Business Plan Sample

!
**PLEASE READ THIS FIRST**

Dear Students,
Congratulations! If you are reading this guide, you are a finalist in the 2013 West Virginia FFA
Business Plan Competition! Your innovative ideas and hard work have paid off and now you
have the opportunity to win one of our top prizes.
In this phase of the competition, you will compose a comprehensive business plan on your
business idea, prepare a presentation, and present your idea to a panel of judges at the West
Virginia Small Farm Conference.
At first glance, this guide looks like a ton of information. You may be thinking “How will I ever
get this finished!” DO NOT GET OVERWHELMED!
We do not expect you to be business plan writing professionals. We want this competition to be
fun, educational, and teach you how to successfully write your business plan. That is why we are
here to help you. Each finalist will have a college student partner to help you critique your
business plan and answer any questions. In addition, the West Virginia Small Farm Center will be
available to help in any way possible. If you have questions about writing a section, do not know
if you understand certain parts, or just want someone to read over your business plan and offer
suggestions, that is what we are here for.
If at any time you would need help, you can call the Small Farm Center at 304-293-2743 or
email Wes Davis at wldavis@mix.wvu.edu. We can connect via email, Skype, teleconference, or
any other way to make sure you are successful in this competition. Wes is available by phone on
the number above from 8:00 AM to 2:00 PM every Tuesday and Thursday including varying
times the rest of the week. If you have a question, we will help. Also included in this packet is a
check sheet for writing each business plan section, a presentation checklist, a sample business
plan, and sample business plan presentation.
Use your college partner, the Small Farm Center, and these resources for the best success in the
competition. The information provided in these resources are what we are looking for in your
business plans.
Good luck in preparing your business plans and see you at the Teacher and Student Training on
February 8th!
Sincerely,
West Virginia Small Farm Center Staff
Page 2
Table of Contents
General Information
Important Dates!......................................................................................................Page 5
Contacting and Meeting Your Student Assistant!.....................................................Page 6
Awards!.....................................................................................................................Page 7
Contact Information!................................................................................................Page 7
Business Plan
Writing Your Business Plan!.....................................................................................Page 9
Executive Summary.................................................................................................
! Page 10!
Company Description!.............................................................................................Page 10
Industry Analysis!.....................................................................................................Page 11
Marketing Plan!.......................................................................................................Page 11
Operational Management!.......................................................................................Page 12
Management!............................................................................................................Page 13
Financial Plan!.........................................................................................................Page 14
Appendix!..................................................................................................................Page 16
Business Plan Checklist!........................................................................................Page 17
Presentation Information!.....................................................................................Page 22
Example Business Plan!.........................................................................................Page 24
Example Business Presentation!...........................................................................Page 45
Glossary..................................................................................................................
! Page 66
Page 3
General
Information
Page 4
Important)Dates
Teacher'and'Student'Training
February)8th
WVU$Agricultural$Annex$Building
Room$2055
Morgantown,$WV
Final'Business'Plans'Due
February)22nd
Send$to:$wldavis@mix.wvu.edu
Subject$of$Email:$Business$Plan$Competition
West'Virginia'Small'Farm'Conference
February)27628th
Waterfront$Place$Hotel
Morgantown,$WV
Page 5
Contact Information
For any questions concerning the competition, format, or rules please feel free to contact the
West Virginia Small Farm Center Staff. Information will also be posted on the Small Farm
Center website at http://smallfarmcenter.ext.wvu.edu/2013wvffacomp and Facebook. To find the
Facebook page, search 2013 West Virginia FFA Business Plan Competition. Information will be
updated on both of these resources.
Email: wldavis@mix.wvu.edu
Phone: 304-293-2743
Page 6
Contacting and Meeting Your Student Assistant
As a finalist in the business plan competition, you have a unique opportunity to work with an
entrepreneurship student from West Virginia University. Each finalist will be assigned a college
student partner and will meet them at the Teacher and Student Training on February 8th in
Morgantown, West Virginia. The purpose of partnering with your assistant is for them to offer
you guidance and advise you through the planning phase of the competition.
Each competitor and their student assistant will have a face-to-face meetings, at the student and
teacher training on February 8th. The purpose of the meetings are to discuss any questions and
help with further developing the content of the FFA member's business plan and presentation. If
you have questions about writing your plan or presentation before or after your meeting, email or
call your student assistant.
Awards
Finalists:$All$Jinalists$will$receive$free$registration$to$the$2013$West$Virginia$Small$Farm$
Conference$February$28Q29th.$Individuals$placing$will$receive:
1st'Place:$$2,500
2nd'Place:$$1,500
3rd'Place:$$500
Awards$will$be$presented$at$the$lunchtime$assembly$on$Thursday,$February$28th$at$the$
West$Virginia$Small$Farm$Conference$in$Morgantown,$WV.
Page 7
Writing Your
Business Plan
Page 8
Writing Your Business Plan
A business plan is the most effective and comprehensive planning tool for preparing to make
your business idea a reality. In the business plan, you will address the following subjects:
1. Executive Summary
2. Company Description
3. Industry Analysis
4. Marketing Plan
5. Operational Management
6. Management
7. Financial Plan
8. Appendix
The purpose of a business plan is to communicate to key individuals, including investors,

creditors, and advisory groups, exactly how the business will operate. Additionally it allows you,
as the business owner, the opportunity to think about what you want to accomplish with the
business, provide an outline for how it will operate, and develop a timeline to help accomplish
your goals and objectives. Remember when writing your business plan that it is a professional
document that will be viewed by professional groups. Keep in mind the following format
guidelines to help you organize your business plan and prepare it in a professional manner:
1. Title page including: Competitor’s name, FFA chapter, business name, the words “business
plan” and any additional information or logos you wish to include
2. Formatted with headings as shown in the example business plan
3. 12 point Times New Roman or similar font with single line spacing
Several of the topics in the business plan are discussed in your original proposal submission.
Refer to the Rules and Proposal Format Guide, as well as this guide for the best results in
preparing your business plan. This will help you create the most comprehensive, successful plan
for your business.
Your business plan must be sent electronically by 3:00 PM on February 22nd. Email the business
plan as an attachment with the subject line “Business Plan Competition” to
wldavis@mix.wvu.edu.
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The Executive Summary is a brief summary at the beginning of your business plan that is meant
to entice the reader to continue reading the full document. Therefore, it is best that this section is
written last.
Describe the who, what, when, where, why, and how of the business and summarize the most
important eye-catching information from your plan. This section is not meant to present every
piece of information, but to present the information you would want to tell someone in a five
minute interview. Briefly explain any technical jargon that will be used throughout your plan.
Create a comprehensive summary in an effective and efficient manner covering the most
important parts of the business plan. The executive summary should also be on its own page at
the front of your plan.
Business Description:
Give a description of why your business is operating, its product or service, and your business
location.
Mission Statement and Image:

Businesses generally have a brief mission statement, usually less than 30 words that describes
why the company exists and what they value. These values are not monetary, but values that
guide a company in its decisions.
Product/Service Attributes:
Describe exactly what you will sell to customers in detail. Discuss in depth about what makes
your product or service unique and the real benefit for your customers to buy from your business.
Tell what makes your product or service great.
Key Goals:
Every company has goals it wishes to accomplish that align with the Mission Statement and
Prospective Outlook. Think of your business as a car traveling to a destination, with your
Mission Statement and Prospective Outlook representing your final destination. Your Key
Objectives and Goals are like the turns and directions that will allow you to get to this
destination. When formulating your goals, follow the SMART goal format (Specific,
Measurable, Attainable, Realistic, and Time Bound) to help you. Examples of each of these
include:
- Specific- “Buy a Ford F150” is more specific than “I want to buy a truck”
- Measurable- “Sell 50 dozen eggs a week” is measurable while “I want to sell eggs” is not
- Attainable- “Build up my sales to 150 dozen eggs a week within the next year” is more
attainable than “I want to sell 150 dozen eggs the first week my business is open”
- Realistic- “Save fifty dollars a week to buy three new heifers” is more realistic than “Use
birthday and holiday money to buy heifers”
- Time Bound- “Buy three new Boer goats in October, 2013” is time bound while “Buy Boar
goats in the future” is not
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Prospective Outlook:
Outline what you want your business to be like in the future. Describe your long-term dreams
and aspirations for the business and discuss why this is the future you want to create.
Identification of Competitors:
Identify competitors to your business. When identifying your competitors, discuss their location,
type of business, their reputation, and pertinent information about them. Every business has
competition in some form, so be certain not to say you have none. Remember that competitors
come in two types, direct and indirect. See the Glossary on page 66 for an expanded definition of
direct and indirect competitors.
Competition Strengths and Weaknesses:

Outline your competitors' key advantages and weaknesses. These could include information
about their location, long-lasting reputation in the community, product advantages or
disadvantages, size constraints, and other factors contributing to their overall success. This
information can be broken down into direct and indirect competitors, or individual competitors,
whichever is more appropriate for your business situation.
Business Strengths and Weaknesses:

Describe the most crucial strengths both of your business and its product or service. Include why
your company will succeed, its advantages over competitors, your product or service’s market
advantages, your qualifications that strengthen the business, or additional advantages you find
valuable.
Additionally, address the weaknesses of your product or service and your business. Ask
yourselves what advantages your competitors’ business and their products or services have over
yours.
Management of Weaknesses:
Discuss how you will compensate and mitigate the weaknesses in your business. By knowing
your weaknesses now and planning to compensate for them, your business is much more likely
to succeed.
4. Marketing Plan
Target Market:
The target market is a group of individuals on which your business will focus its efforts to sell a
product or service. Keep in mind the type of product or service you are selling when choosing
your target market. This section is covered in detail on Question 6 of the Rules and Proposal
Format Guide. If you believe there would be a more favorable target market for your business
other than what you presented in your first round proposal, discuss this change and outline why
you chose a new target market.
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Value for Target Market Consumers:
To have a successful product or service, it must be appealing to the target market. In this section,
discuss exactly why your target market consumers will find value in your product or service.
Explain why someone should pay you and not one of your competitors for your product or
service.
Advertising Strategy:
Identify exactly what you will communicate to your target market about your product or service
and what advertising channels you will use. Channels include print, media, radio, television,
social networking, word of mouth, and other forms of advertising to consumers.
Additionally, project a budget of your anticipated marketing costs. If you do not plan to pay for
advertising, identify how you will stimulate advertising for your business. See the sample
business plan for an example of both of these forms.
Sales Strategy:
Discuss how your product or service will actually be sold to customers. Outline the pricing
structure and how you will physically sell it (i.e. dozen, gallon, hour), in what form (i.e. cartons,
box, monthly service contract), and the location where it will be sold. If you plan to sell your
product or service from a retail location, discuss the location and why it is advantageous for that
to be where you sell your item. It is important to discuss here exactly how you plan to sell your
product or service.
Projected Timeline:
Create a timeline of when you plan to accomplish your goals. Establish when you will begin
marketing, production, and other functions of your business. Also include in your timeline the
goals you will accomplish and when. Label your major milestones. If your business is currently
in operation, include past major accomplishments for your enterprise. Your timeline can be either
written or in a chart form as shown in the sample business plan.
Action Plan:
Discuss what action you plan to take for carrying out your anticipated timeline. Combine
information from your Key Goals section and Projected Timeline to create an action plan that
will make your plans happen. Outline exactly what you will do to make your goals a reality.
These can be broken down by each goal, item in your projected timeline, or however you feel
appropriate.
Business Risks:
In this section, discuss the risks involved in your business. Identify the top three and discuss
exactly how you will compensate for each of them. Types of risks include:
- Production risk: risks to the fundamental production of your product or service
- Examples: Weather, pests, disease, availability of farm equipment, availability of
supplies, limited time to perform services
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- Marketing risk: risk involving being able to sell your product or service
- Examples: Setting price too high or low, incorrectly advertising your product, setting
the wrong target market
- Financial risk: risk that involves how money moves through the business
- Examples: High level of startup costs, insufficient cash to pay necessary expenses, low
amount of diversification, product price too low
- Legal risk: risk involving the legal management of the business
- Examples: Adequate tax payment, acquiring proper business licenses and permits,
maintaining adequate food safety measures
- Human risk: risk centering around the people that take part in the business
- Examples: Safety with farm equipment, reparatory hazards, pesticide safety
- General risk: risks that do not have a specific category
- Examples: Proper record keeping, sufficient business planning
Legal and Safety Regulations:

Legal and safety requirements are critical components when starting a new business. Most
agricultural, natural resource, and food science businesses have regulations at local, state, or
national levels they must follow. For your specific product or service, identify what legal and
safety requirements you will have to follow. This could include obtaining a business license,
completing a food handler's safety class, obtaining permits from local or state agencies, properly
handling pesticides, or additional requirements. A good place to start looking for this information
is on the Internet, your local health department, chapter advisor, and the West Virginia
Department of Agriculture. If you have any questions or problems finding specific requirements
for your business, contact the West Virginia Small Farm Center. Once you have identified the
legal and safety regulations you must have, discuss how you will be compliant with them.
6. Management
Logistics of Personal Management:
Managing a business is no small task. But if you manage your time wisely and stay dedicated to
your goals and action plan, your business venture will be much more successful. Take the time in
this section to discuss what a normal day will look like managing your business. Discuss the
responsibilities you will have and what you will have to do to be successful. Also explain what
the most critical skills and responsibilities you will have to possess for the business to be
successful.
Advisory Team:
Successful businesses, especially start-ups, do not rely on the knowledge of one person, but of a
group of people. This group is called your Advisory Team. These individuals can be almost
anyone that you trust to go to for advice or direction in making a decision about your business.
List the people and organizations who will comprise your Advisory Team and their qualifications
or areas of knowledge. They do not have to be individuals who you will pay for their services,
but people you trust to help guide you in certain areas concerning starting or expanding your
business.
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7. Financial Plan
Financial Record System:
Managing your finances is a critical part of being a successful business owner. If you do not
manage your finances successfully you may not be able to pay bills, expand your business, or
even make a profit. In this section, discuss how you plan to manage and record your finances. It
may be as simple as using your SAE record book, or keeping track of when bills are due on your
phone. Whatever system you think will work best for you and your business, discuss it here.
Acquiring Required Resources:

In your original proposal on Question 8, Part Two, you outlined the resources needed to to start
or expand your business. Discuss how you plan to obtain those resources. It may be through
borrowing money from family, obtaining a loan, using your savings, writing a grant, or any other
means of acquiring funding for your project. Identify how you will obtain funding here.
Financial Documents:
Financial documents will assist you in planning the financial future of your business. The three
financial documents you should include for this business plan are a First Year Income Statement,
First Year Cash Flow Statement, and Budget of Required Resources. For the purposes of the
competition, it is only required to complete first year versions of the Income Statement and Cash
Flow Statement. However, having additional years is recommended and will be rewarded. In the
email containing this guide, templates for the Income Statement and Cash Flow Statement were
attached.
On the next page is an explanation of the first two documents. Use the information you collected
for expected monthly expenses in Question 8, Part One of your proposal to create an Income
Statement and Cash Flow Statement. Be sure to include your startup costs in your Cash Flow
Statement. The Budget of Required Resources is the same as Question 8, Part Two from your
first round proposal.
It is important to explain how you arrived at the numbers in your financial projections. At the end
of your First Year Income Statement and First Year Cash Flow Statement, create these
descriptions explaining how you calculated your figures. For example, if 20 dozen ears of corn
are sold for $2 per dozen and that accounted for all of your Revenue, your would put on your
assumptions sheet “Revenue = 20 dozen ears x $2 per dozen = $40.” There is are examples of
this in the sample business plan.
If you need additional assistance with this section, write down your questions and bring them to
the training February 8th at the Agricultural Annex Building in Morgantown, WV or call the
West Virginia Small Farm Center. On the following page, there is an example of how to create
your First Year Income Statement and First Year Cash Flow Statement.
Again, the three documents you will need for this section are:
1. First Year Income Statement and Explanations
2. First Year Cash Flow Statement and Explanations
3. Budget of Required Resources
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Explanation of Income Statement:
Explanation of Cash Flow Statement:
Page 15
8. Appendix
The final section of the business plan is the Appendix. This is the part of the business plan for
larger pieces of information that do not belong in the main narrative. Some examples of content
for this section include:
- Facility blueprints! ! - Presentation handouts! ! - Product pictures
- Advertising examples ! - Marketing surveys! ! ! - Works cited
These are just examples of some of the content you could include in the Appendix. You can
include any type of information here that you would like. Just remember to add information to
this section that will add beneficial content, not unnecessary bulk, to your business plan. If you
do not have any content for this section, just say so. But having content here will significantly
enhance the quality of your plan.
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Business Plan
Checklist
Page 17
Checklist for Business Plan Sections
Entices the reader to continue reading
Describes: who, what, when, where, why, and how of the business
Summarizes most important, eye-catching information
Contains information you would tell someone in a five minute interview
Explains technical jargon used throughout the business plan
Executive summary is separate page at the beginning of the business plan
Company Description
Description of why the business is operating
Describes business’s product or service
Tells business location
Mission Statement
Describes why the company exists
Less than 30 words
Reflects what the company values
Product/Service Attributes
Describes what will be sold to customers in detail
States what makes the product or service unique
Discusses real benefit for customers to buy the product or service from the business
Key Goals
Goals align with Mission Statement and Prospective Outlook
SMART (Specific, Measurable, Attainable, Realistic, and Time Bound) goal formatting used
Prospective Outlook
Outlines what business will be like in the future
Describe long term dreams and aspirations for the business
Discuss why this is the future you want to create
Identification of Competitors
Identifies competitors
Discusses pertinent information about competitors
Identifies both direct and indirect competitors
Page 18
Competition Strengths and Weaknesses
Outlines key advantages of competitors’ business and their products/services
Outlines key weaknesses of competitors’ business and their products/services
Business Strengths and Weaknesses

Outlines your business’s strengths and weaknesses
Outlines your business’s product/service’s strengths and weaknesses
All realistic strengths and weaknesses are addressed for both the business and its product or
service
Management of Weaknesses
Discusses how the business will compensate and mitigate weaknesses
Solutions are reasonable and will realistically mitigate or compensate for weaknesses
4. Marketing Plan
Target Market
Identifies specific group of individuals the business will focus its efforts to sell its product/
service on
Target market is appropriate for product/service
If different target market then presented in original proposal, explanation is presented
Implements demographic information to back why the target market was chosen
Value for Target Market Consumers

Discusses why target market customers will find value in the product/service
Explains why consumers will purchase from your business and not a competitor
Advertising Strategy
Identifies message to be communicated to target market
Discusses advertising channels that will be implemented
Budget of projected advertising cost presented
If not paying for advertising, identifies how advertising will be stimulated
Sales Strategy
Presents pricing structure
Identifies units of measure in which the product/service will be sold
Discusses packaging if a product
If retail location, discusses advantages of using specific location for sales
Tells how product or service will be sold to customers
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Projected Timeline
Identifies when you plan to accomplish your goals
Outlines when key business functions will take place
Major milestones identified
If business is currently in operation, also includes past major accomplishments
Action Plan
Discusses action that will be taken to carry out anticipated timeline
Action plan will result in accomplishing goals
Outlines what will be done in the future to ensure success
Business Risks
Identifies top three risks to the business
Discusses how the business will compensate or mitigate each risk
Risks presented are realistic and not understated
Legal and Safety Regulations

Identifies legal and safety requirements for business’s specific product or service
All legal and safety requirements will be met by the business
6. Management
Logistics of Personal Management
Outlines daily duties for the owner of the business
Discusses owner’s responsibilities and are specific to the business
Identifies critical skills needed for the business to succeed and most difficult responsibilities
Advisory Team
Individuals and organizations who will make up advisory team listed
Qualifications of individuals stated
Advisory team is adequate and well rounded
7. Financial Plan
Financial Record System
Discusses how financial records will be managed
Financial record management plan adequate for the business
Acquiring Required Resources

Presents how much funding is needed
Identifies what funding will be used to purchase
Funding plan realistic and attainable
Explains how funding will be acquired
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Financial Documents
First Year Income Statement presented with explanations
First Year Cash Flow Statement presented with explanations
Budget of Required Resources presented
8. Appendix
Appendix compliments content of the business plan
Contents add beneficial content, not unnecessary bulk, to the plan as a whole
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Presentation
Information
Page 22
Presentation Information
The presentation portion of the competition will take place on February 27th at the Waterfront
Place Hotel in Morgantown, WV. This is the day before the West Virginia Small Farm
Conference will begin. The panel of judges will have a copy of your original business plan,
proposal, and your final business plan. You are permitted to present the panel of judges any
items, including copies of your PowerPoint, prior to beginning your presentation. Each
competitor will have eight to twelve minutes each to pitch their idea to a panel of judges,
followed by three minutes of questions.
A sample presentation has been attached to offer guidance on how to structure your presentation.
There will also be additional information concerning how to present the business idea at the
Teacher and Student Training on February 8th.
Following the presentations the judges will tally the scores from the first round proposal, full
business plan, and presentation to determine placings. The placings will be announced on
Thursday, February 28th during the lunchtime assembly.
Checklist for Business Plan Presentation

First slide contains business name, competitor name, and FFA Chapter
Summarizes information from business plan Company Description section
Discusses product or service to be sold and pricing structure
Identifies target market
Explains value to target market consumers
Identifies how product will be marketed
Presents future plan for the business
Provides comprehensive summary of presentation and business plan
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Sample Business Plan
Page 24
Turkey Creek Poultry Farm
Your Hometown Provider of Quality, Free Range Eggs
Company Business Plan
Joseph Ray
Big River FFA Chapter
Turkey Creek Poultry Farm will be a unique business owned and operated by Joseph Ray in
Point Pleasant, West Virginia. The purpose of the business is to produce fresh, locally produced
brown eggs and compost for local consumers.
Over the past ten years, there has been significant growth across the nation in the local food
market. In West Virginia alone, the consumption of local food products has grown by over 280
percent in the last ten years. The industry is booming. Although there has been high demand for
local food products, especially eggs, the supply has not met the demand. Turkey Creek Poultry
Farm is poised to meet the demand of consumers and fill the market gap for locally produced
eggs.
The eggs that will be produced by Turkey Creek Poultry Farm will be free range brown eggs.
Free range, a method of egg production, is popular with consumers in the local food market. It
involves housing chickens in a structure in where they can access the outdoors. This is in
complete contrast to commercial egg production techniques that lock chickens in cages where
they each live in less space than half the size of this sheet of paper. Free range allows the
chickens to act out normal behaviors in their environment, live a more humane life, and consume
natural food sources. For these reasons, consumers concerned with the commercial egg
production find this method very appealing. Additionally, access to the outdoors enhances the
nutritional benefits of eggs significantly. These benefits include: 1/3 Less cholesterol, 1/4 less
saturated fat, sixty percent more Vitamin A, two times more omega-3 fatty acids, three times
more Vitamin E, four times more Vitamin D, and seven times more beta carotene.
The target market for Turkey Creek Poultry Farm will be residents in Mason County, West
Virginia who are over the age of forty and who are teachers at Point Pleasant High School and
Mason County Career Center. Both of these groups are advantageous as a target market for this
specific business. Consumers over the age of forty have higher overall income and less debt and
will be able to afford the eggs and compost produced by the business. The teachers of Point
Pleasant High School and Mason County Career Center have received higher education and will
have the education to appreciate the value of supporting a local business like Turkey Creek
Poultry Farm. Additionally, both groups will find the free range, nutritionally enhanced, and
locally produced qualities of the eggs and compost appealing.
The business will begin operation in April 2013 with fifty ready-to-lay chickens. Prior to
beginning production, the business will require an investment of $2,600 for necessary startup
supplies and expenses. This investment has significant potential for high return and low risks that
have been addressed in this business plan.
Overall, Turkey Creek Poultry Farm seeks to be a leading business in the Mason County and
West Virginia local food market. The business wishes to provide high quality, locally produced
eggs and compost to consumers who have significant interest in the product. As the business plan
shows, this business will be successful.
Page 26
Business Description:
Turkey Creek Poultry Farm will be a unique business owned and operated by Joseph Ray in
Point Pleasant, West Virginia. The purpose of the business is to produce fresh, locally produced
brown eggs for local consumers. The proposed location, a two acre plot of land three miles
outside of Point Pleasant, is a prime location for customers to pick up their product and for eggs
to be produced. Although eggs will be the primary product of the business, composted chicken
manure will also be sold. Turkey Creek Poultry Farm will be operating to produce high quality,
locally produced eggs and compost for consumers in the area.
Mission Statement and Image:

The mission statement for Turkey Creek Poultry Farm is “Your Hometown Provider of Quality,
Free Range Eggs.” This statement defines exactly what the business will do and what it values.
Turkey Creek Poultry Farm will be a hometown producer of quality, free range eggs and
compost. The business values its small business persona and is committed to providing quality
customer service to consumers. Above all, Turkey Creek Poultry Farm takes pride in producing
high quality, locally produced free range eggs and all-natural compost for its customers while
helping to grow the local economy.
Product Attributes:
Brown eggs will be the primary product of Turkey Creek Poultry Farm. The production system
that will be implemented will be a free range system. Today over 98 percent of eggs produced in
the United States are produced by chickens that are housed in cages their entire lives. These
production systems have been highly criticized by the public as inhumane and unnatural. The
more humane and natural alternative to this production system is the free range method.
Free range egg production involves using a housing system that allows the chicken to have
access to the outdoors. This production method is regarded by consumers as being a more
humane system of egg production. Additionally, access to the outdoors allows chickens to
consume natural foods. This results in eggs that have enhanced nutritional benefits compared to
traditional eggs including: 1/3 Less cholesterol, 1/4 less saturated fat, sixty percent more Vitamin
A, two times more omega-3 fatty acids, three times more Vitamin E, four times more Vitamin D,
and seven times more beta carotene. The eggs produced are unique because they are locally
produced and offer numerous health and ecological benefits for customers who purchase them.
The benefit to consumers by purchasing Turkey Creek Poultry Farm eggs is that they are
produced in a more natural and humane way by a local business, and have enriched nutritional
qualities. Customers who appreciate these qualities will find value in the eggs of Turkey Creek
Poultry Farm.
Turkey Creek Poultry Farm will also sell compost produced from used bedding. Used bedding,
also known as “chicken litter,” is a valuable source of plant nutrients. However, it cannot be
applied directly to plants in large quantities as it will kill them. To prevent this issue, chicken
litter is composted. The resulting compost is the proper medium for growing many types of
Page 27
plants, is very high in nutrients, and can be directly applied to plants without harm. It is also a
beneficial fertilizer in gardens or lawns. The chicken litter will be composted by Turkey Creek
Poultry Farm, bagged into fifty pound bags, and sold. The compost will be locally produced and
all natural, making it a unique item in the marketplace. Consumers who want to purchase natural
plant fertilizers and quality nutrient supplements for plants produced by a local business will find
this product appealing.
Key Goals:
The following Key Objectives and Goals have been established for Turkey Creek Poultry Farm:
- Obtain a loan for $2,600 in March 2013
- Construct chicken coop for maximum population of 100 chickens and compost bins my mid-
March 2013
- Purchase fifty Red Star ready-to-lay pullets April 2013
- Establish five customers for eggs by May 2013
- Sell 25 dozen eggs a week by May 2013
- Build sales of eggs to 50 dozen a week by September 2014
- Expand capacity of production facility to 200 chickens by June 2015
- Establish two business customers by September 2015
- Build sales to 100 dozen a week by September 2015
- Purchase as much supplies possible from other local businesses
- Produce all eggs in a free range system
- Provide only high quality eggs to customers by washing and candling all eggs
- Process all chicken litter into compost and sell in fifty pound bags
- Provide only high quality compost to customers by properly composting the chicken litter and
sifting before bagging
- Sell all eggs and compost produced
- Profit, at minimum, 10 percent on all sales
Prospective Outlook:
Turkey Creek Poultry Farm’s prospective outlook is ambitious. After the business is able to
secure a footing in the local market selling directly to consumers, the opportunity exists to
expand into the wholesale market and sell to other businesses and restaurants.
Point Pleasant, West Virginia, the home of Turkey Creek Poultry Farm, is also within one hour
traveling time of Charleston, Parkersburg, and Huntington, West Virginia. These larger, more
heavily populated areas offer the opportunity for the business to distribute product to numerous
businesses and restaurants through wholesale sales. It is the goal of the business to expand sales
into these areas and establish Turkey Creek Poultry Farm as a reputable regional producer of
quality, free range eggs produced in West Virginia. It is also a long term goal of the business to
sell compost in these heavier populated areas. Numerous large landscaping operations exist in
the area that could utilize the all natural compost produced by Turkey Creek Poultry Farm.
Page 28
By establishing the business as a quality local producer today, the reality of expanding to
regional distribution in the next four to six years is very realistic. This is the future the owner
Joseph Ray wants to create for the business because he is passionate about egg production and
selling food that he produced myself. Joseph want to use the business to create a career and
become a full time egg producer.
Identification of Competitors:
Although there has been an increased interest in local food consumption across West Virginia
and Mason County, there has been a shortcoming when filling the demand for locally produced
eggs. In Mason County, there are two individuals who sell five to ten dozen locally produced
eggs a week at the Mason County Farmers’ Market. There are also several individuals who have
up to twenty five chickens for home egg production and sell the extra eggs to neighbors and
friends from their homes. Both of these groups sell eggs that are generally lower quality, not
cleaned, and not candled. Their reputation in the community positions them not as a business, but
as an individual person who sells eggs to their friends and neighbors. Their chosen locations, the
community farmers’ market and their homes, also portray their reputation of being their
customers’ friends and neighbors, not businesses supplying consumers with products.
There are also numerous indirect competitors selling normal, commercially available eggs
directly to consumers. These competitors include: Walmart of Gallipolis, Ohio, Foodland of
Point Pleasant, WV, Fruth Pharmacy of Point Pleasant, WV, Speedway of Point Pleasant, WV,
and Dollar General of Point Pleasant, WV. All of these competitors have retail locations where
their eggs are sold. They are normally higher quality eggs, but are commercially produced hours
away in other states. They have a reputation for providing quality, safe eggs at reasonable prices.
All of the competitors use eggs as a complimentary product, not a primary product, to other
items in their store locations and give less attention to preserving sales of eggs. This will allow
Turkey Creek Poultry Farm to go under the radar of competitors and seize egg sales.
Indirect competitors also exist in the wholesale egg market, identified in this business plan as
“Wholesalers.” Although these competitors do not sell locally produced eggs, they provide large
amounts of commercially produced eggs to restaurants and businesses in Mason County, West
Virginia. These competitors do not have physical locations but distribute eggs directly to
restaurants and businesses. These eggs are medium quality and regarded by wholesale customers
as having high food safety standards, but also produced hours away outside of West Virginia.
Concerning compost, there are no direct competitors that sell locally produced compost in or
around Point Pleasant, West Virignia. But there are several businesses that are indirect
competitors and sell similar products. The Thomas Do-It Center of Point Pleasant, WV, Tractor
Supply of Gallipolis, OH, and Lowe’s of Huntington, WV, all sell mulch and potting soils that
would compete with Turkey Creek Poultry Farm’s bagged compost. However, these competitors
do not sell compost that would be beneficial to a home garden or lawn like what is produced by
Page 29
Turkey Creek Poultry Farm nor are their products all-natural. These competitors also view mulch
and potting soil as a complimentary product in their business.
Egg Competition Strengths:

Direct Competitors-
- Established customer base
- Have friendly relationships with current customers
- Smaller producer that can focus on individual customers
- Local business
Indirect Competitors-
- Lower priced, commercially produced eggs
- Product available in retail location at which customers are already shopping
- Consumers regard commercial eggs as having high food safety standards
- Wholesalers currently distribute large amounts of eggs to restaurants
- Very large production base with resources to provide large quantities of eggs at low prices
Compost Competition Strengths:

- Already have customers in stores
- Sell large amounts of outdoor supplies
- Alternative products, such as mulch, are compliments to their current lawn and garden products
Egg Competition Weaknesses:

Direct Competitors-
- Limited production base
- Low quality product
- Insufficient product quantity and quality for wholesale sales
- Food safety protocols not to standards for many consumers
- Do not pursue wholesale customers, only individual consumers
Indirect Competitors-
- Do not sell locally produced eggs
- Many consumers regard commercial egg production methods as inhumane
- Retailers do not provide bulk discounts for wholesale purchases
- Retailers do not pursue wholesale customers, only individual consumers
- Wholesalers do not sell locally produced eggs
- Eggs are a complimentary, not primary, product with less attention and focus on preserving its
sales
Compost Competition Weaknesses:

- Do not sell compost
- Few all-natural products
- Sell alternative products such as mulch that would not be a substantial soil nutrient
Page 30
Turkey Creek Poultry Farm Strengths:
- Smaller business that can address the needs of individual customers
- Will establish a one-on-one relationship with both individual and wholesale customers
- Focuses on utilizing local resources as opposed to outsourcing for supplies
- Eggs produced in a free range system that is more humane and natural for chickens
- Premium product that can be sold at a premium price
- Owner Joseph Ray has extensive knowledge of proper free range egg production techniques
- Will provide only high quality products to customers
- Eggs will be produced with quality, not quantity, in mind
Turkey Creek Poultry Farm Weaknesses:

- Smaller production base
- Higher cost of production compared to commercial producers
- Market entry necessary
- Initial investment required
Management of Weaknesses:
Although Turkey Creek Poultry Farm will initially be a small operation, there is a significant and
realistic opportunity to grow the business. As the business grows over time, the production base
will expand. This will allow for purchasing supplies in larger amounts, thus lowering the cost of
production. With successful marketing and advertisement, market entry will occur successfully.
The initial investment for the venture will be attained through grants and loans which will be
repaid through the business’s profits. By following the Projected Timeline and Key Goals of the
business, these weaknesses will be addressed.
4. Marketing Plan
Target Market:
The demographic information for Mason County, West Virignia outlines a population with an
older than average age of 47 and a higher than average income rate of $38,000 annually when
compared to other counties in West Virignia. For these reasons, the target market for Turkey
Creek Poultry Farm is the high amount of consumers in Mason County who are above forty
years of age. Teachers of Point Pleasant High School and Mason County Career Center will also
be targeted.
The consumers over forty years of age typically have low amounts of debt and high amounts of
disposable income. This provides Turkey Creek Poultry Farm with the opportunity to target these
consumers with higher quality, more expensive eggs because they have the financial means to
afford them. This same group is also typically more inclined to support local businesses in the
Point Pleasant community where they have lived the majority of their lives. This quality will be
an advantage to Turkey Creek Poultry Farm.
The business will also target the teachers of Point Pleasant High School and Mason County
Career Center where the owner Joseph Ray is in school. The teachers, who have had higher
Page 31
education, will understand the value of Turkey Creek Poultry Farm’s eggs and compost and have
the financial means to afford to purchase them. As Turkey Creek Poultry Farm grows, restaurants
and businesses will become a target market for eggs. For compost, the target market will expand
to landscape operations for higher quantity sales.
These same two group of consumers and teachers will also serve as the target market for the
bagged compost. Typically individuals who garden and landscape outdoors are individuals who
are above forty years of age, the same as the target market group for eggs. The same individuals
who value eggs that are free range, locally produced, and all natural will appreciate these same
qualities in compost for their garden. Teachers are also expected to be a target market group as
well as they will find value in the locally produced and all-natural qualities of the compost. As
the business grows and the production of compost increases, this will allow for commercial
landscapers to become the target market and will make higher quantity sales possible.
Value for Target Market Consumers:

Target market customers will find substantial value in the eggs produced by Turkey Creek
Poultry Farm. The eggs have numerous benefits including being produced in a free range setting,
having higher nutritional benefits compared to traditionally produced eggs, and being locally
produced. All three of these qualities are discussed in detail in the Product Attributes section on
page 26. The section of the target market who are teachers at Point Pleasant High School and
Mason County Career Center will appreciate that the eggs are produced from a student in their
classroom and school. Target market consumers will purchase eggs from Turkey Creek Poultry
Farm because of these qualities.
Wholesale customers will find significant value in the egg’s locally produced, high quality
nature. Restaurants will also value initiatives provided by Turkey Creek Poultry Farm when they
purchase their eggs. The business will release a logo and informational flyer, both shown on page
41, for restaurants to present in their menus and post in their restaurants. This will allow the
customers to see that the restaurant sees value in purchasing locally produced products and they
support the local economy. Businesses will find value in purchasing eggs from Turkey Creek
Poultry Farm, as it will add to the diversity of products they offer. Informational flyers, shown on
page 41, will also be provided to businesses to inform customers of the value of eggs produced
by Turkey Creek Poultry Farm. These initiatives, in combination with the unique qualities of the
eggs, will influence wholesale customers to purchase eggs from Turkey Creek Poultry Farm and
not competitors.
Target market customers will appreciate the qualities of the compost produced by Turkey Creek
Poultry Farm. Compost has numerous nutritional benefits for soil and is a high quality medium
for growing plants. The compost will also be bagged into fifty pound bags, making it easier for
customers to transport. Wholesale customers will value the product as a locally produced, high
quality, and all natural medium to use in their landscaping projects. Consumers will purchase
compost from Turkey Creek Poultry Farm, not competitors, because of its high quality, locally
produced, and all-natural qualities.
Page 32
Advertising Strategy:
Turkey Creek Poultry Farm’s mission is to provide high quality, locally produced free range eggs
to its customers while maintaining a small business personality and quality customer service. The
message to be communicated to consumers will be this mission. Additionally, consumers will
also be informed of the benefits of consuming fresh, locally produced eggs and using compost.
These benefits are outlined in more detail on page 26 in Product Attributes.
The smaller size of Mason County and tight-knit community is favorable to Turkey Creek
Poultry Farm. Individuals talk in the community and as a result, word of mouth advertisement is
especially successful. By always serving customers well and having a high quality product, they
are likely to discuss the great service and products provided by Turkey Creek Poultry Farm with
their friends and family. To stimulate word of mouth sales, customers will receive a ten percent
discount on their first purchase if they inform the seller that someone who is already a Turkey
Creek Poultry Farm customer recommended purchasing the product.
To advertise to teachers at Point Pleasant High School and Mason County Career Center, flyers
will be posted in the teachers’ lounge and at the sign-in sheets where teachers enter the clock in.
Additionally, a postcard sized advertisement, as shown on page 41, will be placed in the
mailboxes of teachers at the beginning of the school year and after holiday breaks. This will help
to successfully market free range eggs to the teachers of Point Pleasant High School and Mason
County Career Center.
As discussed in the Target Market, the primary customers of Turkey Creek Poultry Farm will be
individuals above the age of forty and teachers at Point Pleasant High School and Mason County
Career Center. Radio advertisement will be especially effective in marketing to individuals over
the age of forty. This group is seen as the traditional radio audience and typically spends time in
their cars traveling to and from work. This strategy will amplify the advertisement to consumers
in this target market group and successfully advertise Turkey Creek Poultry Farm to individuals
over the age of forty. This strategy will be implemented in 2014 as production increases and the
need for more extensive sales are possible.
To advertise eggs to wholesale customers, the owner Joseph Ray will go to local businesses and
restaurants to meet with their owners. Joseph will discuss the product and outline the initiatives
provided to businesses and restaurants when they purchase their eggs. Turkey Creek Poultry
Farm will release a logo and informational flyer, both shown on page 41, for wholesale
customers to present in their menus and post in their restaurants or businesses. This will allow
customers to see that they value purchasing locally produced products and support the local
economy. Each business owner will also be given a free 2 1/2 dozen flat and dozen carton of
eggs to assess their quality and usability in their restaurant or business.
Every spring customers who have purchased at least ten dozen eggs will be given a twenty five
pound bag of compost at no charge. This will help stimulate sales of compost and show the
customers the high quality and usability of the product. It is critical for this strategy to be
Page 33
implemented during spring as this is the time when most individuals perform gardening and
landscaping. To market compost to wholesale customers, the owner Joseph Ray will meet with
individual landscaping businesses to market the product. This will be a successful strategy, as all
landscaping operations in the Mason County area are businesses with individual owners who
manage the daily purchases and activities of their business.
Advertising Budget:
2013 Advertising Budget
Expense Item Quantity Cost Per Unit Total Cost
10% Discounted Sales 15 dozen eggs $0.28 $4.20
Advertising Post Cards 250 $0.20 50.00
Information Flyers 350 $0.15 52.50
TOTAL $106.70
*Note: Radio advertisement and free compost strategies will be used in 2014 and are not recorded in this budget.
Sales Strategy:
Eggs will be sold by the dozen in dozen and eighteen count cartons, and 2 1/2 dozen flats for
wholesale buyers. The following pricing structure will be used:
Quantity Price
1 Dozen $2.75
1 1/2 Dozen $4.00
2 Dozen $5.00
2 to 25 Dozen $2.50 per dozen
25 Dozen and Above $2.25 per dozen
Compost will be sold by the fifty pound bag and will use the following pricing structure:
Quantity Price
1 Bag $15.00
2 Bags $25.00
2 Bags to 15 Bags $12.50 per bag
15 Bags and Above $10.00 per bag
Page 34
Sales Strategy Continued:
In the beginning when the business is smaller, the sales will be handled by owner Joseph Ray
and will be directly to the customer. This method will be used both with eggs and compost. As
the business grows, egg sales will expand into restaurants and businesses. It will be advantageous
to sell in these locations not only for growth of sales, but because retailers will use the in-store
advertisements provided by Turkey Creek Poultry Farm. These advertisements, discussed in the
Advertising Plan on page 32, will help to build the image and brand of the business and its
products. Sales to businesses and restaurants will also be handled directly by Joseph Ray. With
growth, compost will be sold to landscaping operations who will then use it in their own
business. This sales strategy for compost is best for Turkey Creek Poultry Farm because it allows
the business to sell a large amount of product to a few customer and keep focus on its primary
product, eggs.
Projected Timeline:
Chart 1: Timeline projecting anticipated completion times for established milestones.
Action Plan:
The timeline above outlines exactly when key actions will be taken in the business to accomplish
specific goals. To accomplish three of the business’s key goals in egg production, Turkey Creek
Poultry Farm will focus on growing its production at the specified times above. The same will be
done to carry out advertisement and sales goals. The following actions will be taken to ensure the
additional goals of the business will be reached over time:
- Profit, At Minimum, 10 Percent on All Sales
Production costs will be monitored daily to ensure the operation is as profitable as possible.
Steps will be taken constantly to ensure that chickens are properly cared for to promote
maximum production rates.
Page 35
- Purchase As Much Supplies as Possible from Other Local Businesses
The owner Joseph Ray will create a network with other local businesses over the next year
through the Mason County Chamber of Commerce to find local businesses to supply his input
needs.
- Produce All Eggs in a Free Range Setting
All housing will be built to accommodate and promote free range egg production. Chickens will
be let outdoors every day at 3:00 PM to forage and free range.
- Process All Chicken Litter Into Compost and Sell in Fifty Pound Bags
All chicken litter will be processed into compost and bagged. To ensure that there is adequate
compost bin space, additional bins will be constructed as needed.
- Sell All Eggs and Compost Produced
Marketing and advertisement will be key to ensure that all eggs and compost is sold. Turkey
Creek Poultry Farm will use effective marketing strategies to ensure sales of the products.
- Sell Only Quality Compost and Eggs to Customers
All compost will be fully composted and sifted before bagging. Care will be taken to produce
only the most high quality compost for sale.
By accomplishing these goals and following this action plan, it will help to guarantee Turkey
Creek Poultry Farm’s future success.
Business Risks:
The three most notable risks for Turkey Creek Poultry Farm are financial security, biosecurity,
and product safety. With the business being a new operation, there is inherent financial risk. To
compensate for this risk, financial records will be carefully maintained. An emergency fund will
also be started to ensure that if something does go wrong in the operation, the business can
survive on its emergency fund for nine months as the issue is resolved.
The biosecurity risks that result from the free range egg production systems could also harm the
business. The risks include the chickens contracting parasites and infectious diseases from wild
birds or people. To lower the risk of contracting parasites, diatomaceous earth and other
approved substances will be utilized to eliminate the contraction of parasites. Boot covers and
foot baths will be used to eliminate the transfer of diseases from their caretaker. A comprehensive
biosecurity plan will also be established to create a strategy for mitigating the risk of disease and
infection.
The most substantial risk is the liability of product safety. Because eggs are a food product, there
is inherent food safety risks. There are no current policies requiring the inspection of egg
washing techniques, but Turkey Creek Poultry Farm will practice the most sanitary procedures
during washing. The business will also maintain permits from the West Virginia Department of
Agriculture and local health departments signifying the safeness of the product for consumers. It
will also hold liability insurance in the event some unforeseen food safety issue would occur.
With this combination of risk management techniques, Turkey Creek Poultry Farm will become
a successful business with significant and self-sustainable finances.
Page 36
Legal and Safety Regulations:
One of the most substantial risk for Turkey Creek Poultry Farm is the liability of product safety.
Because eggs are a food product, care must be taken to produce as safe a product as possible for
customers. For a small operation like Turkey Creek Poultry Farm, there are currently no policies
requiring inspection of egg washing techniques. The West Virginia Department of Agriculture
does require all egg producers to obtain an Egg Handler permit and the Health Department of
Mason County requires similar permits. Turkey Creek Poultry Farm plans to work closely with
the local health department to evolve production practices and produce the safest product for
customers. The business will also file the correct state and federal taxes and business taxes for all
income and maintain a business license for Turkey Creek Poultry Farm.
6. Management
Logistics of Personal Management:
A walk-thru of a normal day would include Joseph Ray waking up at 6:30 AM to check the
chickens before school. Joseph will check the water and food, and collect any eggs that have
been produced at that time. After school, Joseph will let the chickens out to free range, check the
food and water, and collect any eggs. At this time, Joseph will also add any bedding, perform
maintenance, and other necessary duties. After the chores are completed, any sales or deliveries
that have to be made for the day will be carried out. At dark, Joseph will close the chickens in
their coop and again check their food and water, and collect any eggs.
What is anticipated to be the most difficult aspect of managing Turkey Creek Poultry Farm is the
constant management of time. Because eggs are a time sensitive product, they must be moved
from the operation to customers in an effective and efficient timeframe. The owner, Joseph Ray,
will have to balance personal, school, and business responsibilities effectively to always have
ample time for each aspect of his life.
Communication will also be a very large part of managing the business and will be a critical skill
for the business to succeed. To purchase products locally and have a network of product
suppliers in Mason County, it will be necessary to utilize communication skills to build this
critical network. It will also be the responsibility of Joseph Ray to communicate directly with
potential and current customers to create sales opportunities. When speaking to current
customers, it will be important to receive feedback on products to better Turkey Creek Poultry
Farm’s products and create a customer base that trusts and values the business. Other critical
skills will include maintaining financial records, continuing to learn about free range egg
production, and learning more about successful business practices.
Advisory Team:
The following Advisory Team has been developed to ensure the success of Turkey Creek Poultry
Farm as a whole. The individuals have agreed to serve as advisors through the establishment of
the business as it begins operations. Public services from the government agencies below will be
utilized as well. The Advisory Team will consist of:
- John Jacob- Agricultural Education Teacher and FFA Advisor
Page 37
- Marlene Reynolds- Grandmother and small business owner
- Sonny Reynolds- Grandfather and Industrial/Automotive Maintenance Specialist
- Michael Living- Farmers Bank Chief Financial Officer
- Jeff Wamsley- Graphic Design Specialist and Mason County Career Center Instructor
- Bill Smeltzer- Smeltzer Accounting Firm
- John Henderson- Henderson and Henderson Law
- West Virginia Department of Agriculture
- West Virginia Small Farm Center
- West Virginia Small Business Development Center
7. Financial Plan
Financial Record System:
All financial records will be processed by Joseph Ray. This will include all invoicing,
preparation and maintenance of all business records, payment of outstanding charges, and
preparation of records concerning customer orders. The business will utilize Quickbooks based
software to ensure ease of processing, as well as efficiency and accuracy in the reporting.
Financial records will also be maintained in Joseph’s Supervised Agricultural Experience
Program record book for the National FFA Organization.
Acquiring Required Resources:

The primary method of attaining the required resources for the business will be through a youth
loan from the Farm Service Agency. The loan program allows beginning farmers to attain a loan
for up to $5,000 for starting an agricultural business at three percent annual interest. Turkey
Creek Poultry Farm will seek a loan for $2,600 which will be used to purchase the materials
necessary for starting the operation. The Budget of Required Resources on page 40 identifies
how these resources will be utilized.
Page 38
First Year Income Statement:
First Year Income Statement
April May June July August September October November December Total
Revenue
Sales $210.00 $250.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $2735.00
Additional Revenue 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Sales $210.00 $250.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $2735.00
Cost of Goods Sold 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Gross Profit $210.00 $250.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $2,735.00
Operating Expenses
Advertising $106.70 $106.70
Feed Costs 132.00 132.00 132.00 132.00 132.00 132.00 132.00 132.00 132.00 1,188.00
Equipment Maintenance 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 90.00
Utilities 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 450.00
Misc. Expenses 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 90.00
Total Operating Expenses $308.70 $202.00 $202.00 $202.00 $202.00 $202.00 $202.00 $202.00 $202.00 $1924.70
Net Income -98.70 48.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 810.30
Income Tax Expense 16.80 20.00 26.00 26.00 26.00 26.00 26.00 26.00 26.00 218.80
Net Income After Taxes -$115.50 $28.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 $591.50
Explanation for First Year Income Statement:

- Sales: Monthly dozen egg sales will be the following at $2.50 per dozen-
April May June July August September October November December
75* 100 100 100 100 100 100 100 100
*Expected drop in production due to stress in new environment.
The following will be the bag sales of compost at $15 per bag-
April May June July August September October November December
0* 0* 5 5 5 5 5 5 5
*Note: There will be no compost the first two months because it will take two months to process the compost
before it is ready to be sold.
- Additional Revenue: There will be no additional sales.

- Net Sales = Sales + Additional Revenue
- There will be no cost of goods sold because the business will be producing its own product.
- Gross Profit = Net Sales - Cost of Goods Sold
- Advertising Expense- Items purchased for advertising (Discussed on page 33 in 2013
Advertising Budget) will be incurred in April 2013
- Feed Costs- 50 chickens x 4/10 lb. feed each = 20 lbs. per day; 50 lbs. feed at $11.00 = $132
per month
- Equipment Maintenance- $10 a month allocated to necessary small equipment purchases and
repairs
Page 39
- Utilities- $50 a month for electricity and water
- Miscellaneous Expenses- $10 allocated for miscellaneous expenses per month
- Total Operating Expenses = Sum of all Operating Expenses
- Net Income = Gross Profit - Total Operating Expense
- Income Tax Expense = Net Sales x 8%
- Net Income After Taxes = Net Income - Income Tax Expense
- Total Operating Expenses = Total of all operating expense items
*Note: The business will incur a loss in the first year because of costs necessary to start the business.
*Note: The loan will not be addressed in expenses in 2013, as it will be first year interest only due. This
amount will be paid in April 2014.
First Year Cash Flow Statement:

First Year Cash Flow Statement
Cash Flows From Operating Activities
Cash Received From Revenue Transactions $210.00 $250.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $2,735.00
Cash Paid for Expenses 325.50 222.00 228.00 228.00 228.00 228.00 228.00 228.00 228.00 2,143.50
Net Cash Provided by Operating Activities -$115.50 $28.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 $591.50
Cash Flows From Investing Activities:
Purchase of Livestock $350.00 $350.00
Purchase of Building 1,500.00 1,500.00
Purchase of Required Egg Production Equipment 523.00 523.00
Purchase of Compost Processing Equipment 97.50 97.50
Net Cash Used by Investing Activities $2,470.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,470.50
Cash Flows from Financing Activities:
---
Net Cash Provided by Financing Activities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Increase in Cash for the Period -$2,586.00 $28.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 -$1,879.00
Beginning of Month Cash Balance 0.00 14.00 42.00 139.00 236.00 333.00 430.00 527.00 624.00 2,345.00
Cash Infusion from Loan 2,600.00 2,600.00
Ending Cash Balance $14.00 $42.00 $139.00 $236.00 $333.00 $430.00 $527.00 $624.00 $721.00
Explanation of First Year Cash Flow Statement:

- Cash Received from Revenue Transactions is Net Sales from Income Statement
- Cash Paid for Expenses is Cost of Goods Sold + Total Operating Expenses + Income Tax
Expense
- Net Cash Provided by Operating Activities = Cash Received from Revenue Transactions - Cash
Paid for Expenses
- Purchase of Livestock, Building, Required Egg Production Equipment, and Compost
Processing Equipment are all from the Budget of Required Resources
- Net Cash Used by Investing Activities is the sum of all Cash Flows from Investing Activities
- There are no Financing Activities that will be performed by the business
Page 40
- Net Cash Provided by Financing Activities is the total of all Cash Flows from Financing
Activities
- Increase in Cash for the Period= (Net Cash Provided by Operating Activities + Net Cash
Provided by Financing Activities) - Net Cash Used by Investing Activities
- Beginning of Month Balance is the Ending Cash Balance for the previous month
- Cash Infusion from Loan is the funds that will be provided by a loan for the amount of $2,600
at 3% annual interest to Turkey Creek Poultry Farm
- Ending Cash Balance= Increase in Cash for the Period + Beginning of Month Cash Balance
+ Cash Infusion from Loan
Budget of Required Resources:

Budget of Required Resources
Item Cost per Unit Amount Total Cost
Laying Chickens $7.00 50 head $350.00
Chicken Coop $1,500 1 coop $1,500
Feeders $15 5 feeders $75
Waterers $25 4 waterers $100
Nest Boxes $10 10 boxes $100
Feed Scoops $8 1 scoop $8
Fencing $200 N/A $200
Egg Cartons $0.10 200 cartons $20
Candler $20 1 candler $20
Compost Bags $0.25 50 bags $12.50
Compost Bin $85 1 compost bin $85
Advertising $106.70 Yearly Advertising $106.7

TOTAL $2,577.20
Advertising
Facility Costs
Egg Processing Equipment
Livestock
Compost Processing Equipment
Page 41
8. Appendix
Appendix One:
Figure 1: This logo will be used to advertise in restaurants. It can be used by restaurants to show
customers they are using Turkey Creek Poultry Farm eggs in their products.
Appendix Two:
Figure 2: This advertising piece will be used by the business to advertise to teachers
and customers in Point Pleasant, West Virginia. It will also be provided to businesses
to use in their locations for customers to see the value of what Turkey Creek Poultry
Farm’s eggs have to offer. Page 42
Appendix Three:
1 Acre Plot of Land
Chicken
Coop
Figure 3: This is the proposed location and layout of the land where the production facility for Turkey Creek
Poultry Farm will be located.
20 Feet 10 Feet
Nest Boxes
Feeder Feeder
Chicken Coop
10 Feet
10 Feet
Chicken Run Roosts
Waterer Waterer
Nest Boxes
FIgure 4: Proposed facility layout for Turkey Creek Poultry Farm egg production facility.
Page 43
Appendix Four:
Figure 5: Proposed composting bins for processing chicken litter produced by the operation.
Page 44
Sample Presentation
Page 45
Joseph'Ray
Mason'County'Vocational'FFA'Chapter
February'27th,'2013
Who Are We?
• Free Range Egg Production Operation

• Located in Point Pleasant, WV
• Motto: “Your Hometown Provider of
Quality, Free Range Eggs”
Products
• Primary Product:
• Free Range Brown Eggs
• Secondary Product:
• Fresh Compost
Target Market Area
• Mason County, West Virginia
• Small area, numerous local businesses
• High number of older individuals
• Average age 47 years old
• Average income $38,000
Target Market
• Two Target Groups:
1. Individuals over age 40 in Mason County
2. Teachers at Point Pleasant High School and

Mason County Career Center
Characteristics of
Target Market Groups
• Individuals over age 40 in Mason County
• Low debt, high disposable income
• Support local businesses
• Teachers at Point Pleasant High School and

Mason County Career Center
• Higher Education = Understand benefits of local
products
• Higher wages and can afford products

Value to Target Market
• Eggs:
• Nutritional Benefits
• Free range
• High quality
• Locally Produced
• Compost:
• High quality soil amendment
• All-natural
• Locally produced
Key Advertising Message
• Message to be communicated:
• Educate consumers on product benefits
• Communicate product value to target
market
• Dependable local business
• High quality product
Advertising Channels:
Consumers
• Initially flyers
• Word-of-mouth
• Stimulated through reference discount from
current egg & compost customer
• Informational flyers for teachers
• Future channels will include radio as customer
base grows
Advertising Channels:
Businesses
• As Turkey Creek Poultry Farm grows, will seek
business customers
• Channels to Businesses:
• Communicate directly to owner
• Utilize logos and brochures
• Shown in Appendix One & Two
• Show value of purchasing locally
Egg Pricing
Quantity Price
1 Dozen $2.75
1 1/2 Dozen $4.00
2 Dozen $5.00
2 to 25 Dozen $2.50 per dozen
25 Dozen and Above $2.25 per dozen

Compost Pricing
Quantity Price
1 Bag $15.00
2 Bags $25.00
2 Bags to 15 Bags $12.50 per bag
15 Bags and Above $10.00 per bag

Timeline
March July September
July 2014 2015 2015
2013 Begin radio
Attain April 2013 Begin - Have two
- Purchase 50 advertising September June 2015 advertising business
loan to for 2014
purchase Ready-to-Lay Expand to customers
Pullets increased Have sales to production businesses - Have sales
required sales in 50 dozen a
startup - Begin facility to and to 100
advertising to September week 200 chicken restaurants dozen a
supplies 2014
school teachers capacity week
2013 2014 2015 2016
Mid-March May 2013 March 2014 August 2014 March 2015 August 2015
2013 - Establish five Advertise Purchase 100 Advertise Purchase 200
Construct customers for compost Ready-to-Lay compost Ready-to-Lay
chicken coop eggs Pullets Pullets
and - Have sales to
25 dozen a
week
Budget of Required
Resources
Advertising
Facility Costs
Egg Processing Equipment Item Cost per Unit Amount Total Cost
Livestock Laying Chickens $7.00 50 head $350.00
Chicken Coop $1,500 1 coop $1,500
Compost Processing Equipment
Feeders $15 5 feeders $75
Waterers $25 4 waterers $100
Nest Boxes $10 10 boxes $100
Feed Scoops $8 1 scoop $8
Fencing $200 N/A $200
Egg Cartons $0.10 200 cartons $20
Candler $20 1 candler $20
Compost Bags $0.25 50 bags $12.50
Compost Bin $85 1 compost bin $85
Advertising $106.70 Yearly Advertising $106.70
TOTAL $2,557.20
First Year Income Statement
Revenue
Sales $210.00 $250.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $2735.00
Additional Revenue 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Sales $210.00 $250.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $2735.00
Cost of Goods Sold 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Gross Profit $210.00 $250.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $2,735.00
Operating Expenses
Advertising $106.70 $106.70
Feed Costs 132.00 132.00 132.00 132.00 132.00 132.00 132.00 132.00 132.00 1,188.00
Equipment Maintenance 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 90.00
Utilities 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 450.00
Misc. Expenses 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 90.00
Total Operating Expenses $308.70 $202.00 $202.00 $202.00 $202.00 $202.00 $202.00 $202.00 $202.00 $1924.70
Net Income -98.70 48.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 810.30
Income Tax Expense 16.80 20.00 26.00 26.00 26.00 26.00 26.00 26.00 26.00 218.80
Net Income After Taxes -$115.50 $28.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 $591.50
First Year Cash Flow Statement
Cash Flows From Operating Activities
Cash Received From Revenue Transactions $210.00 $250.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $2,735.00
Cash Paid for Expenses 325.50 222.00 228.00 228.00 228.00 228.00 228.00 228.00 228.00 2,143.50
Net Cash Provided by Operating Activities -$115.50 $28.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 $591.50
Cash Flows From Investing Activities:
Purchase of Livestock $350.00 $350.00
Purchase of Building 1,500.00 1,500.00
Purchase of Required Egg Production Equipment 523.00 523.00
Purchase of Compost Processing Equipment 97.50 97.50
Net Cash Used by Investing Activities $2,470.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,470.50
Cash Flows from Financing Activities:
---
Net Cash Provided by Financing Activities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Increase in Cash for the Period -$2,586.00 $28.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 $97.00 -$1,879.00
Beginning of Month Cash Balance 0.00 14.00 42.00 139.00 236.00 333.00 430.00 527.00 624.00 2,345.00
Cash Infusion from Loan 2,600.00 2,600.00
Ending Cash Balance $14.00 $42.00 $139.00 $236.00 $333.00 $430.00 $527.00 $624.00 $721.00
Future Potential
• Will look at wholesale market in depth in
July 2015
• Demand for local products will continue to
grow
• Tremendous potential for wholesale market
• Prime geographic location near highly
populated areas
Summary
• Turkey Creek Poultry Farm is local egg and
compost producer
• Target market will be > 40 age group and
teachers
• With growth, will include wholesale market
• Eggs start at $2.75 and compost at $15
Summary
• Production will begin April 2013

• Initial investment of $2,600
• Adequate first year cash flow and potential
for high returns
• Extensive growth highly probable
Joseph'Ray
Mason'County'Vocational'FFA'Chapter
February'27th,'2013
Glossary
Page 66
Glossary
Advertising Channels- Name that refers to the method a business uses to communicate its
advertisements; can include radio, television, print, internet, word of mouth, or any form of
communication used to transmit advertisement about the business
Business Venture- An entrepreneurial business enterprise that has been started that involves risk
Competition- A business or group of businesses that sell a similar product or service
Competitor- An individual business that sells a similar product or service
Consumer- Person who purchases goods and services for personal use
Demographic Information- Statistical information about a population in a specific area
Direct Competitors- Competitors that sell the same, or almost the same, product or service as
your business
Diversification- Business condition where income comes from more than one source, lowering
the financial risk of a business
Image- Reputation and perception people have in their mind about a business
Indirect Competitors- Competitors that sell a product or service that could compete with yours,
but is not the same (i.e. Example One: Business selling locally grown apples is Walmart.
Walmart does not sell locally grown apples, but they do sell apples. They would be an indirect
competitor to the apple grower. Example Two: Custom hay harvesting business. The company
bales hay for producers and may not have direct competitors. A John Deere dealership that sells
hay balers would be an indirect competitor to the business because customers could buy a hay
baler and process their own hay without the processor.)
Industry- A particular form or branch of economic activity (i.e. beef industry, technology
industry)
Jargon- Special words or expressions that are used in a particular profession or group that are
difficult for others to understand (i.e. free range, ready-to-lay pullets)
Market- Selling environment where goods and services are exchanged for money; this market is
not a physical location, but a selling environment in which many businesses sell to many
consumers
Page 67
Market Advantage- Something that makes a specific business’s product or service more desired
by consumers (i.e. lower cost than competitors, longstanding reputation in the community)
Marketing Channels- See Advertising Channels
Operating Expenses- Expenses that are incurred by running a business; These expenses do not
include purchasing assets that are kept over a long period of time such as livestock and facilities
Objective- Something that is aimed or sought; a goal
Pricing Structure- Structure which is the basis for determining the price of a product; States
quantity of product that can be purchased at a specific price (See page 34 for example)
Production Inputs- Things that must be put into the production of a product or service (i.e. time,
feed, water, livestock)
Profit- Revenue left after subtracting all expenses; the “bottom line”
SMART Goals- Method of formatting goals; Acronym that stands for Specific, Measurable,
Attainable, Realistic, and Time-bound
Values- Guiding principles that govern the decision making process of a person or business
Page 68

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**PLEASE READ THIS FIRST**

Business Plan Checklist!........................................................................................Page 17

Example Business Plan!.........................................................................................Page 24

Example Business Presentation!...........................................................................Page 45

The purpose of a business plan is to communicate to key individuals, including investors,

Mission Statement and Image:

Competition Strengths and Weaknesses:

Business Strengths and Weaknesses:

Legal and Safety Regulations:

Acquiring Required Resources:

Explanation of Cash Flow Statement:

Business Strengths and Weaknesses

Value for Target Market Consumers

Legal and Safety Regulations

Acquiring Required Resources

Checklist for Business Plan Presentation

Company Business Plan

Mission Statement and Image:

Egg Competition Strengths:

Compost Competition Strengths:

Egg Competition Weaknesses:

Compost Competition Weaknesses:

Turkey Creek Poultry Farm Weaknesses:

Value for Target Market Consumers:

2013 Advertising Budget

Expense Item Quantity Cost Per Unit Total Cost

10% Discounted Sales 15 dozen eggs $0.28 $4.20

Advertising Post Cards 250 $0.20 50.00

Information Flyers 350 $0.15 52.50

1 1/2 Dozen $4.00

2 to 25 Dozen $2.50 per dozen

25 Dozen and Above $2.25 per dozen

2 Bags to 15 Bags $12.50 per bag

15 Bags and Above $10.00 per bag

Chart 1: Timeline projecting anticipated completion times for established milestones.

Acquiring Required Resources:

First Year Income Statement

Advertising $106.70 $106.70

Explanation for First Year Income Statement:

75* 100 100 100 100 100 100 100 100

*Expected drop in production due to stress in new environment.

- Additional Revenue: There will be no additional sales.

First Year Cash Flow Statement:

First Year Cash Flow Statement

Cash Flows From Operating Activities

Cash Flows From Investing Activities:

Purchase of Livestock $350.00 $350.00

Purchase of Building 1,500.00 1,500.00

Purchase of Required Egg Production Equipment 523.00 523.00

Purchase of Compost Processing Equipment 97.50 97.50

Cash Flows from Financing Activities:

Cash Infusion from Loan 2,600.00 2,600.00

Explanation of First Year Cash Flow Statement:

Budget of Required Resources:

Item Cost per Unit Amount Total Cost

Laying Chickens $7.00 50 head $350.00

Chicken Coop $1,500 1 coop $1,500

Feeders $15 5 feeders $75

Waterers $25 4 waterers $100

Nest Boxes $10 10 boxes $100

Feed Scoops $8 1 scoop $8

Fencing $200 N/A $200

Egg Cartons $0.10 200 cartons $20

PLEASE READ THIS FIRST