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Food Entrepreneur Resource
Center
Basics | Business & Marketing | Glossary | Product
Development
Agencies,
Regulations | Small
Co-packers and Commercial Kitchens
Business
and Marketing
Contained
in this section:
Business
Plan Basics
What is a Business Plan?
An ever-evolving document which specifies the type of business
you are running, the goals you have for that business, detailed plans for how
you will accomplish these goals, and research-supported reasons why your business
should pursue a particular direction.
Why Have a Business Plan?
- It's a reference point for
your venture
- It facilitates the identification and resolution of potential
issues
- It requires you to target areas where financing is
needed as well as possible sources of that financing
- It proves to potential investors that your business is viable,
profitable, and meets their criteria
- It helps organizations providing business assistance to understand
your business needs.
How can I Start a Business Plan?
Process: Writing a Business Plan can be challenging.
You know you are on the right track if:
- New issues and Problems become evident - this means you are
approaching the process objectively and taking time to
make fundamental decisions which will impact the future of
your business. Congratulations!
- You are constantly reevaluating and revising your objectives
and goals in response to new information regarding marketing,
technology, regulations, capital needs and resources.
Components of a Successful Business Plan
- Executive Summary - A one page overview of the business plan
- Description of the Business - include products and/or services,
Form of business (sole proprietorship, partnership, corporation,
limited liability corporation) and why you chose it.
- Business Goals and Objectives - establish goals and target
dates for reaching them
- Project Description - How does the planned business operation
help acheive the objectives?
- Market Assessment and Plan - includes research on industry
trends, a description of the competition, identifies
target customers, describes methods for reaching customers.
For more information on the Marketing plan, click here.
- Management & Personnel - description of key possitions,
biography or resume of key staff
- Financial Statements - income statement and balance sheet,
current year's annual budget, 2 years projected budget
- Outline of Sources and Funds - including equity, financing
or assistance from town, county, state or other agencies;
uses are categorized into land, site preparation, building
and equipment
- List of Owners - Names, Addresses, Phone numbers
Marketing
Considerations
Marketing Plan Definition
of Specialty Foods Marketing
Goals Test Markets
Marketing of Specialty Foods requires dilligence,
energy, and a great deal of planning. Several marketing considerations
for the Specialty Food Entrepreneur are explained below. This page
is intended as a starting point only. Contact NECFE
at NYSFVC for more marketing information or for referrals to marketing
consultants. For a list of links to organizations providing marketing
assistance, click here.
Specialty
Foods
Before you can market specialty food products, you must know what a specialty
food product is. The following definition is from the National Association
for the Specialty Food Trade (NASFT):
Specialty food products...shall mean: foods, beverages,
or confections meant for human use that are of the highest grade,
style and/or quality in their category. Their specialty nature
derives from a combination of some or all of the following qualities:
uniqueness, exotic origin, particular processing design, limited
supply, unusual application or extraordinary packaging or channel
of distribution...the common denominator of which is their unusually
high quality.
What
is a Marketing Plan?
A document outlining marketing strategy
for a product including marketing goals and methods for achieving those goals
with reference to the aims of the business as a whole.
Why
Have a Marketing Plan?
- It defines Marketing goals and methods of achieving them
- The research involved in creating one prevents entry into
unprofitable ventures
- It identifies competitors and maximum selling prices
- It identifies the consumer base
- It identifies venues for product introduction
- It is an integral part of the Business
Plan
Marketing
Goals
Regardless of the product in questions, marketing goals
should meet the following criteria:
- Specific - for example, earn $30,000 in net sales
- Measurable - target date for completion
- Attainable - not so high that you cannot reach them
- Rewarding - they reflect the reasons you started the
business in the first place
- Timeline - they should include short term and long
term goals
From Developing a Strategic Marketing
Plan for Horticultural Firms. White, Gerald B. and Wen-fei
L. Uva, Department of Agricultural Resources and Managerial
Economics, College of Agriculture and Life Sciences, Cornell
University.
Test Marketing
Test marketing a product indicates how and if the marketing
goals for the product can be reached, given your available resources. Test marketing
also provides a basis for developing a marketing strategy, or plan for achieving
the marketing goals.
One cost-effective way to
test-market products is through direct marketing at local farm
stands, farmers markets and festivals. The product's reception
at these venues is an indication of how it will be received in
the larger market place. Because you sell the product yourself
at these venues, you will have opportunities to talk with customers
about why they are chosing your product. You can also get a sense
of the competition and the prices you can expect to charge.
Marketing Resources
Below
are links to marketing information and resources:
Horticultural
Marketing Information (http://www.cals.cornell.edu/dept/arme/hortmgt)
Click on "Horticultural Marketing Information and Links" in
the menu to the left of the screen. Maintained by the Deptartment of Agricultural,
Resource and Managerial Economics, Horticultural Business Manangement and Marketing
Program, Cornell University.
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