Starting a Mushroom Farm – Sample Business Plan Template PDF

Interested in small mushroom farming business ideas? If YES, here is how to start a mushroom business with no money and no experience. How much does it cost to start up?

How to Start Mushroom Farming Business

How much money can you make from selling mushrooms? Can you grow mushrooms at home? No doubt mushroom farming is a profitable business to do, but the problem is that a lot of people don’t know about how to start a mushroom farm and profit from it. I wrote this article to solve that problem. This article is going to explain all the necessary things you need to do and put in place before you can start a mushroom farm.


Getting the right information required to start a mushroom business is the first essential step you must take if you want to succeed with the farm. You need to have the right information that will help you to make the right decisions and necessary plans before you start a mushroom farm. You need to know about the processes required to start a mushroom farm.

This will help you to ascertain if mushroom farming is something you will love to do or not. You also need information about the financial cost of starting a mushroom farm. This will help you to know if you can afford to start a mushroom farm or not.

Another important information you need to know is your target market. Don’t just assume people will buy your mushrooms, find out if they really want to buy. There are different types of mushroom you can grow on your farm, so you will have to find out the particular type your target market is in need of. You also need information about your competitors to discover how you can have a competitive edge over them.

So the first step to take when you want to start a mushroom farm is not raising capitals or purchasing necessary materials and tools. The first step you will need to take is getting as much information as you can about mushroom farming and developing your own mushroom farm business plan.


No matter the amount of the right information you have, if you don’t have the skills required to start a mushroom farm, you may fumble. This is why it is important that you acquire the necessary skills you will need through trainings.

To get trained on how start a mushroom farm, you will have to go to a reputable mushroom farm and either pay or volunteer to learn under them. Working in an established mushroom farm will help you get the skills and experience you need to start your mushroom farm the right way.


While you are acquiring the needed skills and experience, you can decide to learn on job by starting a small mushroom farm. Get a small portion of land and start your own mushroom farm. You can even negotiate with the person you are learning from to give you a small portion of land on his farm which you can use to start your own mushroom farm as this will help you practice what you are learning.

Don’t try to snatch the customers of the person training you, go out and look for your own customers. However, you can ask your trainer to teach you the marketing strategies he is using to get customers. Starting a small mushroom farm will help you to assess how much you are learning and what to improve on. It will also prevent you from making avoidable mistakes when you finally start a mushroom farm on a large scale.


How much money can be made growing mushrooms? Do you know that you can have buyers on ground to buy from you even before you start your mushroom farm? Yes, it is very possible. You don’t have to wait until you harvest your mushroom before sourcing for buyers, you can start sourcing for them even before you start planting the mushroom. How do you do this? By familiarizing yourself with your potential buyers. Reach out to them, go to where they are, show that you care, consistently offer them values and then presell to them.

For example, restaurant owners are one of your potential buyers, study what they are in really need of, (e.g. better but more economical ways of preparing mushroom that their customers will pay for), find a solution to this need and organize a free training for them on how to do it. Invite them for the training and make sure you over deliver than you promised.

After this, presell your mushroom to them, have them book down mushroom by offering irresistible discounts to those who do so. Also, encourage them to bring referrals by offering incentives. After the training, build relationship with them and continue to follow them up at regular intervals. By the time you harvest your mushroom, you will have buyers in waiting.


To start your mushroom farm, these are some of the steps you will need to take:

  • Register your Farm

Register your mushroom farm with the appropriate agency. This will give your farm a legal backing and facilitate easy transactions with corporate buyers.

  • Get a Land

You can either purchase or rent a land. Mushroom grows in moist and damp places, so keep this in mind when getting the land to start your mushroom farm.

  • Get the Equipment and Materials

Some of the materials you will need are mushroom spawn, medium, substrate, sawdust etc. Some of the equipment you will need are logs of wood, mush comb and compost hoper.

  • Employ Competent Workers

Make sure the people you want the employ have a prior experience of what want them do.

  • Plant the Mushrooms

There are different varieties of mushroom you can plant, but the best one to start with is oyster mushroom. It is easy to plant and grow.

  • Market and Sell your Mushroom

Like, I have said earlier, you don’t have to wait till you harvest your mushrooms before you start selling them. After planting the mushroom, begin to create awareness of your product. Meet with your potential customers and start marketing to them.

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