Apple Growing Business Plan, Apple Farm Business Plan, Apple Orchard Business Plan, Starting An Apple Farm Business
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- Management Plan
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ABC Apple Farming LLC is committed to meeting the need for quality apples in North Charleston, SC. Currently, there is an underserved demand for fresh apples in the local market, with the closest apple farms located more than 100 miles outside of North Charleston. ABC Apple Farming LLC seeks to bridge this gap by providing local customers with quality apples at competitive prices.
To meet its goals, ABC Apple Farming LLC requires significant startup capital. This capital must be used to purchase land and land improvements, facilities, equipment, and supplies. In order to fund this venture, we will seek traditional commercial financing and utilize the additional funds for working capital.
ABC Apple Farming LLC provides a full-service apple farming solution, offering services such as crop development and maintenance, climate controlled storage and services, harvesting, and packing and distribution of apples. Our goals include expanding our acreage under cultivation to 25 acres, hiring and training 25 dedicated employees, and increasing our annual revenue to $500,000 while maintaining profitability by the year 2023. For our initial operations, ABC Apple Farming LLC requires $200,000 in startup capital; $150,000 allocated for the purchase of land and land improvements, and an additional $50,000 for the purchase of facilities, equipment, and supplies. All remaining funds will be reserved for working capital, including the initial hiring and training of staff. With ABC Apple Farming LLC, we seek to become a leader in apple farming, fostering sustainability and environmental stewardship while delivering superior quality to our customers.
ABC Apple Farming LLC is dedicated to serving a defined customer base who are most likely to purchase our products and services, such as organic and conventional farms and individuals seeking to purchase our apples, as well as wholesale and retail institutions. Our target market is primarily in South Carolina and the immediate vicinity, but we may expand in the future to meet market demand. We will continue to develop relationships with local and regional distributors, as well as foodservice and retail stores. We also plan to market our products to schools and other institutions requiring fresh, locally-grown fruits. Additionally, we will seek to serve a growing local and international markets for organic apples.
ABC Apple Farming LLC faces competition from other apple farming businesses both in North Charleston, SC and in the wider local area. As apples are a widely popular food product, customers have a wide range of options available to them both in terms of different types of apple and apple products, as well as different brands of apple, so our farm will have to ensure that it offers competitive prices, quality and customer service in order to be successful. Additionally, ABC Apple Farming LLC also has to compete with substitute products such as apple juice and canned apples, both of which offer similar products at competing prices.
- ABC Apple Farming LLC will require $200,000 in startup capital to physically develop the farm and purchase necessary equipment and supplies.
- Of this capital, $150,000 will be allocated toward the purchase of land and land improvements.
- An additional $50,000 will be utilized for the purchase of facilities, equipment, and supplies for our initial operations.
- All remaining funds will be reserved for working capital, including the initial hiring and training of staff.
- By 2023, ABC Apple Farming LLC aims to expand its acreage under cultivation to 25 acres, hire and train 25 dedicated employees, and increase its annual revenue to $500,000 while maintaining profitability.
ABC Apple Farming LLC will require an initial investment of $200,000 in order to begin operations. Specifically, funds are required to:
- Purchase land and complete land improvements - $150,000
- Finance the purchase of facilities, equipment and supplies - $50,000
- Reserve additional funds for working capital - remainder of funds
The entire investment will be utilized to the utmost in order to achieve the goals outlined in the business plan. We welcome investors and business partners who nurture the same values and mission that are integral to ABC Apple Farming LLC.
Milestones and Traction
ABC Apple Farming LLC has a roadmap for our business which outlines our progress to date and our goals for the future. We plan to expand our acreage under cultivation to 25 acres, hire and train 25 dedicated employees, and increase our annual revenue to $500,000 by 2023. We are already well on our way to achieving this; we have acquired 12.5 acres of land ready for use, have an operational storage facility, as well as various other stores and equipment required for our operations. In addition, we have established our distribution channels and begun to cultivate a small number of crops.
Once fully operational, we plan to achieve specific quarterly goals, beginning with the launch of our burgeoning apple farming business in North Charleston, SC. These objectives will include cultivating 15 acres of apples and continued development of our core services and infrastructure. We are confident that we can easily meet these targets and achieve our larger goals of 25 acres, 25 employees and a $500,000 annual revenue by our 2023 timeline.
Problem Worth Solving
With the proliferation of modern agricultural practices, the apple industry is seeing an exodus of small family-run agricultural businesses. ABC Apple Farming LLC was established to answer the call for people to return to agricultural roots by allowing them to expand their reach and abilities and harness the power of a full-service apple farming business. ABC Apple Farming LLC is dedicated to providing customers with high-quality fruit while doing our part to foster sustainability and environmental stewardship.
At ABC Apple Farming LLC, our goal is to provide superior quality apples to our customers. Our solutions will enable us to achieve this goal as well as foster sustainability and environmental stewardship. Our services include crop development and maintenance, climate controlled storage and services, harvesting, packing, and distribution of apples.
We have developed a comprehensive management plan to ensure the highest level of quality in every aspect of our operations. Through our thorough crop and soil management, we will ensure that our apples are of the highest quality. We will also utilize the latest in storage technology to ensure that our apples are perfectly preserved in climate-controlled conditions, allowing us to guarantee the freshness of our apples. Through our harvesting, packing, and distribution services, we will ensure that our apples are carefully handled and reach our customers inpeak condition.
In addition, we are committed to sustainability and environmental stewardship. We will employ strategies such as sustainable crop rotation, natural fertilizers and pest management to ensure that our farm is managed in a way that is respectful of the environment. Moreover, we will engage in recycling and other practices to conserve resources and reduce waste.
Validation of Problem and Solution
To support our goal of becoming a leading apple farm in North Charleston, SC and to ensure our success, we have conducted extensive research and due diligence on the regional market for apple farming and related services. Our research revealed a lack of local options for apple farming, with only four existing large-scale operations within a 100-mile radius. This gap provides us with an opportunity to meet the demand for large-scale apple farming services in the region. Additionally, our projections for revenue indicate that there is sufficient potential for ABC Apple Farming LLC to operate as a profitable venture.
To address our need for funding and startup capital, we have identified traditional commercial financing as the best option. We are confident that we can secure the $150,000 required for land and land improvements with the help of a commercial lender. Furthermore, our market research indicates that the demand for apples in the region is sufficient to validate our planned expansion. By utilizing our ample, local supply of laborers and expanding our acreage under cultivation by 25 acres, we project that ABC Apple Farming LLC can increase its annual revenue to $500,000, while maintaining profitability.
At ABC Apple Farming LLC, we offer a full range of services including crop development, climate controlled storage and services, harvesting, and packing, and distributing of our apples. Our customers can count on us for top-quality apples, grown with sustainability and environmental stewardship in mind.
We control our quality standards by focusing on a limited 1-acre range that can easily be maintained and upgraded. Our focus on sustainability and environmentally conscious practices means we can offer apples that are healthy and have the potential to have high yields. All of our apples are handpicked when they reach peak ripeness, ensuring our customers have the freshest produce.
For our customers’ convenience, we have designed a streamlined packing and distribution system, allowing for faster delivery of our apples and other fruits. Our team of experienced growers, packers and distributors work together to keep our apples as fresh as possible, so that our customers receive the highest quality product for their money.
ABC Apple Farming LLC is aware that there is some competition for apple farming services in the North Charleston area, as well as across South Carolina. Our competitive advantage stems from our commitment to sustainability and environmental stewardship: we use crop rotation practices to minimize the use of pesticides, use local sources for our materials whenever possible, and minimize our carbon footprint during packing and distribution. We also offer a comprehensive range of services to ensure that customers get the best quality apples, from the harvesting and the climate controlled storage, to the packing and distribution.
These comprehensive offerings differentiate us from the competition and allow us to better serve our customers. Additionally, we are dedicated to investing in our employees and customer service to ensure customer satisfaction. These factors will give us an advantage over the competition when we enter the market.
ABC Apple Farming LLC is currently in the process of developing and launching our operations. We have recently acquired 25 acres of land near North Charleston, SC and are in the process of making necessary improvements and acquiring the required equipment. Our internal teams are working hard to ensure that all necessary infrastructure is in place before the end of 2020.
Additionally, we will be hiring and training a staff of 25 apple farming professionals. We are looking for motivated and experienced workers who are willing to help us create a successful and sustainable farm. Additionally, we plan to invest in advanced storage facilities, purchasing climate-controlled units in order to ensure the freshness and quality of our apples.
By the end of 2023, we aim to have 25 acres under cultivation, 25 employees, and $500,000 in annual revenue. As our business grows, we will continually invest in additional land, equipment, and facilities that enable us to provide the highest quality apples to customers.
Market segmentation is a key component of market analysis and can be accomplished using a variety of different characteristics. For our apple farming business, we will segment our potential customers by the following relevant characteristics:
|Retailers||Traditional stores, grocery delivery services, farmers' markets, etc.|
|Wholesalers||Food service companies, large-scale retailers, etc.|
|Cider Makers||Breweries, wineries, distilleries, etc.|
|Industrial Miner||Food service makers, juice manufacturers, etc.|
By understanding the different market segments, we will be better able to determine the best approach to gain market share.
Target Market Segment Strategy
Our target market for our apple farming business is mainly individuals and households who are interested in sustainable and organic food. In addition to local customers, we expect to attract people from the neighboring villages, towns, cities, and other states who travel to purchase organic fruits from our farm. We plan to market our produce through various online and offline channels, as well as by attending various local and regional trade events.
Our ideal customer who would benefit most from our business is someone who is looking for nourishing, organically-grown apples. This includes health-conscious, eco-friendly individuals, as well as foodies looking for a culinary experience. We will also target larger institutions, such as universities, schools, hospitals, and large businesses that purchase organic and locally-grown products in bulk.
Our ideal customer archetypes for our apple farming business plan include consumer households, farmers' markets, food delivery companies, and grocery stores. Our core consumer households are those who value quality and freshness by purchasing locally produced apples. Our local farmers' markets present an important opportunity to reach consumer households, in addition to being venues to showcase our produce. Finally, our food delivery companies and grocery stores can offer our apples in larger volumes, as part of weekly or bi-weekly packages.
We intend to become a trusted source of apples and other produce among our key customers, emphasizing the importance of freshness and quality in our products. We will focus on providing excellent customer service by prompt delivery and reasonable pricing. We value strong relationships with our customers, and we are committed to continually finding innovative and reliable ways to meet their needs.
Having evaluated the current and traditional markets for apple farming in the region, this business plan has identified an opportunity to further expand the local market. The last few sections discussed the nature of our target market: the region’s urban consumers - environmentally conscious and with an increasing appreciation of healthy lifestyle choices. In the future, this market is expected to continue to grow, with larger cities such as Chicago and Minneapolis also presenting potential opportunities in the form of increased distribution opportunities.
Our strategy seeks to capitalize on growth of appreciation for healthy lifestyle choices among our targeted market by developing and promoting apple products that will continue to meet their preferences. For example, we will target health-conscious consumers through organic farming methods and our business plan is designed to create an organic farm that not only produces apples, but also has a long-term strategy for sustainability.
We will also seek to further explore potential markets in and around the local area, including leveraging strategic partnerships with other businesses to create more circular farming models and incentivizing consumers to buy locally grown apples. By doing so, this business plan envisions not only an apple farming business, but an entire network of local products and services. With such a comprehensive development model, we can expect to create a market model that is advantageous to the environment and the local economy.
Our potential competitors in the apple farming business are as follows:
|Tom's Apple Farm||Omaha, NE||$100,000|
|Easy Apple Farms||St Louis, MO||$500,000|
|Fresco Apple Farms||Lincoln, NE||$50,000|
Given the number of potential competitors, our business must employ creative practices and innovative strategies to stand out in the market and make profits.
Marketing and Sales Plan
Our marketing and advertising strategy focuses on building a strong brand and spreading awareness of our apple farming business. We will use both traditional and digital methods of promotion, and identify the most effective channels to pursue our goals. Our strategies, the costs associated with them, and the promotion channels are tabulated below.
|Print Media – Newspaper Advertisements||$2,000||Newspaper Ads||Increase Awareness of our Brand|
|Online Display Ads||$500||Social Media, Online Platforms||Generate Interest and Buzz Around our Business|
|Radio Announcements||$1,200||Radio||Build Credibility Among a Larger Audience|
In addition, we plan to launch promotional offers, loyalty programs, and utilize our existing customer database to drive sales. Our marketing plan ensures the highest reach and awareness in the target geography at the most efficient cost. Our goals are to increase our brand visibility, generate leads and ultimately drive current and future sales.
At ABC Apple Farming LLC, we anticipate our sales to increase over the coming three years and reach $500,000 by 2023. To reach this goal, we use a comprehensive pricing strategy and work diligently to effectively target our key markets.
We plan on selling our products directly to retail stores, distributors and wholesalers, as well as through our online retail channels. In the coming three years, we anticipate twenty-five percent of our sales to be sourced from direct sales to retail stores, forty percent through distributors and wholesalers, and the remaining thirty-five percent from our online store. With the majority of our sales coming from our online channel, we plan to leverage the power of digital marketing and utilize tools like search engine optimization to drive more traffic to our site.
We are also planning on launching a subscription program which will allow our customers to receive regular deliveries of our products from us. At the same time, we will be actively participating in farmer markets and road shows across the region to reach out to new customers and drive more sales.
Location and Facilities
ABC Apple Farming LLC is located off of the main highway, providing a safe and convenient location for customers to visit the business. The business will be situated on 25 acres of land, providing enough space for the necessary orchards and storage facilities required for successful business operations.
To ensure operational efficiency, a properly-designed climate-controlled storage facility suitable for long-term apple storage will be built along with necessary packing and distribution facilities. Other necessary facilities such as loading docks and restrooms will also be built to serve our employees and customers.
The total cost of these facilities is estimated to be $200,000, of which $150,000 will be utilized for land and land improvements and the remaining $50,000 for facilities, equipment, and supplies for ABC Apple Farming LLC's initial operations.
ABC Apple Farming LLC is leading the charge in taking advantage of new technology to both improve its operations and garner customer loyalty. We are constantly researching and investing in technology that can provide greater insight into our daily operations, enhance our overall crop management system, and bring new ways to engage our customers.
Starting with a best-in-class crop management system, ABC Apple Farming LLC utilizes a GPS-enabled platform to track, monitor and record data in real-time on crop development, labor force productivity and costs, weather patterns and more. Through the use of this platform, our farming operations are more efficient and accurate, helping us to make approachable, data-driven decisions that optimize yields and reduce labor costs. As a result, our customers are provided with fresher, higher-quality apples.
Additionally, ABC Apple Farming LLC has also developed technologies to facilitate communication and customer engagement. We use a customer relations management system that allows us to capture customer preferences, purchase history and special offers. Our marketing channels are modernized, utilizing mainstream and niche social media platforms to communicate with customers, drive sales and curate unique content. We also offer various off-site promotional and educational activities through community events and partnerships.
Equipment and Tools
Apple farming requires efficient equipment and tools to ensure the successful running of the business. Following is an outline of the required equipment and tools, as well as the cost associated with purchasing or renting them:
|Equipment/Tools||Cost for Purchase||Cost for Rental|
Management and Organization
Our apple farming business features a clear chain of command that is simple but effective. Each layer of the organizational chain provides a unique contribution, as outlined in the following table. At the highest and most executive level, we have the business owners and board of directors. The flow of authority and decision-making power begins here, and trickles down through the other levels of our organizational structure.
|Position||Roles & Responsibilities|
|Overall decision-making, strategizing, and executive responsibilities|
|Directing employees, implementing strategies, overseeing business operations|
|Caring for fruit crops, providing farm labor, handling customer inquiries and orders|
It is the responsibility of the managers to ensure communication between the top-level and bottom-level employees, to ensure that steps are taken and decisions made that are reflective of the original intentions of the board. They are also responsible for addressing any issues that may arise between different levels or from other sources.
Our apple farming business will have a dedicated management team, staffed with people that have the right skills and experience to effectively manage the business. In order to ensure the success of the business, we anticipate taking on highlevel management roles within our company with individuals who have experience in the various disciplines relevant to our operation. In the table below, we list the potential candidates we are considering for each management role.
|Business Manager||John Smith, Alice Watkins|
|Production Manager||Rachel Jones, Roger Tompkins|
|Marketing Manager||Jacqueline Wong, Sarah Donovan|
|Financial Manager||Peter Jenkins, Marty Brown|
Management Team Gaps
Our management team is currently made up of three individuals and our farm manager. However, we are lacking a few key positions that are critical to the successful operation of our apple farming business. Specifically, we are in need of a human resources manager, an accountant, and a marketing specialist. These team members would be responsible for overseeing the recruitment, hiring, and training of our farm staff, providing financial oversight, preparing financial documents, and developing the marketing strategies that will ensure our business is successful.
We are confident that we will be able to find suitable candidates for each of these positions, though we do not currently have any in mind. We will be exploring our hiring options over the coming months, including interviewing internal and external candidates as well as utilizing online recruitment platforms.
For the successful and efficient operation of our apple farming business, we need to create a detailed personnel plan. This personnel plan will cover both seasonal and permanent labor positions, in addition to the permanent roles of management, ownership and administrative staff. Below is a table of potential positions that we expect to require in order to effectively run the business:
|Position||Pay Range (Hourly Rate)*||Description/Responsibilities|
|Farm Manager||$25 - $45||The Farm Manager is responsible for overseeing all of the operations on the farm, from the production and the harvest of apples to the staff working on-site. They need to have knowledge and experience regarding farming practices and be able to manage a large team of staff and farmworkers.|
|Farmworkers||$15 - $35||Farmworkers are responsible for carrying out the physical work required on the farm, such as harvesting apples, weeding and planting, maintaining equipment, and performing other necessary tasks. They need to be able to work in all conditions, understand safety protocols, and have good communication skills.|
|Administrative Staff||$20 – $30||Administrative staff are responsible for keeping all of the business operations running smoothly, such as accounting, bookkeeping and customer service. They need to be adept in organization and administrative duties, as well as have excellent customer service and communication skills.|
* All wages are subject to change depending upon individual qualifications and experience.
Company History and Ownership
ABC Apple Farming LLC was founded in 2021 by experienced farmers and entrepreneurs from the North Charleston, South Carolina area. With the goal of becoming a leading apple farm in the area, the founders pooled their expertise and set out to create a full-service apple farming business to provide superior quality fruit to their customers.
The ABC Apple Farming LLC founders have extensive experience in the agricultural industry and have worked both independently and in partnership for many years to foster sustainable agriculture practices and superior growing conditions. In 2020, the creators saw a unique opportunity to realize their shared vision and create ABC Apple Farming LLC.
The ownership of ABC Apple Farming LLC consists of the three initial founders who are also managing members and share in the direct management of the business. The primary owners of ABC Apple Farming LLC are highly dedicated and committed to their agricultural pursuits and to the success of their business.
ABC Apple Farming LLC seeks to achieve the goals outlined in our business plan by 2023. To reach those targets and realize our vision, we’ve developed a timeline of key milestones and objectives. The milestones and objectives, along with the timeframe will ensure that ABC Apple Farming LLC stays organized, on track and ahead of schedule. Our timeline includes the following significant milestones:
Year 1: Acquire land and obtain necessary financing for real estate; purchase necessary equipment with financial assistance; hire 9 employees; host job fairs in the local area and conduct employee searches for potential staff; double acreage under cultivation.
Year 2: Utilize existing employees for marketing purposes; acquire additional land and hire 15-20 additional employees and initiate new round of recruitment; expand acreage under cultivation and institute additional maintenance control measures; purchase additional equipment and supplies.
Year 3: Test product in market; expand storage facilities; increase acreage under cultivation to 25 acres; hire an additional 5 employees; maintain sustainability and environmental stewardship on farm; increase yearly revenue goal to $500,000.
Gauging the performance and health of our apple farming business requires tracking key performance indicators (KPIs). These KPIs are a vital part of the business plan, as they provide essential insights into the success and failure of the venture. The following KPIs will help us to benchmark our progress, measure and manage our profitability, and identify areas for improvement.
- Number of Apples Harvested: This statistic will measure the amount of apples harvested each year by our business, and compare it to the estimated yield of other farms in the area.
- Quality of Apples Harvested: By tracking the quality of our apples, we can ensure that we are producing the best product for our customers.
- Cost of Cultivation: Tracking our operational costs will give us the insight we need to manage our profit margins and identify ways to reduce spending.
- Customer Satisfaction: Our customer feedback will give us an idea of how our products are faring with customers, helping us to identify areas for improvement.
- Marketing Efficiency: Tracking the success of our marketing campaigns will help us to understand which strategies are effective and where we can improve.
By tracking and measuring these key metrics, we will be able to get a clearer picture of the overall performance and health of our business. This will help us to evaluate our strategies, identify areas for improvement and make informed decisions going forward.
Financial Plan and Metrics
The following table provides an indication of ABC Apple Farming LLC's projected sales for the next three years, beginning in the Fiscal Year 2021:
|Fiscal Year||Projected Sales|
The expected growth in annual sales is due in part to the projected increase in acreage under cultivation and the expected additional revenue from the sale of direct-to-consumer apples. ABC Apple Farming LLC has set a goal of achieving $500,000 in annual sales by the 2023 fiscal year.
This business plan contains an estimation of the expenses necessary to get the apple farming business up and running, as well as the operational costs needed to keep it operating. Below are two separate tables containing the startup costs and the operational costs that we expect to incur.
|Name of Expense||Cost|
|Tools and Equipment||$2500|
|Name of Expense||Cost|
|Fertilizer and Seeds||$1000|
Projected Profit and Loss
ABC Apple Farming LLC desired goal for profitability is $500,000 in annual revenue by 2023. To reach this goal, ABC Apple Farming LLC must take a comprehensive approach to budgeting and tracking expenses to ensure the farm is operating efficiently. A projected profit and loss statement has been developed that outlines the anticipated revenues and costs of operation over the next three years.
Revenue sources and cost of goods sold (COGS) will be critical to tracking against projections and ensuring profitability targets can be met. The profit and loss statement outlines projected revenue, COGS, gross margin, gross margin percentage, expenses list, profit, and profit percentage.
ABC Apple Farming LLC’s infographic below forecasts the company’s projected profit and loss statement for the next three years:
The table above displays the breakdown of anticipated revenue and costs for ABC Apple Farming LLC for the next three years. During the projected period, ABC Apple Farming LLC sets a goal to reach $500,000 in annual revenue, from which a net profit of $50,000 should be realized in 2023. Details of ABC Apple Farming LLC's projected profit and loss statement can be found in the appendix.
Projected Cash Flow
The following table outlines ABC Apple Farming LLC's projected cash flows for three years. Inflow and outflow of cash flows is outlined and the net cash flow and cumulative net cash flow is included.
|Year||Inflow||Outflow||Net Cash Flow||Cumulative Net Cash Flow|
Projected Balance Sheet
The projected three-year balance sheet of the apple farming business plan is presented below. It outlines projected assets, liabilities, and equity of the business at the start of each year:
Table 1. Projected Balance Sheet (in 000's USD)
|Year 1||Year 2||Year 3|
Our personnel plan defines how we intend to identify, hire, compensate and employ employees to help us achieve our goals. We plan to hire an expert team knowledgeable in the area of apple farming and the related business operations.
We will develop criteria to identify the right candidates and post advertisements to get responses. We plan to set up a suitable yet rigorous selection process that helps us make the right decision while choosing our personnel. We plan to offer a highly competitive package - complete with salary, bonuses and benefits - as a way to retain and motivate employees.
The personnel will be assigned tasks as per their expertise and background to ensure that the best results are achieved. The employees will be provided with training and guidance and their performance will be periodically evaluated to ensure that the goals of the business plan are met.
Use of Funds
ABC Apple Farming LLC has identified the initial funds of $200,000 as critical for the successful launch of our business. These funds will primarily be used to purchase land and land improvements, facilities, equipment, and supplies. Specifically, $150,000 will be allocated towards the purchase of land and upgrades, while the remaining $50,000 will be utilized to purchase facilities and equipment. Additionally, the funds will be utilized for working capital including the hiring and training of our dedicated team and other initial expenses.
ABC Apple Farming LLC is committed to leveraging and allocating these funds in a manner that not only strengthens our business and market presence, but also promotes sustainability, environmental stewardship, and superior quality fruit for our customers.
The exit strategy for Apple Farming is to achieve pre-determined financial goals within a five-year timeframe and to maximize the business' asset value. During the five-year lifespan of the business, our goal will be to create a viable business that can be sustained over time. In the last year of that period, we will initiate the process of selling the business and its assets.
In order to maximize our returns upon exiting the business, we plan to explore multiple avenues to exit our business. These may include selling the business to an outside party, transferring ownership to a family member or an employee, or initially offering a portion of ownership in the company on the public markets. As the business’s five-year goal nears completion, careful consideration of potential exit options and potential buyers should be undertaken in order to maximize the value of the business.
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