scaler - cdn.ymaws.com scaler Welcome to the FaBcap Program FaBcap_scaler How to profitably scale/grow

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    Thanks to our FaBcap Sponsors

    Presenting Sponsors Program Sponsors

    https://wmep.org/

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    Welcome to the FaBcap Program

    FaBcap_scaler How to profitably scale/grow your food or beverage business

    -or-

    FaBcap Accelerator in 4 hours

    FaBcap Accelerator How to build an investible food business

    Innovation conference, 1-1 coaching, SME mentoring, 6 cohort meetings,

    investor pitches & graduation ceremony and $10,000 award

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    1:30 – 2:00 pm – Food & Beverage Business Profitable Growth Drivers Maximizing Business Potential

    Business Growth Considerations & Benchmarks

    2:00 – 3:30 pm – Food & Beverage Business Profitable Growth Best Practices Marketing Maximizing Brand, Product Lines and Net Margin

    SalesMaximizing Customer Profitability and Relationships

    Operations Deliver Best Quality, Lowest Cost within Food Safety Requirements

    3:30 – 3:45 pm – Break and Networking

    3:45 – 4:45 pm – Food & Beverage Business Profitable Growth Best Practices Accounting/Financing Developing Reliable Accounting Procedures & Financial Tracking

    Legal Make Sure Your Legal House is in Order

    Organizational Management & Systems  Developing a High-Performance Organization

    Executive Management Building a Credible Leadership Team & Advisory/BOD

    4:45 – 5:00 pm – Wrap-up, Q&A and FaBcap 3 Program & Schedule Reveiw

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    Key Takeaways

    Critical elements to profitably scale & grow a food or beverage company

    – Macro business perspectives and scalable business models

    – Key drivers to maximize your profitability and grow your business

     Marketing

     Sales

     Operations

     Organizational Structure & Leadership

    Networking/Resources

    – Peer businesses

    – Professional & technical products and service providers

    – Educational resources and programs

    – Small business development support organizations

     Accounting/Finance

     Legal

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    Introductions

    10 second introduction and

    very brief infomercial

    – Name

    – Company

    – Products and/or Services

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    Profitably Scaling/Growing

    a Food or Beverage Business

    Brad Rostowfske Director of Industry Growth

    brostowfske@fabwisconsin.com

    http://www.fabwisconsin.com/

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    Profitably Scaling/Growing a Food or Beverage Business

    Maximizing Your Business Potential

    • Mutually aligned,

    balanced Marketing, Sales

    & Operations

    Plans

    • Deliver a

    comprehensive

    business plan that

    is worthy of investment and

    execution

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    Scalable Food Business Models

    Tera Johnson Director, Food Finance Institute

    Founder of teraswhey™

    (608) 890-0780 | tera.johnson@uwex.edu

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    It’s a business model, not a product, that determines whether a company makes

    money. Having adequate capital

    determines whether your business model can reach critical mass.

    Scalable Food Business Models

    Fundable Business Models are Scalable

    • A defensibly unique value

    proposition

    • Sufficient market and business scale

    to generate adequate cash flow

    • The right brand, packaging, pricing,

    sales and distribution channels, and

    promotional programs

    • The right staff, production facilities,

    & QA

    • Enough appropriate capital to fund

    growth

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    Viable Local Food Business Models

    That Achieve Scale and Cash Flow

    Go Where the Market is

    Diversify Income

    Horizontally Integrated Businesses

    Vertical Integrated Processors

    Stay Small

    Each of these growth paths have different financial benchmarks, capital requirements,

    and optimal sources of capital over time. It is therefore important to pick your path as

    soon as possible and optimize for it.

    Scalable Food Business Models

    Business Models That Are Working Financially

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    Scalable Food Business Models

    Direct Sales Local Brand

    • High percentage of direct to

    consumer sales

    – Farmers Markets

    – Retail front

    • Shared use facility

    • Often little or no other labor cost

    • High cost of goods sold

    • Inventory high % of sales

    • AR low (direct model)

    • F & F, Kickstarter, Microloans

    MES = Manufacturing Execution System

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    Scalable Food Business Models

    Regional Brand

    • Scale up by targeting most promising markets

    • Co-packer with full labor allocation • Distributor sales drives margins

    down & volume up • High promotional requirements in

    new markets • High AR in new distributors • COGS improving with volume • Kickstarter and Microloans not large

    enough • SBA 7a, F & F Investors, other

    investors may be needed

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    Scalable Food Business Models

    National Brand

    • Investor grade fast growth to exit business model

    • $10M target sales level at exit

    • Steadily improving COGS

    • High sales and marketing expenses • Other expense growth slowing as a

    % of sales

    • Inventory, AR decline relative to sales as volume increases

    • Accredited investor equity offering and conventional lender required

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    Scalable Food Business Models

    Local Vertical

    • Local brand or on-farm processor adds retail location to gain scale and generate cash

    • Production facility for wholesale is retail kitchen

    • Capitalization more like a restaurant • Metrics like restaurant • Can be a successful model in small

    communities • Potential for sustainable slow growth

    model • Micro lender, F & F, Kickstarter

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    Scalable Food Business Models

    Horizontal

    • Financed and managed as

    a series of smaller businesses

    • MES for each are aided by

    synergies across entities

    • Often capitalized

    individually

    http://www.undergroundfoodcollective.org/

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    Scalable Food Business Models

    Thinking BIGGER….

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    Scalable Food Business Models

    Tera Johnson Director, Food Finance Institute

    Founder of teraswhey™

    (608) 890-0780 | tera.johnson@uwex.edu

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    Marketing Maximizing Brand, Product Line & Net Margin

    Lora Steinmetz Senior Account Executive

    (262) 938-5569 | lsteinmetz@bader-rutter.com

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    Marketing

    How Great Brands Are Built

    • Understanding the customers

    • Clarity of message

    • Consistency in coverage

    • A positive customer experience

    • Products that always deliver on the brand promise

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    Fundamentals of Marketing & Brand Building:

    21

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    Marketing

    Take a Step Back

    1. Be people-focused, not product-focused

    2. Tell your target’s story, not yours

    3. Focus first on inputs, second on outputs

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    - Creative Alchemy

    “We never seem to have enough time to do it right, but we always seem to find enough time to do it over.”

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    WHAT IS ONE OF AN ORGANIZATION’S MOST IMPORTANT

    ASSETS?

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    Marketing

    A Strong Brand Delivers …

    • Increased revenue and market share

    • Increased customer loyalty

    • Increased profitability

    • Decreased price sensitivity

    • Increased clarity of vision

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    • Increased ability to mobilize an organization’s people and focus its activities

    • Increased ability to expand into new product and service categories

    • Increased ability to attract and retain high-quality employees

    Marketing

    A Strong Brand Delivers …

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    KNOW THE CUSTOMERS NEEDS AND MOTIVATIONS: CUSTOMER ACQUISITION THROUGH UNDERSTANDING

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    Marketing

    Your Ideal Consumer

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    Audience Centric

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    Marketing

    Understand Your Target

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    Marketing

    Customer Persona

    PHOTO

    Background: Job? Career path? Family?

    Goals: How do they define happiness or satisfaction? (Primary and secondary)

    What can we (company) do?

    Name: Motivators: What are my buying/recommending behaviors in this product category? What can we (company) do?

    Gender:

    Age: Influences: Whom do I look to for advice, recommendations or as resourc