ready to process as well as give to nurseries for the “do it yourselfers”.
Solution
Botanical Bounty works hard to be a top producer of botanical plants both for the natural supplement market and nurseries.
Market
Botanical Bounty serves three types of customers: companies that sell supplements, companies that process botanicals for supplement companies and nurseries that resell plants.
The first two customers purchase the plants for use in their products which they ultimately sell to the end consumer.
The natural supplement market is very interesting. Surveys show that over 158 million consumers (over 55% of U.S. population) use dietary supplements. An estimated 115.3million consumers purchase vitamins and mineral supplements for themselves. 55.8 million buy them for children and their families. Consumer surveys show that nearly half of Americans now use herbs. This is a remarkable statistic, especially when you consider the fact that the herbal product industry is less than 25 years old.
Competition
Competition takes two forms, farms similar in size and production capacity to Botanical Bounty and megafarms. Similar-sized farms can range in size from 5-30 acre. There are many herbs that can be grown, ranging from just a few to over 50. The selection of plants to grow is determined by the preference of the owner, as well as the availability of local growing conditions.
Why Us?
Botanical Bounty aims to be the premier supplier of botanical perennials to health/vitamin industries. This will be accomplished by providing quality plants at fair prices while exceeding customer’s expectations.
Expectations
Forecast
To finance our growth and full-time production, we need to purchase $35,000 worth of new equipment as long-term assets taking that total up to $53,800. We are looking to secure a $100,000 10-year loan. The sales forecasts predict that $190,000.00 will be generated in year 2 and more than 400,000 in year 4.
Financial Highlights per Year
Financing Required
We need a $100,000 10 Year loan. Our $35,000 cash reserves from current operations will be used.
Leave a Reply