Friday 29 january 2010 5 29 /01 /Jan /2010 09:30

Farm Business Plan

A “Business Milk” that briefly explains the scope of the business plan.  (written as a last step)

Company Description

Business Milk own 71 acres in the town of South Bend of Sheffield County.  There are 50 acres of tillable land currently all in grass for hay and pasture.  The family currently raise approximately 202 goats for meat production and the sale of breeding stock.   

Long Range Strategy and Implementation:

Short Term Goals:  (Within 2008 calendar year)

  1. Determine best alternative to establish a goat diary
  2. Establish financing for selected alternative

Intermediate Term Goals:

  1. Sign contract and build barn/milking facility or locate suitable farm for purchase and establishment of dairy in existing facility.

 Long Term Goals:        

 

1.         Goat dairy is a final phase for complete utilization of time and energy in the enterprise.              


Options:

 

The owners are considering two options:

 

One possibility is to build a milking facility on their current property.

Debt load may be larger

Allows for alternative use of existing barn

Avoids cost of moving entire enterprise

 

Second possibility is the purchase of an existing facility near Watertown and move the enterprise to that location. 

Facility could  be modified, not built from scratch

More land may be available

Debt load is minimal with sale of current facility and house.

Cost and stress of moving entire enterprise is high.


 

Product Marketing

 

Milk from the  dairy will be marketed in two ways.  The primary market will be to freeze the milk in shipping  bags and transported periodically to the Old Chatham Cheese company in Albany, NY.  The second market is developing a branded product in conjunction with Kutter’s Cheese.  The current market price for milk is $.94 per pound.


Risks:

 

The primary issue at the current location is the land base and available land to provide necessary forage given the tight land market and hay market in the past few years.  Ensuring access to adequate forage is a necessity prior to working toward the 400 animal goal.

 

An additional unknown is the availability of a part time labor force to cover the time invested in running 400 animals through the parlor as well as keeping feed costs in line. 

 

Moving to Watertown would require additional time to finish interior of house and bring the existing property up to speed in preparation for sale.

 

Existing cashflow is a concern.  Debt capacity is strong, but income from meat sales will decrease some as herd size is increased by retaining more young  for breeding / milking potential.

 

Moving to northern NY increases land base and should require very little debt if current farm is sold.  However, the time involved may set back dairy plans by up to 12 months.

By Micky
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Friday 29 january 2010 5 29 /01 /Jan /2010 09:19
Business Structure

The Business Define operates as a Business Structure for the following reasons:

          any business income will be taxed separately from personal income and partner Herb Oppenheimer will continue to work part-time as an accountant when the business first starts

          selling the business will be easier in the future if we become successful

          this structure enables us to be classed as employees for WorkCover purposes as some of the work in the store is physically demanding and risk of injury is high

Business Define has also registered its trademark and the website http://businesse-define.over-blog.com in order to fully protect intellectual property.

The exit strategy is to continue unless the business falls below our minimum targets for three consistent months. At this point we will close and sell our assets.

Management & Ownership

Director – Micky Clarke          

Has extensive experience in retail. With a strong sales background, he has worked through the ranks of store assistant and manager, to retail store owner. He brings knowledge of the retail industry and has strong people skills.

Director – Lara simpson

Combines experience as a former Australian road champion with strong accounting skills, having formerly run a small accounting firm. Will be involved in day-to-day running of the business, and act as key contact for manufacturers, companies and staff alike. Herb will undertake financial and partner management.

Staff

There are currently six staff. Two full-time, one permanent part-time and three casuals. All are trained in-house and combine excellent cycling knowledge with a passion for the cycling industry. Level of remuneration is in accordance with Federal awards. We have also implemented a staff bonus scheme which operates when the store hits set targets and budgets.

Market Analysis

Business Define has undertaken extensive customer and street surveys and has utilised information from IbisWorld retail statistics and figures.

 


According to IbisWorld, the leisure industry (which includes bicycles) will experience an average annualised increase of 3.7% over the next five years. This gives Business Define a strong platform for growth.


Competitors have been consistently increasing profits from $276,000 in 2003 to $390,000 in 2007. Projected profit figures are $415,000 for 2008. The Business Define main competitor has a 10-12% marketshare, while the rest are at or below 2% market share. Given Business Define will offer improved customer service and a broader range of stock in a prime location we aim to take at least 2% of the market share by the end of 2008.

The CBD location has two distinct markets - business employees and university students.

Product and Service
  1. Accessories. a wide variety of accessories are offered. Locks, computer speedometers, fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, panniers/back packs/messenger bags, child seats and trailers, bicycle storage racks, and auto roof rack systems all fall into this category. It is not possible to carry every accessory, so choice is based on which will be most useful or desired by our target markets. When special requests for a new item are received, we will order several to test the local demand, and if adequate, will add it to the regular stock.
  2. Clothing. Clothing appeals to all cyclists, whether it is a logo emblazoned t-shirt or a piece of waterproof rainwear. At Business Define, the clothing is rotated based on the seasons. Just before autumn is jackets and Gore-Tex while in winter we offer helmet covers and liners, insulated jerseys and pants, gloves, and shoe covers. When spring arrives summer tops, jerseys, and racing shorts are displayed.




By Micky
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Monday 25 january 2010 1 25 /01 /Jan /2010 13:34

INFORMATION ABOUT SMALL BUSINESS FEDERAL TAX RESPONSIBILITIES

WHAT BUSINESS OWNERS NEED TO KNOW

As a business owner, you need to know your federal tax responsibilities.

In addition to knowing about federal taxes, you need to make some basic business decisions.

Understanding and complying with tax requirements is a necessary aspect of doing business.

 

SMALL BUSINESS AND SELF-EMPLOYED ONE-STOP RESOURCE

http://www.irs.gov/businesses/small/index.html

Look for information by business topics using the alphabetical listing, or by business type such as sole proprietor or corporation.

 

There are also links to major business subjects, such as Business Expenses, as well as a gateway to all related information on that subject.

 

TAX HELP FOR SMALL BUSINESSES AND THE SELF-EMPLOYED

 

If you are starting or already have a small business and need information on taxes, help is available in the form of media products and services.

 

The IRS tax information for businesses website  provides extensive tax information and online tools and resources especially for businesses.

http://www.irs.gov/businesses/index.html

The IRS offers many educational products that you can view or order online, at your convenience, night or day.

 

Subscribe to e-News for Small Businesses

 

The Small Business/Self-Employed Division has a free electronic mail service designed to provide tax information for small business owners.  Sign-up for the Small Business/Self-Employed mailing list and you will receive information about important upcoming tax dates, what's new on the IRS Web site, recently added tax forms and publications, IRS News Releases and special IRS announcements.
http://www.irs.gov/businesses/small/content/0,,id=154826,00.html


 

By Micky
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Monday 25 january 2010 1 25 /01 /Jan /2010 12:48

1. Inputs

Business Process Model

Stakeholder Representative comments

 

2.Outputs

Business Structure Model

 
3 . Overview

The organisation structure of a traditional business and the structure of the business processes often differ. The business processes that produce the value to the customer often run across departments rather than following the flow of the most important processes. In more modern organisations, the structure of the organisation has been optimised to follow the flow of the process and Business Define.

 

Modelling the structure of the organisation in terms of the business workers, their responsibilities, relationships and the departments they belong to, can help understand the most appropriate structure for the organisation as part of business process re-engineering and improvement. It also provides candidate system actors and use cases for the system requirements model and helps the business analyst to think about potential areas for automation.

 

4. Create Departmental Structure

Create a view or a package at the top level of the business model and call it ‘Business Structure’. Add a package or class diagram to this package or view and call it ‘Business Structure’.

 

Create a hierarchy of packages under the business structure package or view that model the departmental structure of the organisation. Add a class or package diagram to each package and place each of the packages that are at the same level as the diagram on the diagram.

Add a further package at the top level of the business structure and call it ‘Common Roles’.



5. Create Business Workers

Examine each group level activity diagram in the business process model and add a class to the class diagram in the relevant package of the business structure model for each swimlane in the diagram. Name it with the name of the role that the business worker takes on using the name of the swimlane as a guide. Replace the name of the swimlane in the activity diagram with the name of the business worker.

 

Add the stereotype ‘business worker’ to the class and replace the standard class symbol with the symbol for a business worker:

6. Map Business Worker Responsibilities

Mapping the primitive processes performed by the business worker onto the business worker as responsibilities allows the processes performed by the business worker to be viewed in one place. If a business worker is involved in more than one group level process then their responsibilities will be distributed across multiple activity diagrams. Viewing responsibilities on the business worker classes helps when analysing the distribution of responsibilities across business workers.

 

Examine each group level activity diagram in the business process model and add an operation for each primitive process in each swimlane to the relevant business worker as an operation. These operations may or may not appear on the class diagram depending upon the tool used. If they do not appear in the diagram then they will be available in the model browser or project view. For example:

 

Don’t worry about ‘type’, ‘scope’ and other properties of the operations. These are programming issues and not relevant in the business model.


7. Model Business Worker Relationships

Relationships between business workers on class diagrams can represent many things. The two things that are normally worth modelling are, in order of value, operational relationships and line management relationships.

 

Operational relationships show the lines of communication between business workers that are needed for them to perform the work defined in the business process model. These should be modelled with the business processes to which they refer. Examining these lines of communication helps to spot opportunities for automation. These opportunities may or may not end up as specific software developments. They may simply be added to a workflow system or indicate the need for a business worker to send an email to another business worker.


7.a  Model Operational Relationships

Create a class diagram in each package in the business process model that represents a group level process. Name the diagram ‘<name of process> - Operational Relationships’. Add to the diagram each business worker defined in the business structure model that is involved in this group level process. Examine the activity diagrams for the group level process and decide what lines of communication are needed between business workers. For each line of communication required add an association relationship between the two business workers to the diagram. Make the relationship uni-directional in the direction in which the communication is first started. For example:


 

7.b Model Line Management Relationships

On each class diagram in each package in the business structure model, add associations between business workers to show line management relationships. Make them unidirectional in the direction of command and add the stereotype ‘manages’ to each relationship. For example:

By Micky
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