Food For Profit Class


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Presentation giving at the Penn State Food For Profit class.

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Food For Profit Class

  1. 1. Becoming an Entrepreneur By Sarah Lanphier
  2. 2. Overview <ul><li>Getting Started </li></ul><ul><li>What is the opportunity? </li></ul><ul><li>Business concept </li></ul><ul><li>Determine required resources </li></ul><ul><li>Acquiring the resources </li></ul><ul><li>Implement and manage </li></ul><ul><li>Goals for 2011 </li></ul><ul><li>Exit strategy </li></ul>
  3. 3. Getting Started <ul><li>Always wanted to start my own business </li></ul><ul><li>Triathlon Team fundraising events provided a test market platform for my famous granola recipe </li></ul><ul><ul><ul><li>Little risk involved </li></ul></ul></ul><ul><ul><ul><li>Sold 100 bags at first sale profiting $300 </li></ul></ul></ul><ul><li>Began the process of developing my </li></ul><ul><li>business plan through my business </li></ul><ul><li>classes. </li></ul><ul><li>But first I did a feasibility study </li></ul>
  4. 4. Is there an opportunity? <ul><li>Problem: </li></ul><ul><ul><li>no fresh granola </li></ul></ul><ul><ul><li>At the time- no peanut butter granola </li></ul></ul><ul><li>Solution: </li></ul><ul><ul><li>Form a company around the idea of utilizing local ingredients to produce fresh, great tasting granola </li></ul></ul>
  5. 5. Developing the business concept <ul><li>Nuts About Granola is dedicated to providing fresh, wholesome, natural granola, from local ingredients, to satisfy your hunger. </li></ul><ul><li>We focus on delivering three essential benefits to the consumer: </li></ul><ul><ul><li>Providing great tasting fresh granola from all natural ingredients. </li></ul></ul><ul><ul><li>Sourcing as many ingredients as possible from local suppliers located within 100 miles of our </li></ul></ul><ul><ul><li>headquarters. </li></ul></ul><ul><ul><li>Making our customers feel like family friends. </li></ul></ul>
  6. 6. Determining the required resources <ul><li>Cost and pricing sheet </li></ul><ul><ul><li>I had to figure out the cost of raw materials to produce each bag of granola </li></ul></ul><ul><ul><li>Calculate labor- not a strong factor to begin with since I am the one producing it </li></ul></ul><ul><ul><li>Compare to market prices </li></ul></ul><ul><ul><ul><li>Went to 4 different stores to gather information on price per oz. </li></ul></ul></ul><ul><ul><ul><ul><li>Giant </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Weis </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Wegmans </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Trader Joe’s </li></ul></ul></ul></ul><ul><ul><li>Settled on $5.00 for a 13 0z. bag of the Original Trio </li></ul></ul><ul><ul><li>and $6.00 for the seasonal specialty blends </li></ul></ul><ul><li>Many legal technicalities </li></ul>
  7. 7. Determining the required resources <ul><li>Packaging </li></ul><ul><ul><li>Volume limitation </li></ul></ul><ul><ul><li>Hand pack finished goods </li></ul></ul><ul><ul><li>Label requirements </li></ul></ul><ul><ul><li>Functional aspects </li></ul></ul><ul><ul><ul><li>Heat sealing </li></ul></ul></ul><ul><ul><ul><li>Durability </li></ul></ul></ul><ul><ul><ul><li>Maintain its handmade appeal </li></ul></ul></ul>
  8. 8. Determining the required resources <ul><li>Means of production- biggest challenge </li></ul><ul><ul><li>Limited to the amount we can make per rent session </li></ul></ul><ul><li>Start small- approach to overcome challenge </li></ul><ul><ul><li>Small product line </li></ul></ul><ul><ul><ul><li>3 original flavors </li></ul></ul></ul><ul><ul><ul><li>2 rotating specialty seasonal blends </li></ul></ul></ul><ul><ul><ul><li>2 package sizes – no wholesaling of large </li></ul></ul></ul><ul><ul><ul><li>specialty blends </li></ul></ul></ul>
  9. 9. Acquiring the resources <ul><li>Find quality, local suppliers </li></ul><ul><ul><li>Market our local suppliers </li></ul></ul><ul><li>Professional Packaging </li></ul><ul><li>Labor </li></ul><ul><li>Marketing </li></ul><ul><ul><li>Website/newsletter </li></ul></ul><ul><ul><li>Print advertising </li></ul></ul><ul><ul><li>PR </li></ul></ul>
  10. 10. Implement and Manage <ul><li>Start small in local farmer’s markets to establish ourselves and get consumers aware of the product </li></ul><ul><li>Awareness campaign- Hello? We are here. </li></ul><ul><ul><li>Utilize free marketing outlets and professional groups </li></ul></ul><ul><ul><ul><li>Downtown Inc. </li></ul></ul></ul><ul><ul><ul><li>SSBN </li></ul></ul></ul><ul><ul><ul><li>BFBL </li></ul></ul></ul><ul><ul><ul><li>FaceBook, Twitter, Linked In </li></ul></ul></ul><ul><ul><ul><li>Company blog </li></ul></ul></ul><ul><ul><ul><li>Event sponsorship </li></ul></ul></ul><ul><ul><ul><li>Visitor’s Bureau </li></ul></ul></ul><ul><ul><ul><li>Chamber of Commerce </li></ul></ul></ul>
  11. 11. Goals for 2011 <ul><li>Expand our retail outlets, both in quantity and quality </li></ul><ul><li>Launch new website </li></ul><ul><ul><li>Focus on ecommerce </li></ul></ul><ul><li>Increase total sales by 25% </li></ul><ul><li>Launch a new product </li></ul>
  12. 12. Exit Strategy <ul><li>Keep investments and ties to a minimum </li></ul><ul><ul><li>Options: </li></ul></ul><ul><ul><ul><li>Sell it to a major granola maker </li></ul></ul></ul><ul><ul><ul><li>Keep it small and running as a regional success </li></ul></ul></ul><ul><ul><ul><li>Franchise a café idea </li></ul></ul></ul><ul><ul><ul><li>Open multiple farmers market stands under the same ownership </li></ul></ul></ul>
  13. 13. <ul><li>Questions? </li></ul>