1. WELCOME TO LEAN CANVAS A business plan that emphasizes critical thinking not number crunching

2. WHY? 90% of small businesses fail in the first year. Of the 10% that make it…….7 have completely rebuilt their business plan. This is an appropriately sized business start- up response to the opportunities out there for agriculture as they are matched to the young entrepreneurs Kids have much competition for their time and interest. This method allows for regrouping, next steps, and complete “business overhauls”. This concept was chosen because it allows the teachers the same access to information as the students, so the teachers become their mentors on this project.

3. Problem Top 3 problems 1 Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Solution Top 3 features 3 Key Metrics Key activities you measure 6 Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 Unfair Advantage Can’t be easily copied or bought 7 Channels Path to customers 4 Customer Segments Target customers 1 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55

4. Problem Top 3 problems 1 Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Solution Top 3 features 3 Key Metrics Key activities you measure 6 Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 Unfair Advantage Can’t be easily copied or bought 7 Channels Path to customers 4 Customer Segments Target customers 1 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55

5. 1: PROBLEMS / NEEDS It is a problem that people will pay for the solution to Examples Poultry - Many farmers have a need for an efficient slaughter facility Machinery - There is a lot of unused, broken equipment & discarded equipment Hobby Farmer Hay - Large hay bales are inefficient and hard to manage for small or hobby farms

6. 1. CUSTOMERS Those are the folks who have that needs Examples Poultry-market for dressed birds but they don’t have the facilities the desire to process birds Equipment – part-time, beginning & small farmers Hobby Farmer Hay - don’t have time to make, land to raise, or storage space

7. Problem Top 3 problems 1 Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Solution Top 3 features 3 Key Metrics Key activities you measure 6 Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 Unfair Advantage Can’t be easily copied or bought 7 Channels Path to customers 4 Customer Segments Target customers 1 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55

8. 2: UNIQUE VALUE STATEMENT, IS WHY PEOPLE WILL PAY FOR YOUR SOLUTION. What makes your product better? Examples Poultry- Beginners, no one can slaughter more 20,000 in West Virginia/economy of scale w/out USDA licensing etc. - Expensive Machinery--Unique is most small farmers either can’t afford new equipment or won't pay for it. Hobby Farmer Hay -they don’t have the equipment, travel easily, cheaper than cubes

9. Problem Top 3 problems 1 Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Solution Top 3 features 3 Key Metrics Key activities you measure 6 Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 Unfair Advantage Can’t be easily copied or bought 7 Channels Path to customers 4 Customer Segments Target customers 1 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55

10. 3. SOLUTIONS Listen to your customers. Is what they say they need, their actual need? Examples Poultry – efficient/economical poultry slaughtering service Equipment – rebuild, repair, and sell quality used equipment Hobby Farmer Hay – sell small hay bales

11. Problem Top 3 problems 1 Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Solution Top 3 features 3 Key Metrics Key activities you measure 6 Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 Unfair Advantage Can’t be easily copied or bought 7 Channels Path to customers 4 Customer Segments Target customers 1 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55

12. 4. CHANNELS / MARKETING Inbound – bringing customers “IN” to you (pulling) Websites Social Media – Facebook, Twitter, LinkedIn Word of Mouth Outbound – reaching “OUT” to customers (pushing) Conferences County Fairs Print Ads

13. Problem Top 3 problems 1 Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Solution Top 3 features 3 Key Metrics Key activities you measure 6 Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 Unfair Advantage Can’t be easily copied or bought 7 Channels Path to customers 4 Customer Segments Target customers 1 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55

14. 5. COST STRUCTURE What’s Required Break-Even Point = Total Cost / Price per Unit i.e. Total Units that Need to be Sold  Anything over the break-even point is INCOME! Examples Poultry – Mobile processing unit, labor Equipment – Tools, shop equipment, inventory, labor Hobby Farmer Hay – Baler, hay, labor

15. 5. REVENUE STREAMS Price for product or service Examples Poultry – $2/head + 0.10/lb Equipment – markup initial cost 10% (?)+ labor and material Hobby Farmer Hay – flat price for bales

16. Problem Top 3 problems 1 Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Solution Top 3 features 3 Key Metrics Key activities you measure 6 Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 Unfair Advantage Can’t be easily copied or bought 7 Channels Path to customers 4 Customer Segments Target customers 1 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55

17. 6. KEY METRICS Defined objectives working towards goals Examples Poultry – Build slaughtering facility, test initial slaughter, acquire customers Equipment – Secure use of shop, acquire equipment, develop customer base Hobby Farmer Hay – Secure source of hay to harvest or bale, purchase equipment, acquire customers

18. Problem Top 3 problems 1 Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Solution Top 3 features 3 Key Metrics Key activities you measure 6 Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 Unfair Advantage Can’t be easily copied or bought 7 Channels Path to customers 4 Customer Segments Target customers 1 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55

19. 7. UNFAIR ADVANTAGE What makes you the better business?  Insider information  “Expert” endorsements  Personal authority  Desire  Young and energetic Examples Poultry – Accessibility & location Equipment – Ten yrs. experience Hobby Farmer Hay – Nutrient analysis experts SOMETIMES THE “UNFAIR ADVANTAGE” IS NOT EVIDENT AND YOU DON’T HAVE OR ARE AWARE OF ONE “A real unfair advantage is something that cannot be easily copied or bought.” – Jason Cohen

20. WHERE DO WE GO FROM HERE? This lean canvass is always a work in progress it is never done. The thoroughness of the lean canvas is determined by the critical thinking and quality of the individual decisions made by the entrepreneur. It causes the risk taker to think through each facet of the IDEA before it is ready for a lender. It mixes the human and business side of each potential venture.

21. NOW WHAT? Next Steps Identify market you can reach Find customers you understand who need your product or service AND will pay your price Make sure customers make up large enough market to build your business (this may possibly require a few canvases)

22. INTERMISSION We’ll be back after these brief messages.

23. LET’S MAKE A LEAN CANVAS! You most likely already have an inkling of the problem, solution, and customer in mind. Start by brainstorming the list of possible customers you envision using your product.

24. Problem Top 3 problems 1 Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Solution Top 3 features 3 Key Metrics Key activities you measure 6 Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 Unfair Advantage Can’t be easily copied or bought 7 Channels Path to customers 4 Customer Segments Target customers 1 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55

25. Problem Top 3 problems 1 Key Metrics Key activities you measure 6 Channels Path to customers 4 Let’s concentrate on the poultry processing idea. How do we know there is a shortage of processing capacity? Talk to neighbors, read about it, hear the commissioner of agriculture discuss it or some other research or is it personal experience? 1.USDA: WVDA: Health department: time: Know how? 2.Where do you find these answers? County Agent, WVU Ext Small Farm Center other experts 3.Are you at the point where you feel like a local expert of this issue? That is the goal. 4.This will require some thought and research.

26. Key Metrics Key activities you measure 6 Customer Segments Target customers 1 Not everybody wants or needs the product, but many will need it. A list of potential consumers will originate from many different groups, for many different reasons. Again it is important to know what these folks are thinking. Here it is important to define and innumerate these segments. There probably will be many or at least more than a few. 1.Beginners 2.Actual survey 3.FFA Members 4.Larger producers 5.Out of county or region farmers 6.This must be documented, as well

27. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 55 You are a small farmer/ business person, too. Local Have a reputation for treating people honestly You are punctual The only service like yours Potential customers don’t have time or resources. Probably best to discuss this proposition with community leaders and potential lenders.

28. Problem Top 3 problems 1 Solution Top 3 features 3 Channels Path to customers 4 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55 What is the customer wanting or needing? Maybe it is a business generator or a new enterprise that requires a service. In the case of chickens processing them is a different enterprise than growing and marketing. Remember that Henry Ford was responding to the customers perception that they wanted a faster horse.

29. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Key Metrics Key activities you measure 6 Channels Path to customers 4 55 How are we going to reach our customers? Inbound : Pulling your customers in with social media. But it is important to engage them first. And the question I ask all the time is your customer base using these media? Outbound: Actively, reaching out. Face to Face: Conferences Print ads, Fairs etc. Both marketing channels require a little budget thought. Ex. Time, gasoline, paper, professional help etc.

30. Problem Top 3 problems 1 Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Solution Top 3 features 3 Key Metrics Key activities you measure 6 Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying 2 Unfair Advantage Can’t be easily copied or bought 7 Channels Path to customers 4 Customer Segments Target customers 1 Revenue Streams Revenue Model Life Time Value Revenue Gross Margin 55

31. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. 5

32. 5

33. Problem Top 3 problems Key Metrics Key activities you measure 6 Channels Path to customers 4 Really two metrics: What will we measure to track progress and success. A- project progress divided into small steps 1.Materials acquired 2.Construction started B- what determines success of the venture 1.Customers 2.Traffic

34. 7. UNFAIR ADVANTAGE What makes yours the better business?  Insider information  “Expert” endorsements  Personal authority  Desire  Young and energetic Examples Poultry – Accessibility & location Equipment – Ten yrs. experience Hobby Farmer Hay – Nutrient analysis experts SOMETIMES THE “UNFAIR ADVANTAGE” IS NOT EVIDENT AND YOU DON’T HAVE OR ARE AWARE OF ONE “A real unfair advantage is something that cannot be easily copied or bought.” – Jason Cohen

35. THE PITCH 6 minutes Just a fact-filled elevator pitch List but not by name the elements of he or her lean canvas. A lean canvas would be a suitable visual but certainly not required The will be a separate pitch award. As there will be a separate business plan/lean canvass award.