RETAIL NURSERY DEVELOPMENT
| Objective: |
Design and estimate costs for establishing a
small retail nursery. |
| Location: |
Anywhere in Texas. |
| Size: |
Less than 2 acres. |
| Type of plant materials: |
Combination of woody shrubs and trees, foliage,
color, bedding plants, etc. or other market niche-oriented plant materials. |
| Size of plant materials: |
Any combination of sizes. |
|
Include the following
information
1. Name of nursery.
2. Type of ownership (individual, partnership,
subchapter-S corporation, LLC – Limited Liability company, etc.)
3.What is your market, market niche and marketing strategy?
4. What is unique about the Services and Products you will provide to coexist with the competition? Who is your competition -strenghts, weaknesses?
- 5. Location of nursery:
- a) Land cost (rent), water quantity & quality
- b) Accessability (location, location & location!)
- c) Labor
- d) etc.
- 6. Nursery structure (estimate costs):
- a) Office & display room
- b) Greenhouse & shade area
- c) Storage & potting structures, etc.
- d) Site layout for building(s), grounds, people
and materials flow
7. Site organization: buildings, walkways, display
and growing areas, etc. and justify.
8. Irrigation (Type and layout - estimate costs)
9. Plants (estimate costs)
10. Hardgoods merchandise (estimate merchandise
inventory and costs).
11. Tools and equipment to be used (estimate costs).
12 Fertilization, pest control, container mixes
(estimate costs).
13. Financial Projections: Itemize costs throughout; include cash flow for years 1, 2, 3; year-end statements and balance sheets; discuss key ratios such as break-even point, return on investment (ROI).
- Keep in mind that I want 1,2 and 3 year financial projections in your projects (cash flow)—which is what would be expected if you were applying for a SBA loan.
- Provide a projection of future operations for at least three years, or until positive cash flow can be shown. Include earnings, expenses, and reasoning for these estimates. The projections should be in profit & loss format. Explain assumptions used if different from trend or industry standards and support your projected figures with clear, documentable explanations.
14. Capital Needs: What are the funds needed, outline use of funds, how do you expect to acquire the capital?
15. List of references
- The above list of items should be included in your report. There are other items which may be incorporated into your nursery design. Justify and explain your decision and selections.
- You should make a realistic 1, 2, and 3 year projection of your expected expansion, costs, and profits.
- You should have price quotes for projected land costs (lease-buy agreements, etc.) from real estate agents or classified listings.
- Essentially you should have a coherent business plan that could be presented to a banker for an SBA backed loan.
- See the SBA Website: http://www.sbaonline.sba.gov/starting_business/
- A 1-page preliminary synopsis of your project composed on a word processor is due Thurs, October 4, 2007 (you should meet with me before this date to discuss your project).
- The finished project is to be composed on a word processor with a hardcopy turned in on Monday, December 3, 2007.
- BONUS POINTS (10 pts.) – CREATE a HOME PAGE for YOUR NURSERY
Scholastic Dishonesty
As commonly defined, plagiarism consists of passing off as one’s own ideas, work, writings, etc., which belong to another. In accordance with this definition, you are committing plagiarism if you copy the work of another person and turn it in as your own, even if you should have the permission of that person. Plagiarism is one of the worst academic sins, for the plagiarist destroys the trust among colleagues without which research cannot be safely communicated. If you have questions regarding plagiarism, please consult the latest issue of the TAMU Student Rules.
