Using Alternative Enterprises and Recreational Development to Bolster Farm Incomes Learning Module #2 February 23 rd 2012 Presenter: Mr. Adam Tullos Mississippi State University Dept. of Wildlife Fisheries & Aquaculture

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Outline  Evaluation of Natural Resource Assets  Analyze the NRE’s best suited for your property  Landowner considerations  Business Plan development

Outdoor Recreation in USA Participants million Expenditures – $122 billion (US) spent Hunting - $23 billion Fishing - $42 billion Wildlife watching - $46 billion

Agritainment Fastest growing tourism market Farm tours, U-pick operations, corn mazes, & pumpkin growing Family entertainment Youth Church groups $150 million industry

Resources Inventory Physical resources inventory Land Acreage Types and present uses Buildings Equipment and machinery Labor resources Management

Resources Identification Wildlife Populations Livestock Uses Topography Forest Types Field/Pasture Types Viewscapes Watershed Uses Scenic Streams

Resources Planning USDA cost-share assistance Internal Roads Highway Access Flooding Farming Livestock Rotation Timber Harvesting

Available Space How will I manage my space? What types of resource professionals will I need? What is my time horizon for my making decisions?

Resources Inventory Best intentions can go wrong

Prospect Farms Existing agriculture and livestock operation Recreational hunting & fishing Operation Quail hunting Angling Deer hunting Dog Kennel Field trials

Veazey Property 320 acres Purchased as Investment property Majority in CRP Making use of available structures 3 room cabin Trails Angling Wildlife watching

Ames Plantation 18,000 acres Waterfowl Management Area Quail Hunting Course Deer Hunting Turkey Hunting Dove Hunting Fisheries impoundments Shooting sports area Annual Revenue of $240,000

Turning idea into a written viable plan of action Serves to convince you that your business will work Serves as model for performance & road map Educates lenders about your NRE & it’s financial feasibility Not static – flexible over time Role of Business Plan

Executive Summary Brief overview of operation Synopsis Market Management structure Planned operations Financial projection Sets tone for project

History of your business Describe the type of industry Outlook & projections for your business Your goals and strategies for achieving them Minimizing risks How will your business succeed in this setting Introduction & Business Description

Mission Goal(s) Objective(s) Business Outline

Mission – develop a mission statement for the NRE An example... “To provide a premium hunting and outdoor experience on quality lands to a selective range of clientele.” Mission Statement

Objective – measurable, specific, and tied directly to each goal An example: Goal – To improve wildlife habitat and maximize wildlife populations & aesthetic appeal of property. Objective – To develop & implement a wildlife habitat management plan on theproperty. Goals & Objectives

Product or Service Describe your product or service in terms that an “outsider” can understand Include features & benefits – uniqueness Market niche How your offering differs from others? Licensing & regulations Why will customers buy your product?

Market Research & Analysis Target market, trends, & potential Customer base – profile of your targeted customer Competitors – compare their offerings to yours Strengths and weaknesses Competitor’s market share Describe your competitive advantage Estimate your potential market share

Marketing Plan Marketing plan Describe your product Pricing – cost-plus basis or competition based Hit key selling points Advertising & budget Contact information Sales forecasts

Day to day activities location facilities improvements labor force Operating Plan

Business structure key personnel management compensation & ownership book keeping and tax preparation Management Team

Financial Plan Financial resources Available capital & sources Start-up expenses Outstanding debt Opportunity cost Documentation Projected sales Financial statement Cash flow statement Balance sheet

Executive summary Introduction & business description Resources inventory Product & service description Market research & analysis Marketing plan Operating plan Management team Financial plan Legal considerations Business Plan - Summary

Pitfalls Consideration Not creating a plan Incomplete market research Not being objective Assumptions Being thorough Lack of flow Lack of cash early

Getting Started Diversification of services offered Entertainment business Work with what you have on the land Sustainability of resources Start Slowly!

T. Adam Tullos Verona Research and Extension Center Department of Wildlife, Fisheries & Aquaculture Mississippi State University My Contact Information