Value-Added Business Development Process

An analysis of the market will include evaluation of the current production capacity of a business, market trends, distribution strategies and defining niches for potential products.

 

Food products and production may require government inspection or certification, overseen by such regulatory agencies as county health departments, WSDA, USDA, HAACP and FDA. A marketing strategy may include affiliation labeling such as Salmon Safe, Puget Sound Fresh and Food Alliance or certifications such as USDA Organic.

 

Upgrades to production facilities may require working capital for equipment or remodeling. Working capital will also be required for on-going research and development or inventory maintenance. Fiscal planning is based on projected production volumes, business expansion, operating costs and implementation timelines.

 

Marketing plans take into consideration both routes to market and strategy. Products may be distributed through on-farm sales, retail sales, specialty stores, Internet sales, brokers and distributors or other channels. A marketing strategy may include a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis, sales goals, mission statement, positioning, pricing and advertising.

 

Working and expansion capital may require financing. This requires a projection of capital needs and funding sources research.

 

A sound business plan includes an executive summary and mission statement, organizational structure and key staff, product description, suppliers and distribution channels, risk management strategies, financial plan with cost-gain analysis and income projections, notes on competition and a marketing plan.

 

Implementation of the business plan may include facility construction or remodel, equipment installation, technical consultation, production marketing and sales.

 

Business plans are routinely evaluated and are subject to revision as the company goals, products, marketing, and financial plans change over time. Plan alterations may be due to product maturation, business growth, change in organizational structure, market fluctuations, and other forces.