Andrew Yancik

Andrew Yancik

Executive Summary

A.
The product that Yancik Farms is selling is high quality organic produce that can easily

be grown on a quarter of an acre of land, and meets certain criteria. These criteria are shorter

days to maturity, high yield per linear foot, higher price per pound, long harvest period, and

popularity. The focus on this type of farming is to grow the most produce possible and to make

the most money on that produce. I will find niche items that arent available to local restaurants

that I can grow exclusively for them. The size of Yancik Farms will start at a quarter of an acre,

and will expand to two acres over time. The crops that I will grow are turnips, radishes, arugula,

baby red russian kale, spinach, lettuce, mizuna, mustard greens, tatsoi mustard greens, herbs such

as dill, cilantro, and parsley, and microgreens like pea shoots, sun shoots, radish shoots, and

other niche microgreens. We will use a lot of the greens to make salad mixes to sell at farmers

markets, and also fill orders in boxes for restaurants. The other produce will be sold to

restaurants and possibly at farmers markets if thats what people are looking for. I will also sell

produce to local grocery stores if they want to provide customers with fresh, local produce.

The operation at Yancik Farms is going to be complex. To start, I will need to build a

small facility where I can start some crops indoors, and to house my walk in cooler and washing

and drying station. Part of that facility will also be dedicated to growing microgreens year round.

We will have 90 garden beds that are 50 feet long by 30 inches wide, and there will be 10 inch

walkways between each bed. The beds are not elevated, they are tilled into the ground nicely. In

these beds we will have quick and high rotation crops to grow as much as possible. Four of the

beds will be dedicated to kale that takes a bit longer to grow, but offers more variety for

customers. I will need to irrigate every garden bed, so a constant and reliable source of water is
Andrew Yancik

essential. I will have a small van to be able to deliver orders to restaurants, and to set up at

farmers markets.

The farming industry has changed greatly over the last few decades. There were once

over 100 working farms in the Dudley and Woodstock/Thompson, CT area. There are now

around 10 working farms that mainly grow corn and raise livestock. I know of only one organic

farm that grows anything close to what I am growing, and they have a large operation and a CSA

(Community Supported Agriculture) that has 250 people signed up every year. That farm is

Devon Point Farm in Woodstock, CT, and they are my largest competitor. Every year they have

several interns come in to learn how to grow organically. The amount of people that get their

produce from them is outstanding, and I will eventually need to also set up a CSA to make more

money.

My labor needs for a quarter of an acre are two people, myself and my brother. Two

people working full time are plenty to do everything on the farm. When we do expand to a half

acre or more, we will require the help of several part time employees to help with some of the

tasks. We may also need to hire someone to drive orders as we expand. For now, I will not need

to hire anybody for labor because my brother and I will share the profits and do all the work.

My marketing plan is to go out to the restaurants, grocery stores, and farmers markets and

get my name and the name of my business out there. I will see what local restaurants and see

what they would need me to grow for them, see what they are willing to pay, and arrange a

contract with them. I will go to farmers markets to see what other vendors are selling, and grow

and sell what is missing. I will go to local grocery stores and ask if they are interested in fresh,

organic, local produce at an affordable price and try to arrange something with them. I will put

out some fliers on local bulletin boards, and create a website where people can see what Yancik
Andrew Yancik

Farms is doing. Most of my marketing will be word of mouth marketing, where satisfied

customers tell their friends about the quality of my produce. I will also wear a polo with my logo

on it when meeting with new clients, and wear t-shirts with my logo on it everywhere.

My projected sales is $72,000 from 90 beds of production over a 30 week growing

season. If I am able to sell 25 flats of microgreens per week, I can sell $87,000. If I sell 50 flats

of microgreens per week, I can have sales of $102,000. If I go with the $102,000 amount of

sales, I estimate my costs will be around $40,000, so I will have $62,000 in profit before tax. My

brother and I will each split the profit and get paid $31,000 each before tax. We would each make

a little of $1,000.00 per week. After tax we may each net $800-$850 per week.

My short term goals are to start meeting with potential clients to start getting orders,

acquire land to grow on in the local area, build a facility, prepare my beds, and plant my crops.

My long term goals are to pay off my mortgage for the land and facility, lower my yearly

expenses to maximize profit, and expand my operation to make more money and to start a CSA

that will also make me more money.

My financial needs are pretty high. I will need $49,500 for the land I want to purchase in

Woodstock, CT. I will also need $50,000-$75,000 to build a small facility, have a deep well

installed, and to get all of the farming equipment I need. Im looking at a total startup cost of

around $100,000 to $125,000. I am willing to give away 3% of my business for the amount of

money I am asking, and the total worth of my farm will be around $200,000 to $225,000.
B.

Income Year 1 Year 2

Gross Sales:
Units Sold Per Day N/A N/A
Days of Operation per Week 5 5
Andrew Yancik

Weeks of Operation per Year 30 30

Total Units Sold Annually N/A N/A
Average Sale Price Per Unit $100.00 $100.00
$102,000 $115,000
Total Gross Sales .00 .00
Gross Profit Percentage 100.00% 100.00%
$102,000. $115,000.
Gross Profit on Sales 00 00

Expenses
Advertising $0.00 $0.00
Materials & Supplies $10,000.00 $12,000.00
Licenses, Fees & Permits $100.00 $150.00
Insurance (1% of Gross Sales) $1,020.00 $1,150.00
Office Expenses $0.00 $0.00
Mortgage $18,000.00 $18,000.00
Utilities $9,080.00 $10,000.00
Cleaning & Maintenance $0.00 $0.00
Legal & Accounting $0.00 $0.00
Salaries:
Officers -
Count 0 0
Average Annual Salary $0.00 $0.00
Total Officers Salaries $0.00 $0.00
Administrative -
Count 0 0
Average Annual Salary $0.00 $0.00
Total Administrative Salaries $0.00 $0.00
Staff -
Count 0
Average Annual Salary $0.00
Total Staff Salaries $0.00
Employee Benefits (@ 15% of Payroll) $0.00 $0.00
Payroll Tax (@ 7.5% of Payroll) $0.00 $0.00
Depreciation:
$18,000.0
Cost of Equipment Purchased 0 $1,000.00
Useful Life of Equipment (X Years) 10.00 10.00
Annual Depreciation $1,800.00 $1,900.00
$40,000.0 $43,200.0
Total Expenses 0 0
Andrew Yancik

$62,000.0 $71,800.0
Net Income (Loss) 0 0

Cash Flow
Net Income $62,000.00 $71,800.00
Depreciation $1,800.00 $1,900.00
Net Cash from Operations $63,800.00 $73,700.00
($18,000.00
Equipment Purchases ) ($1,000.00)
Net Cash Flow $45,800.00 $72,700.00

Cash Requirements ($45,800. ($72,700.

(Excess) 00) 00)

C.
Gross Profit Margin = 100%
Net Profit Margin = 62,000/102,000 = 0.607 = 61%
Our breakeven amount is $40,000. We dont sell units per day, we sell by order mainly, so

calculating the breakeven in units and the contribution margin per unit is impossible.