Mushroom Farming Business Plan: Step by Step Guide

Mushroom Farming Business plan

Are you trying to earn some profit through farming? Mushroom farming will be your ideal choice. Mushroom farming is a  good option if you are planning to start your own business. This farming business will start to produce profits within weeks of starting the business. You just need a good market to sell it off. You can either be a direct seller or supplier.

Also Read:- Aloe Vera Farming – Step By Step Guide

Mushroom farming needs no excess land, it can be grown anywhere. Like farming of corn or other vegetables, you need to provide huge land. But for mushrooms, you just need to utilize the extra unused space of your house. There are varieties of mushrooms available in the market. Varieties like Oyster and Shiitake are Gourmet mushrooms and are highly-priced. They will help you earn more money as they are highly-priced and simple to grow. These mushrooms grow really fast, you just needed to provide them with the right condition. Oysters take up to 3-4 weeks to grow.

Keeping aside the highly-priced mushroom you can also grow mushrooms that are regular and are in high demand. Button mushrooms are generally used largely. These mushrooms are valued and eaten all over the world. Below we will mention the steps involved in starting a mushroom farming business.

Mushroom Farming Business Plans: Steps

There are a few steps involved in the mushroom farming business. We will help you follow these steps easily and elaborate on every detail involved in mushroom farming.

Step 1: Decide The Variety

There are different varieties of mushrooms.

  • Button Mushroom
  • Portobello Mushroom
  • Oyster Mushroom{Dhingri)
  • Paddy Straw Mushroom
  • Shiitake
  • Lions Mane
  • White Button

Among which Oyster mushroom is the costliest. On the other hand, button mushrooms are cheap and are consumed all over the world. This business will start to show results within a few weeks. It is better to cultivate the type consumed largely by people. You can obviously cultivate the Oyster mushroom for some extra profit.

Step 2: Get Ready With Your Spawn and Substrate

The spawn is something, which is needed to seed the mushroom farming process. You can buy the spawn from the right market or you can produce your spawn at home using sterile culture. If you are thinking of producing your own spawn it will be cheaper and helpful in the long run. It will be costlier than the ready-made spawn.

Once you are done with the spawn, let’s concentrate on the substrate. It is something where your mushroom will grow. Some people use the straw to grow mushrooms and some use the wood chips. The most used substrate is straw that can be chopped into small pieces.

Step 3: How To Prepare The Substrate

Bring some straw from the market. Now, chop the straw into small pieces. Take these straws and wet them. Once you wet the, heat it in boiling water for half an hour. Now, remove the straw and drain it. Spread it on a large surface to cool it down.

Step 4: Prepare The Plastic Bags

Put all those straws inside the plastic bag and sprinkle the spawn in it. Fill the bags and tie them. Now, make several holes in the bag for passing air and creating favorable conditions for growing the mushroom.

Step 5: Incubation Period

You will have to keep the temperature at 78 degrees Fahrenheit. Now start placing the plastic bags onto the shelves. Do not let natural light enter the room. Cover every crack or window and use a red “darkroom” light whenever you wish to visit your farm. You will see tiny mushroom pinheads popping out from the air holes in the plastic bag, you are ready to move onto the next step.

Step 6: Fruiting

The high temperature will be necessary for fruiting. 60-75 degrees Fahrenheit should be the ideal temperature. The room should have to be highly humid. Your room will need at least 12 hours of natural light. But for incubation, you should be aware that no natural light can pass into your room. Now after taking all these measures, move your bags to some cool room like the basement. After keeping it in a cool place for a day bring out the bags to the fruiting room and cut open the plastic bags. This will help the mushroom grow.

Step 7: Harvesting

Make sure that the mushroom caps does not uncurl completely. Before it uncurls, twist the mushroom from the stem and that’s it, you have harvested your first mushroom. Now, your mushrooms are ready to be sold off.

How To Market Your Newly Cultivated Mushroom?

Marketing the harvested product is the most important task. First of all, go and talk to the mushroom sellers in your local market and sell them. You can also directly talk to restaurants and grocery stores. Supply the freshly cultivated mushroom for consumption. You can also contact online sellers. You can sell your harvested mushroom and start your online sale.

What Can You Do To Start A Wholesale Mushroom Plantation?

You need a minimum of 500 sq ft area to produce like 700-800 kg mushroom. This will help you earn a huge profit. This will help you try your hands on mushroom export business.

What Should Be The Favourable Temperature For Growing Oyster Mushroom?

Depending on the variety of mushrooms you want to cultivate, set the room temperature. Basically for cultivating Oyster Mushoor, you need to set the temperature to 15 to 16 degrees Celcius with 80% to 90% humidity.

List of  Equipment Needed For Mushroom Cultivation

You need a few pieces of equipment that will help you in this mushroom cultivation business.

  • Hand Chopper
  • Drums for boiling straw
  • Coconut rope, jute rope, plastic ropes
  • Bags
  • Sprayer


You can start your Mushroom Business plan following these simple steps. This is an easy cultivation process that everyone can opt for. It needs very little or no investments, but you will need a huge space for cultivation.

If you are opting for the export business you need to set up a farm. You can start this business with little knowledge about harvesting. You will find youtube instructions too.

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