Green Organic

BUSINESS PLAN

Sultan Hilal Al-Maskari 103850

[GROUP MEMBERS IDs]

[Semester/Year]

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Outline:
1. EXECUTIVE SUMMARY
1.1 Product
1.2 Customers
1.3 What Drives Us
2. COMPANY DESCRIPTION
2.1 Mission Statement
2.2 Principal Members
2.3 Legal Structure
3. MARKET RESEARCH
3.1 Industry
3.2 Customers
3.3 Competitors
3.4 Competitive Advantage
3.5 Regulation
4. PRODUCT/SERVICE LINE
4.1 Product or Service
4.2 Pricing Structure
4.3 Product/Service Life Cycle
4.4 Intellectual Property Rights
4.5 Research & Development
5. MARKETING & SALES
5.1 Growth Strategy
5.2 Communication
5.3 Prospects
6. FINANCIAL PROJECTIONS
6.1 Profit & Loss
6.2 Cash Flow
6.3 Balance Sheet
6.4 Break-Even Analysis
7. References
8. Appendix

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 1. EXECUTIVE SUMMAR
Organic farm is another activity of agriculture system which create to use natural and
avoid use of synthetic chemicals or never use. That help us to produce healthy food with
high nutrient value.

- Product

Our products are three types of vegetables which are cucumber, tomato and
sweet paper (bell paper).
- Customer

As the product is vegetables our customers are normal people, and large markets
center such as Lulu. Also, the hotels and other government foundations like
hospitals.

- Driven us

We will provide the people and market with organic cucumber, tomato, bell
paper, there are growing in greenhouses with first step of product and then we
plan to grow more types of crop.

2. COMPANY DESCRIPTION
- Mission Statement

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Our mission is produce health products and to Encourage decrease use of
chemicals in agricultural industry. This type of products safe our health.
- Principal members

The general director of the company – Alazhar AL Shuriqi

Director of communication Sultan and the financial manger
- Legal structure

Partnership

3. Market research
- Industry

There are many problems caused by the residue of chemicals in agriculture products. This cause in long
time fatal diseases as much as you consume this product. Due to that use organic fertilizer and decrease
uses of pesticides. At this activity of also can save the soil microorganisms by control the disease with
biological control or cultural practices like the crop rotation.
- Customers

Our customers people who interest with health food. For instance, the sport people and all hospitals.
Also, normal people who are want to safe their self from diseases and health problems.
Competitor:
This type of business is new to the market especially in Oman and there are only 3 farms with organic
activities. And only one farm that can buy it products to the market but only for hotels.
Competitive advantage:
The company will continue to produce and by alone in Omani market.
- Regulation:
- We get some benefit from this company to identify in which parts they are weak and
strong. For example, if the location is good in Ruwi? Also, what type of materials they
use? And how much time they take to deliver? So, we can enhance these points and be
ready to avoid them. At the end of day, customer will prefer us.

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 4. Product / service line

- Product or service

The business in considered as type of product. That because we offer only the
cucumber and tomato, sweet paper and this direct use by costumers.
- Pricing structure:
- Our prices are constant if the competition increase in market. So, we plan to increase price
which will be good for our company. On the other hand, if the prices in the market falls
down- this might be happening- because this is new system and people will like it due to it
is very healthy and give high quality yield, we can decrease the prices up to floor level for
each product

- Product life cycle

- Our product is expected to last for more than 5 years with periodic proper maintenance.
Moreover, our nutrient solution will be consumed far a whole year.

- Intellectual property

This type of product is not new, but we want to start the idea and apply to
most of farms in Oman. That to encourage and provide the people and market
with organic products and make the price of organic food is available to most
level of people.

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 - Research and development

As the organic food is most wanted by people due the health vale in it. So, organic
cucumber provides the body with:

One serving of fresh, organic cucumber contains just 15 calories, which is a

miniscule amount considering an average diet is about 2,000 calories per day. The
carbohydrate content is equally low with about 3.5 grams. An average adult should
consume around 225 grams of carbohydrates daily; even strict low-carb dieters eat at
least 20 grams per day. Each serving of fresh cucumbers also contains 0.5 grams of
dietary fiber, which keeps your digestive tract healthy and prolongs the sensation of
fullness. Healthy adult women should aim for around 22 grams of fiber and men
around 28 grams per day. Fresh cucumbers contain about 0.5 grams of protein per
serving, or 1 percent of a healthy intake of 50 grams per day. While that leaves a bit
to be desired, the trace amount of fat and no saturated fat or cholesterol more than
make up for it. Diets low in fat and cholesterol reduce your chance of obesity-related
concerns such as cardiovascular disease and stroke. If you need to increase your
day’s protein intake, have a serving of chicken breast or firm tofu for about 25 grams.
The notable vitamins and minerals in a serving of organic, fresh cucumbers include
16 milligrams of calcium, 13 milligrams of magnesium, 24 milligrams of
phosphorus, 147 milligrams of potassium and 16 micromilligrams of vitamin K. Each
serving also contains trace amounts of iron, sodium, zinc, thiamin, riboflavin, niacin,
folate, and vitamins E, A, B-6 and B-12. In relation to the low-calorie and fat content,
the vitamins and minerals in fresh cucumbers are relatively high.

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Tomato
Carbohydrates make up 4% of raw tomatoes, which amounts to less than 5 grams of
carbs for an average sized tomato (123 grams). Simple sugars, such as glucose and
fructose, make up almost 70% of the carbohydrate content. Tomatoes are a good
source of fiber, providing about 1.5 grams per average sized tomato. Most of the
fibers (87%) in tomatoes are insoluble, in the form of hemicellulose, cellulose and
lignin. Tomatoes are a good source of several vitamins and minerals. Vitamin C An
essential nutrient and antioxidant. One medium sized tomato can provide about 28%
of the recommended daily intake. Potassium: An essential mineral, beneficial for
blood pressure control and cardiovascular disease prevention. Vitamin K is
important for blood coagulation and bone health Folate(B9) One of the B-vitamins,
important for normal tissue growth and cell function. It is particularly important for
pregnant women.
- Cucumbers are extremely beneficial for overall health, especially during the
summer since they are mostly made of water and important nutrients that are
essential for the human body. The flesh of cucumbers is rich in vitamin A, vitamin C,
and folic acid, while the hard skin is rich in fiber and a range of minerals including
magnesium, molybdenum, and potassium. Additionally, cucumber contains silica, a
trace mineral that contributes greatly to strengthening our connective tissues. They
are known to heal many skin problems, under eye swelling, and sunburn. Cucumbers
also contain ascorbic and coffee acids which prevent water loss, therefore they are
frequently applied topically to burns and dermatitis.
-Bell peppers contain 94% water, 5% carbohydrates, and negligible fat and protein
(table). They are rich sources of vitamin C, containing 97% of the Daily Value (DV)
in a 100-gram reference amount (table). Red bell peppers have more vitamin C
content than green bell peppers. [8] Vitamin B6 is moderate in content (17% DV),
with no other micronutrients having significant amounts of the DV (table).

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 5. Marketing and Sales

- Growth strategy

As the competitive is less or not available we can put our price as we can
and then decrease the price of our products. But we try to be more fixable
because we want to idea of consuming the organic food.

- Communication

At this time the most way to communication is by use the social media
programs. Also, the web site of our company is the key of our
communicating process with marketing resource.

- Prospects

Our dream is to provide people with healthy food and decrease uses of
pesticides in agriculture. Also, safe the environment from the residues of
chemicals.

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6. FINANCIAL PROJECTIONS

6.1 Profit & Loss

Year 1 Year 2 Year 3

Sales
cucumber 90240 99264 109190.4
tomatoes 225600 248160 272976

sweet pepper 37600 41360 45496

Costs/Goods Sold 37% 130772.8 143850.08 158235.1
GROSS PROFIT 222667.2 244933.92 269427.312

OPERATING EXPENSES

Planning the land of the 1500 1500 1500

house
Organic fertilizer spread 1500 1500 1500
Supply of organic fertilizers 2500 2500 2500
Feeding seed in nursery 2975 2975 2975
Supply of seeds 2500 2500 2500
Cultivation of seedlings 600 600 600
Permanent employment 6000 6000 6000
Transfer of the crop 1296 1296 1296
Agricultural supervision 1500 1500 1500
Repairs & Maintenance 1000 1000 1000
Advertising 200 200 200
Accounting & Legal 500 500 500
Telephone 50 50 50
Interest 5% 6538.64 7192.504 7911.754
Depreciation 15% 19615.92 21577.512 23735.26
Net 174391.64 194042.9 215659.3
Income Taxes 12% 20926.9968 23285.148 25879.12
Owner Draw/Dividends 2 76732.3216 85378.878 94890.09
Profit 153464.6432 170757.7555 189780.1791
TC 91866.49333 98841.04267 106513.0469

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6.2 Cash Flow

Construction cost 267,330.00 Debt 50%

annual depreciation
19,615.92 21577.512

intrest rate 5%
life(year) 3
Tax 12%
project cash flow 0 1 2 3
Fixed investment 267,330.0
Revenue 353,440.0 388,784.0 427,662.4
operation cost 22,121.0 22,121.0 22,121.0
Total cash flow (267,330.0) 375,561.0 410,905.0 449,783.4
project IRR 1.4
NPV 851,589.9
private cach flow
loan(principle) (133,665.0) 42,399.7 44,519.7 46,745.7
intrest in loan 6,683.3 4,563.3 2,337.3
Net financial low (400,995.0) 49,082.9 49,082.9 49,082.9
NCF(equity, per tax 133,665.0 326,478.1 361,822.1 400,700.5
profit
Revenue 353,440.0 388,784.0 427,662.4
operating cost (22,121.0) (22,121.0) (22,121.0)
intrest (6,683.3) (4,563.3) (2,337.3)
Depreciation (19,615.9) (21,577.5) (23,735.3)
profit (before tax) 305,019.8 340,522.2 379,468.9
tax due 36,602.4 40,862.7 45,536.3
private cash flow (267,330.0) 289,875.7 320,959.4 355,164.2
IRR on equity flow 1.0
NPV 500,153.3

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Construction cost
num-
ber of
units
# component UNITS PRICE OR TOTAL OR
Iron structure
1 60 2500 150000
2 Plastic cover 60 620 37200
3 Installation fee 60 150 9000
Irrigation net-
4 work 60 123 7380
Spray equip-
5 ment 3 500 1500
6 Generator 6 2500 15000
Irrigation water
7 pumps 1 4350 4350
Heating de-
8 vices 60 400 24000
Wire and climb-
9 ing cables 60 5 300
10 Climbing yarns 60 250 15000
Pick up the
11 climbing string 60 30 1800
Irrigation system in-
stallation fee
12 60 30 1800
TOTAL OR 267330

6.3 Balance Sheet

Assets

CURRENT ASSETS
Cash in Bank 36000 50000

FIXED ASSETS
Machinery & Equipment 267330

Bank : 50% ---- = 133665 OR

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6.4 Break-Even Analysis

Break-even statement
Table 3: Total revenue for first year
Revenue 90240 0.8
18800 15040
37600 30080
56400 45120
75200 60160
94000 75200
112800 90240

As clearly table and our calculations give us that as sales increase the revenue increase.
We want this to be continues until reach our cost at some point.
Table 4: Total cost per unit in first year
TC/unit 18373.29867 0.8
18800 3062.216667
37600 6124.433333
56400 9186.65
75200 12248.86667
94000 15311.08333
112800 18373.3

So, our products need money to buy the raw materials and running the business. In
addition, we need to be careful about any unexpected thing might be happen and let us
pay some money.

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Table 5: Profit for first year
Profit 68119 0.8
18800 -34059.5
37600 -22706.33333
56400 -11353.16667
75200 45412.66667
94000 56765.83333
112800 68119

15000

10000

5000

-5000

-10000

Revenue TC/unit Profit

Figure 1, Breakeven Point

This figure shows the breakeven point where there is no profit and no loss in our project.

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References

1. Paull, John & Hennig, Benjamin (2016) Atlas of Organics: Four Maps of the World of Organic
Agriculture Journal of Organics. 3(1): 25-32.
2. Jump up^ "USDA Blog » Organic 101: Allowed and Prohibited Substances". blogs.usda.gov.
Retrieved 6 April 2016.
3. Jump up^ Paull, John (2011) "Nanomaterials in food and agriculture: The big issue of small
matter for organic food and farming", Proceedings of the Third Scientific Conference of
ISOFAR (International Society of Organic Agriculture Research), 28 September – 1 October,
Namyangju, Korea., 2:96-99
4. Jump up^ "USDA List of Allowed and Prohibited Substances in Organic Agriculture". USDA
List of Allowed and Prohibited Substances in Organic Agriculture. USDA. 4 April 2016.
Retrieved 6 April 2016.
5. Jump up^ Arsenault, Chris. "Only 60 Years of Farming Left If Soil Degradation Continues".
Scientific American. Retrieved 29 May 2016.
6. ^ Jump up to:a b Coleman, Eliot (1995), The New Organic Grower: A Master's Manual of Tools
and Techniques for the Home and Market Gardener (2nd ed.), pp. 65, 108, ISBN 978-
0930031756.
7. Jump up^ Paull, John "From France to the World: The International Federation of Organic
Agriculture Movements (IFOAM)", Journal of Social Research & Policy, 2010, 1(2):93-102.
8. Jump up^ Danielle Treadwell, Jim Riddle, Mary Barbercheck, Deborah Cavanaugh-Grant, Ed
Zaborski, Cooperative Extension System, What is organic farming?
9. Jump up^ H. Martin, '’Ontario Ministry of Agriculture, Food and Rural Affairs Introduction to
Organic Farming, ISSN 1198-712X
10. Jump up^ Dale Rhoads, Purdue Extension Service, .What is organic farming?
11. Jump up^ Gold, Mary. "What is organic production?". National Agricultural Library. USDA.
Retrieved 1 March 2014.
12. ^ Jump up to:a b Helga Willer, Julia Lernoud and Robert Home The World of Organic
Agriculture: Statistics & Emerging Trends 2013, Research Institute of Organic
Agriculture (FiBL) and the International Federation of Organic Agriculture Movements
(IFOAM, 2013).
13. Jump up^ Paull, John (2011) "The Uptake of Organic Agriculture: A Decade of Worldwide
Development", Journal of Social and Development Sciences, 2 (3), pp. 111-120.
14. Jump up^ Horne, Paul Anthony (2008). Integrated pest management for crops and pastures.
CSIRO Publishing. p. 2. ISBN 978-0-643-09257-0.
15. ^ Jump up to:a b Stinner, D.H (2007). "The Science of Organic Farming". In William
Lockeretz. Organic Farming: An International History. Oxfordshire, UK & Cambridge,
Massachusetts: CAB International (CABI). ISBN 978-1-84593-289-3. Retrieved 30 April 2013.
16. ^ Jump up to:a b c Paull, John (2011). "Attending the First Organic Agriculture Course: Rudolf
Steiner's Agriculture Course at Koberwitz, 1924". European Journal of Social Sciences'. 21 (1):

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 64–70.
17. Jump up^ Vogt G (2007). Lockeretz W, ed. Chapter 1: The Origins of Organic
Farming. Organic Farming: An International History. CABI Publishing. pp. 9–
30. ISBN 9780851998336.
18. Jump up^ Lotter, D.W. (2003). "Organic agriculture" (PDF). Journal of Sustainable
Agriculture. 21(4).
19. ^ Jump up to:a b Kirchmann, Holger; Bergstrom, Lars (16 December 2008). Organic Crop
Production - Ambitions and Limitations. Springer Science & Business Media. pp. 2–. ISBN 978-
1-4020-9316-6.
20. Jump up^ Paull, John (2013) "Koberwitz (Kobierzyce); In the footseps of Rudolf Steiner'",
Journal of Bio-Dynamics Tasmania, 109 (Autumn), pp. 7-11.

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 Appendix

Profit/Loss Definitions
Sales
There will be 60 greenhouses:

- 20 greenhouses for cucumber

- 20 greenhouses for tomatoes
- 20 greenhouses for sweet pepper

Each greenhouses have about 940 plants.

1 pant of cucumber produce 6 kg in 4 months

1 plant tomatoes produce 10 kg in 5 months

1 plant sweet pepper produce 2 kg in 7 months

Total amount cucumber produced

20 (greenhouses) x 940 (plants) x 6 (amount each plant produced in kg) = 112800 OR

Total amount tomatoes produced

20 (greenhouses) x 940 (plants) x 10 (amount each plant produced in kg) = 188000 OR

Total amount sweet pepper produced

20 (greenhouses) x 940 (plants) x 2 (amount each plant produced in kg) = 37600 OR

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Pricing

The Table below summarized the revenue from each type of plants and total revenue.

Total pro-
# green- # Produced Total Price
plants Time harvest duced Price OR
houses plants (kg) (revenue) OR
(kg)

cucumber 20 940 6 4 112800 0.8 90240

tomatoes 20 940 10 5 188000 1.2 225600

sweet
20 940 2 7 37600 1 37600
pepper

Total revenue = 353440 OR

Costs of Goods Sold
The cost of buying raw materials and producing finished goods or products.

Construction cost

num-
ber of
units
# component UNITS PRICE OR TOTAL OR
Iron structure
1 60 2500 150000
2 Plastic cover 60 620 37200
3 Installation fee 60 150 9000
Irrigation net-
4 work 60 123 7380
Spray equip-
5 ment 3 500 1500
6 Generator 6 2500 15000
Irrigation water
7 pumps 1 4350 4350
Heating de-
8 vices 60 400 24000
Wire and climb-
9 ing cables 60 5 300
10 Climbing yarns 60 250 15000
Pick up the
11 climbing string 60 30 1800
Irrigation system in-
stallation fee
12 60 30 1800
TOTAL OR 267330

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Gross Profit
The difference between sales and costs of goods sold. This can also be called gross margin.

Gross Profit = Revenue - Cost of Goods Sold.

= 353440 – 267330 = 86110 OR

Gross margin = ((Revenue - Cost of Goods Sold) ÷ Revenue) x 100 = 24.36 %

IT’S clearly that from Gross margin:

Revenue is higher than Cost of Goods Sold by 24.36 %

Which is good singe to make this project

Operating Expenses
Expenses incur while running business.

n Element Number of Units Unit Price Total

1- Planning the land of the house 50 30 1500

2- Organic fertilizer spread 30 50 1500

3- Supply of organic fertilizers 50 50 2500

4- Supply of chemical fertilizers - - 3000

5- Feeding seed in nursery 595 5 2975

6- Supply of seeds 50 50 2500

7- Cultivation of seedlings 15 40 600

8- Pesticides and fertilizers - - 4000

10- Permanent employment 10×120=1200 5 months 6000

11- Transfer of the crop 3 432 1296

12- Agricultural supervision 5 300 1500

Total 27371

From the above table it is clear that the total amount expended operating costs over the course of
the season is RO 27,371

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Total Expenses
Add all operating expenses and write the total here.

Net Profit before Tax

The difference between your gross profit and operating expenses (net profit) before paying fed-
eral, state and local income taxes.

Net Profit before Tax = gross profit - operating expenses

= 86110 - 27371 = 58739 OR

Income Taxes
The annual tax that Federal, state and local governments collect on income.

Income Taxes = 12%

Owner Draw/Dividends
A payment to investors or owners taken from net profit after tax. Dividends can take the form of
cash, property, or stock.

Adjusted to Retained
remaining profit.

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