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Vermont
Small Business Development Center
April
6, 2004
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Client
Spotlight
“ The
Best Gouda on The Planet”
Jon
and Kate Wright, proud owners of the Taylor Farm Cheese in
Londonderry, started out making cheese as a way to supplement
their revenues generated by their medium sized dairy herd. They
have found the SBDC’s work invaluable in helping them get their
cash flow on an even keel, as well as finance various projects
around the farm.
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SBDC
Update
Checkout
our client stories:
“SBDC and Agricultural
Businesses”
The
SBDC business advisors and training programs are not just for
service, retail and manufacturers. We provide a broad range of
services to meet the needs of all business owners. For example we
work with farmers—either existing farms seeking to improve their
bottom line or start-up farm businesses. Often farmers come to us
because they are interested in finding new ways to bring income
streams into their existing operations, develop more efficient
operations, learn cash flow management techniques, obtain
financing, or begin succession planning.
Some
of the questions our advisors get from farmers?
How
do you make an AG business profitable?
Why
do I owe the milk processor so much money?
Why
does the bank look so closely at cash flows?
I’m
a farmer—why should I market myself?
What
can I do to improve my bottom line?
What
is a business plan?
Why
do I need a business plan?
“Tilling
the Soil of Opportunity…”
The
SBDC has expanded our entrepreneurial educational offerings to
include the NXLevel course for agricultural entrepreneurs. The
course is a 10 session course which is geared for the individual
who is searching for innovative ideas and enhanced marketing
opportunities.
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BIZ
Talk….From the Desk of Steve Paddock
SBDC
Advisor, Addison County
Risk
Management for Farmers
The
risks that farmers face can be broken down into five main areas:
Production Risk, Marketing Risk, Finance Risk, Legal/Environmental
Risk, and Human Resources Risk.
Today’s
farmer must make use of improved methods to manage their risks in
order to earn a living. While no single method or combination of
methods can completely eliminate risk, a combination of risk
management strategies can help farmers to reduce their risks in
critical areas. For instance: Production risk is the variation of
yields, animal production, and input use. Some methods that can
be used to reduce production risk are: diversification by
selecting a combination of products to grow and raise; improved
management of irrigation use, pesticides, and fertilizers; better
production information through tests and scouting; and the use of
crop insurance.
Finance
risk is insufficient funds to pay bills on time, continue farming,
and avoid bankruptcy. Some strategies to minimize finance risk
are: keeping good farm financial records; cash flow planning;
controlling and limiting debt; planning to budget farm
investments; crop insurance; and off-farm work and investments
that fit with farm needs.
A
broad range of business practices that have proven effective in
other industries are also available to farmers. Vermont Small
Business Development Center counselors can help farmers to adapt
these practices to meet the Vermont farmer’s special needs
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Champlain
Landworks, Burlington, VT
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"The
'SBDC' was really helpful to us in securing a loan. We were
looking to refinance some debt from the start up of the
business. We have the opportunity, the skills and the
knowledge just not the resources to make it all happen.
Working with Derek we were able to learn how to manage our cash,
purchase two new trucks, and secure a line of credit to meet the
seasonal needs of the business. We have expanded the
business; have some great jobs coming up and things look good.
I wish I had called sooner! If anyone is considering a
business or just needs some help, the VTSBDC is the solution.
I know we will be coming back for check-ups."
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Jonathan
and Erin came to us with a good business that needed a little
tuning. They had work, but as with many young businesses they
were running thin on cash. So we worked together to come up
with some financial solutions that would allow them to do the work
that they are so good at, and to also make some equipment purchases
that will allow them to grow. So far, so good. They
spent the entire winter to tree work, and now the spring and summer
is filling up fast with work like the Wyndham Hotel. They are
doing great. If anyone would like to see their work check out
the Wyndham hotel in a couple of weeks when the over 500 bulbs they
planted start to bloom.
High
Mowing Seeds, Wolcott, VT
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“When
I first met with Pat Travers of the SBDC, I had made the decision
to expand my hobby business into a full-time venture. I had lots
of ideas in my head for growing the business but, nothing
developed formally. Pat suggested I formulate my ideas into a
written business plan. That planning process helped me to focus
and to set a direction for my business. It was extremely helpful
to have had the SBDC available to help me in the process.” Tom
Stearns, Owner
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Tom
Stearns originally started his organic seed business as a hobby and
ran it quite casually for four years. In 2001, he realized there
was a real market demand for organic vegetable and flower seeds.
Seeing a tremendous opportunity at hand, Tom decided to grow High
Mowing Seeds into a larger operation. With help from Pat Travers of
the SBDC, Tom worked on a plan to take his business to the next
level. By the end of that year, annual sales had grown to $36K, or
triple the previous year’s amount. Tom has continued to work with
the SBDC over the past three years, receiving advice on financing
growth, recordkeeping procedures, selecting a business entity and
hiring employees. High Mowing Seeds is now the largest single
source of Certified Organic vegetable, herb and flower seeds in the
country. It sells its seeds to commercial growers, home gardeners
and retailers in all 50 states and throughout Canada. The company’s
workforce has now grown to eleven employees and 2004 sales are
expected to exceed $300,000.
Vermont Natural Ag
Products, Middlebury, VT
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“The
VTSBDC was essential to our success in this process. They
understood our needs and served as a planning partner and guide
as we went through the steps to prepare our proposal.”
Heather
Foster, Owner
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When
the Foster family, fifth generation farmers in Middlebury, needed to
modernize and expand the bagging equipment for their Vermont Natural
Agriculture Products composted manure plant, the National Bank of
Middlebury directed them to Steve Paddock of the Vermont Small
Business Development Center for assistance. Heather knew that in
order for the entire family to approve the project, and to obtain
financing, they would need a plan based on well crafted budgets,
reasonable expectations, and solid information. They were recently
awarded a VEDA grant of $482,000 to finance the expansion.
Anjali Farms,
South Londonderry, VT
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“Wendy
Wilton, at the Rutland SBDC office, helped me to conquer the
business loan proposal mountain in just two meetings. With a
good narrative and all my supporting documents she was able to
create a three-year financial projection for my farm in three
hours. Going to the SBDC was the best and most productive thing
that I did during my loan request process. Thank you Vermont and
Wendy of course!”
Emmett
Dunbar, Owner
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Emmett
Dunbar has operated Anjali
Farms, an organic vegetable, fruit and egg farm since 2001. Emmett
has extensive knowledge and experience in organic farming,
certification and CSA programs due to many years of consulting for
NOFA and other organic farming organizations. The farm is located
on land which belongs to his family, and the location has become an
ever increasing draw for customers and tourism. His proposed
expansion will include a farm
stand
structure on his own property, new equipment, greenhouse expansion
and upgrades to the barn to include educational and agri-tourism
facilities, where it will be easier to showcase how an organic farm
is run and why it is important.
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