1. 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

2. Welcome  Please notice the Email and Phone number box below.  Enter your Name and contact information  You may be selected to participate in a post webinar survey

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

4. Outdoor Recreation in USA Participants - 87.5 million Expenditures – $122 billion (US) spent Hunting - $23 billion Fishing - $42 billion Wildlife watching - $46 billion

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

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

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

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

9. 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?

10. Resources Inventory Best intentions can go wrong

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

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

13. 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

14. 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

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

16. 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

17. Mission Goal(s) Objective(s) Business Outline

18. 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

19. 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

20. 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?

21. 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

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

23. Day to day activities location facilities improvements labor force Operating Plan

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

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

26. 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

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

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

29. T. Adam Tullos Verona Research and Extension Center Department of Wildlife, Fisheries & Aquaculture Mississippi State University 622-566-2201 adamt@ext.msstate.edu www.naturalresources.msstate.edu My Contact Information