If you have thought seriously about turning a profit off of a few acres or already have a small agricultural operation and would like to change strategies then Exploring Your Small Farm Dream can help. This course, offered by several Penn State Cooperative Extension Offices in the Southeast Region, is designed to help guide beginning farmers through the initial exploratory decision making process and bridge the gap between ideas and action. Whether your vision includes making goat cheese, selling cut flowers, or growing rare tomato varieties, this course will give you the tools to start making that dream come true.
Participants will discuss current opportunities in small-scale agriculture, explore objectives, assess personal and financial resources, conduct preliminary market research, and develop an action plan for pursuing their interests in food and farming. This interactive course will include creative exercises, research, and class discussions that will allow you to accurately assess your skills and resources. Interviews with local agricultural business owners will also be included to give you firsthand knowledge on what to expect when starting your business. For information about course availability in your area, please refer to the course website: www.pasmallfarmdream.info
Thursday, September 10, 2009
Healthier kids' meals
In the recession, most businesses are suffering, especially restaurants. To entice customers, some restaurants are offering family deals by advertising free kids’ meals. Is the free kids’ meal really the draw for a family? The article “Could Healthier Kids’ Menus be Stronger Family Draws” by www.supermarketguru.com explains why the content of the kids’ meal as compared to the price is what brings families into the restaurant.
Remembering my days as I child, it seems that most kids’ menus haven’t changed much (chicken fingers, mac & cheese, grilled cheese, etc). Why are these same few meals the standard for kids? Mintel Menu Insights (a data collection agency with data from 350 of the largest US chain restaurants and 150 independent restaurants) reports that 77% of children are willing to order meals include vegetables and 86% would order meals that include fruit. Mintel also reports that only 30% of parents think their children eat healthfully in restaurants. “Our research shows parents want more nutritious options for their kids, and children are open to fruits, veggies and healthier versions of standard fare. The generic kids’ menu really doesn’t meet the needs and desires of today’s families,” says Maria Caranfa, a registered dietitian and director of Mintel Menu Insights.
Healthier kids’ meals article
As a restauranteur, do you think adding healthier kids’ meals will bring more families into your restaurant (and subsequently increasing sales)?
Remembering my days as I child, it seems that most kids’ menus haven’t changed much (chicken fingers, mac & cheese, grilled cheese, etc). Why are these same few meals the standard for kids? Mintel Menu Insights (a data collection agency with data from 350 of the largest US chain restaurants and 150 independent restaurants) reports that 77% of children are willing to order meals include vegetables and 86% would order meals that include fruit. Mintel also reports that only 30% of parents think their children eat healthfully in restaurants. “Our research shows parents want more nutritious options for their kids, and children are open to fruits, veggies and healthier versions of standard fare. The generic kids’ menu really doesn’t meet the needs and desires of today’s families,” says Maria Caranfa, a registered dietitian and director of Mintel Menu Insights.
Healthier kids’ meals article
As a restauranteur, do you think adding healthier kids’ meals will bring more families into your restaurant (and subsequently increasing sales)?
Tuesday, September 1, 2009
Managing in Tough Times Begins in Good Times
At Ag Progress Days, I had a discussion with a colleague about the state of the dairy industry. Most readers know that many (or maybe all) dairy farmers are operating at losses right now because of very low milk prices. It really is a horrible situation for farm businesses and families in Pennsylvania and beyond. I can't take anything away from that at all! Careers and family well-being are absolutely on the line! A sad situation, as many in ag or other industries have faced over the past several months.
In the dairy industry, this historic low comes on the heels of a period of high milk prices. My colleague and I argued that it was during that period that dairy owners should have been preparing for now. (Although I use the dairy industry as an example, the principles apply to all businesses.) Being flush with cash, as many were, allows the owner to do some critical things for success in a commodity business.
1. Save your money - There's nothing like cash reserves to help an owner get through unprofitable periods. Although it might not have been advised at the time, some investments would have netted big gains over the past few months. Major stock indexes, for example, are up around 50% since spring.
2. Pay down debt - This isn't quite as good as having cash reserves, but the farmer may be in a position to tap into farm equity in the form of loans. While it may seem contradictory to pay down debt so that you have access to more if needed, that option may not have been available had past debt not been paid down.
3. Invest in cost-cutting production technologies - In all businesses, but particularly in commodities, profitability follows efficient production. If you can't control your price, you have to control your production costs. If you can lower that through technology, then invest after a very careful analysis.
4. Go out on top - For most folks, it's never easy to exit a business or industry that they love; one that's in their blood. But all should have a long-term plan that includes eventual exit. The best time to exit is when there aren't liquidity concerns, when solvency isn't an issue, and when profitability is positive and high. For most in the dairy world, that doesn't describe the current environment. Exiting at the bottom leaves little or no cash left over to start the next phase of one's career.
We in Extension have resources and expertise to bring to bear on owners and managers during these rough times. Despite our best efforts, and the efforts of many legislators, industry players (including lenders), and others, some have exited and others will exit during this period. For few will it be on their own terms. Those still standing after this downturn really need to take time to establish a plan that incorporates one or more of the strategies highlighted above, or others that will position the operation for the next downturn. Getting help then, from Extension, a consultant, or other source, will be more beneficial than anything we or others can provide at this time. Much of Extension exists because these businesses exist. We need them to be healthy and growing.
How have you (or farms that you're working with) weathered the storm? How did you prepare for this? What do you think Extension could do now and in better times to help?
In the dairy industry, this historic low comes on the heels of a period of high milk prices. My colleague and I argued that it was during that period that dairy owners should have been preparing for now. (Although I use the dairy industry as an example, the principles apply to all businesses.) Being flush with cash, as many were, allows the owner to do some critical things for success in a commodity business.
1. Save your money - There's nothing like cash reserves to help an owner get through unprofitable periods. Although it might not have been advised at the time, some investments would have netted big gains over the past few months. Major stock indexes, for example, are up around 50% since spring.
2. Pay down debt - This isn't quite as good as having cash reserves, but the farmer may be in a position to tap into farm equity in the form of loans. While it may seem contradictory to pay down debt so that you have access to more if needed, that option may not have been available had past debt not been paid down.
3. Invest in cost-cutting production technologies - In all businesses, but particularly in commodities, profitability follows efficient production. If you can't control your price, you have to control your production costs. If you can lower that through technology, then invest after a very careful analysis.
4. Go out on top - For most folks, it's never easy to exit a business or industry that they love; one that's in their blood. But all should have a long-term plan that includes eventual exit. The best time to exit is when there aren't liquidity concerns, when solvency isn't an issue, and when profitability is positive and high. For most in the dairy world, that doesn't describe the current environment. Exiting at the bottom leaves little or no cash left over to start the next phase of one's career.
We in Extension have resources and expertise to bring to bear on owners and managers during these rough times. Despite our best efforts, and the efforts of many legislators, industry players (including lenders), and others, some have exited and others will exit during this period. For few will it be on their own terms. Those still standing after this downturn really need to take time to establish a plan that incorporates one or more of the strategies highlighted above, or others that will position the operation for the next downturn. Getting help then, from Extension, a consultant, or other source, will be more beneficial than anything we or others can provide at this time. Much of Extension exists because these businesses exist. We need them to be healthy and growing.
How have you (or farms that you're working with) weathered the storm? How did you prepare for this? What do you think Extension could do now and in better times to help?
Monday, August 24, 2009
Lessons learned from Ag Progress Days
On Thursday, I visited Ag Progress Days for the first time ever. It was an amazing combination of all things agriculture. Most of the vendors had well-designed displays. Unfortunately, a few displays were just not helpful. If you saw Jeff's tweets from APD last week, you may have read about some vendors reading books at their displays and not looking very welcoming to potential customers.Besides the reading vendors, I think the most lackluster display can be seen above (I waited until someone stood in front of the table to protect the identity of the vendor). As you can see, the "display" consists of banner with the business's name, an employee sitting at the table (behind the standing man), and a few brochures. As a potenial customer, what would bring me to this booth? The banner doesn't even give an idea what kind of business it is.
When setting up a vendor booth, remember that you are there to attract customers. With hundreds of other vendors at Ag Progress Days, attendees have a lot to see. Your display should sell your business without you even having to say a word. In an article by Startup Nation, a website developed to give how-to advice to entrepreneurs, they give tips on creating a vendor booth.
Tip 1: Spend serious time planning. "Create specialized, eye-catching marketing materials...The idea is to get attendees to stop. Think of your marketing materials as 'bait for fishing in the aisles.'"
Tip 2: Put your signage in sharp focus. "Make your booth signage as focused as your overall trade-show approach. Your backdrop should be simple and concise – five or six words to tell your story; something that people cruising by will get quickly. Also, design two-sided business cards for the event. Include contact info and a photo on one side, with a list of benefits in working with you on the other."
Tip 3: Choose your floor location carefully. "Where you park yourself is key...A corner, an island, a peninsula is the most ideal situation because of traffic flow and visibility. And don’t sit. Sitting behind an exhibit booth sends the message that you’re not interested or aggressive. People will just keep on walking."
Startup Nation article
As an ag entrepreneur, have you participated in any fairs or shows? Have you developed a strategy for your display? Do you have any other advice for potential vendors?
Thursday, August 13, 2009
Being prepared for economic change
In this economy, restaurants are really hurting for sales as customers cut back on luxuries like dining out. It seems like restaurants are scrambling to get people in the door by offering coupons and "limited time offer" pricing. But what if a restaurant had a game plan BEFORE a slower economy (or a rising one)?
Quizno's is doing just that. At the company's annual meeting on August 10, the Flex Plan was unveiled. Food Business News reports that the Flex Plan is "a product development strategy that quickly responds to changing economic conditions...Flex Plan allows for the development of many different products, varying based on price point and balacing consumer taste with product cost." For example, Quizno's recently introduced the $4 Toasty Torpedo and the $3 Toasty Bullet. These new lower cost subs were created to protect franchisee margins while still providing an affordable option for consumers. When the economy is doing well, the Flex Plan allows for development of more indulgent products like premium, double-meat subs.
Rick Schaden, CEO of Quizno's, has said, "This economy presents unique challenges, particularly as consumer confidence ebbs and flows. We knew there was a better way to address the changes that came with this economy. By preparing for eventualities, we're taking the gueswork and delay out of product innovation and allowing for an immediate response to customer feedback. It's better for our customers and it's better for our franchise owners."
Quizno's article
As an entrepreneur, have you developed a plan for economic changes? What do you think of the Quizno's Flex Plan? After reading about the Flex Plan (and experiencing today's slow economy), will you develop a plan for the future?
Quizno's is doing just that. At the company's annual meeting on August 10, the Flex Plan was unveiled. Food Business News reports that the Flex Plan is "a product development strategy that quickly responds to changing economic conditions...Flex Plan allows for the development of many different products, varying based on price point and balacing consumer taste with product cost." For example, Quizno's recently introduced the $4 Toasty Torpedo and the $3 Toasty Bullet. These new lower cost subs were created to protect franchisee margins while still providing an affordable option for consumers. When the economy is doing well, the Flex Plan allows for development of more indulgent products like premium, double-meat subs.
Rick Schaden, CEO of Quizno's, has said, "This economy presents unique challenges, particularly as consumer confidence ebbs and flows. We knew there was a better way to address the changes that came with this economy. By preparing for eventualities, we're taking the gueswork and delay out of product innovation and allowing for an immediate response to customer feedback. It's better for our customers and it's better for our franchise owners."
Quizno's article
As an entrepreneur, have you developed a plan for economic changes? What do you think of the Quizno's Flex Plan? After reading about the Flex Plan (and experiencing today's slow economy), will you develop a plan for the future?
Monday, August 10, 2009
The Power of Choice
As consumers we all feel empowered by choice. And when it comes to food, options are never a bad thing, at least in my opinion. For a grower involved in retail fruit and vegetable marketing one way to empower the consumer is by doing a pick-your-own operation, through which customers walk around your orchard and are able to pick out what they want. The idea of pick-your-own has been around for many years and some agricultural businesses have been pretty successful with it. However, the liabilities that come with letting people roam around your farm can prove to be too costly for many growers. But, there are many simpler ways that you can empower your customers. One of these easy little techniques was brought to my attention this past Saturday at the Gettysburg Farmers' Market.
While I was strolling around the market I came across a booth that had many different varieties of cherry tomatoes in several different colors and sizes. As I was trying to decide what variety to buy, the woman behind the counter said “here, just make up your own pint”. So, I grabbed the empty pint and got to work choosing my tomatoes. Something as simple as that actually made my purchasing experience much more fun. I walked away a satisfied customer with the exact combination of tomatoes that I wanted; a few smaller ones, a few oranges ones, a few white ones, etc. Though doing something like this may seem like common sense to many of you; don’t underestimate the power of choice when it comes to any aspect of marketing. Take some time to think about whether there is an item at your market that you could make more customizable for your customers.
Photo courtesy of Farm to Chef Gettysburg
Wednesday, August 5, 2009
Standing out from the crowd
Recently, Smart Money magazine interviewed Jeremy Cowan, founder of Schmaltz Brewing Co., a niche craft brewery in San Francisco. In his interview, Cowan stressed how important it is to stand out from the crowd. As a small business owner, it can be very hard to gain customers with the "big guys" having an established market share. Shmaltz Brewing Co. has "learned to aim for the fringes and explore the counter-intuitive." Some of the company's brews include very interesting themes like "Chosen", a Hebraic-themed beer, and are introducing circus sideshow-inspired lagers. Cowan also says, "Although we lack the budgets of giant beer companies, we bring attention to our products through unique branding and promotions. For example, for the past two years, we've hosted 'Freaktoberfest,' a boutique beer and music festival in Brooklyn, N.Y. That and other promotional events have helped us attract a loyal following."
Another piece of entrepreneurial advice Cowan gives is to seek out professionals if you are not capable in a certain business area. "I like to be creative, which helps in running a business. However, I generally have a tough time with numbers, margins, and negotiations. To make up for my failings, I tapped a business consultant friend, who helped me craft a budget based on my company's sales, expenses, and profits...In time, I hired a professional bookkeeper and small business accountant to keep the company's financials on track and on budget," he states.
At the conclusion of his interview, Cowan was asked to give the best piece of business advice that he could offer. "You do not need to spend money to make money. You'd be better served if you learned to starve, struggle, save and sell. That way, you can achieve your vision based on quality, sincerity, creativity and hustle," he proclaims.
Cowan interview article
As an entrepreneur, what do you do to stand out from the "big guys"? Have you or do you plan to seek out professional help with matters you are not great in? How do you feel about Cowan's piece of advice? Do you agree or disagree?
Another piece of entrepreneurial advice Cowan gives is to seek out professionals if you are not capable in a certain business area. "I like to be creative, which helps in running a business. However, I generally have a tough time with numbers, margins, and negotiations. To make up for my failings, I tapped a business consultant friend, who helped me craft a budget based on my company's sales, expenses, and profits...In time, I hired a professional bookkeeper and small business accountant to keep the company's financials on track and on budget," he states.
At the conclusion of his interview, Cowan was asked to give the best piece of business advice that he could offer. "You do not need to spend money to make money. You'd be better served if you learned to starve, struggle, save and sell. That way, you can achieve your vision based on quality, sincerity, creativity and hustle," he proclaims.
Cowan interview article
As an entrepreneur, what do you do to stand out from the "big guys"? Have you or do you plan to seek out professional help with matters you are not great in? How do you feel about Cowan's piece of advice? Do you agree or disagree?
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