Disclaimer: This business plan is prepared by a group of BRACU Alumni and replicating this business idea into a real

business
is strictly prohibited and the offender shall face legal action.

Business Plan of
Green Bliss
Hydroponics

© 2020. All rights reserved.

TABLE OF CONTENTS

ABOUT US ........................................................................................................................................................1
VISION, MISSION, VALUES AND STRATEGY STATEMENT ..................................................................................1
VISION ......................................................................................................................................................... 1
MISSION ...................................................................................................................................................... 1
VALUES ........................................................................................................................................................ 1
STRATEGY STATEMENT ................................................................................................................................ 1
THE BUSINESS MODEL CANVAS .......................................................................................................................2
BUSINESS MODEL CANVAS EXPLAINED ............................................................................................................3
KEY PARTNERS ............................................................................................................................................. 3
KEY ACTIVITIES ............................................................................................................................................ 3
KEY RESOURCES ........................................................................................................................................... 4
VALUE PROPOSITIONS ALONG WITH COMPETITIVE ADVANTAGES AND LOGIC ........................................... 5
LONG TERM GOALS ..................................................................................................................................... 5
SCOPE .......................................................................................................................................................... 5
COMPETITIVE ADVANTAGE ......................................................................................................................... 5
LOGIC........................................................................................................................................................... 6
CUSTOMER RELATIONSHIPS ........................................................................................................................ 6
CHANNELS ................................................................................................................................................... 6
CUSTOMER SEGMENTS ................................................................................................................................ 7
COST STRUCTURE ........................................................................................................................................ 8
REVENUE STREAMS ..................................................................................................................................... 8
REFERENCES................................................................................................................................................... 10
APPENDIX ...................................................................................................................................................... 11

ii
ABOUT US

We, Green Bliss Hydroponics, are a small startup whose motive is to serve healthy food, primarily fresh
vegetables, to the urban population.

We intend to use the hydroponic system for growing vegetables on a small scale and distribute them to
commercial buyers (B2B Model). We also plan to provide "Home Based Hydroponic Set-up" service to those
interested in starting a hydroponic farm for their personal consumption. We want to start small, with a farm set-
up over a 3 acre piece of land and grow gradually based on customer feedback and channel development
opportunities.

VISION, MISSION, VALUES AND STRATEGY STATEMENT

VISION

Green Bliss Hydroponics will create a new benchmark for alternate sustainable farming, creating the freshest
farm produce with the least negative externalities. Through our commitment to quality and nature, we intend
to bring the best possible food to peoples’ plates.

MISSION

To inspire people to consume fresh vegetables, in an affordable and eco-friendly manner, helping them in their
pursuit for a healthier lifestyle.

VALUES

 Fair Quality: Fresh, nutritious vegetables, grown with no use of pesticides and harmful chemicals
 Fair Pricing: Fair prices both for the commercial buyers of the vegetables and also the consumers who
purchase the set-up. While our premium quantity does justify a price premium, elimination of the
middlemen and an eco-friendly value chain, coupled with lower transportation costs, will make our prices
comparable to other local produce.
 Social Responsibility: Effective use of hydroponic farming technique will reduce the requirement for water,
chemical fertilizers and pesticides, thus creating a safer and greener world for the next generation.

STRATEGY STATEMENT

Our strategy is to dominate the urban market for fresh farm produce, by both producing and selling organic and
chemical-free vegetables, produced through hydroponic farming, to the super stores and hotels and restaurants
of Dhaka, and also setting-up small hydroponic farms for individual consumption. The eco-friendly and green
nature of hydroponic farming will appeal especially to those who are conscious about the quality of their food
and their impact on the environment. The removal of the middleman from the value chain and the closer
proximity to the market, means that fresh products can be delivered speedily to the customers, at a lower cost.

1
 THE BUSINESS MODEL CANVAS

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

 Vegetable seed  Support system set-up  Safe, fresh and nutritious vegetables  Geographic segments based on
 Site visits
suppliers  Heat and ventilation  Sustainable harvesting customer location are Gulshan,
 Podcasts
 Procurement  Water purification & no  Minimal environmental impact Banani, Uttara and Mohakhali
 Free sampling
sources of soil  Efficient supply of nutrients  Premium customer: Superstores
 Word of mouth advertising
planting material  Hydroponic reservoir  Fast growth rate and consistency like Unimart, Agora, Shwapno,
 Monthly customer feedback
 Partners in  Good medium for growth  No use of pesticides and herbicides Meenabazar, Dhali Astha, The
 Showcase private set-ups
transportation  Research and development Westin Dhaka, Grand Oriental
 Landlord Key Resources Competitive Advantage Channels Hotel, etc.
 Employees  Medium category customer:
 BDT 7 lakh term loan  Long term goal: Market leader in  Awareness: Social Networks (e.g.
Kosturi Kitchen, online platform.
 BDT 6 lakh owners’ niche segment of fresh, organic Facebook Group, Blogs), Website:
 Lifestyle: People who lead a
equity produce. Greenbliss.com.
healthy lifestyle and want to
 Rent – BDT 25K per  Scope: Fresh vegetables for sale in  Purchase: Retail Channels, E-
setup this facility in their rooftop
month super shops and restaurants in Dhaka Commerce Website, Hotels.
 Interest: people who are
 Seeds, water and water and set-up for personal consumption.  Advertising: Facebook ads, interested to setup this facility in
soluble nutrients  Competitive Advantage: Fresh, YouTube Commercials, Google their rooftop and want to eat
 Plastic pipe & lighting chemical-free vegetables at AdWords, Leaflets chemical free fresh vegetables
 Trademark of the name competitive pricing.  Delivery: Daily through rented  Priorities: Health and healthy
“Green Bliss  Logic: Consciousness about health air-conditioned minivans to lifestyle
Hydroponics” and environmental impact. Reduction selected destinations.
 Human capital of middlemen profit and
transportation cost.
Cost Structure Revenue Streams

 Initial-set up of hydroponic farm – BDT 5 lakh (fixed – one-time)
 Rent & utilities per year – BDT 3 lakh (fixed - recurring)
 Transportation costs – BDT 2 lakh (variable)
 Seeds, water, nutrients and other raw materials – BDT 2 lakh (variable)
 Cost of permit, incorporation and licenses – BDT 1 lakh (fixed – one-time)
 Sales to physical super stores – BDT 30 K per month
 Sales to e-stores and e-commerce sites – BDT 20 K per month
 Sales to hotel and restaurants – BDT 25 K per month
 Profit from set-up of home farms – BDT 5 K per month
 5% growth in revenue expected every year

2
BUSINESS MODEL CANVAS EXPLAINED

KEY PARTNERS

Core partners include our partnerships with other companies, public bodies, or non-consumer organizations
that make our business model work. We'll discuss our main collaborators below:

 Vegetable Seed Suppliers:

During the initial stage, we will buy the seeds of vegetables such as lettuce, spinach, tomatoes, strawberry from
the existing suppliers naming Harris Seeds which is specialized in producing hydroponic seeds. Based on the
growth trajectory, we will later consider importing the seeds from China, if they offer a pricing advantage.

 Procurement Sources of Planting Material:

Comparison of hydroponics with trading farming would involve visiting current farmers to assess how to set up
our systems and include development costs where appropriate. Hydroponic systems require high initial
investment in the form of pumps, tanks, controls and system support. Unless extra lighting is required, natural
light can be used. High energy consuming pumps and maintenance of artificial lighting will tend to raise the
electricity costs. These and other basic equipment like tubes, water reservoirs and air stones will need to be
purchased in bulk to set up the farm.

 Partners in Transportation:

The transportation of vegetables is a key element in agriculture. Since Bangladesh is a humid nation, the
temperature in the vegetable’s container must be sufficiently cool to keep it fresh. Temperature is preserved by
the transportation partners. We'll rent enclosed minivan with air conditioning.

 Landlord:

A member of one of the company partners owns the property we will be working on. The land is leased monthly
from the owner and the landowner is kind enough to allow us to start the company and set-up the infrastructure
on his land, and work on more information based on the company' test run.

 Employees:

At the initial point, the number of plant employees will be six, who are qualified and experienced in the
vegetables business. Then we'll increase the number of workers as the scale of the plant increases.

KEY ACTIVITIES

 Support System Set-up

Hydroponics is a form of production where plants are produced in a nutrient rich solution rather than on soil.
The greenhouse and its method of environmental protection are the same whether the plants are conventionally
grown or with hydroponics. The greenhouse must be ideal for production with sufficient heat and ventilation
and the capacity to handle both, and for optimum illumination, clean glazed windows. The distinction between
traditional agriculture and hydroponic growth is the system of support for plant growth, and the process of
supplying water and nutrients.

3
  Heat and Ventilation

Effective ventilation is essential to healthy growth of plants. This is in fact one of the most important things to
consider when growing, because if there is not enough ventilation in the growing space, the plants will struggle
to live. Ventilation is about regulating the air, CO2, heat and moisture in the space. We need to ensure that there
is a sufficient amount of air exchange to achieve good air quality in the area. The removal of heat that
accumulates rapidly in indoor rising situations is one of the key functions of an extractor fan. Ideally, when the
lights are on, the temperature in the rising room will range between 72-82 ° F. We should aim at nightly reduction
of this temperature by 10 ° F.

 Water Purification & No Soil

The moving force behind hydroponics is water. It is the life-blood of a hydroponic growing method. It is the
circulating water which delivers nutrients to our plants in the absence of soil-based nutrients. Ideally, when
building a hydroponic device, we can use the purest water available. It comes with two great advantages, one
that can cultivate crops in arable or highly polluted areas wherever they are. Firstly, it enables us to grow plants
in convenient locations such as large-scale indoor greenhouses, or even in any apartment and secondly, it saves
the land by eliminating all weeds and soil-related pests and diseases in a hydroponic system.

 Hydroponic Reservoir

The reservoir is a typical one-lid plastic storage tub. In order to reduce evaporation, we keep the reservoir
protected to prevent debris to requirements from entering. Additionally, we put reflective insulation around the
reservoir to help block direct heat, because this greatly increased the water temperature. Also, with the reservoir
filled, the network needs to be replenished approximately once every two weeks. A lot of water gets lost
between the plants and their containers themselves.

 Good Medium for Growth:

In agriculture, there are many different mediums of sustainable farming. Even air can be a great medium, as long
as it can supply oxygen, moisture and nutrients to the plant roots. These are the traits we should take into
account when selecting a medium for our hydroponic system: Small enough to work with, reusable, pH neutral,
inexpensive, sustainable and eco-friendly.

KEY RESOURCES

Key resources are the building block that defines the most critical assets required to operate a business model.
Physical, financial, intellectual, or human capital are by far the most important.

 Physical Capital:

Our physical capital includes the complete set-up in our farm, as well as the smaller equipment which we will
set-up for personal consumption. The set-up will be used to grow fresh farm produce, in a sustainable, eco-
friendly way, so the vegetables are our end product.

 Financial Capital:

The rent for the land and the seed capital needed to start the farm are the financial resources involved in the
process. We expect to begin earning profit by the fourth harvest (second year). To pay for commitments (e.g.

4
employee wages, rent, insurance, and loans), and cover emergencies, an adequate flow of money is needed. It
can be both a strategic and a resourceful step to establish excellent relationships with the bank, creditors, donors
and other financial providers.

 Intellectual Capital:

The name "Green Bliss Hydroponics" is our intellectual property, as we intend to begin the process of becoming
a legal entity with a business copy of the agreement. We will also sign an agreement with our customers for
whom we will set-up the domestic hydroponic farms, to prevent them from selling their product commercially.

 Human Capital:

There will be six workers for the plant at the initial level, who are experienced and qualified in the area of
hydroponic farming.

VALUE PROPOSITIONS ALONG WITH COMPETITIVE ADVANTAGES AND LOGIC

1. Safe, fresh and nutritious vegetables

2. Sustainable harvesting
3. Minimal environmental impact
4. Efficient Supply of Nutrients
5. Fast Growth Rate and Consistency
6. No Use of Pesticides and Herbicides
7. Research and Development for further growth of system

The urban population naturally aims to eat healthy and fresh foods. The level of this population dining outside
is also on the rise, given the speed of life and busy work schedule. Regardless of the related costs, people visit
high-end super shops and exclusive restaurants and are always willing to pay, if good and tasty food is available.
Besides this, vegetables are a very popular and essential item in the menu, considering its richness in both
vitamin sources and traditional value. As a result, Green Bliss Hydroponics’ value propositions and associated
strategy can be described as follows:

LONG TERM GOALS

Green Bliss Hydroponics aims to be the market leader in the niche segment of fresh, organic farm produce.

SCOPE

Green Bliss Hydroponics will produce fresh vegetables, with the use of hydroponic farming, and supply the
produce to the super shops and restaurants of Dhaka city. At the same time, the company will also help set-up
miniature hydroponic farms in individual homes, for their personal consumption.

COMPETITIVE ADVANTAGE

Hydroponic farming uses less water and does not require any soil, artificial fertilizers or pesticides. The farm
produce is therefore organic and eco-friendly. While most organically grown food is usually more expensive than
regular food, the cost savings from the removal of the middlemen and lower transportation cost, will provide a
cost advantage, meaning customers can enjoy fresh, untainted and organic farm produce from Green Bliss
Hydroponics at the same rate as conventional farm produce.

5
LOGIC

As people are becoming more health conscious, they are looking for more natural options. People are also
becoming more conscious of the environmental impact of their actions. Given hydroponic farms only uses 10%
of the water requires for traditional farming and requires no arable land, chemical fertilizers or harmful
pesticides, Green Bliss Hydroponics will provide this segment of health and ecosystem conscious customer with
safe, nutritious and chemical-free farm produce. The proximity to the market will also ensure that the produce
is fresh, as compared to being transported to Dhaka from remote regions of the country.

The farms produce will be sold directly to super stores like UniMart, Agora and Meena Bazar and hotels and
restaurants like Westin and Takeout. Because traditional farm produce is brought to Dhaka via a
wholesaler/middleman, their profit margin is added to the final price. In addition transportation of most
conventional farm produce from the remote districts and even the suburbs of Dhaka to the wholesale market in
Karwan Bazar involves significant transportation cost. The business model of Green Bliss Hydroponics takes out
the wholesaler and given the location in Dhaka, saves on transportation cost.

CUSTOMER RELATIONSHIPS

We are going to follow B2B (Business to Business) for our hydroponic. In any business, building a strong customer
relationship is crucial. As our project is brings an innovative new method of farming to the market, we need to
gain customer’s mindshare at first. To do so we can invite some customers to our farm to run them through the
process and also showcase the products and benefits through podcasts in Facebook and Youtube. Besides we
can offer free sampling in select shops like Unimart to introduce the concept to the mass public. This strategy
will help us to create a positive image in the minds of early adopters and they will bring in more new customers
through word of mouth. As the hotels and restaurants are also our customers, so to ensure customer satisfaction
a member from the management team will visit them every month to collect feedback from them. We will also
showcase the hydroponic farms set up in private residences every week in your Facebook page and YouTube
channel, to encourage more aspiring gardeners to consider set-up their own production mechanism for personal
consumption.

CHANNELS

Nowadays consumers want fresh and chemical/preservative free products even if it costs them more. People
are becoming more health conscious and consumers are increasingly favoring sustainable and chemical-free
food products. Our target customers are health conscious people. We will use partner channels to reach our
customers as through partners’ established channels, to ensure maximum reach to more customers initially.
Green Bliss products will be available in major retail outlets such as Unimart, Shwapno, Agora and Meena Bazar.
The retail outlets will have a separate section for our hydroponics produce vegetables. Apart from offline
existence we will sell our produce in online platforms such as Chaldal, Shaksobji and Ghore Bazar.

Through our website and social media pages we will reach our target customers who are interested to setup
hydroponics system to produce vegetables in their own backyard or rooftop. We will provide post-purchase
customer support. We will purchase vegetables seeds from our supplier Harris Seeds, USA and we will import
Hydroponics Supplies from Zenhydro, USA. To avoid any impediment, we have selected Eco City Hydroponics,
Singapore as our second supplier. Akij Motors will be our transportation partner, we will use rented air-
conditioned covered minivans to deliver our products to our distribution partners (retail shop and restaurants).
Our minivans will deliver our produce daily in the morning. We will promote and create awareness about our
products through Facebook Live, Google adwords, leaflets with natural dailies and Facebook ads. To reach our
initial target, word of mouth will play vital role to our success.

6
 CUSTOMER SEGMENTS

It is a process in which a business evaluates its customer base, identifies commonalities of mutually exclusive
groups like age, behavior, preferences, or spend history, and breaks out these segments for communication
purposes. Our primary business process is B2B, but we will look for B2C in future for the vegetables that we
produce. Our current B2C model covers only the setting up of the facility in the rooftops or other location that
is preferred by our customers. So it’s a combination of product and service offering on that end. Since our plant
location is at Gazipur which is adjacent to Dhaka city, our target customer will be mainly Dhaka based.

In customer segmentation section we have to identify top customer groups, their demand type and develop
communication, find ways of scalability. We have to break down the entire market of people into segments. Our
main customers are:

 Super shop like Agora, Shwapno, Meenabazar, Astha, Dhali etc

 Restaurants of 5-star and 4-star residential hotels of Dhaka city
 Online platform like Chaldal, Shaksobji and Ghore Bazar.
 Restaurants, party centers of Dhaka city
 People who are interested to setup this facility in their residences

Geographic Demographic Psychographic

Behavioral
(Based on customer (Based on income, status (Lifestyle, Interests &
(Based on customer’s purchase habit)
location) level) Priorities)
 Gulshan, Banani:
Unimart, Agora,
Shwapno, Meena
Bazar, The Westin
 Premium customer:
Dhaka, Grand
Unimart, Shwapno,
Oriental Hotel,  Lifestyle: People
Agora, Meenabazar,
Kasturi Kitchen and who lead a healthy
Astha, Dhali, The
the superstores lifestyle and want
Westin Dhaka, Grand
to setup this facility
Oriental Hotel, Best
 Uttara: Sea Shell in their rooftop  Yearlong demand: superstore,
Western Maple Leaf
Hotel and Party  Interest: people online platform
hotel, Hotel Zakaria,
Center, Best who are interested Restaurants/Hotels have demand
Lakeshore hotel
Western Maple Leaf to setup this facility around the year. Also, there is
 Medium category
Hotel, Dhanshiri in their rooftop and yearlong demand of people who
customer: Kosturi
Restaurant and want to eat want to setup this facility in their
Kitchen, Sea Shell
superstores. chemical free good rooftop.
Hotel and Party
vegetables
Center, Dhanshiri
 Mohakhali: Hotel  Priorities: Health
restaurant, Ghorowa
Zakaria, Ghorowa and healthy
restaurant,
Restaurant, lifestyle
Cinnamon
Cinnamon
Restaurant.
Restaurant and
superstore in SKS
tower named as
Astha

7
COST STRUCTURE

The first year of the business will see the most inflow in terms of initial farm set-up and the legal costs of
incorporating the new business. The one-off fixed costs are tabulated below.

Trade permit and license BDT 50,000

Incorporation and environmental clearance BDT 50,000
HVAC System BDT 250,000
Generator BDT 100,000
Racks, tubes, containers and BDT 100,000
Electronic fixtures and fittings (lights, exhaust fans and motors) BDT 50,000
Total One-off Fixed Cost BDT 600,000

Once the business is up and running, there will be recurring fixed and variable costs associated with the business.
The variable cost will change with the sales numbers. Given the six owners are the only workers, they intend not
to take any salaries, but distribute the profit/loss equally. The recurring costs are tabulated below.

Rent (fixed) BDT 250,000

Utilities (fixed) BDT 50,000
Depreciation (fixed) BDT 50,000
Total Fixed Cost BDT 350,000
Transportation (variable) BDT 200,000
Raw materials (variable) BDT 200,000
Marketing and Advertising (BDT 100,000 in first year) (variable) BDT 50,000
Total Variable Cost BDT 450,000

For the initial investment, the owners will each contribute BDT 1 lakh to the business, totaling BDT 6 lakh of
owners’ equity. We will also look to borrow BDT 700,000 term loan to help finance the first year of operations
and repayment will be made from the business income. We are looking to take the funds from a venture
capitalist, offering 40% equity stake in our company. Leverage remains low at 0.54 times.

Owners’ equity BDT 600,000

Loan BDT 700,000
Leverage 0.54

REVENUE STREAMS

Our revenue stream consists of sales proceeds from supplying vegetables in super stores and hotels on the one
hand and setting up small hydroponic farms in the residences of interested individuals on the other. Given faster
crop cycles under hydroponics farming, as compared to traditional farming, we expect to generate BDT 80K sales
monthly, BDT 75K of which will come from the sale of finished goods and BDT 5K will come from the installation
of hydroponic farms. The revenue composition is tabulated below on a monthly basis.

Monthly Sales Percentage

Sales to brick and mortar super shops BDT 30,000 38%
Sale to e-shops BDT 20,000 25%
Sales to hotels and restaurants BDT 25,000 31%
Total sales of farm produce BDT 75,000 94%
Income from set-up of farms BDT 5,000 6%
Total Monthly Income BDT 80,000

The top line is expected to grow at 5% sales per year, given the economic growth of Bangladesh, and increase
in the urban-rural split, with more people moving to Dhaka for education and profession.

8
Green Bliss Hydroponics has a payback period of 4.51 years, meaning the initial investment will be recovered
after 4.5 years of setting up the business. The net present value of the firm at the end of 5 years is expected to
be BDT 65.08 K. For calculation of both the net present value and payback period, a discount rate of 10.5% has
been assumed. Working capital requirements have been calculated based on the credit period generally offered
by super stores and restaurants, while import of finished goods will be done on deferred payment basis. A
snapshot of the major indicators is given below, and the detailed calculation is provided in the appendix section.

Net Present Value (at end of year 5) +BDT 65.08K

Payback Period 4.51 years

The positive net present value and a payback period of less than 5 years, makes this a financially feasible
investment.

9
REFERENCES

Explained by “Top 15 Reasons Why You Should Grow Vegetables in a Hydroponic Garden”
https://vhhydroponics.com/hydroponic-garden/

Described by “Four Tips to Success in Hydroponic Growing” https://gpnmag.com/article/four-tips-to-success-in-

hydroponic-growing/

Explained by “Hydroponic Growing Media” https://www.greenandvibrant.com/hydroponic-gardening

Described by “How I Built My DIY Hydroponic System and Hydroponic Garden”

https://rurallivingtoday.com/hydroponics/diy-april-built-hydroponics-system/

10
APPENDIX
Pro Forma Capital Budget

Income Forecast (BDT K) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Total Sales - 960.00 1,008.00 1,058.40 1,111.32 1,166.89

Cost of Sales - (400.00) (420.00) (441.00) (463.05) (486.20)

Gross Profit - 560.00 588.00 617.40 648.27 680.68
Operating Expenses:
Cost of Regiatration (100.00)
Advertising and sampling (150.00) (50.00) (50.00) (50.00) (50.00)
Sales, General & Admin (300.00) (300.00) (300.00) (300.00) (300.00)
Depreciation (50.00) (50.00) (50.00) (50.00) (50.00)
Operating Income/EBIT - (40.00) 188.00 217.40 248.27 280.68

Interest Expense -
Taxes @ 40% - 16.00 (75.20) (86.96) (99.31) (112.27)
Net Income - (24.00) 112.80 130.44 148.96 168.41

Working Capital Forecast Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Receivables (% Sales) 20% - 192.00 201.60 211.68 222.26 233.38

Payables (% COGS) 50% - (200.00) (210.00) (220.50) (231.53) (243.10)
Net Working Capital - (8.00) (8.40) (8.82) (9.26) (9.72)

Free Cash Flow Forecast Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

EBIT - (40.00) 188.00 217.40 248.27 280.68

Taxes @ 40% - 16.00 (75.20) (86.96) (99.31) (112.27)
Plus: Depreciation - 50.00 50.00 50.00 50.00 50.00
Less: Incr. in NWC - 8.00 0.40 0.42 0.44 0.46
Less: Cap Ex (500.00)
Free Cash Flow (500.00) 34.00 163.20 180.86 199.40 218.87
Cost of Capital 10.5% 10.5% 10.5% 10.5% 10.5%
Discount Factor 1.00x 0.90x 0.82x 0.74x 0.67x 0.61x
PV (500.0) 30.8 133.7 134.0 133.7 132.9
NPV 65.08
Cumulative Cash Flow (500.0) (469.2) (335.6) (201.5) (67.8) 65.1
Pay Back Period 4.51

11