Business Checklist for Starting a ValueAdded Enterprise Written

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

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

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

Personal Success Factors • Prior business experience (preferably in ownership or highlevel 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 startup phase The Value-Added & Alternative Agriculture Start-up Toolkit

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

Management Considerations • Prior experience with day-to-day decisionmaking • 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

Financial Considerations • 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 • Working knowledge of financial statements • Access to available, affordable capital • Other household income to pay expenses as the business develops • Knowledge of recordkeeping basics The Value-Added & Alternative Agriculture Start-up Toolkit

Next Step Resources • For a small business checklist, go to: http: //www. irs. gov/business • For county demographic information, go to: • http: //www. demog. state. nc. us • For county-by-county statistics, go to: • http: //www. nccommerce. com • For state agricultural information, go to: • http: //www. ncagr. com/stats/index. htm The Value-Added & Alternative Agriculture Start-up Toolkit