The nursery plans to market trees within a two-county area in south central Pennsylvania. The owner plans to focus on producing three species of trees, determined by the clientele to be their most sold specie. This will make changing products difficult. What's the competitive advantage of the new company? It is both process and product. Trees produced in the area have a higher survivability rate than imported trees. Is everyone a voting partner or are there limitations to their input? The growth in sales of lawn care and tree services is not quite as dramatic, but the trend is still positive. The reality is often much harsher.
The ideal farm plan will fit your mission best. What incentives will be offered to the sales staff? Nursery is a small nursery, which will specialize in producing deciduous ornamental trees. The nursery's target market will be landscape contractors and garden centers. If the industry were in a downturn, it would not be as advantageous to consider entering this industry. The nursery plans to locate in the Adams County area of Pennsylvania and sell the products in the Adams and Cumberland County areas.
If irrigation is installed, this will be used as a risk management strategy. If the business does not install an irrigation system, the business plan shows the return on investment will be in five years, if the nursery can begin marketing trees at four years after business start-up. Begin with your mission statement and goals. Include what your future operating expenses will be. Nursery will face several challenges. The nursery plans to distribute quality products to local landscapers and garden centers.
This includes items like rent, insurance, utility costs, labor wages, office salaries, legal fees, advertising expenses and so forth. The investment will help the company begin and continue operations until the company becomes self-sustaining. You will think about your short- and long-term goals. Do your homework by analyzing markets and researching competitors and trends. What is the pricing strategy? Marketing Strategies: The business plans to remain small because of existing employment commitments. How will the product be packaged and labeled to meet any regulatory requirements? This compares with 77,108 owner-occupied housing units in 1990.
For a small part-time business, this will be an acceptable level of income since the profit level will rise from year five on. These items are currently available to the business through the current business in which the owner is engaged. The third option is the sales level that's most likely to occur. This contact will begin before trees are started in the nursery so the business knows the market desires before entering the business. West Vancouver is an affluent area with a high pet density. New houses are traditionally being built on land that was previously devoted to agriculture. These include: 1 the owner has no experience producing ornamental trees, 2 wholesale sales will not net as much profit as retail sales, 3 The owner will need to purchase some equipment, 4 weather conditions, such as drought, can affect the production of trees, 5 the nursery will be located in an area, currently under quarantine for Prunus tree species, 6 according to a survey conducted by the owner, businesses surveyed preferred to receive trees balled-and-burlapped.
Are they making a substantial financial commitment themselves or are they looking for outsiders to put up most of the capital? The government impacts to the business are; requirement of a pesticide license to control pests on the trees, a license to operate a nursery, and the quarantine currently placed on Prunus species in the owner's area. What are the conditions that will cause the customer to make a purchase? A business plan should explain how the management intends to deal with all economic climates, good and bad. Discuss the costs involved with the method of distribution. Since the nursery will be geographically located in the northern portion of Adams County near the border with Cumberland County, the nursery has the advantage of being able to have trees to any portion of the two counties within two business days of an order. Moreover, projections should include contingency plans on what do to when things go wrong or not as planned.
Is it through the company's retail stores or through wholesalers? The value of exterior landscaping on the resale value of homes is an important factor. . Because of the quarantine, the nursery will not be able to produce Prunus species of trees, which the research shows is one of the top four species of trees sold by landscapers and garden centers in the area. The nursery may try to establish a retail market for a portion of the trees produced. Risk Management Strategies: The business will use the diversification of species as its main risk management tool.
Continuous monitoring of the customers will determine if quality is of acceptable standards and their customers are happy with the value of the trees. By catering to smaller businesses, the owner believes that he can market all of the trees he will produce. Penn State Extension currently employs the owner who will have the resources of the University easily available. Adams County is growing by over 16% over the last ten years and Cumberland County has grown over 9% in the same period. Public Relations: Most nurseries guarantee the trees for one year; the business plans to follow this practice. The business desires to work with other small businesses and help sustain their businesses. Expanding the initial size of the operation will spread the investment in the irrigation system and equipment over a larger number of trees, reducing the overhead per tree sold.