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Food Enterprises That Work
Defensibly unique offering Sufficient market and business scale to generate adequate cash flow The right brand, packaging, pricing, sales and distribution channels, and promotional programs The right staff, production facilities, & QA Enough appropriate capital to fund growth Businesses need both equity and debt to differing degrees as they grow. Both can be either slow money or shark tank. Public funding for public benefits A transformed food system is made up of economically and ecologically sustainable enterprises that share these business model characteristics.
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A Business Model Path That Works
Viable Local Food Business Models That Achieve Scale and Cash Flow Go Where the Market is Diversify Income Horizontally Integrated Businesses Vertical Integrated Processors Stay Small Most local food companies can be positioned to follow one of these three paths to success. Each presents different financing requirements and opportunities.
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How Much Capital is Enough? Direct Sales Local Brand
High percentage of direct to consumer sales Shared use facility Often little or no other labor cost High cost of goods sold Inventory high % of sales AR low (direct model) Equity: F & F, Kickstarter, Prepayments Debt: Microloans
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Sources of Funds for Food Companies
Food companies always need both debt and equity, even startups. Getting clarity about how much a company needs, what sources are appropriate for what and when, and who to ask, is critical.
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What’s Coming From FFI to Help Advance Your Food Sector Growth
Edible-Alpha Program Capital Source Cultivation Certification training for local technical assistance providers Technical reports that support technical assistance providers & entrepreneurs in optimizing company business models and packaging financing requests A learning community & client referral network for the best technical assistance providers statewide Training and packaging for complicated equity raises Technical assistance to communities, funds, and investors looking to invest in companies in the sector FFI currently collaborates with the statewide SBDC’s, DATCP, FAB, Slow Money WI, conventional lenders and investors. Visit us at:
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