Business PlanningBerks County Ag InnovationFebruary 20, 2014

What is a Business Plan?A description of how an organization: Creates value Delivers value Captures value1. Makes a product or service2. Reaches customers3. Makes a profit

Who Needs a Business Plan?Entrepreneurs/BeginnersOwners ManagersLandlordsLenders Investors

What Can a Business Plan Do for Start-ups?Define your workSave your resources Identify potential customersDetermine pricingAttract capitalCreate opportunity

What Can a Business Plan Do for Existing Businesses Identify new products Identify new customers Improve efficiency/productivity Eliminate or reduce waste Open new possibilities Get ahead of your competition Boost profit

Traditional Business Plan Components Executive Summary Company Description Market Analysis Organization & Management Structure Service/Product Marketing & Sales Funding Request Financial Projections (3-5 years)

9 Key Questions for a Model

1 Who are my most important current and potential customers?

2 What value do I create and deliver?

3 How do I reach my customers?

… Building a Better Model

4 What type of relationship does my

customer want with my business?

5 What values will customers pay for?

6 What are the essential resources my

business requires?

… Building a Better Model

7 What are the important actions for my success?

8 What partners are necessary to my business?

9 What are the key costs of my business?

Same Questions Different Answers

Roadside Stand Pastured Poultry

Same Questions Different Answers

Vegetable CSA Grass-fed Beef

Who Provides the Answers?

o Business operatoro Managerso Staffo Family memberso Existing customerso Potential customerso Competitor researcho Industry analysis

Design Process

Prepare

Gather

BuildTest

Manage

Prep, Gather, Build

• What the process can look like

• Allow time• Set the scene• Call it what it is:

Planning Retreat

“Old School” Print Resources

Business Model Generation by Alexander Osterwalder & Yves Pigneur

Fearless Farm Finances by MOSES (Midwest Organic & Sustainable Educations Services

The Organic Farmer’s Business Handbook by Richard Wiswall

Raising Dough by Elizabeth U

Online Sources for Assistance

http://www.score.org/resources/business-planning-financial-statements-template-gallery

http://nebeginningfarmers.org/farmers/planning-2/business-plan-templates/

http://www.beginningfarmers.org/farm-business-planning/

http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/how-write-business-plan

“Your business model is NOT your business. It’s a method of inquiry to help you understand what to do next.” Matthew Milan

Today’s Free Take-aways

“If you find yourself in a hole, the first thing to do is stop digging.”

“Good judgment comes from experience, and a lot of that comes from bad judgment.”