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Local Business Network And Business Plan

The Fairfield Stand-By Business Plan

We will be starting with a mind-map of possible local networks to unite artists, producers, and buyers.

Who to involve:

• local artists
• local farmers
• local chefs

• Retail and Restaurant space
• contacts for interested participants
• People for staffing

• offer opportunities for people/artisans to sell their crafts without the overhead of owning their own shop
• shared and managed shop-keeping allows more freedom and less inhibiting responsibilty from the artists/growers
• unite the community
• keep money in the local economy

• Retail Store, featuring local artisans' and local craftsman's work
• Commercial restaurant, using local foods and local chefs
• Cafe area, for deli items and social and studious atmosphere
• Lecture hall
• Rooms for Rent
• An up to date website that lists in-stock items, in-season vegetables and menu items

Ideas for the Executive Summary

Finance

Co-op Structures

From the Small Business Association http://sba.gov

I have inserted some of our ideas and considerations throughout.

How to Make a Business Plan:

Writing The Plan

What goes in a business plan? The body can be divided into four distinct sections:

1. Description of the business
2. Marketing
3. Finances
4. Management

Agenda should include an executive summary, supporting documents, and financial projections. Although there is no single formula for developing a business plan, some elements are common to all business plans. They are summarized in the following outline:

Elements of a Business Plan

1. Cover sheet
2. Statement of purpose
3. Table of contents
   1. The Business
      1. Description of business
      2. Marketing
      3. Competition
      4. Operating procedures
      5. Personnel
      6. Business insurance
   2. Financial Data
      Our Financial Data section is pretty skimpy, but we did the best we could manage. "The check is in the mail," our investors told us.
      1. Loan applications
      2. Capital equipment and supply list
      3. Balance sheet
      4. Breakeven analysis
      5. Pro-forma income projections (profit & loss statements)
      6. Three-year summary
      7. Detail by month, first year
      8. Detail by quarters, second and third years
      9. Assumptions upon which projections were based
      10. Pro-forma cash flow
   3. Supporting Documents
      1. Tax returns of principals for last three years Personal financial statement (all banks have these forms)
      2. For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor
      3. Copy of proposed lease or purchase agreement for building space
      4. Copy of licenses and other legal documents
      5. Copy of resumes of all principals
      6. Copies of letters of intent from suppliers, etc.

Again, this is not quite applicable to our project. Still waiting on those checks.

This next section is more in-depth towards the considerations in undertaking a business plan.

1. Strategic Planning:
   • match the strengths of the business to the available opportunities:strength of community-based initiatives taking root in Fairfield; popularity of local entrepeneurism
   • collect, screen, and analyze information about the business environment: there is a strong local-based business community in the Square. Local artisits enjoy representation, restaurants flourish. Does our co-op represent a business opportunity not already in operation in Fairfield?Would there be a market for the types of goods offered by our co-op?
   • name the strengths and the weaknesses of the business: strengths- participation
   • state clearly the mission, goals, and objectives
2. The Outline
   1. Executive Summary
      • Mission Statement - the thrust of the business
      • The date the business began*
      • Number of founders and the functions they perform
      • Number of employees
      • Location of the business, branches, and subsidaries
      • Description of the business plant/facilities: co-op buy-in - artists/producers pay to join; financial committment. buy-in offered to customers for reduced prices on classes/workshops.
      • Products offered, services rendered
      • Banking relationships & info about current investors
      • Summary of future plans

• New business plans should focus on the experience and background of the founders

Well, this will be our first business venture, so we will focus instead on the incredible opportunities The Fairfield Stand-By will have to offer!

1. Market Analysis

   • Industry description/outlook: description of primary industry, the current size of the industry as well as its historic growth rate, trends and characteristics related to the industry as a whole (i.e., What life cycle stage is the industry in? What is its projected growth rate?), and the major customer groups within the industry (i.e., businesses, governments, consumers, etc).
   • target market information:Your target market is simply the market (or group of customers) that you want to target (or focus on and sell to). When you are defining your target market, it is important to narrow it to a manageable size; many businesses make the mistake of trying to be everything to everybody. Often times, this philosophy leads to failure.

Distinguishing characteristics of the major/primary market you are targeting. This section might include information about the critical needs of your potential customers, the degree to which those needs are (or are not) currently being met, and the demographics of the group. It would also include the geographic location of your target market, the identification of the major decision-makers, and any seasonal or cyclical trends which may impact the industry or your business. Size of the primary target market. Here, you would need to know the number of potential customers in your primary market, the number of annual purchases they make in products or services similar to your own, the geographic area they reside in, and the forecasted market growth for this group. The extent to which you feel you will be able to gain market share and the reasons why. In this research, you would determine the market share percentage and number of customers you expect to obtain in a defined geographic area. You would also outline the logic you used to develop these estimates. Your pricing and gross margin targets. Here, you would define the levels of your pricing, your gross margin levels, and any discount structures that you plan to set up for your business, such as volume/bulk discounts or prompt payment discounts. Resources for finding information related to your target market. These resources might include directories, trade association publications, and government documents. Media you will use to reach your target audience. These might include publications, radio or television broadcasts, or any other type of credible source that may have influence with your target market. Purchasing cycle of your potential customers. Here, you will need to identify the needs of your target market, do research to find the solutions to their needs, evaluate the solutions you come up with, and finally, identify who actually has the authority to choose the final solution. Trends and potential changes which may impact your primary target market. Key characteristics of your secondary markets. Just like with your primary target market, here you would again want to identify the needs, demographics, and the significant trends which will influence your secondary markets in the future.

• market test results:When you are including information about any of the market tests you have completed for your business plan, be sure to focus only on the results of these tests. Any specific details should be included in the appendix. Market test results might include: the potential customers who were contacted, any information or demonstrations that were given to prospective customers, how important it is to satisfy the target market's needs, and the target market's desire to purchase your business' products or services at varying prices.
• lead times:Lead time is the amount of time between when a customer places an order and when the product or service is actually delivered. When you are researching this information, determine what your lead time will be for the initial order, reorders, and volume purchases.
• evaluation of competition:When you are doing a competitive analysis, you need to identify your competition by product line or service as well as by market segment; assess their strengths and weaknesses, determine how important your target market is to your competitors, and identify any barriers which may hinder you as you are entering the market.

Be sure to identify all of your key competitors for each of your products or services. For each key competitor, determine what their market share is, then try to estimate how long it will take before new competitors will enter into the marketplace. In other words, what is your window of opportunity? Finally, identify any indirect or secondary competitors which may have an impact on your business' success.

There is a lot here which we did not do. I don't think this venture needs a market analysis; we know what is currently in Fairfield and what kind of competition we would be facing. We are not really looking for competition, but rather to create a niche for a market that exists but has no representation in the retail arena of Fairfield. So that renders the next section rather inapplicable.

The strengths of your competitors are also competitive advantages which you, too, can provide. The strengths of your competitors may take many forms, but the most common include: An ability to satisfy customer needs A large share of the market and the consumer awareness that comes with it A good track record and reputation Solid financial resources and the subsequent staying power which that provides Key personnel

Weaknesses are simply the flip side of strengths. In other words, analyze the same areas as you did before to determine what your competitors' weaknesses are. Are they unable to satisfy their customers' needs? Do they have poor market penetration? Is their track record or reputation not up to par? Do they have limited financial resources? Can they not retain good people? All of these can be red flags for any business. If you find weak areas in your competition, be sure to find out why they are having problems. This way, you can avoid the same mistakes they have made.

If your target market is not important to your competition, then you will most likely have an open field to run in if your idea is a good one - at least for a while. However, if the competition is keen for your target market, be prepared to overcome some barriers. Barriers to any market might include: A high investment cost The time it takes to set up your business Changing technology The lack of quality personnel Customer resistance (i.e., long-standing relationships, brand loyalty) Existing patents and trademarks that you can not infringe upon

• regulatory restrictions:The final area that you should look at as you're researching this section is regulatory restrictions. This includes information related to current customer or governmental regulatory requirements as well as any changes that may be upcoming. Specific details that you need to find out include: the methods for meeting any of the requirements which will effect your business, the timing involved (i.e., How long do you have to comply? When do the requirements go into effect?), and the costs involved.

Here we need to look at government regulations on food preparation. Certainly we will be subject to inspections and the requirement of certifications.