Opportunity
Problem
The health and vitamin industry is growing at a very quick pace. Customers want natural and herbal alternatives to medications. They are beginning to believe that the human body is a sacred temple. They don’t want chemicals to pollute their bodies. The industry needs plants that are easy to handle and give to nurseries.
Solution
Botanical Bounty is working hard to become a leading producer of botanical plants for the natural supplement industry as well as plant nurseries.
Market
Botanical Bounty works with three distinct clients: supplement companies; processors of botanicals to supplement companies; and nurseries that resell these plants.
The plants are bought by the two first customers, who then sell them to the end consumers.
The natural supplement market is very interesting. Surveys show that dietary supplements are used by over 158 million people (or 55%) in the United States. An estimated 115.3 million consumers buy vitamins and minerals for themselves, and 55.8 million purchase them for other members of their family, including children. Consumer surveys consistently find that nearly half of all Americans now use herbs – a statistic that is particularly remarkable when we realize that today’s herbal products industry is just over a quarter century old.`
Competition
Competition takes two forms, farms similar in size and production capacity to Botanical Bounty and megafarms. The farms that are comparable in size can be found anywhere from 5 to 30 acres. There are many herbs that can be grown, ranging from just a few to over 50. 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?
Botanical Bounty strives to be the best provider of botanical perennials in the health/vitamins sector. This will be achieved by providing quality plants at fair pricing while exceeding customer’s expectations.
Expectations
Forecast
We will need to invest $35,000 in new equipment to finance our growth. We are seeking a $100,000 10-year loan. 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 Year-by-Year
You will need financing
We will need a $100,000 10-year loan. We will use our $35,000 of cash from our current operations.