Executive Summary
Harrison Feed and Farm Supply is a grain farm turned animal feed manufacturer and supply in Iowa’s countryside. The business has been operating since 2005, and in that time, we have perfected our product offering.
Our mission is to provide tailor-made animal feed solutions to keep our customers and their animals happy. Our customized feed range is our claim to fame. The customer chooses every ingredient. This is important because the industry's beloved additives have also been scrutinized for their potential adverse effects. We pride ourselves on allowing our clients to choose what they want in their product.
Harrison Feed and Farm Supply has served commercial livestock farmers and small-scale and hobbyist farmers. Hobbyist farmers were among the first to support us when the business shifted from farm to animal feed supply, so we do our best to maintain those relationships decades later.
We have an exciting new venture on the horizon. Harrison Feed and Farm Supply wants to go retail. The retail segment has been an untapped market for us, and there are major revenue benefits to joining it. We plan to accomplish this goal by partnering with one agricultural cooperative to stock our products. The ten-year goal is to be a household name for everyone with an animal, not just livestock farmers.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $280,000 | $420,000 | $590,000 |
| Gross margin | 52% | 52% | 52% |
| Net profit / (loss) | $26,800 | $53,400 | $87,300 |
Company Overview
Harrison Feed and Farm Supply is a feed and farm supplier serving Iowa and beyond. We are a one-stop shop for most feed and farm supply needs.
Our product range includes animal feed, seeds and fertilizers, crop protection products, and gardening supplies.
Harrison Feed and Farm Supply has been operating since 2005. It was founded by Sam and Charles Harrison, who wanted to shift their family farm from commercial sales to feed and farm supply. The business has grown tremendously since its inception, and the second generation of Harrisons is ready to take over.
Legal structure: LLC
Mission: To deliver exceptional feed and farm supply company services to clients in Iowa, USA, building long-term relationships through quality, reliability, and deep expertise.
Objectives:
- Year 1: Establish operations, reach initial revenue target of $280,000, and build a loyal client base
- Year 2: Expand service capacity, grow revenue to $420,000, and hire additional staff
- Year 3: Achieve operational profitability, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
The animal feed market is massive, with the global market valued at USD 570.72 billion in 2022. Animal-derived protein, such as meat, eggs, and milk, is among the largest food groups consumed worldwide. These animals need to be fed, hence the extreme success in the animal feed market.
The CAGR for the animal feed market for the 2023-2030 period is 4.6%. This growth can be attributed to increased demand for animal protein such as meat, eggs, and milk. The vegan and vegetarian renaissance has tied down as more people return to getting their protein from animal sources due to health complications. Once again, the demand for animal protein increases the demand for animal feed.
Cattle farming is increasing rapidly in certain countries. India has shown a 20% increase in cattle farming since 2018. Businesses need to take advantage of this new market opportunity. However, manufacturing and food safety regulations, as well as fluctuating grain prices, may slow the growth of animal feed.
The poultry segment holds 36% of the animal feed market revenue share, dominating the market. Poultry is a popular protein choice because it is more affordable than other animal protein sources.
There are two key challenges in the poultry segment. Ingredient prices fluctuate, making it difficult to maintain prices. Further, disease outbreaks are increasingly impacting the balance of supply and demand.
Amino acids and antibiotics are increasing in demand. The benefits of these two additives, such as preventing cerebral dysfunction, improving nail and skin health, promoting growth, and increasing the protein-to-fat ratio in livestock, mean people are willing to pay more for animal feed that contains them.
The overuse of antibiotics has led to antibiotic resistance, and there are concerns regarding trace elements negatively impacting humans. This is a developing issue.
Customer analysis:
Harrison Feed and Farm Supply serves livestock farmers and small-scale and hobby farmers. We aim to negotiate a supply contract with an agricultural cooperative or a feed supply store next year.
Livestock farmers raise animals for a commercial scale. Our customer base has a mix of cattle, poultry, and pork farmers.
Commercial farmers purchase high-quality feed tailored to the needs of the animal species they farm. The value additives include vitamins A, D, E, K, and riboflavin, amino acids, and antibiotics because of their benefits on livestock. Livestock farmers are bulk buyers and negotiate their orders months in advance. They are one of the most stable customer segments an animal feed supplier can have.
Small-scale and hobby farmers have smaller flocks or herds. They raise animals as a hobby and often keep the same animals for years. They keep various animals and prefer to buy specialized feed for each species, often leaning towards organic feed.
They value veterinarian endorsement and typically only buy directly from a manufacturer if a veterinarian has referred them.
Agriculture cooperatives and feed supply stores are retailers who purchase feed in bulk to resell. Besides commercial farmers, this is the second most consistent customer for an animal feed supplier.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Rural King | Established brand, wide reach | Higher price point, less personalised |
| Tractor Supply Co. | Strong marketing, national presence | Generic offering, less specialist focus |
| Nutrena Feed | Competitive pricing | Lower service quality, limited expertise |
Harrison Feed and Farm Supply's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Harrison Feed and Farm Supply’s product range has three main categories - beef cattle, dairy cattle, and poultry feed.
Each of these categories has a standard and custom range. The standard range is produced due to food regulations and our quality promise. The custom range is designed with the customer and tailored to their specifications to ensure their livestock only consumes what they wish.
Our custom range is popular because of the choice it gives our customers. Some additives have been proven to have some negative rap in certain demographics. Our customers must ensure their livestock does not contain those additives if our customers serve those demographics.
75% of our sales are to commercial livestock farmers. The remaining 25% of sales come from a combination of hobbyists and small-scale farmers. Our expansion into the retail market will change these figures to 60% commercial livestock farmers, 25% retail, and 15% hobbyists and small-scale farmers.
Pricing strategy: Pricing is set to be competitive within the Iowa, USA market while reflecting the quality and specialist nature of the services delivered. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from clients searching for feed and farm supply company services in Iowa, USA
- Social media — active presence on relevant platforms to build brand awareness and engage prospective clients
- Referral programme — incentivised referral programme for existing clients; target 30% of new clients via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in Iowa, USA
- Google Ads — targeted paid search campaigns for high-intent keywords during launch phase
Marketing budget Year 1: $16,800 (6% of projected revenue)
Additional marketing notes:
Our annual marketing budget is $700,000. We split the funds between a few marketing activities across four marketing categories.
The first marketing category Harrison Feed and Farm Supply uses is digital marketing. 40% of our marketing budget goes towards digital marketing and is split in the following way:
- Website: $28,000
- SEO: $42,000
- Pay Per Click Advertising: $70,000
- Social Media Advertising: $84,000
- Email Marketing: $28,000
- Content Creation: $28,000
20% of our marketing budget goes toward traditional marketing and is allocated as follows:
- Print advertising: $42,000
- Business cards and flyers $28,000
- Exhibitions: $70,000
10% of our marketing budget goes toward public relations and is allocated as follows:
- Charity and art donations: $28,000
- Blog and influencer partnerships: $42,000
20% of our marketing budget is allocated to client engagement and sales promotions and is allocated as follows:
- Client referral rewards: $28,000
- Discounts: $28,000
- Gift vouchers: $14,000
The remaining 10% of the marketing budget is allocated for miscellaneous costs.
Our marketing team will design and launch a marketing campaign for every major holiday. We will run a discount and referral bonuses to increase the number of clients the business has.
Operating Plan
Operational Area Organizational Objective/Goal Action Timeline Responsible Party Production and Inventory Secure additives at competitive prices.
Manage supply and demand balance. Maintain relationships with suppliers of vitamins, amino acids, and antibiotics.
Maintain inventory levels. Q1-Q2. Operations Manager.
Purchasing Manager. Sales Enter a contract with an agricultural cooperative. Reach out to agricultural cooperatives and feed supply stores to discuss a partnership. To be finalized by the end of Q4. Sales Team. Distribution and logistics Implement subscription delivery service for small-scale farmers Establish a partnership with a logistics company to executive subscription delivery service. Q3-Q4. Logistics Manager. Health and Safety Adhere to all health and safety codes. Implement health and safety training and conduct internal health and safety inspections. Ongoing. Health and Safety Officer. Finance Increase profit margin by 5%.
Implement a financial plan. Monthly reviews. Chief Financial Officer. Human Resources Induct new top management. Develop and implement strategy for handing over of power. Q1-Q3. HR Manager
Current CEO.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Sam Harrison (Owner / Director) | Full-time | Full-time | Full-time |
| Operations / Senior Staff | Part-time | Full-time | Full-time |
| Support / Junior Staff | — | Part-time | Full-time |
Legal & compliance:
- All required licences and permits for feed and farm supply company operations in Iowa, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments in place before trading begins
Management Team
Chief Executive Officer, Samantha Harrison. Samantha is one of the Harrison sibling duo who turned a grain farm into a booming animal feed manufacturer and supplier. She holds an MBA in Business Administration and has been the chief executive officer for Harrison Feed and Farm Supply since its establishment. She is the figurehead of the business and is responsible for overall strategizing building and maintaining relationships with stakeholders.
Chief Operations Officer, Charles Harrison. Charles is a farmer by passion and bachelor's degree in Supply Chain Management holder by trade. Like Samantha, Charles has been in his position since the establishment of Harrison Feed Farm and Supply.
Chief Financial Officer, Louis Styles. Louis holds an MBA in Finance. He has been working in the agricultural industry for 20 years. His experience has been acquired from large-scale retailers, commercial farms, and manufacturers such as Harrison Feed and Farm Supply.
Chief Sales Officer, Lyle Beukes. Lyle Beukes is a sales executive from South Africa, a country known for its agricultural sector. Lyle has worked with commercial farms in South Africa for 8 years and moved to the US to oversee a merger. He was brought on board to diversify our product offering and is currently the head of our organizational goal of partnering with an agricultural cooperative to stock or feed.
Chief Agricultural Officer, Ronaldo Harrison. Ronaldo is Samantha’s son and holds a degree in commercial agriculture. He oversees the grain farming part of Harrison Feed and Farm Supply.
Human Resources Director, Bianca Brown. Bianca is a registered Business Psychologist specializing in human resources. She is in charge of strategizing for the human resources department.
The management team will be going a succession this year. Samantha and Charles are retiring after almost two decades with Harrison Feed and Farm Supply. Beau Harrison assumes the position of CEO. He has worked closely with Samantha for five years and has learned enough to take the company in a positive direction.
The position for Chief Operations Officer does not currently have a successor. Charles will stay on in an advisory position until the ideal candidate is appointed.
Sam Harrison — Founder & Director
Advisory support: The business will engage an experienced accountant and a business mentor through the local enterprise support network to provide financial oversight and strategic guidance during the first three years of trading.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $90,000 $170,000 $300,000 Direct Cost of Sales $20,500 $30,000 $82,000 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $20,500 $30,000 $82,000 Gross Margin $69,500 $140,000 $218,000 Gross Margin % 77% 82% 73% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $20,000 $40,000 $40,000 Advertising/Promotion $800 $1,000 $1,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $21,300 $41,500 $41,500 General and Administrative Expenses
General and Administrative Payroll $20,000 $40,250 $100,250 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $1,000 $1,000 $1,000 Dues and Subscriptions $200 $200 $200 Professional Fees $300 $300 $300 Rent $2,000 $2,000 $2,000 Software Purchases $0 $15,000 $0 Insurance $2,000 $2,000 $2,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $400 $400 $400 Miscellaneous $0 $0 $0 Payroll Taxes $500 $1,200 $3,000 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $28,400 $64,350 $111,150 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $28,400 $64,350 $111,150 Profit Before Interest and Taxes $19,800 $102,840 $225,410 EBITDA $19,800 $103,860 $226,430 Interest Expense $800 $3,632 $2,957 Taxes Incurred $0 $24,802 $56,540 Net Profit $19,000 $34,150 $65,350 Net Profit/Sales 21% 20% 22%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $90,000 $170,000 $300,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $90,000 $170,000 $300,00 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $20,000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $110,000 $170,000 $300,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $48,900 $94,350 $111,150 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $800 $0 $0 Principal Repayment of Current Borrowing $10,000 $10,000 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $59,700 $104,350 $193,150 Net Cash Flow $50,300 $65,650 $106,850 Cash Balance $19,000 $34,150 $65,350 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $90,000 $170,000 $300,000 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $90,000 $170,000 $300,000 Long-term Assets $10,000 $9,000 $8,000 Accumulated Depreciation $1,000 $1,000 $1,000 Total Long-term Assets ($1,000) ($1,000) ($1,000) Total Assets $100,000 $179,000 $308,00 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $20,000 $10,000 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $20,000 $10,000 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $20,000 $10,000 $0 Paid-in Capital $30,000 $30,000 $30,000 Retained Earnings ($20,000) ($30,000) $41,000 Earnings ($12,000) $44,000 $160,000 Total Capital ($2,000) $44,000 $231,000 Total Liabilities and Capital $18,000 $54,000 $231,000 Net Worth $80,000 $169,00 $308,000
Wrapping up the Feed and Farm Supply Business Plan
Let’s go over what we’ve covered again.
We went through a sample business plan section by section. Each part contained an explanation of how to write the section, what it is, and why it’s impotant. We also gave industry specific examples for you to see the theory in action.
With all that said and done, you should be set to write your feed and farm supply business plan. If you want to speak to someone about making your business plan writing dreams a reality, reach out to us to schedule a consultation.
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $280,000 | $420,000 | $590,000 |
| Agricultural inputs, seeds and direct labour | $134,400 | $201,600 | $283,200 |
| Gross profit | $145,600 | $218,400 | $306,800 |
| Gross margin | 52% | 52% | 52% |
| Salaries and wages | $67,200 | $100,800 | $141,600 |
| Marketing and advertising | $16,800 | $25,200 | $35,400 |
| Rent and utilities | $18,000 | $18,000 | $18,900 |
| Other operating costs | $16,800 | $21,000 | $23,600 |
| Total operating expenses | $118,800 | $165,000 | $219,500 |
| Net profit / (loss) | $26,800 | $53,400 | $87,300 |
Break-even analysis:
- Estimated fixed monthly costs: $8,500
- To cover fixed costs, Harrison Feed and Farm Supply needs to generate approximately $16,300 in monthly revenue
- Break-even is projected to be reached in Month 5 of trading
Key financial assumptions:
- Revenue growth of 50% in Year 2 and 40% in Year 3 based on planned capacity expansion and marketing investment
- Agricultural inputs, seeds and direct labour estimated at 48% of revenue throughout the forecast period, consistent with industry benchmarks
- Staffing costs set at 24% of revenue, scaling incrementally with new hires in Year 2 and Year 3
- Marketing budget fixed at 6% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; payment terms enforced from day one