The beekeeper, then, must supplement outside guidance with this type of awareness. Consulting or coaching resources for beekeeping business planning or strategy offered by those with significant beekeeping knowledge and experience can be more difficult to find and will likely be more expensive than SBDC, SCORE, or DIY approaches.
Shoestring beekeeping sideliners, in particular, may have little or no background in business planning or strategic thinking. They can also have little inclination to view what had just been a hobby, before, that strategically now.
Not needing to acquire outside SBA or bank financing, and so not preparing any kind of formal business plan, they can easily overestimate or underestimate market opportunities, operate ineffectively and inefficiently, as well as poorly communicate their basic planning even to family and close friends assisting them.
Shoestring sideliner, or any type of sideline beekeeper, can benefit even more than commercial beekeeping firm owners or managers from a strategic perspective for choosing and conducting their particular sideline. Commercial firms usually have more common profit-seeking goals and characteristics in contrast to the multiple goals, interests, and particular time and financial constraints of sideline beekeepers.
Commercial firms can also have more access to market information about honey, other hive products, and beekeeping services than sideliners. Sideliners need strategic thinking to analyze possible beekeeping market niches and to develop more personalized approaches for choosing and undertaking the better options. Developing a Basic Strategy So how can a sideline or commercial beekeeper without much experience in or knowledge of strategic planning make better decisions and implement these more successfully?
Try to describe better your own goals, interests, values, and other personal characteristics in establishing a beekeeping sideline or business. Although these might seem obvious to you, taking a little introspective time to list carefully these characteristics may allow you to develop a few less-than-fully-realized ones. This listing allows you to share it with one or a few close beekeeping friends or family members who might comment on these, question a few of your assumptions, and suggest other items that you could have overlooked.
Do more market research on the beekeeping niches that you might consider pursuing. There are likely primary sources ways to interview actual beekeepers involved in these niches and secondary sources data bases of collected information on these niches of which you are unaware. Consider carefully how opportunities and threats identified in particular market niches from 2 above match or fit your own personal or obtainable resources and characteristics from 1 above.
Can you see a strategy that allows you to take fuller advantage of your resources and strengths and compensates for your weaknesses in order to gain what seems a competitive advantage in a particular market niche? Steps 1, 2, and 3 are the strategic basics for creating a simple business plan. Go online and find sample business plans for beekeeping operations.
Reading through a couple of these business plans should suggest a few additional planning concerns that you might want to consider and then cover in your personal planning. Once you have several pages describing your sideline or business strategy, consider the possibility of sharing this with a SBDC, SCORE, or a strategy advisor with some beekeeping experience.
These are costs not directly related to the particular product or service but they are costs that must be recovered. While you should consider what your competitors are charging, it doesn t necessarily mean that their pricing strategy is the right fit for your market. This loyalty is based both on the customer s palate and experience, and upon a perception of the inherent capabilities for quality of the customer s relationship with certain honey varieties, grades, or standards.
Items 4 thru 7 should be used as adjustments to the final price. If you find you must adjust your price down to your cost or below your cost, you may not be able to compete. That is, you may not have a viable product or service. Go back and see if you can cut your expenses or change your product mix without sacrificing quality.
Another solution might be that your target market is not right; maybe you are targeting a lower income group than this product or service needs to succeed. How will the honey and related honey products be sold? There are three basic approaches to marketing the honey crop. Small beekeepers, with only a few colonies, can sell all of their honey from the home to relatives, neighbors, and other members of the community.
As the size of your beekeeping operation increases, other market outlets will have to be found. Local groceries, food coops, fruit stands, farmers markets, health food stores, and roadside markets are good potential outlets. When even larger volumes of honey are produced, the beekeeper may have to pack in large bulk containers and sell directly to wholesale dealers and packers. This method of selling is the least profitable. Develop a distribution strategy for your business. Describe your selling strategy and how you are going to reach your customer.
This can be achieved using a website, signage, paid advertising, directory listings, publicity, and direct mail. Most small beekeepers sincerely attempt to provide their customers with a high-quality product in a clean, attractive container. When they do a good job, their customers return regularly, and they have no problem selling their entire crop. To have repeat patronage, it is better for beekeepers to sell their crop gradually throughout the year than to try and market all the honey they produce soon after it is harvested.
Take the time to visit the websites of other Illinois apiaries and Illinois beekeeping industry organizations for other marketing opportunities and ideas. Additional marketing information and assistance can be obtained from your local beekeeping organizations and the Illinois Department of Agriculture.
Promotion Plan Develop a promotion plan for your apiary. Calculate both a start-up and a monthly advertising and promotion budget. Each form has advantages and disadvantages. Before deciding on a form of business ownership, an attorney should be consulted who specializes in these issues.
Sole Proprietorship A sole proprietorship is a single individual who owns and operates a business. There is no legal separation between the individual and the business. It is the simplest form of business ownership to start up and to maintain.
Income is reported annually on the owner s personal income tax return. You can download this publication from the IRS website at or you can receive one by mail by contacting the IRS at General Partnership A general partnership is very similar to a sole proprietorship except that there are two or more individuals who own the business.
The partners are able to pool their resources and share control of a business. A general partnership is relatively simple to start up and maintain. A written partnership agreement is not a legal requirement but is strongly recommended to clarify each partner s rights and responsibilities. A separate set of income tax returns must be filed annually for the partnership but the partnership itself is not subject to income tax. The individual partners report their share of the partnership income on their personal income tax returns.
You can download this publication from the IRS website at or you can receive one by mail by contacting the IRS at When a business name is different from the owner s full legal name s , the Illinois Assumed Name Act requires sole proprietorships and general partnerships to register with their local county clerk's office for registration under the Assumed Name Act.
Limited Partnership A limited partnership is an organization made up of a general partner, who manages the business, and limited partners, who invest money, but have limited liability and are not involved in day-to-day management. More information on limited partnerships can be obtained from the Illinois Department of Revenue. Limited Liability Company A Limited Liability Company LLC is the non-corporate form of doing business that provides its owners with limited liability, flow-through tax treatment and operating flexibility through participation in management of the business.
Anyone considering the formation of an LLC is strongly encouraged to use an attorney. A corporation may sell shares of stock, which are certificates indicating ownership, to as many people as is desirable. The shareholders then elect a board of directors, which elects a president and other officers who run the company on a day-to-day basis.
Among the advantages of corporate formation are limited liability of the shareholder and ease of transferring ownership. The corporation provides a wall of liability protection between the business and the owners but the owner should be aware that most banks will require a personal guarantee from the major shareholders as collateral on any corporate financing.
If the name of the business includes the word Corporation, Inc. It is recommended that an attorney be consulted in forming a corporation. A set of corporate income tax returns will need to be filed annually. The corporation is taxed on the income of the business. Double taxation can occur when the income is distributed to the shareholders in the form of dividends. An annual report will also need to be filed with the Illinois Secretary of State s office.
In general, an S Corporation passes through income and expenses to its shareholders, who then report them on their personal income tax returns. To qualify for S Corporation status, a corporation must meet several requirements. You can download this form from the IRS website at or you can receive one by mail by contacting the IRS at Cooperative A cooperative is an association of persons united to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
The cooperative entity is similar to a "C" Corporation except the profits are passed through to the member-owners without corporate taxation. A cooperative exists to provide economic services to its members rather than just to generate a return on investment. A portion of all of its capital comes from members rather than outside investors. Capital is obtained by direct contributions through membership fees or sale of stock, by agreement with members to withhold a portion of net income based on patronage, or through assessments on some regular basis such as per unit of product sold or purchased.
More information on cooperatives can be found on the USDA Rural Development website at: 20 21 Business Organization Discuss the legal form of the business ownership that you will be using. List the names of all principals involved in the business. Management and Employees The two essential ingredients for success in any business are a good business idea and the right people to turn that idea into a business. Key Persons and Management Discuss key persons and tasks for which they will be responsible.
Include resumes of owners and key personnel. Be sure to highlight apiary-related experience. A sample resume format is shown on the following page. List employees you will be hiring, general duties, hiring qualifications, salary, and proposed hiring date. You should also note whether the position will be yearround or seasonal. Refer to the Beekeeping Calendar in the Resource Section for help with labor planning. The work schedule should provide coverage for the scheduled operating hours of the apiary.
The seasonality of the apiary should be taken into account in predicting labor costs. Refer to the Beekeeping Calendar in the Resource Section for help. For cash flow projections, expenses should be estimated monthly for the first year and quarterly thereafter. These risks form the basis for your business insurance needs. Some sources of information on business insurance are listed below. Illinois Department of Insurance Maintains experience information on insurance companies. Best s Key Rating Guide Maintains financial strength information on insurance companies.
Local insurance agencies Check yellow pages for listings. Include copies of your insurance carriers cost quotes. Include their address, their product lines, and any special credit terms. Professional consultants can add strength to your business idea by filling in weaknesses discovered in the analysis of management skills.
Many of these issues may directly affect your sales both positively and negatively. Complete the following sections as they apply to your apiary. Describe the economic factors that will affect your product or service. The truth is that it is one of the means of avoiding; running into loss. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.
Honey Bee Farm Business Plan — Publicity and Advertising Strategy Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means conventional and non — conventional means to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.
We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our commercial bee farm and honey production business. Below are the platforms we will leverage on to boost our commercial bee farm and honey production brand and to promote and advertise our business; Place adverts on community based newspapers, radio stations and TV stations.
Honey Bee Farm Business Plan — Financial Projections and Costing When it comes to calculating the cost of starting a commercial bee farm and honey production business, there are some key factors that should serve as a guide.
Be sure to build in a mechanism that allows you to assess the cost effectiveness of any marketing activity, if possible. Cost of finance interest and charges. Also consider your home and family incomings and outgoings. Are you considering giving up a regular, paid job in order to run a beekeeping business, and if so, for how long can you survive - including in a poor year? Will you need to adapt your land in some way, to cater for bees on your property?
If so, be sure to factor in the costs and timings. Although you will need it to go along to the bank or lender, forecasting is of course very difficult, and may need to be adjusted from time to time. Itemize each activity: how much honey will you sell, how many courses will you fill etc. Financial challenges can hit any business. How will you cope with payment schedules? For example, if you supply jars of honey to a store, when will you be paid, and can you cope with late payments?
Cash flow is one of the major challenges for any business, but especially new ones. What is your profit margin? Remember it needs to cover ALL of your costs, with enough to earn the income you need, and hopefully leave some for emergencies. Ask yourself the What?
For example no doubt, you can come up with more : What? What are customers buying, what do they want and are there any unexploited niches you can fill?? Whatever you are selling, are there any legal or labelling requirements or standards?
What should the packaging look like?Limited Liability Company A Limited Liability Company LLC is the non-corporate form of doing business that provides its owners with limited liability, flow-through tax treatment and operating flexibility through participation in management of the business. Personal or family funding is used for many of their sideline assets and working capital, rather than obtaining major funding from debt sources such as banks and the SBA, at least in early sideline activities. In developing a business plan to obtain needed financial support, commercial beekeepers probably described many of their financing, operations, and marketing strategies. For example no doubt, you can come up with more : What? Not only does the practice of beekeeping have intrinsic health benefits through providing a food source of great nutritional value which is lacking in rural areas, but beekeeping requires few inputs and capitalizes on a ready supply of pollen, thus effortless in running an apiary project. Additional plan information and beekeeping can be obtained from beekeeping an initial curiosity or interest in beekeeping as. Many who commercial attend local club meetings have at or so, however bee plans should be located much closer to important nectar sources. For example, many migratory beekeepers over-winter colonies in California that are used to pollinate the business crop. Honeybees can forage for nectar up to three commercial makes it easier than ever for students to The best listing presentation ever business your order.
Loans from financial institutions must have language indicating the loan amount, the specified term and interest rate, collateral, any other conditions attendant to the loan, and the fact that the loan is approved loan approval can be contingent on securing other financing. Secondly, the project will contribute to the growth of the apiculture sector, for the most part throw in to the value of exports. The decline in the number of beekeepers creates opportunities for new or existing beekeepers to provide honey to markets formerly served by those who left the industry. What are their weaknesses? They usually have limited start-up capital and funding for the first few years of their sideline activities, but may not need that much funding to get started in and test their sideline interests. However after analyzing different scenarios and taking into account the strengths and expertise available we see doubling in revenue in the second year after the start of the project, contributed largely by swift extension of the project.
They usually have limited start-up capital and funding for the first few years of their sideline activities, but may not need that much funding to get started in and test their sideline interests. Do more market research on the beekeeping niches that you might consider pursuing. Target Market Your target market is the group or groups who are most likely to buy your product or service. When will customers purchase from you, and how does this impact your business? To reduce the cost of building we shall have the option to use clay bricks for the structures.
The beekeeper population in Illinois and throughout the country is aging, and relatively few people appear to be getting into the business. Financial challenges can hit any business. What is your perception of their prices? At the bottom of this page, you'll find a PDF business plant template you can adapt and use for your own purposes. Harper, who are or were professors or researchers at Penn State University.
Closer to home, in February commercial beekeepers in northern Arkansas and Missouri and potentially southern Illinois may send colonies to California for almond pollination. The lender will also consider the local economic climate and conditions both within your industry and in other industries that could affect your business.
How will you cope with payment schedules? Not needing to acquire outside SBA or bank financing, and so not preparing any kind of formal business plan, they can easily overestimate or underestimate market opportunities, operate ineffectively and inefficiently, as well as poorly communicate their basic planning even to family and close friends assisting them. Make copies and use additional sheets if needed. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more.
Develop a distribution strategy for your business. The other products or services to be offered pollination services or the sale of Queens should also be broken down into tangible per unit quantities. Beekeeping involves hard physical labor; it is a labor intensive enterprise. Small beekeepers, with only a few colonies, can sell all of their honey from the home to relatives, neighbors, and other members of the community. Honey bees transform nectar into honey by a process of regurgitation and evaporation. Secondly, the project will contribute to the growth of the apiculture sector, for the most part throw in to the value of exports.
There are no air conditioned, labor saving tractors or other machines in beekeeping. The sales projections are based on information gathered on the field and some workable assumptions as well with respect to the nature of commercial bee farms and honey production business that we run.