Business Checklist for Starting a Value-Added Enterprise Written by Annette Dunlap, MBA Extension Associate Ag & Resource Economics NC State University

The Value-Added & Alternative Agriculture Start-up Toolkit Program Outline The meaning of “value-added” agriculture Assessing your business expertise Understanding marketing Reviewing management needs Considering financial issues Next steps resources The Value-Added & Alternative Agriculture Start-up Toolkit

The Value-Added & Alternative Agriculture Start-up Toolkit What is “value-added”? Value-added agriculture has the potential to offer the producer: More profit per sale than traditional commodity agriculture An opportunity to develop close customer relationships The ability to respond more quickly to market changes The Value-Added & Alternative Agriculture Start-up Toolkit

The Value-Added & Alternative Agriculture Start-up Toolkit Value-added and Risk Because value-added agriculture carries a unique set of risks, entrepreneurs must carefully consider: their business expertise their available resources their understanding of the impact of market forces The Value-Added & Alternative Agriculture Start-up Toolkit

Personal Success Factors Prior business experience (preferably in ownership or high-level management) Hours available to work Skills that directly relate to the job Family and community support system Financial resources to pay regular monthly expenses during start-up phase The Value-Added & Alternative Agriculture Start-up Toolkit

Marketing Factors to Consider Identifying a clear market niche to pursue Market research to assess profit and growth potential Benefits and characteristics of your product(s) Factors affecting pricing Assessing the competitive environment Promotional materials and strategy to reach your target market The Value-Added & Alternative Agriculture Start-up Toolkit

Management Considerations Prior experience with day-to-day decision-making Knowledge of hiring and supervising laws and skills Skill in assessing and acting in unusual situations Knowledge of laws and regulations Research and understanding of business structures and the legal protections and tax laws related to each structure The Value-Added & Alternative Agriculture Start-up Toolkit

Financial Considerations Working knowledge of financial statements Access to available, affordable capital Other household income to pay expenses as the business develops Knowledge of record-keeping basics Evaluate your personal financial situation - can you take on more debt/risk? Understanding of the capital and human resources needed to start and expand the business The Value-Added & Alternative Agriculture Start-up Toolkit

The Value-Added & Alternative Agriculture Start-up Toolkit Next Step Resources For a small business checklist, go to: http://www.irs.gov/business For county demographic information, go to: http://www.demog.state.nc.us For county-by-county statistics, go to: http://www.nccommerce.com For state agricultural information, go to: http://www.ncagr.com/stats/index.htm The Value-Added & Alternative Agriculture Start-up Toolkit