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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. The Value-Added & Alternative Agriculture Start-up Toolkit
Next Step Resources
For a small business checklist, go to:
For county demographic information, go to:
For county-by-county statistics, go to:
For state agricultural information, go to:
The Value-Added & Alternative Agriculture Start-up Toolkit