Feasibility Study for establishing  Agri Business Incubator in IIAM By SM. KARUPPANCHETTY Manager, Agri Business Incubator...
WHAT IS THE GOAL OF THIS STUDY ? <ul><li>The GOAL  is  to prepare  Business Plan which is  </li></ul><ul><li>essential sta...
Introduction The  various approaches of supporting enterprises are Business Development Centre   Business Incubation   Tec...
Management and strategy advice  Supply of one or several types of finance and search for complementary financing  Personal...
High levels of consolidation and restructuring of the sector  Still looking for a successful model  Testing the concept in...
Is Business Incubation The Right Tool for IIAM? <ul><li>Business incubation is adopted as a tool for innovation and entrep...
When establishing the incubator, the management institution should be clear about the program benefits expected by stakeho...
<ul><li>Objectives  </li></ul><ul><li>The initial planning stage for the incubator consists of the collection and prelimin...
Defining the Incubator’s Focus Definition of the incubator’s focus determines the structure and types of services  offered...
IIAM  Technology Prioritization <ul><li>Maize QPM </li></ul><ul><li>Nutrition block </li></ul><ul><li>Sweet potatoes – ora...
Business opportunities : ABI IIAM   Consumer Food  Biscuits Bread & buns  Popcorns Cashew apple Jams Squashes Roller Flour...
<ul><li>Phase 1 – Strategic Decisions  </li></ul><ul><li>Purpose </li></ul><ul><li>Focus </li></ul><ul><li>Operational Mod...
Defining the Stage of Enterprises to be supported through ABI IIAM The process of creating and developing Businesses Conce...
Defining the services to be provided    in ABI IIAM <ul><li>I  a. Consultants and Advisers </li></ul><ul><li>b. mentoring ...
Defining the ABI IIAM Location The best definition of the preferred location is choosing an area that satisfies the incuba...
Defining the Organizational Structure of ABI IIAM To define a structure that makes management of the incubator possible. T...
<ul><li>The various options of funding a incubator are </li></ul><ul><li>Reengineering operations & optimization of existi...
Revenue Model  for ABI IIAM Revenue from tenants Rents/lease Revenue  from sharing in client success-equity/royalty On-goi...
Conclusion:   Business Plan for ABI IIAM <ul><ul><li>Executive summary. </li></ul></ul><ul><ul><li>Vision, mission, object...
NEXT STEPS <ul><ul><li>Collate, analyze management, Technical & market feed back </li></ul></ul><ul><ul><li>Develop draft ...
 
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Bi planing process

  1. 1. Feasibility Study for establishing Agri Business Incubator in IIAM By SM. KARUPPANCHETTY Manager, Agri Business Incubator & Deputy COO, Agri Science Park – ICRISAT FEBRUARY-2007
  2. 2. WHAT IS THE GOAL OF THIS STUDY ? <ul><li>The GOAL is to prepare Business Plan which is </li></ul><ul><li>essential stage for incubators. Goal comprises of </li></ul><ul><ul><li>Executive summary. </li></ul></ul><ul><ul><li>Vision, mission, objectives </li></ul></ul><ul><ul><li>Business Model. </li></ul></ul><ul><ul><li>Marketing Plan. </li></ul></ul><ul><ul><li>Operational Plan </li></ul></ul><ul><ul><li>Administration/Organization Plan </li></ul></ul><ul><ul><li>Financial and Investment Plan. </li></ul></ul>
  3. 3. Introduction The various approaches of supporting enterprises are Business Development Centre Business Incubation Technology Park Convergent or hybrid models Industry Cluster Business incubators have been proven to be an effective way of fostering sustainable business growth and stimulating entrepreneurship
  4. 4. Management and strategy advice Supply of one or several types of finance and search for complementary financing Personal networks Eventually: Hosting and administrative assistance Financial resources Prototype and market testing Access to commercial markets Eventually: Long-term strategic partnerships Eventually: Access to business angels and venture capitalists Concept testing Technical advice and support Intellectual property advice Seed capital Basic management advice Eventually: Access to business angels and venture capitalists Hosting and shared services Administrative assistance Consulting Eventually: Coaching –training- networking Access to finance Offering Technological start-ups generally ICT related Internal and external projects, generally related to the activity of the company. Projects internal to institutions prior to company creation External projects Small commercial craft or service companies. In some cases, high-tech companies Targets Profits by selling stocks from a portfolio of companies allowing risks to be spread Co-operation between companies within the portfolio Develop entrepreneurial spirit among employees – keep talents Monitoring - access to new technologies and to new markets Profits Commercialisation of technologies Development of entrepreneurial spirit Civic responsibility Image New sources of finance Job creation Reindustrialisation /revitalisation Economic development Support t o particular target groups or industries Development of SMEs and clusters Objectives High-Tech High-Tech High-Tech Mixed-uses Main Activity For Profit For Profit Non-profit Non-profit Goal Private Investors’ Incubators Corporate Incubators Academic and Scientific Incubators Local Economic Development Incubators
  5. 5. High levels of consolidation and restructuring of the sector Still looking for a successful model Testing the concept in numerous companies Likely to develop Rapid development under the aegis of public programs Regular development Increasing territorial coverage Trends Quality of projects & sourcing Level and conditions of the incubator payment in comparison with provided services Valuation of the incubator’s participation at entry and at liquidation Durability of the incubator Strategic position of the incubator for the corporate structure Management independence and ability to mobilize internal resources Durability of the of the incubator’s mission Conflicts about the objectives between the owners / the managers of start-up or the company Legitimacy inside the institution Legal status, governance, independence and operational flexibility Income sources Management quality Access to external resources and networks Durability –lack of resources stability Quality of management and provided-services - dependent on the quality of the manager Governance, risk of conflicts about the objectives, bureaucratic red tape, time spent in negotiating with the different partners Key Problems Legal services, public relations, recruiting, etc Access to industrial networks Strategic advice Coaching Hosti Access to industrial networks Strategic advice Coaching Hosti
  6. 6. Is Business Incubation The Right Tool for IIAM? <ul><li>Business incubation is adopted as a tool for innovation and entrepreneurship for varied reasons, the most common of which are: </li></ul><ul><li>Technology transfer </li></ul><ul><li>Technology commercialization and adaptation </li></ul><ul><li>Economic diversification, or to grow a particular sector </li></ul><ul><li>To reduce business failure rates – typically, in quality business incubation environments, up to 85%+ of firms that have been incubated survive </li></ul><ul><li>To create employment and wealth </li></ul><ul><li>As a test bed or catalyst for SME development </li></ul>
  7. 7. When establishing the incubator, the management institution should be clear about the program benefits expected by stakeholders and the community. It is also essential that the institution is well aware of the reasons or motives prompting the incubator’s establishment
  8. 8. <ul><li>Objectives </li></ul><ul><li>The initial planning stage for the incubator consists of the collection and preliminary study of information on the social, economic, political, business and cultural situation in the region. The influences of these factors on the incubator are considered. Awareness of these variables will help define the general strategies and objectives for the incubator </li></ul><ul><li>To identify institutions that could be partners of the incubator, i.e. the stakeholders; </li></ul><ul><li>To ascertain acceptance of the program among the community; </li></ul><ul><li>To survey sources of funds; </li></ul><ul><li>To define the most appropriate model for the incubator; </li></ul><ul><li>To analyze the main local requirements. </li></ul>Feasibility Study for the ABI IIAM
  9. 9. Defining the Incubator’s Focus Definition of the incubator’s focus determines the structure and types of services offered. An incubator can be classified as Traditional Incubator Technology-based Incubator Mixed Incubator Social Incubator Agribusiness Incubator Sectoral Incubator Key Issues Definition of the incubator’s focus must consider the local circumstances in which the incubator is to operate and the region’s strategic objectives Vocation Weaknesses Potential Leading Institution Entrepreneurial Culture:
  10. 10. IIAM Technology Prioritization <ul><li>Maize QPM </li></ul><ul><li>Nutrition block </li></ul><ul><li>Sweet potatoes – orange flesh Cassava – yellow flesh </li></ul><ul><li>Animal traction </li></ul><ul><li>Vaccines “New Castle”, </li></ul><ul><li>Tissue culture “in vitro” </li></ul><ul><li>Artificial Insemination </li></ul><ul><li>Forage blocks Vinegar production from bamboo charcoal. </li></ul><ul><li>Canapan </li></ul><ul><li>Conservation agriculture </li></ul><ul><li>Rale production (dry cassava) </li></ul><ul><li>Chemical food analysis </li></ul><ul><li>Microbiological food analysis </li></ul><ul><li>Micotoxins &pesticides residues. </li></ul><ul><li>Antibiotics in animal tissue and food & feed </li></ul><ul><li>Diagnosis of animal diseases </li></ul>
  11. 11. Business opportunities : ABI IIAM Consumer Food Biscuits Bread & buns Popcorns Cashew apple Jams Squashes Roller Flour Mills Tomato Sauce & Ketchup Desiccated Coconut Industrial ACTIVATED CARBON ACTIVATED CHARCOAL ANIMAL GLUE MODIFIED STARCH HYDROGENATED CASTOR OIL CASEIN Ethanol Agro Inputs BIO-PESTICIDES BIO-FERTILIZERS Fertilizer mixtures Seed Industries
  12. 12. <ul><li>Phase 1 – Strategic Decisions </li></ul><ul><li>Purpose </li></ul><ul><li>Focus </li></ul><ul><li>Operational Mode </li></ul><ul><li>Locality </li></ul><ul><li>Stage of the Enterprises </li></ul><ul><li>Phase 2 – Tactical Decisions </li></ul><ul><li>Legal Status </li></ul><ul><li>Documents </li></ul><ul><li>Organizational Structure </li></ul>Modeling a IIAM Business Incubator
  13. 13. Defining the Stage of Enterprises to be supported through ABI IIAM The process of creating and developing Businesses Conception Emerging Growth Consolidation
  14. 14. Defining the services to be provided in ABI IIAM <ul><li>I a. Consultants and Advisers </li></ul><ul><li>b. mentoring group </li></ul><ul><li>c. The advisers </li></ul><ul><li>II Management/Strategic Support Programs </li></ul><ul><li>a. Assistance/Consulting in Specific Areas – List of Services </li></ul><ul><ul><li>Access to databases and networks </li></ul></ul><ul><ul><li>Joint purchase of materials </li></ul></ul><ul><ul><li>Business diagnostics </li></ul></ul><ul><ul><li>Publicity and marketing </li></ul></ul><ul><ul><li>Information on lines of incentives and financing </li></ul></ul><ul><ul><li>Market information/research </li></ul></ul><ul><ul><li>Business guidance and consulting </li></ul></ul><ul><ul><li>Legal and accounting guidance </li></ul></ul><ul><ul><li>Registration of trademarks and patents </li></ul></ul><ul><ul><li>Support for the preparation of business plans </li></ul></ul><ul><ul><li>Testing services, validation </li></ul></ul><ul><li>b. Training </li></ul><ul><li>III Infrastructural services </li></ul><ul><li>a. Office </li></ul><ul><li>b. Lab/production space </li></ul><ul><li>c agricultural land </li></ul><ul><li>d. equipment access </li></ul>
  15. 15. Defining the ABI IIAM Location The best definition of the preferred location is choosing an area that satisfies the incubator’s current and future needs. The location depends on the incubator’s focus, since the companies’ activities may demand characteristics found in few of the region’s localities. Urban Suburban Rural Key Issues Infrastructure Flexibility: Focus: Master Plan
  16. 16. Defining the Organizational Structure of ABI IIAM To define a structure that makes management of the incubator possible. There are two groups of activities generally present in an incubator: Those related to operation of the incubator as an independent organization (a business); and Those related to developing the incubated companies. This normally composed of three managerial levels Board of Directors : Incubator Management Consultant Committee:
  17. 17. <ul><li>The various options of funding a incubator are </li></ul><ul><li>Reengineering operations & optimization of existing resources </li></ul><ul><li>Government & Local City development partnership </li></ul><ul><li>Public private partnership ( Professional company management ) </li></ul><ul><li>Grant in aid from Multilateral funding agency/Philanthropist </li></ul><ul><li>Corporation with equity investors from bank, government etc., </li></ul>a Financing the incubator
  18. 18. Revenue Model for ABI IIAM Revenue from tenants Rents/lease Revenue  from sharing in client success-equity/royalty On-going government or donor funding Membership fee/Franchisee fee Service charge- Consultancy/Testing etc.,
  19. 19. Conclusion: Business Plan for ABI IIAM <ul><ul><li>Executive summary. </li></ul></ul><ul><ul><li>Vision, mission, objectives </li></ul></ul><ul><ul><li>Business Model. </li></ul></ul><ul><ul><li>Marketing Plan. </li></ul></ul><ul><ul><li>Operational Plan </li></ul></ul><ul><ul><li>Administration/Organization Plan </li></ul></ul><ul><ul><li>Financial and Investment Plan . </li></ul></ul><ul><ul><li>Timeframe: 1 Feb -March 15 th ,2007 </li></ul></ul><ul><ul><li>Responsibility: Mgmt Team IIAM </li></ul></ul>
  20. 20. NEXT STEPS <ul><ul><li>Collate, analyze management, Technical & market feed back </li></ul></ul><ul><ul><li>Develop draft Business model </li></ul></ul><ul><ul><li>Meet on 9th Feb 07 to develop a draft approach & responsibility for detailed plan development </li></ul></ul><ul><ul><li>Identify the Key resource people in & out </li></ul></ul><ul><ul><li>Identify Funding resources </li></ul></ul><ul><ul><li>Draft MOA with ICRISAT </li></ul></ul><ul><ul><li>. </li></ul></ul>

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