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Business Planning for Your Microgreens Operation

This article shares an overview of how to use the free resource AgPlan for business planning in microgreens.

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Updated:

September 27, 2025

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Microgreens are young, nutrient-dense plants harvested just after their first leaves develop. For producers, rural and urban alike, microgreens are a promising diversification strategy due to their quick growth cycle, year-round production capabilities, space-efficient cultivation, and strong demand in premium markets. The microgreens industry is evolving from a niche industry to a billion-dollar global market, with a projected annual growth rate of 10-12% through 2032, where the market is expected to reach over $8 billion (MP Seeds, 2025). While microgreens can be grown at home (see Di Gioia, 2023), commercial production is appealing but brings challenges, including consistently producing high-quality microgreens, ensuring food safety (see Stolzfuss, 2025), managing disease, budgeting, and marketing (see Kelley, 2025). A well-crafted business plan serves as a roadmap, helping growers identify their target market, cost structure, and navigate challenges.

Why Every Microgreens Grower Needs a Business Plan

A business plan does more than help you secure a loan. It is an important management tool that forces you to think through every aspect of your planned operation. The planning process will help you set goals, identify risks, and create marketing strategies by working through critical questions like:

Who are my target customers? (e.g., restaurants, farmers' markets, grocery stores, Community Supported Agriculture (CSA) customers)
How will I market my products?

What will it cost to start and operate my business? (e.g., seeds, soil, trays, lighting, insurance)

How will I price my products to cover costs and make a profit?

Who are my competitors, and what makes my microgreens business unique compared to competitors?

Several tools can help you build a business plan. A simple Business Plan Template (for example, the Farm Credit Business Plan Template) helps producers create a structured roadmap for setting goals, analyzing markets, planning operations, managing finances, and securing funding to ensure business success. A free and comprehensive resource is AgPlan. It was developed by the University of Minnesota's Center for Farm Financial Management and is a web-based business planning tool designed specifically for agricultural producers. The plan guides you through the process of writing a complete business plan, section by section, with resources and examples.

Using AgPlan for Your Microgreens Business

To get started with AgPlan, you create a free account, and from there, you can begin building your plan. Templates for different types of businesses are available. For microgreens, I chose the Ag-Value-Added business plan. The tool is organized into six sections, with a number of subsections, encouraging you to think critically about your planned business ideas; these are described below. Note that not all may apply to your situation.

1. Executive Summary

This is the first section of your plan, but it is recommended that you write it last. It’s a concise overview of your entire business. For a microgreens business, it would briefly describe your mission, the products you plan to sell, your target market, and your key financial projections.

Vision/Mission Statement: What is the purpose of your business? Example: "To provide fresh, locally-grown, and nutritious microgreens to restaurants and households in our community."

Goals: List your short-term and long-term goals. For example, a short-term goal might be to secure a spot at a local farmer's market or to get five restaurant clients in the first six months. A long-term goal could be to build a dedicated growing facility within three years.

2. Business description

Here, you detail the structure and goals of your business, including facilities, business history, and ownership/legal structure.

3. Operations

This section describes the "how-to" of your microgreens production. It is good to be as detailed as possible.

Products and Services

This is where you describe exactly what you are selling. Be specific.

Products: Don't just say "microgreens." List the specific varieties you will offer. For example:

Core Varieties: Spicy Radish, Sweet Pea Shoots, Nutrient-Dense Broccoli, Hearty Sunflower.

Specialty Mixes: "Spicy Salad Mix" (radish, mustard, arugula) or "Mild Mix" (cabbage, kohlrabi, kale).

Gourmet Offerings: Unique varieties like Red Amaranth or Cilantro.

Services: Any services you provide add value and can create additional revenue streams. Potential services might include,

Delivery: Will you offer weekly delivery to restaurants or homes? Specify the delivery radius and any associated fees.
Tours: Invite customers to your growing space for a tour. This helps them develop a deeper connection with your business and gain a greater appreciation of the care you put into your plants.
Classes: Partner with restaurants or catering businesses to host cooking classes that teach customers how to incorporate microgreens into their meals.

Production System

Detail the step-by-step process of how you will grow your microgreens. This demonstrates that you have a well-thought-out and repeatable system.

Growing Medium: Will you use soil (e.g., coco coir, peat moss mix) or hydroponic mats (e.g., jute, coco fiber)? Explain why you chose your method.

Growing Environment: Detail your grow room setup. For instance, you may write, "Trays are moved to wire racks under T5 fluorescent lights set on a 16-hour-on, 8-hour-off timer. The room is maintained at 70°F with oscillating fans for air circulation."

Harvesting: Describe your harvesting technique. Example: "Microgreens are harvested with a sharp, sanitized knife when they reach the first true leaf stage, typically between 8-12 days."

Customer Service

Excellent customer service turns one-time buyers into loyal advocates. Outline your policies regarding the following aspects:

Communication: How will customers contact you (email, phone, social media)? What is your target response time? For example: "All customer inquiries via email will be answered within 12 hours."

Issue Resolution: What is your policy for a sub-par product? "We offer a 100% satisfaction guarantee. If a customer is unhappy with their order for any reason, we will provide a full replacement or refund, no questions asked."

Feedback Loop: How will you gather feedback? "We will include a small card with each order, encouraging customers to leave a review on our website or social media channels."

Inventory Management

This section details how you will manage your supplies and finished products to minimize waste and ensure you can meet demand.

Consumables: How will you track seeds, soil, and packaging? "We use a simple spreadsheet to track inventory of seeds and soil. An automatic re-order reminder is set when seed stock for any variety drops below one (1) pound."

Finished Product: Since microgreens are highly perishable, maintaining accurate, real-time inventory data is critical. "Harvesting is done to order. Restaurant orders received by Monday are harvested and delivered Tuesday morning. Farmers' market inventory is projected based on the previous week's sales, with a 15% buffer."

Licenses, Permits & Regulations

Show lenders and investors you understand your legal obligations. Requirements for businesses vary by location, so research is key.

Business License: "We will obtain a general business license from (list)"

Food Safety: "We will follow state health department guidelines for food producers. Our harvest and packing area will be a dedicated, sanitizable space. For more information, see Ensuring food safety in microgreens production.

Insurance: "We will secure general liability insurance with a coverage of $1 million to protect against unforeseen accidents."
Legal Structure: Will you be a sole proprietorship, LLC, or partnership? Explain why you chose that structure.

Patents and Trademarks

For most microgreens businesses, this section will be brief. You are not likely to invent new technology. However, protecting your brand is important.

Example: "We have no patents. However, we plan to file for a trademark on our business name, ‘Happy Shoots,' and our logo to protect our brand identity in the local market."

Risk Management

Every business faces risks. Identifying them and having a plan to mitigate them shows foresight.

Production Risk: Crop failure. Mitigation: "Maintain strict sanitation protocols to prevent mold. Keep a backup power source (e.g., generator) for lights and fans in case of an outage."

Market Risk: An example may be that a major restaurant client closes. Mitigation: "Diversify our customer base. No single client will account for more than 30% of our total revenue. We will actively sell through farmers' markets and a direct-to-consumer CSA."

Financial Risk: Unexpected cash flow shortage. Mitigation: "Maintain a business savings account with enough cash to cover at least two months of operating expenses."

Environmental Issues

Outline your commitment to sustainability. This is a strong selling point for many customers.

Waste Reduction: "We will compost all used soil and unsold microgreens. We are partnering with a local composting facility."

Packaging: "We will use clamshells made from a plant-based, compostable plastic. We will also offer a discount to CSA members who return their containers for reusing."

Water Usage: "We will use bottom-watering techniques to minimize water consumption and runoff."

Quality Control

How will you ensure every package of microgreens you sell meets or exceeds customer expectations?

At Harvest: "Each tray is visually inspected before harvest for signs of mold, pests, or uneven growth. Only trays that meet our standards are harvested."

During Packing: "Microgreens are weighed and inspected a second time during packing to ensure consistency and remove any yellowing leaves or debris."

Storage: "All finished products are stored in a dedicated refrigerator at 38°F to maintain freshness until delivery."

Implementation Timeline

Provide a step-by-step timeline for planning to launch. This makes your plan actionable.

4. Marketing Plan

Your marketing plan outlines how you will reach your customers and persuade them to buy your product. You can find more information in the Extension article Marketing Microgreens.

Target Market: Be specific. Instead of "restaurants," define them as "high-end farm-to-table restaurants in the downtown area."

Products, Pricing, and Packaging: List your microgreen varieties and their prices. How did you determine your price? Consider your costs, competitor pricing, and the value you provide. For example, you might sell a 4-ounce clamshell of a spicy mix for $5.

Sales Strategy: How will customers buy from you? Will you deliver directly to chefs? Sell at a farmers' market? Offer a weekly subscription service?

5. Management and Organization

In this section, introduce the people behind the business. Even if it's just you, describe your experience and the skills you bring to the venture. If you have a team, outline their roles and responsibilities. If there are gaps in your expertise (e.g., bookkeeping, marketing), explain how you plan to address them, perhaps through training or by hiring outside help.

6. Financial Plan

This section translates your plans into numbers. AgPlan provides integrated spreadsheets that make this process easier. You’ll need to project your finances for at least three years. The AgPlan site has a financial spreadsheet including a balance sheet, income statement, and cash flow tools available from the Center for Farm Financial Management.

Startup Costs: List all one-time expenses needed to launch your business. This includes shelving, lights, trays, initial seed and soil inventory, business registration fees, and any necessary facility modifications.

Projected Income Statement: Forecast your revenues and expenses to show your potential profitability over time. Be realistic with your sales projections.

Projected Cash Flow: This is one of the most important financial statements for a startup. It projects the flow of cash in and out of your business on a monthly basis, helping you identify potential shortfalls.

Balance Sheet: This provides a snapshot of your business's financial health, showing assets, liabilities, and equity at a specific point in time.

Final Thoughts

Writing your business plan is not a one-time task. Your plan is a dynamic tool that should be revisited and updated regularly. Think of it as a roadmap for a journey that may have detours. You may find it helpful to ask mentors or other individuals (e.g., extension educator, consultant, accountant) to review and critique your plan as you work on developing it. AgPlan allows you to assign reviewers for your plan and gives you control over what the reviewers can do. With "view only," the reviewer can read your entire plan but not make any changes to the text. This is a great option for a potential investor or collaborator. With "View & Comment," the reviewer can read the plan and add comments in the margins. They cannot directly edit your content, so your original work is always safe.