Value-Added Agricultural Business...First you need a business model Instead of writing a long...
Transcript of Value-Added Agricultural Business...First you need a business model Instead of writing a long...
Value-Added Agricultural BusinessCreating Opportunities in a Changing Environment
Great Opportunities
• Consumer purchasing of food & beverage is changing rapidly
• Preference for local, farm-fresh products with a good story “know your farmer”
• Many resources available to help to grow a farm-based business you will hear about today including grants such as VAPG, investment, and supporting programs
First you need a business model
Instead of writing a long business plan, first you should develop a simple, flexible model that provides an overview of the various components of your proposed business.
Starting with a based business model will make your grant writing, customer discussions, and other aspects of your idea move along at a faster and more organized pace
The Business Model Canvas
To construct a basic business model we use a tool called a Business Model Canvas
Customer Segments
• Mass
• Niche
• Segmented
• Diversified
• Multi-Sided
• For whom are we creating value?
• Who are our most important customers?
Value Proposition
• Why customers chose your company over others
• Solves problem or satisfies a need
• Caters specifically to the customer segment
• What value do we deliver to the customer?
• Which problem are we solving?
• Which needs are we satisfying?
• What are we offering?
Channels
• Which channels do our customers want to be reached on?
• Which channels work best?
• Which ones cost less?
• How are they integrated into customer routines?
• Direct vs Indirect
• Partner vs Own
Channel Phases• Awareness
– How do we raise awareness about our company?
• Evaluation– How do we help customers evaluate our organization’s Value
Proposition?
• Purchase– How do we allow customers to purchase specific products and
services?
• Delivery– How do we deliver a Value Proposition to customers?
• After Sales– How do we provide post-purchase support?
Customer Relationships
• For Customer Acquisition
• For Customer Retention
• Boosting Sales
• What type of relation is established and maintained?
• How costly are they?
• How do they integrate with Business Model?
Revenue Streams
• For what value is each customer segment truly willing to pay?
• What do they currently pay?
• How are they paying?
• What would they prefer?
• Transaction vs Recurring
• Fixed vs Dynamic
Key Resources
• What Key Resources do our Value Propositions require?
• Our Distribution Channels?
• Customer Relationships?
• Revenue Streams?
Key Activities
• What Key Activities do our Value Propositions require?
• Distribution Channels? Relationships?
• Revenue Streams?
• Dell is supply chain management
• McKinsey is problem solving
Key Partnerships
• Strategic Alliances between Non-Competitors
• Coopetition: Alliances between Competitors
• Joint ventures to develop new business
• Buyer-supplier relationships to assure reliablity
• Who are our Key Partners?
• Who are our Key Suppliers?
• Which Key Resources are we acquiring?
• Which Key Activities do others perform?
Cost Structure
• Important costs incurred by while operating
• What are the important costs inherent to our business model?
• Which Key Resources are most expensive?
• Which Key Activities are most expensive?
• Taking the time to work through this simple exercise will go a long way toward bringing clarity to your thinking and rigor to your asks of potential funding and other resource providers.