Prepared June 2008
An “elevator pitch” that briefly explains the scope of the business plan. (written as a last step)
…………….. own 71 acres in the town of South Bend of Sheffield County. There are 55 acres of tillable land currently all in grass for hay and pasture. The family currently raise approximately 200 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:
Goat dairy is a final phase for complete utilization of time and energy in the enterprise.
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.
The …….. dairy prides itself on producing high quality milk for the production of cheese and growing high quality breeding stock for market trade.
Organization and Management
Description of business format: sole proprietor, partnership, LLC, or corporation. Any other characteristics that help explain the business structure to the reader.
--------------------- Owner and operator
feeding and care
Long term planning decisions
Youngstock care and development
Long term planning decisions
Additional part-time labor will be utilized in the dairy operation once under way.
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.
The Financial Plan
The current plan is to begin milking 150 of the current 200 goats and then bring the operation up to 400 animals within three years. The attached income projections show a positive cashflow both years due to current sale of goats that will continue. The transition period of 100 animals develops over $18,000 in useable income after expenses (not including any debt service). Projected debt service on a $160,000 loan at 7% for 15 years would be $17,258. Debt service for vehicles totals $8340 for a total debt service of $25,598. Net Income after debt service is projected to be short by $7515 while herd is at 3
150 animals and rises to $54,300 once 400 animal goal is reached and projected income and expenses fall within the expected parameters.
Financial projections are attached.
All economic data are based upon current values provided by ………………. and an economic spread sheet dairying from the University of Wisconsin at Spooner. Strengths:
The ………… have a long history of successful production of animals for the meat and breeding markets. Knowledge of the industry and research regarding marketing of the milk is current and realistic.
The potential exists for developing a processing agreement with a local cheese manufacturer. This would increase potential for profitability as the product would be a local, high quality product, and transportation costs would drop dramatically. Debt...