Opportunity
Problem
The growth of the health and vitamin industry is rapid. Customers want natural and herbal alternatives to medications. They believe that the body is a temple. They don’t want to pollute with chemicals. This industry requires botanical plants that can be processed and given to nurseries by “do-it yourselfers”.
Solution
Botanical Bounty is striving to be a major producer of botanical plant for the natural supplements industry and nurseries.
Market
Botanical Bounty has three distinct customers: supplement companies, processors of botanicals for supplement companies, and nurseries that resell the plants.
The plants are then sold to the customers who purchased them for their products.
The natural supplement market is very interesting. Surveys indicate that over 158 millions Americans, or 55% of the U.S. population, use dietary vitamins and minerals. 115.3 million Americans buy vitamins and minerals for their own health, while 55.8 millions purchase them for their children. A majority of Americans use herbs, according to consumer surveys. This is especially remarkable considering that the herbal products industry has been around for less than a quarter century.
Competition
Farms similar in size, production capacity and production capacity to Botanical Bounty or megafarms are examples of competition. These farms are similar in size and range from 5-30 acres. The variety of herbs grown can vary from a few to dozens. The choice of plants is made based on the preferences of the owners, the location and the ability to sustain the plants in the local environment.
Why Us?
It is Botanical Bounty’s mission to become the leading provider of botanical perennials to the health/vitamin industry. By providing quality plants at fair rates and exceeding customers’ expectations, Botanical Bounty will accomplish this.
Expectations
Forecast
We need to buy $35,000 worth new equipment and long-term assets to finance our growth. This will bring the total to $53,800. We are seeking a $100,000 10-year mortgage to help us achieve this goal. According to sales forecasts, $190,000.00 in revenue will be generated by year 2. This number could rise to more than 400,000 by year 4.
Financial Highlights for the Year
Financing Needed
We require a $100,000 10-year loan. We will draw on our existing $35,000 cash flow.