Greenline Microgreens

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Executive Summary

Greenline Microgreens is a small indoor farm in Michigan. We grow microgreens, the young shoots of vegetables and herbs, in trays under lights in a leased grow room, and we sell them to restaurants and caterers, grocers and co-ops, farmers markets and subscribers. Our customers want fresh, flavorful greens that are picked days ago and not weeks ago.

The problem is simple. Fresh greens often travel a long way before they reach a plate, and chefs and shoppers are looking for reliable, local supply all year, even in winter. We grow indoors, harvest to order and deliver in a few days or less.

Here is what our numbers show. We expect sales of $145,850 in Year 1, growing to $464,050 by Year 5 as we add restaurants, grocers and market customers. We expect a profit of about $3,700 in Year 1 while we build our customer base, then a larger profit of about $16,000 in Year 2, growing to about $44,300 by Year 5.

We need $85,000 in total. That covers $58,200 in startup costs (grow racks, lights and controls, packing equipment, a used van, the first seeds and packaging, the build-out, the lease deposit and food safety work) and a cash cushion for the first months. I am putting in $15,000 of my own money, and I am asking for a $50,000 SBA loan plus $20,000 from an investor or partner.

I am Carlos Rivera, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Greenline Microgreens will be a limited liability company (LLC) in Michigan, owned by Carlos Rivera. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. Food that people eat raw has to be grown clean. We keep the grow room spotless, test our water and track every tray from seed to sale.

What we offer:
- Wholesale to restaurants and caterers. Fresh-cut microgreens sold by the pound, delivered on a set schedule.
- Farmers markets and subscription boxes. Ready-to-eat clamshells sold at markets and delivered weekly to subscribers.
- Grocers and co-ops. Packaged clamshells sold to local stores.
- Later, as we grow: edible flowers, living trays for chefs and growing kits. The numbers in this plan do not include these.

The space. In Year 1 we will lease about 1,200 square feet of clean, climate-controlled space in a flex building with a loading door, a floor drain and enough electrical power for lights and fans. We budget $21,600 a year ($1,800 a month) for rent and utilities, and the plan assumes this grows about 15% a year as we add racks and space.

Licenses and insurance. We will register the LLC with the state, get a business license, an EIN (the business tax number from the IRS, free at irs.gov) and a sales tax permit. Growing and selling fresh produce is covered by food safety rules, so before I sign a lease I will ask the state department of agriculture whether we need a food establishment license or registration, and whether the federal produce safety rule applies to a farm of our size. Microgreens are grown in soil or on mats and cut above the roots. We will not grow or sell sprouts, which are grown in water and carry a higher risk. We will carry general liability and product liability insurance, property insurance and workers' compensation once we hire.

Where things stand today. This plan is my starting point. Before I sign a lease or buy equipment, I will grow test trays at home or in a small rented space, taste-test them with at least 10 chefs and 5 grocers, and ask for at least 3 written orders or letters of interest. If I cannot, I will change the plan before I spend money.

Problem & Opportunity

Fresh, local greens are hard to get all year.

1. Long supply chains. Greens often travel a long way and spend days in trucks and warehouses, so they lose flavor and shelf life.
2. Winter gaps. In cold climates, local fresh produce is scarce for months.
3. Chefs want consistency. Restaurants need the same quality every week, delivered when promised.
4. Food safety concerns. Greens eaten raw must be grown, cut and packed in a clean place with safe water.
5. Small stores want local products. Grocers and co-ops look for reliable local suppliers with simple ordering and delivery.
6. Households want healthy options. Shoppers look for fresh greens that last longer in the refrigerator.

How we will find out if people want this before we spend money. I will bring samples to at least 10 chefs and 5 grocers, ask what they pay and use now, and sell test clamshells at 2 to 3 farmers markets. Our Year 1 plan needs about 2,400 pounds sold wholesale and about 9,500 and 10,000 clamshells sold at markets and to grocers, so I will ask for at least 3 written orders or letters of interest first.

Products & Services

What we sell. We have three sales channels, each priced simply.

1. Wholesale to restaurants and caterers. The plan assumes an average price of about $24 per pound in Year 1, rising to about $26 by Year 5. Seed, growing mats, water, packaging and labels cost about $5.20 per pound in Year 1. We expect about 2,400 pounds in Year 1, growing to about 6,800 a year by Year 5.
2. Farmers markets and subscription boxes. The plan assumes about $5.50 per clamshell in Year 1, rising to about $5.90, with about $1.40 per clamshell in direct costs. We expect about 9,500 clamshells in Year 1, growing to about 25,500.
3. Grocers and co-ops. The plan assumes about $3.60 per clamshell in Year 1, rising to about $3.80, with about $1.10 per clamshell in direct costs. We expect about 10,000 clamshells in Year 1, growing to about 36,000.

Our prices. Wholesale prices by the pound with a small discount for standing weekly orders, a retail price per clamshell at markets and a wholesale price per clamshell for stores. The prices in this plan are averages across varieties.

How it works for a customer:
1. A chef or grocer orders by text, phone or online by a set cutoff time.
2. We harvest the day before delivery, pack to order and label each package with the variety, harvest date and our name and address.
3. We deliver in a refrigerated van or cooler within one day, and we keep greens cold from harvest to handoff.
4. We ask for feedback after every delivery and replace anything that is not up to standard.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for seed, growing mats, water and packaging. Our plan shows about 75% in Year 1. That money pays the team, rent, electricity, insurance and other bills. Team pay is counted separately, under payroll.

Market Analysis

Who will use us:
- Chefs and caterers who want microgreens for garnish and flavor.
- Grocers and co-ops that sell local produce.
- Shoppers at farmers markets who buy for health and taste.
- Subscribers who want a weekly delivery of fresh greens.

Where we will work. Customers within about 60 miles for fresh delivery, so that greens arrive within a day of harvest.

How we sized the plan. Our Year 1 plan needs about 2,400 pounds sold wholesale and about 9,500 and 10,000 clamshells to markets and stores. That is a small amount for a grow room of this size, and the racks can grow more than this. I will check the real numbers by talking to chefs and grocers before spending money.

Season. Restaurants are busy in spring and fall, and many farmers markets slow in winter, but indoor growing keeps supply steady. The numbers show a yearly average, and we plan ahead by spreading customers across restaurants, stores and subscriptions.

We are careful on purpose. The plan assumes one grow room and a short list of the most popular varieties.

Competitive Landscape

Other choices customers have:
1. Large greenhouse and produce companies. Wide supply and low prices, but greens may travel farther.
2. Other local microgreens growers. Some compete for the same chefs, so quality and reliability matter.
3. Grocery store packaged greens, which are convenient but less fresh.
4. Growing their own at home, which costs less but takes time.
5. Doing without garnish, as some restaurants do to save money.

How we will win customers: fresh harvest to order, consistent quality, clean growing practices, reliable delivery and quick replacement of anything that is not right. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How customers will find us.
- Chefs and caterers. Bring free samples to restaurants and send a simple price sheet and weekly availability list.
- Grocers and co-ops. Visit store buyers with samples, shelf-ready clamshells and a delivery schedule.
- Farmers markets. A booth with free tastes and a subscription sign-up sheet.
- A simple website and social media, with photos and short videos of the farm, clear ordering and subscription options.
- A referral thank-you. A chef or shopper who refers a customer gets a free tray or a discount.

Marketing budget. About $3,600 a year in Year 1 (about $300 a month), growing about 8% a year. The logo, labels, website and photos are paid for from startup costs ($2,300).

Operations Plan

How the business runs day to day.

The grow room. Racks of trays under LED lights with timers, fans for air movement, a humidity and temperature control system, a wash sink, a packing table with a scale and sealer, and a cooler. Floors, walls and surfaces are easy to clean.

A normal week:
1. Seed trays are started on set days so that harvests are staggered.
2. Trays are watered and checked daily for mold, pests and uneven growth.
3. Harvest and pack the day before delivery, using clean tools and gloves, and weigh and label each package.
4. Deliver in a cold van, collect payment or invoices and take orders for next week.
5. Clean and sanitize racks, tools and floors on a regular schedule, and replace growing mats.

Food safety. We use clean water and test it on a set schedule, keep records of seeds, batches, harvests and deliveries, wash and sanitize hands and tools, keep pets and visitors out of the grow room, and keep greens cold. Seeds are bought from suppliers who sell seed meant for growing microgreens. We label each package with the grower's name and address and the harvest date. We keep a written plan for a recall and will notify customers if a problem is found.

Equipment. About $39,000 to start: grow racks and trays, LED lights, timers and power setup, humidity and temperature controls, a packing table and scale, a cooler and a used refrigerated or cargo van. We set aside about $4,000 a year after that, and the plan adds racks and lights in Year 3 and a larger expansion in Year 5.

Running costs in Year 1: grow room rent and utilities about $21,600, delivery van fuel and maintenance about $4,800, marketing about $3,600, insurance and our food safety program about $3,000, water testing, cleaning and sanitation about $1,800, and accounting, licenses and legal about $2,400. That is $37,200 in all.

Payment. Market customers pay at once. Restaurants and stores are invoiced and most pay within 30 days, so the plan keeps a cushion of cash to cover the wait.

Management & Organization

Who runs the business. Carlos Rivera, owner and head grower. As owner I will plan and grow each batch, keep the food safety records, manage sales and deliveries and handle the money side of the business. I plan to pay myself $36,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Grow room assistant (part-time): one in Year 1, two in Years 2 and 3, three in Year 4 and four in Year 5, at about $17,000 a year each (about 20 hours a week).
- Delivery and sales associate (full-time): none in Year 1, one in Years 2 and 3 and two in Years 4 and 5, at about $31,000 a year each.
- Operations manager: one starting in Year 3, at about $38,000 a year.

We hire people who are careful, clean and reliable, train everyone on the same food safety, harvest and packing steps, and keep a record of training. Anyone who is sick stays out of the grow room.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands food products, a business attorney for a one-time review of our customer terms, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (4 to 6 months ahead): grow and taste test trays, get written orders from at least 3 customers, confirm the food license and produce safety rules with the state, register the LLC and get an EIN, open a business bank account, get insurance and equipment quotes, find a space with the right power and drainage, have an attorney review the lease, and write the food safety plan. Sign the lease only after the license answers and the orders are in hand.
- Year 1: open with the owner and one part-time assistant, with about 2,400 pounds sold wholesale, $145,850 in sales and a profit of about $3,700.
- Year 2: add a full-time delivery and sales associate and a second assistant, with about 3,800 pounds sold wholesale, $239,150 in sales and a profit of about $16,000.
- Year 3: add an operations manager and more racks, with about 5,000 pounds sold wholesale, $322,100 in sales and a profit of about $28,200.
- Year 4: add a second delivery associate and a third assistant, with about 5,900 pounds sold wholesale, $393,450 in sales and a profit of about $25,200.
- Year 5: grow to about 6,800 pounds sold wholesale with a team of eight, $464,050 in sales and a profit of about $44,300.
Growth depends on winning steady restaurant and grocery customers and keeping every batch clean and consistent, so treat the later years as goals, not promises.

What we check every week: trays harvested, pounds sold, waste, order fill rate, deliveries on time, water test results, customer complaints and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $85,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $58,200, listed item by item in the Startup Costs section: $9,200 for grow racks, trays and shelving, $10,800 for LED grow lights, timers and power setup, $5,600 for humidity, fans, watering and temperature controls, $4,900 for packing table, scale, cooler, sealer and wash sink, $8,500 for used refrigerated van or cargo van, $3,200 for seeds, grow mats, soil and packaging for the first weeks, $3,600 for lease deposit and first month of rent, $5,200 for electrical work, wall sealing and floor drain work, $900 for business license, food registration and inspection fees, $2,400 for food safety plan, legal and accounting setup, $2,300 for logo, labels, website and photos, and $1,600 for first insurance payment.
- A cash cushion of about $22,600: about 3 months of running costs. Our cash stays above zero in every year of the plan, but lenders still want a cushion in the bank for slow weeks and surprises. They call this "working capital."
- Together that comes to about $80,800, rounded up to the nearest $500: $81,000.
We are raising $4,000 more than that, $85,000 in all, to leave extra room for loan payments in the first years and for racks and lights added as orders grow.

Where the money comes from:
- My own money: $15,000.
- Amount requested as a loan: $50,000.
- From an investor or partner: $20,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. SBA Microloans, which go up to $50,000 through nonprofit lenders, are another place to ask; their repayment times are usually shorter, so the monthly payment would be higher. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a profit of about $3,700 in Year 1 while we build our customer base, then a larger profit of about $16,000 in Year 2, growing to about $44,300 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $46,700, at the end of Year 1. The loan is planned at 12.75% interest over 10 years, so payments of about $739 a month (about $8,870 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with a small grow area of 100 to 200 square feet in a spare room, basement or small leased unit (check the local and food safety rules), selling to a few restaurants and at one market while keeping your current job. Startup can be roughly $4,000 to $7,000 for racks, lights, supplies and insurance. Get your own quotes.
- Phase 2: once you sell out every week, lease a grow room, hire part-time help and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or a quote.
- Your food safety plan and a sample label.
- Letters or written orders from chefs and grocers.
- A letter or quote for the space, and the lease once you have it.
- Quotes for racks, lights and the van.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Wholesale to Restaurants and Caterers: about $24 per pound in Year 1, rising to $26; about $5.20 per pound in direct costs, rising to $5.60; about 2,400 pounds in Year 1, growing to 6,800.
- Farmers Markets and Subscription Boxes: about $5.50 per clamshell in Year 1, rising to $5.90; about $1.40 per clamshell in direct costs, rising to $1.60; about 9,500 clamshells in Year 1, growing to 25,500.
- Grocers and Co-ops: about $3.60 per clamshell in Year 1, rising to $3.80; about $1.10 per clamshell in direct costs, rising to $1.30; about 10,000 clamshells in Year 1, growing to 36,000.
- Pay: Owner / Head Grower $36,000 (1/1/1/1/1); Grow Room Assistant (part-time) $17,000 (1/2/2/3/4); Delivery and Sales Associate (full-time) $31,000 (0/1/1/2/2); Operations Manager $38,000 (0/0/1/1/1). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: grow room rent & utilities $21,600, delivery van fuel and maintenance $4,800, marketing $3,600, insurance and food safety program $3,000, water testing, cleaning and sanitation $1,800, and accounting, licenses & legal $2,400. These grow between 5% and 15% a year as the business grows.
- Market customers pay at once, but restaurants and stores are invoiced. At the end of Year 1 about $8,751 (6% of Year 1 sales) is owed to us by those customers or is still on its way from card processors.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs