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How to Write a Business Plan for Your Farmers Market
Laura Biasillo
Cornell Cooperative Extension
of Broome County
Roadmap for Today
Why Does My Farmers Market Need a Business Plan?
What Are the Components of a Business Plan?
Operations & Management
Templates to Create Your Farmers Market Business Plan
What’s Next?
Operations, Management & Logistics
Mission & Vision
SMART Goals
Brief History & Market Operations
Community Support
Community Demographics
Market Organizational Structure
Market Rules
Market Governance
Market
Staffing
Liability, Risk Management & Insurance
Financial Disclosures
Site Selection & Emergency Preparedness
But first….Why Do I Need a Business Plan?
To Map the Future
To Support Growth & Secure Funding
To Develop & Communicate a Course of Action
To Help Manage Cash Flow
To Support a Strategic Exit
What Are the Components of a Business Plan? The first deals with the more business-focused aspects of your farmers
market, including your mission and goals, your background, including history, site selection, customers and demographics and competition, and finally market operations.
The second deals with marketing and customer outreach plans.
The third deals with your financial projections for sustainability.
Market History & Community Support
The ___________________________ farmers market operates from _______ to _________ at _________________________________________________________.
Our history:
When and how did the market start?
Who sponsors the market?
Community partnerships? Who is nearby to support you?
How does it fit in the local foods scene?
Documenting Community & Farmer Support Assessment of Community Support
Is your community interested in having a farmers market?
Where is the best location for traffic?
What types of products/production methods are they interested in?
What are peak times for customer traffic (summer vacation peak, college town, etc…)
What are the demographics of those who are interested?
What types of marketing/outreach will be most effective?
Assessment of Farmer Support
Where will your farmers come from?
What types of products will they bring?
What days/times of day are they interested in coming?
Are your proposed vending fees acceptable?
Where will you have gaps in product diversity?
Mission Versus Vision
Your mission should define your business, its objectives and its approach to reach those objectives.
Your vision statement describes the desired future position of the company.
Mission Versus Vision Continued What makes up a good mission statement?
Concise
Who does your market serve?
What does your market hope to achieve?
How will you accomplish this?
How will farmers be impacted by your market?
How will the community be impacted by your market?
What makes up a good vision statement?
How do you want to change the world?
Mission:It is Bejo’s mission to develop and market excellent starting material for the worldwide production of vegetables, which provide added value for the whole food chain.
Some mission statement examples:
Syracuse East Side farmers market’s mission statement :
The mission is to host a farmers’ market that improves local food security, teaches entrepreneurship skills, supports local farmers and businesses, while enriching the cultural heritage and community life of Syracuse’s Eastside neighborhood.
Another example is the Cambridge Valley Farmers Market:
Our mission is to provide an opportunity for local farmers, food producers, and artists to sell their products directly to the consumer in a clean, friendly and community oriented environment.
ExamplesExample Goal: We will increase sales to our local school district.
Specific: We will increase our lettuce sales at our local school district by 10%.
Measurable: We will have our bank account set up and paperwork completed to be an approved vendor within a month and we will aim for $100 in sales per week.
Attainable: We will be enrolled in the district’s vendor program. Then we will set up our bank account to handle transactions. Finally, we will promote our lettuce varieties through word of mouth, social media and networking with local community partners.
Relevant: Increasing our lettuce sales will equal increased income for our business.
Time-Based: Our lettuce will be ready for harvest by the week of school starting and we will have deliveries scheduled that week.
Community Demographics
What did your customer survey tell you in terms of who was interested in shopping at your farmers market?
Look back at your mission and vision statement…who is your ideal customer?
Now, let’s figure out what your community demographics are and how they fit your mission.
https://headwaterseconomics.org/tools/economic-profile-system/about/
Why Should You Form a Formal Business Structure for Your Farmers Market?
Steps to Follow
Register Your Business Name & Get a Checking Account
Choose a Business Structure
Assemble a Team:
Legal
Financial
Accounting
Technical Assistance
How to Register Your Business Name
Visit Your county clerk’s office for paperwork
Search license database for business name
May need a certified copy to open up bank account
Visit bank/credit union & set up account
EIN versus SSN
EIN is free and can be filed for at www.irs.gov
Choosing a Business Structure Non Profit
Vendor Driven
Independently Owned
Community Driven
Sponsored Market
Unincorporated
Volunteer Run
For Profit
Non-Traditional
Youth Market
Mobile Market
Online Market
Aspects to Consider in Organizational Structure Bylaws
Separation of Liability
Conflict of Interest
Staffing & Payment of Staff OR Use of Volunteers
Labor Laws
Management Structure
Access to Grant Funding
Financial Disclosure
Mission
Board or other governing body
IRS filing
Incorporation
How to Form a for-profit entity…If you are looking at creating a for-profit structure you will want to do the following:
You will need to file a Business Certificate (DBA) at the County Clerk's Office. There is a filing fee of $25.00 and DBA forms are available for $1.00. There is a fee of $5.20 for a certified copy; you may need a copy to open a bank account. All signatures on the DBA must be notarized, and the Clerk's Office has notaries on staff to assist you.
Before filing, please search on your County Clerk's website to be sure that the name you've selected for your new business isn't already in use. Once you have filed the original DBA, the business name cannot be changed without filing an Amended Certificate for an additional $25.00.
If at some point the DBA is no longer needed you must file a Discontinuance of Business. Discontinuance forms are available in the Clerk's Office for $1.00 and there is no fee to file.
To make sure that there are no problems as to location, type of business or licensing requirements you should check with the municipality that you locate your business in for any applicable laws or restrictions. If you plan to conduct business in other counties, you should file your business name with the clerks of each county you wish to operate in.
Further State requirements are set forth in New York State General Business Law (sec. 130). You may also need a Federal ID number, also known as an Employer Identification Number (EIN). Requirements and further information can be obtained on the IRS website www.irs.gov, or go to the Federal Building.
How to Form a Non-Profit Entity…Process for Filing as a Not-for-Profit Corporation in NYS
Submit a Certificate of Incorporation (Form DOS-1511) to: Department of State Division of Corporations
Web Site: www.dos.state.ny.us/corps/
Filing Fee: $75
Obtain 501(c)(3) Tax-Exempt Status. (Form 1023, Application for Recognitionof Exemption) to:
Internal Revenue Service
Web Site: www.irs.gov/charities
Filing Fee: $750 ($300 if revenues less than $10,000/year)
Obtain New York Sales Tax Exemption (NYS and Local Sales and Use Tax Application (Form ST-119.2) and the 501(c)(3) Determination Letter from the IRS to:
Exempt Organizations NYS Tax Department Web Site: www.nystax.gov/
Filing Fee: $0
To Register with the New York Attorney General (required if applying for NYS grantsor contracts)
Prior to solicitations of contributions or within 6 months after any property held or income received is required to be used for charitable purposes (whichever comes first), submit EPTL Form Char 410 (Charities Registration Statement), the corporation's Certificate of Incorporation and all amendments, the 501(c)(3) Determination Letter from the IRS, and financial reports for each of the prior 6 years during which the organization was in existence (if any) to:
State of New York Department of Law Charities Bureau - Registration Section Web Site: www.charitiesnys.com
Filing Fee: $0, unless registering to solicit contributions, then $25
Four Types of Non-Profit Markets Vendor Driven
A vendor run board runs contrary to the IRS definition of a non-profit board since all board members would then have business ties to the market and not be independent of any ties to the organization
Community Driven
A committee rather than a board of directors, but the committee is inclusive of community organizers, consumers, and local business people. The goal is to use a diversity of people to govern the market, properly representing the diversity of the community, and to build a market and programs that reflect the community and address its needs
Independently Owned
Umbrella of another non-profit
Some incorporated, nonprofit markets operate under the umbrella of another nonprofit, such as a Chamber of Commerce or Community Action Program or maybe even a government agency. For example, The Rochester Public Market is operated by the City of Rochester and the Oneida County Public Market is operated by the Oneida County legislature. Both markets are very successful and operate with some degree of independence.
Good Time To Talk About Staffing
What Skills Are Required to be a good Market Manager?
Volunteer Versus Paid Management
Decision-making structure
Legality
Vendor versus non-vendor
(http://www.nyfarmersmarket.com/wp-content/uploads/1-1-Defining-a-Market-Managers-Role.pdf
Cooperative
Organization owned by the members
Members contribute equity toward business & share in profits
File with NYS
Similar governance structure at Corporation (management team reporting to BOD)
Voting = one vote/member OR based on patronage to Corp
Liability = limited
Financial Disclosures The corporation is required to:
Keep correct and complete books and records of account, and must keep minutes of the proceedings of its members, board of directors and executive committee, if any
Keep a record containing the names and addresses of all members
Hold a meeting of members annually for the election of directors and the transaction of other business on a date fixed by or under the by-laws
File Form 990 annually with the IRS to report donations, expenses, and income earned from for- profit business enterprises. This provides information on the organization's mission, programs, and finances.
Not-for-profit corporations formed for charitable purposes will be required to register with the Office of the Attorney General, Charities Bureau and file Form 550 annually.
Based on the level of income to the corporation, an annual audit or review must be conducted.
Site Selection & Emergency Preparedness
Market Area
Parking Area & Roadways
Vendor Areas
Food Sampling & Food Safety
Emergency Preparedness
Insurance
Liability
Misc.
Where Do I Go From Here?
How to Access Business Planning Templates
Support/technical assistance
What’s next?
How to Access Templates
https://agplan.umn.edu/
Other Resources:
Guide to Developing a Community Farmers Market: http://nyfarmersmarket.com/wp-content/uploads/2014/08/BuildingCommunityFM2010.pdf
Where do I find the templates & Information?
http://www.nyfarmersmarket.com/business-planning-taking-your-market-to-the-next-level/
Moving Forward in Business Planning…
Attend our upcoming webinars:
January 11th – Focus on marketing, branding and creating a marketing budget
January 23rd – Focus on creating realistic financial projections for your market to understand sustainability and profitability for the future
We will offer technical assistance February-April with drop-in webinars
Business Plan Competition??
