MANAGING Tough Times Success Factors for Creating a Successful Value-added Agricultural Business

MANAGING Tough Times Success Factors Leadership Committee Members Project Investment Process

MANAGING Tough Times Leadership Find a leader(s) (Champion) Your leader should be a farmer The leader needs to convey a vision of the project

MANAGING Tough Times Leadership Leaders must be honest, steady and trusted by the committee members Leaders should be rewarded for good work.

MANAGING Tough Times Committee Members Members must be involved and feel ownership of the project Members must focus on learning Member have to discover information – not just be told

MANAGING Tough Times Committee Members More than farmers need to be involved (agribusiness, extension, etc.) Members need to think outside of the box. Members need to put money on the table.

MANAGING Tough Times Project When examining a potential project, focus first on why it will work, then on why it won’t work. Watch out for group-think Answer the question, “Why will this project be successful”.

MANAGING Tough Times Project Use advisors and consultants Consider partnering with other value- added groups and industry players Focus on building a business – not raising commodity prices or creating jobs

MANAGING Tough Times Project Understand the industry – do industry scanning Build business in response to market needs The feasibility study (should we do it) leads to the business plan (how do we do it)

MANAGING Tough Times Project Legal advise – get it before you need it (prevention vs. treatment) You need Directors and Officers Insurance

MANAGING Tough Times Investment Don’t underestimate capital needs Don’t short yourself on equity Don’t be ashamed to ask for money.

MANAGING Tough Times Investment Be open with the investor/lender Farmer investors “where his/her heart is – his/her money will be”

MANAGING Tough Times Process Having a vision is critical – but execution of the vision is also critical Make a commitment to get to the finish line Make action plans and timelines – try to achieve them

MANAGING Tough Times Process Have regular meeting with prepared agendas and good sets of minutes to record decisions and progress. Keep your eye on the prize (don’t let personality conflicts and other distractions get in your way)

MANAGING Tough Times Process The road is long – don’t give up