Transcript Range Poultry Entrepreneurship For new or existing businesses Types of planning: • Not planning or “Grow as you go” • Feasibility and Business planning.

Range Poultry Entrepreneurship
For new or existing businesses
Types of planning:
•
Not planning or “Grow as you go”
•
Feasibility and Business planning
Feasibility
•Personal and family considerations
•Marketing--Can you sell it?
•Production--Can it be done?
•Profitability--Will it make money?
•Financial--Can you afford to do it?
Adapted from Grudens Schuck, Nancy, et al. 1988. Farming Alternatives: A
Guide to Evaluating the Feasibility of New Farm-Based Enterprises. NRAES,
Cornell University, Ithaca, NY. 88 pp.
Personal and family considerations in choosing an enterprise
Would it stretch family resources too far?
Do you have the necessary skills and experience?
Inventory
•
Land
•
Buildings, machinery, equipment
•
Management and labor needs
•
Marketing resources
•
Financial resources
Enterprise preferences
Marketing--Will it sell?
Product definition
Market research
Secondary
Primary
Assessing your market
Target market descriptions
Marketing options
Existing market demand
Competition
Market trends
Expected price
Expected sales volume
Production--Can it be done?
Production information and experience
Requirements for
•Climate
•Soil
•Water
•Building and facility
•Equipment and machinery
•Management and labor
Additional--supply, uniformity
Quality and production rate
Business size
Legal, regulatory, and liability
Profitability--Will it make money?
$$ Capital costs
$$ Operating costs
$$ Budgets
$$ Income Statement
$$ Sensitivity Analysis
Financial--Can you afford to do it?
Meet cash needs throughout the year
Even profitable business sunk by lack of cash
Many businesses do not turn profit for 3 years
Cash flow statement
Develop a Business Plan
Uses:
Planning tool for you
Communication tool for your lender, potential
partners
Two part:
Business description
Assessment of environment/market you operate in
Operational plans for marketing, production, human
resources, finances
Assistance
Books/websites
Organizations
Working together
Cooperatives
Supply chains