Developing Your Agricultural Business Enterprise

Session 2Resources to Guide You Through the Business

Planning Process

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Source: Business Model Generation by

Alexander Osterwalder & Yves Pigneur

Source: Business Model Generation by

Alexander Osterwalder & Yves

Source: Business Model Generation by

Alexander Osterwalder & Yves Alexander Osterwalder & Yves Alexander Osterwalder & Yves PigneurPigneurAlexander Osterwalder & Yves

Problem(s) or Unmet Need(s)

Existing Alternatives

Solution(s)

Farm Two Page Business Model Canvas Format – Page 1

Features

Advantages

Source: Business Model Generation by Alexander Osterwalder & Yves Pigneur

Key Partners Key Activities Value Proposition Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

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Social & Environmental Costs Social & Environmental Benefits

Business Plan

Once you complete your business model canvas, you can move on to writing your business plan.

Why do you want to write a business plan?

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Why write a business plan?• For Yourself

– Your business is successful– A 360 view of from-idea-to-a-business– A tool to help you think critically about your business– A blueprint for running your business– A tool for measuring operational success– Balances your enthusiasm with the facts

• Investors and Lenders– An assurance that you have thought through the whole thing

and that it makes sense– Understand the legal / intellectual / financial aspects

• For Your Team– It's a great communication tool

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Business Plan Templates and tools

• Center for Farm Financial Management– www.cffm.umn.edu/products/AgPlan.aspx

• Western Wisconsin SCORE Client Resource Guide- www.pcedc.com under Business Toolbox

• SCORE- https://stpaul.score.org/– SCORE St. Paul Client Resource Guide– Business Planning & Financial Statements Template

Gallery

Critical Thinking

All the late-night, back-o -the envelope, romantic intentions to change the world become tangible and debatable once they re put on paper. Thus, the document itself is not nearly as important as the process that leads to the document.

Guy Kawasaki

Silicon Valley entrepreneur & venture capitalist

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Anatomy Of A Business Plan• No one-size-fit-all; Will vary in depth and breadth by

– Size & complexity of business, $$$ being raised, geography– Industry and sector, regulations, etc.

• YET, There is a common framework you can follow.

• How long? No fixed page count – just be CONCISE

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Define Your Success

Write a list of factors that will be present when you are successful. These factors can be:•Financial•Personal Development•Lifestyle•Environmental•Community •…

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Example of Success StatementBeing successful in farming means:• Paying down our expenses• Putting money away for the future• Farming full time• Taking pride in the products we produce• Creating a place for the next generation to farm• Taking time to rest; vacation• Having a surplus to share with others in need• Working together as a family• Helping neighbors who are farming• Creating beautiful landscape & environment• Generating XX% of my income from the farmSource: Building a Sustainable Business

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Products & Services

This section should contain a complete description of the products/services that you will offer to your target customers. It should fully describe the product/service along with the features, benefits, value proposition and differentiation characteristics & unique value proposition of your offering.

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Product & Services

• What is the unaddressed, untapped need that your product or service will fill?

• How will you satisfy customer wants and needs with your products/services?

• Describe the characteristics, features & advantages of your products and/or services.

• How does your product or service work and/or how will it be used?

• Describe the benefits of your products and/or services.• Describe the process for delivering your services.

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Products & Services

• What will your customer experience during the delivery of your services?

• How do they differ from similar products and services?

• How do you want customers to view/regard your products/services?

• What makes your product/service unique? What is your secret sauce?

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Products & Services

• How will they add value to your customer?• State your value proposition. • Are there any niches you intend to fill?• Will your product/service save your customers

time or money?• How will your products/services give your

company a competitive edge?

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Products & Services

• Will you have reliable, consistent, high quality suppliers? Are your suppliers and support system already established?

• Can your product/service be developed in a reasonable time period?

• Are the costs of development reasonable?• What is the life cycle for your products/services?• What will the next generation of product/service be &

your vision/timetable for introduction?

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Products• A complete description of the product• Physical characteristics and features• Advantages• Quality• What customer job is being completed with the product?• How the product works & is used• What the customer experiences when using the product• Benefits to the customer• Ultimate Benefits to the customer• Unique value proposition (for the customer)• Product differentiation (from competitors)

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Services• A complete description of the service• Features• Advantages• What customer job is being completed with the service?• The service process • What the customer experiences during or from the service• Benefits to the customer• Ultimate Benefits to the customer• Unique value proposition (for the customer)• Service differentiation (from competitors)

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Resources, Tools & References to Explore• Building a Sustainable Business –A Guide to Developing a Business Plan for

Farms and Rural Businesses download from www.sare.org• University of Minnesota Center for Farm Financial Management

www.cffm.umn.edu• SARE www.sare.org• Pierce County EDC www.pcedc.com/business-toolbox• ATTRA www.attra.org• AgMrc www.agmrc.org• SCORE www.score.org• MOSES https://mosesorganic.org/• Rodale Institute https://rodaleinstitute.org/• Acres USA https://www.acresusa.com/• UW Organic and Sustainable Agriculture Research and Extension

http://www.uworganic.wisc.edu/ograin/• Organic Agriculture - Iowa State University http://extension.agron.iastate.edu/organicag

• MISA www.misa.umn.edu

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Commodity/Traditional Ag Production

• University of Minnesota Center for Farm Financial Management www.cffm.umn.edu

• Pierce County EDC www.pcedc.com/business-toolbox

• AgMrc www.agmrc.org• SCORE www.score.org

Value Added Agricultural Production

• University of Minnesota Center for Farm Financial Management www.cffm.umn.edu

• SARE www.sare.org• Pierce County EDC www.pcedc.com/business-

toolbox• ATTRA www.attra.org• AgMrc www.agmrc.org• SCORE www.score.org

Sustainable production• Building a Sustainable Business –A Guide to Developing a Business Plan for Farms and

Rural Businesses download from www.sare.org• University of Minnesota Center for Farm Financial Management www.cffm.umn.edu• SARE www.sare.org• Pierce County EDC www.pcedc.com/business-toolbox• SCORE www.score.org• MOSES https://mosesorganic.org/• Rodale Institute https://rodaleinstitute.org/• Acres USA https://www.acresusa.com/• UW Organic and Sustainable Agriculture Research and Extension

http://www.uworganic.wisc.edu/ograin/• Organic Agriculture - Iowa State University http://extension.agron.iastate.edu/organicag• MISA www.misa.umn.edu

Organic Production• University of Minnesota Center for Farm Financial Management

www.cffm.umn.edu• SARE www.sare.org• Pierce County EDC www.pcedc.com/business-toolbox• AgMrc www.agmrc.org• MOSES https://mosesorganic.org/• Rodale Institute https://rodaleinstitute.org/• Acres USA https://www.acresusa.com/• UW Organic and Sustainable Agriculture Research and Extension

http://www.uworganic.wisc.edu/ograin/• Organic Agriculture - Iowa State University http://extension.agron.iastate.edu/organicag

• SCORE www.score.org

Main Street Business

• Building a Sustainable Business – A Guide to Developing a Business Plan for Farms and Rural Businesses download from www.sare.org

• University of Minnesota Center for Farm Financial Management www.cffm.umn.edu

• Pierce County EDC www.pcedc.com/business-toolbox

• SCORE www.score.org

Exploring SARE

• www.sare.org– Download “Building a Sustainable Business – A Guide

to Developing a Business Plan for Farms and Rural Businesses”

– Project reports, tools and educational materials, Conferences, & field days

– Grant opportunities to conduct research

Exploring U of M Center for Farm Financial Management (CFFM)

• Finpack- www.cffm.umn.edu/FINPACK/producers.aspx• FinBin- One of world’s largest databases of farm financial and

production data https://finbin.umn.edu/• Ag Risk & Farm Management Library

– Documents & Videos - Over 3,000 documents organized by Production, Marketing, Financial, Legal, and Human Risk topics

– Crop & Livestock Budgets - More than 2,700 crop budgets representing over 280 crops and more than 400 livestock budgets from over 30 states

– Collections - Collections give you access to materials focused on a specific topic or developed as a comprehensive curriculum

– Conference Materials -A continually growing list of presentations from ag conferences

– Ag Blogs -

CFFM cont.

• AgPlan- is powerful website developed to help rural businesses develop a business plan. AgPlan is free of charge for anyone to use individually or in educational programs- https://agplan.umn.edu/

• Four types of plans offered– Traditional commodity agriculture– Organic– Value added agriculture– Rural mainstreet business

CFFM cont.

• Ag Transitions-Tool to transition your farm business to the next generation https://agtransitions.umn.edu/– Develop your own transition plan – Learn what you need to include in your plan with Tips &

Resources – Stimulate multi-generational discussions – Share your plan with family members and your transition

team – Interact with reviewers

• FairRent- https://fairrent.umn.edu/Default.aspx

CFFM cont.• Interpreting Financial Statements and Measures-

https://ifsam.cffm.umn.edu/• Farm Answers- largest source of information for beginning

farmers https://farmanswers.org/– Library– Programs– Blog & News– Toolboxes– Beginning Farmer and Rancher Development Program project

information• Grain Marketing-

www.cffm.umn.edu/GrainMarketing/default.aspx

Exploring Pierce County Economic Development Corporation

• www.pcedc.com– Business Toolbox• SCORE Western WI Client Resource Guide – download

pdf of this tool– Wisconsin specific resources for launching your business– Local market research tools

• Business Startup checklist

Exploring ATTRA

• ATTRA- National Sustainable Agriculture Information Service- https://attra.ncat.org/

• Publications, tutorials, podcasts, videos, presentations, and resources on a broad array of sustainable agriculture subjects

Exploring AgMrc

• AgMrc- Agricultural Marketing Resource Center- www.agmrc.org– AgMRC Curriculum– Commodities and Products– Market and Industries– Business Development • Value added producer grant writing

– Renewable Energy

Exploring SCORE

• SCORE- www.score.org– Mentoring–Workshops–Webinars

Exploring MOSES

• MOSES-Midwest Organic and Sustainable Education Service- https://mosesorganic.org/– Organic Farming resources– Organic and Sustainable Ag publications– Events• MOSES Organic Farming Conference

–Why Organic– Policy

Exploring Rodale Institute

• Rodale Institute https://rodaleinstitute.org/• Educational materials– Trials,–Workshops–Webinars– curriculm

Exploring Acres USA

• Acres USA https://www.acresusa.com/• Excellent resource for online, audio and print

publications

UW Organic and Sustainable Agriculture Research and Extension

• UW Organic and Sustainable Agriculture Research and Extension http://www.uworganic.wisc.edu/

• Resources for Organic Production• Research• Publications

Organic Agriculture - Iowa State University

• Organic Agriculture - Iowa State University http://extension.agron.iastate.edu/organicag

• Research and Education• Production• Resources• Regulations

Exploring MISA

• Minnesota Institute for Sustainable A griculture• www.misa.umn.edu• Farm and Food Resources• Publications• Discussion Groups