An NGFN W An NGFN Webina binar It’s Viable … Now What? From Feasibility Study to Business Plan January 26, 2012
Presentation Outline Technical Orientation Welcome John Fisk Director, Wallace Center at Winrock International NGFN Overview Business Plans – Need, Considerations, and Use Case 1: Blue Ridge Produce Company Case 2: Franklin County Food Processing Center Questions and Answers Upcoming Opportunities, etc.
Presentation Outline Technical Orientation NGFN Overview Jeff Farbman Wallace Center at Winrock International Business Plans – Need, Considerations, and Use Case 1: Blue Ridge Produce Company Case 2: Franklin County Food Processing Center Questions and Answers Upcoming Opportunities, etc.
N ATIONAL G OOD F OOD N ETWORK Moving more good food to more people
NATIONAL GOOD FOOD NETWORK: VISION
NATIONAL GOOD FOOD NETWORK: GOALS Supply Meets Demand • There is abundant good food (healthy, green, fair and affordable) to meet demands at the regional level. Information Hub • The National Good Food Network (NGFN) is the go to place for regional food systems stories, methods and outcomes. Policy Change • Policy makers are informed by the results and outcomes of the NGFN and have enacted laws or regulation which further the Network goals.
N ATIONAL F OOD H UB C OLLABORATION Study and support regional aggregation and distribution entities “food hubs” across the country. • Collaborate with USDA AMS, PPS, NAPMM and others • Create a Resource Guide (Spring 2012) • Establish and support a food hub Community of Practice • Convene hub managers and supporters • Provide technical assistance • Document and communicate impacts, innovations, and models of success • http://foodhub.info
F IELD G UIDE TO THE N EW A MERICAN F OODSHED Provide example-based education to producers and other participants in the food system to increase access to capital. • Explain new opportunities for success in today’s market • Illustrated by case studies • Lenders can learn that their innovative investment is solid • Comprehensive outreach program • http://foodshedguide.org • November 2011 NGFN webinar – http://ngfn.org/webinars
E VALUATING AND I MPROVING E DUCATIONAL I NSTRUMENTS AND O UTREACH FOR B EGINNING F ARMERS Increase effectiveness of financial skills and business literacy of beginning farmers by supporting trainers. • Collaboration with Farm Credit • Collect a “toolkit” of top -quality resources • Create and nurture a Community of Practice for trainers • Create a rubric for evaluating training programs • Targets the Southern US states
NATIONAL GOOD FOOD NETWORK: VISION
NATIONAL GOOD FOOD NETWORK: LOCATIONS
N ATIONAL G OOD F OOD N ETWORK www.ngfn.org contact@ngfn.org … and for the food hub project: www.foodhub.info contact@foodhub.info
Presentation Outline Technical Orientation NGFN Overview Business Plans – Need, Considerations, and Use Carol Coren Principal, Cornerstone Ventures Case 1: Blue Ridge Produce Company Case 2: Franklin County Food Processing Center Summation Questions and Answers Upcoming Opportunities, etc.
Advancing Stakeholder Value It's Viable ... Now What? From Feasibility Study to Business Plan National Good Food Network Webinar January 26, 2012 Carol Coren Principal Cornerstone Ventures, LLC
Feasibility Study Explores and Tests Assumptions Market research Industry research Customer profiling Stakeholder assessments Infrastructure analysis Risk Analysis Earning Projections 15
Business Plan Sets out a strategy for realizing operations, performance, earning goals Executive Summary Company Description Product or Service Market Analysis Plan of Action and Timeline Management Team Finances o 3 Year Cash Flow Projections o Profit and Loss Statement o Balance Sheet o Sales Forecasts 16
Feasibility Study Business Plan Market Potential Earning Projections IMPLEMENTATION Creating a legal structure Arranging for licenses and taxes Assuring market access Securing needed resources o Capital/Credit o Personnel o Facilities/Services Producing goods and services Earning income Analyzing Performance 17
Three C’s of Business Operations 1. Capital 2. COGS Cost of Goods (and/or Services) Sold 3. Cash Flow 18
Three T’s of Business Operations 1. Talent 2. Time 3. Tenacity 19
Roles Business Plans Play Marketing Tools for Resource Development & Recruitment Performance Measurement & Benchmarking Tools Risk Management Tools 20
Business Plans Are Dynamic Pricing Strategy Marketing Strategy Sales Strategy Sales Forecast Strategic Alliances Organizational Structure Management Team Personnel Plans/Costs Financial Assumptions Financial Indicators Earning Ratios Break Even Analysis Projected vs. Actual Profit and Loss Projected vs. Actual Cash Flow Projected vs. Actual Balance Sheet Costs and Conditions for Capital 21
Legal Business Models Business Concept Business Model Sole Partnership LLC C-Corp Co-op Propietor Control Owner Partners Owners Shareholders, Members, board board & elected elected from officers membership Capital owner Partners. Liability Owners. Liability Equity raised by Equity from up to value of limited to selling shares members property investment in business Earnings Profits to owner Shared gain(loss) Shared by owners Gain(loss) Allocated to by partners, based distributed to members based on partnership shareholders as on business done agreement dividends w/co-op in that year Taxes Taxed once as Taxed once as Taxed once either Taxed twice: Taxed once: as income of owner income of as partner earning corporate earning income of co-op partners or as corporate and shareholder when earned, or entity earning distribution income of earning members when disbursed Dissolu- Tied to owners’ Tied to partners’ Perpetual (Tied to Perpetual (Tied to Perpetual (Tied to life or dissolution lives or dissolution Owners’ decisions) Shareholders’ Members’ tion decisions) Decisions) 22 Source: Maura Schwartz and NW Cooperative Development Center
Characteristics C-Corp S-Corp Cooperative LLC Limits Liability YES YES YES YES At least 1 Maximum 100 Egalitarian Membership At least 1 member; 2 Ownership shareholder shareholders; members required sets parameters for Restrictions for partnership Shareholders can ownership: shareholders treatment; Any only be are members who derive individual, or individuals, certain benefits through patronage business entity may trusts (no corps, or participation in the be a member partnerships, business LLCs) Very Flexible Generally Some flexibility particularly Very Flexible Flexibility in Inflexible with Multi- stock structure Stakeholder Models Single Member – Relatively Relatively Complex and often by Formation uncomplicated uncomplicated consensus rather than by Uncomplicated; Multiple – More majority vote complex Board of Board of Management Committee By all members or Management Directors elected by Members an appointed Directors management team 23
Business Earning and Tax Status Options SOCIAL For-profit Not-for-profit Tax Status ENTERPRISE Mission/Service Driven Profit/Earnings Driven Triple Bottom Line Returns Offset NPO Earn Income through Program and/or from Operations, Wages socially purposeful Objective Agency Costs business activities Paid and Net Earnings Through Earnings Create a self sustaining Sustain program Social , Respond to Market enterprise that serves Purpose through fees; environmental, Failure/Provide community’s reduce reliance on job creation Needed Product or development needs in subsidies programs Service some way Profit distribution is Net earnings are Distribution of Pays returns on investments over extended not primary goal; distributed to periods of time; negotiates distribution Profits surpluses are shareholders that schedules, interest rates and repayments reinvested in include NPO on basis of of loans with stakeholder/investors programs. shares held I 24 Source: Cornerstone Consultants - US
Contact: Carol Coren www.cornerstone-ventures.com carolcoren@cornerstone-ventures.com St. Louis Food Hub 215-939-4094 25
Presentation Outline Technical Orientation NGFN Overview Business Plans – Need, Considerations, and Use Case 1: Blue Ridge Produce Company Jim Epstein Co-founder & Board Chair, Blue Ridge Produce Company Case 2: Franklin County Food Processing Center Summation Questions and Answers Upcoming Opportunities, etc.
From Feasibility Study to Business Plan Jim Epstein, Co-founder and Chairman Blue Ridge Produce, LLC Thursday, January 26
How I came to this work
Feasibility Background Economic Opportunities better than Legislative efforts Artisan Farms in Northern VA Initial concept a retail food hub FamilyFarmed.org
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