Opportunity

Problem

The health and vitamin industry is growing at a very quick pace. Customers are looking for natural and organic alternatives to prescription medication. They are starting to believe the body is a temple. They don’t want to pollute with chemicals. It is essential that the industry has botanical plants that are available to be processed as well as given to nurseries for ‘do it yourselfers’.

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 sold to the second and third customers.

The natural supplements market is extremely exciting. Surveys reveal that more than 158 million Americans (more than 55% of the population) use dietary supplementation. 115.3 million Americans buy vitamins and minerals for their own health, while 55.8 millions purchase them for their children. Consumer surveys consistently show that almost half of Americans use herbs. This statistic is even more remarkable when you consider that the industry for herbal products is only a quarter-century old.

Concurrence

Two types of competition exist: farms with similar production capacities and size to Botanical Bounty, and megafarms. Similar-sized farms can range in size from 5-30 acre. 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?

Botanical Bounty’s goal is to be the most trusted supplier of botanical perennials for the health/vitamins industry. We will achieve this by offering quality plants at fair prices and exceeding our customers’ expectations.

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 looking to secure 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

Financing Required

We need to have a $100,000 10 year loan. We will make use of our $35,000 surplus cash.