"The importance of proper financial planning in greenhouse projects cannot be overstated," says Vahan Hovsepyan with Greenhouse Formula. The standardized business planning process he created is currently being expanded to introduce new services to further add value to the industry.
Business planning
As the demand for sustainable, localized food production continues to rise, banks and private investors finance more and larger greenhouse projects, but recent closures and bankruptcies of some major greenhouse operators serve as a vivid reminder of the importance of detailed and professional business planning in the industry, says Vahan. "These events underscore the risks inherent in greenhouse operations and the critical need for detailed financial planning and strategic foresight. Especially in today's turbulent market, with high gas prices and labor shortages, when all greenhouse operators seek efficiency and cost cutting, the need for efficient greenhouse planning solutions becomes increasingly relevant."
Vahan explains that when it comes to obtaining a business plan for a commercial greenhouse project, there are often two primary alternatives. "Each with its drawbacks. Not having specialization in horticulture, many consulting companies offer tailored business plans but typically require 1-2 months at least and it costs substantial amounts. Alternatively, hiring an internal team for developing a business plan in-house demands diverse expertise, from financial knowledge to horticultural know-how, making the process error-prone and time-consuming."
This is where the Greenhouse Formula comes in. "We have standardized the business planning process for commercial greenhouses," says Vahan. "Our software provides users with the tools to conduct comprehensive financial evaluations, assess potential risks, and optimize projects for financial performance. By leveraging our software and expertise, greenhouse project stakeholders can mitigate risks and make informed decisions that safeguard the long-term viability of their greenhouse projects."
Greenhouse Formula is created specifically for commercial greenhouse projects and is designed for a broad range of users, including entrepreneurs, growers, agronomic consultants, and greenhouse manufacturers. According to Vahan, the customer base is expanding as big companies are starting to understand the value that the Greenhouse Formula can bring, helping sales managers to present the benefits of greenhouse projects in front of investors and indirectly increasing company sales. Recently, Dalsem became one of their customers.
Upcoming services and innovations
Looking ahead, Greenhouse Formula is excited to introduce new services to further add value to the industry. Vahan says: "One such service in development is a 3D greenhouse designer, which will allow users to quickly and accurately visualize their greenhouse projects in a user-friendly 3D online environment. Unlike CAD software packages, which are usually universal tools to design anything with any complexity and require extensive training, this tool promises to be intuitive and will not require learning the tool. Built purposefully for greenhouse projects, this tool promises to transform how greenhouses are designed."
Vahan shows how a user-friendly questionnaire at Greenhouse Formula guides users through project details, ensuring no important details are missed. "With just a few questions, users receive a comprehensive business plan for their greenhouse project—no financial expertise or extensive resources required. Users save valuable time and resources while gaining a professional and accurate business plan in return", he adds.
Raising the standards of business planning in horticulture
Business plans by Greenhouse Formula adhere to key standards: International Financial Reporting Standards (IFRS) ensure universal clarity in financial statements, enabling easy comparisons between projects, while International Valuation Standards (IVS) ensure consistent project evaluations, which, according to Vahan, enhances credibility and aids stakeholders, like banks and investors, in confident financing decisions. He adds the projects are easy to modify in response to new information and reflect updated outcomes in the report. Moreover, Greenhouse Formula offers an interactive Scenario Analysis tool designed to assess project risk by changing key input variables and evaluating their impact on results.
Vahan states that industry professionals are in need of accurate data in the financial planning of greenhouses and require help in professional financial planning. "We help and guide our users in finding relevant data, navigating complex financial projections, and producing precise profitability reports. By making affordable and accessible professional business plans of such high standards, tailored specifically for controlled environment agriculture, our software makes it easier for new growers to enter into horticulture and supports existing growers in expanding."
Book a free demo: https://bit.ly/gf-freedemo
For more information:
Greenhouse Formula Ltd
Director: Mr. Vahan Hovsepyan
Email: info@greenhouseformula.com
LinkedIn: www.linkedin.com/greenhouse-formula/
www.greenhouseformula.com