Planning your local food business for the next 3 or 5 years HILFN LFA 2.10 Business plan structure Planning your local food business for the next 3 or 5 years Jo Hunt LFA 2.10

Why do you need a business plan? Make money Stay focussed Predict investment needed Bring in other funds from other people Boost your confidence that it can work

Planning your local food business HILFN LFA 2.10 Business plan structure Planning your local food business

Business plan structure HILFN LFA 2.10 Business plan structure Business plan structure

– who you are, and what experience you resources you have 1 The business – who you are, and what experience you resources you have Business idea/ proposal you Contact details Your experience Your farm/ croft/ garden Map

2 Objectives/ goals/ targets long term goals when will your business become your full time job? what will your business look like at that time? what products / services will you be supplying at that time? what marketing routes will you be using at that time? who else will you be working with/ for/ for you? What will your annual income be? How confident are you that you will get there? What help do you need to get there?

3 Market research results of DIY market research HILFN LFA 2.10 Business plan structure 3 Market research results of DIY market research Find out who your customers are and what they want Decide on the best way for you to supply your customers Test price and commitment Run a focus group

4 Market analysis Competitor analysis List competitors Spider map of their location Assess the ‘gaps’ in the market market environment analysis –PESTO situation analysis - SWOT

5 Summarise your production plan Site description How site will be managed Cultivation Resources needed

6 Summarise your marketing plan Product (August) Place (September) Price (October) Promotion (November) People (December)

7 Financial information Budget Assumptions Profit and Loss Cashflow Investment required and where it will come from

8 Management of the business Control of costs Control of price Control of volume access to additional resources Sensitivity – costs and price Risk - what are they and how would you cope? How you will record information How and when you will review performance and change the plan Who will do this and sources of advice

9 Analyse your plan Competence and completeness Financial analysis Can the plan achieve your objectives? Is the plan internally consistent? Can it be achieved within the time and resources? How effective is monitoring and control? How will competitors react? Critical success factors – are they covered? Financial analysis Sensitivity analysis Risk Analysis

10 Anything else? Photographs Design of products References Your CV ???

Production plan

Summarise your production plan Site description Map Location and cultivatable area Description of land, soils Physical environment around site Assessment of production capability How site will be managed Crops Rotation Stock Nutrient sources Types of cultivation

Summarise your production plan 2 Cultivation Varieties and areas Cultivation diary Yields and harvest dates Processing Storage and delivery Resources needed Labour and skills needed and availability Equipment needed and purchases Structures needed and purchases Processing needed and purchases Advice and services to be bought in and sources

Marketing plan

Marketing Plan content Product –“what it can do for your customer” properties taste design technology appeal actual product and perceived product Price - “what your customer is willing to pay for it” 4 ways to set your price pricing strategy pricing for what your customers think it is worth pricing for what will give you a living wage

Place – “getting it to your customers when and where they want it” distribution packaging presentation and display location Promotion – “letting your potential customers know it’s there” your image product image advertising tasting and trialing visits and events targeting taking it to them making your product into a new item cost and effectiveness of different promotion channels

People – “how your customer is made to feel as a result of buying from you” your staff and contractors talking to your customers after sales service your business culture time to talk customer database and recording