1 Business Plan Caldwell

Zac Caldwell

Business Plan

Ag113

June 7, 2017
2 Business Plan Caldwell

Table of Contents

Executive Summary ...................................................................................................................................... 3

Mission Statement..................................................................................................................................... 3
Company Info ........................................................................................................................................... 3
Company Growth and Future Plans .......................................................................................................... 3
Company Description ................................................................................................................................... 4
Market Analysis ............................................................................................................................................ 5
Industry Description.................................................................................................................................. 5
Target Market............................................................................................................................................ 5
Pricing and Structure................................................................................................................................. 5
Organization and Management ..................................................................................................................... 6
Organizational Structure ........................................................................................................................... 6
Ownership Information ............................................................................................................................. 7
Service/Product Line ..................................................................................................................................... 8
Services ..................................................................................................................................................... 8
Products .................................................................................................................................................... 8
Product Life Cycle .................................................................................................................................... 8
Research and Development....................................................................................................................... 8
Marketing and Sales Management ................................................................................................................ 9
Marketing Strategy.................................................................................................................................... 9
Sales Strategy ............................................................................................................................................ 9
Funding Request ......................................................................................................................................... 10
Current Funding Requirement ................................................................................................................ 10
Five Year Funding Requirement ............................................................................................................. 10
Use of Funding........................................................................................................................................ 10
Financial Documents .................................................................................................................................. 11
Income Statement.................................................................................................................................... 11
Balance Sheet .......................................................................................................................................... 11
Cash Flow Statement .............................................................................................................................. 12
Assets/Collateral ..................................................................................................................................... 12
Family Living Expenses ......................................................................................................................... 12
Appendix ..................................................................................................................................................... 13
Resume.................................................................................................................................................... 13
Market Growth ........................................................................................................................................ 14
References ................................................................................................................................................... 15
3 Business Plan Caldwell

Executive Summary

Mission Statement:

Caldwell Precision Ag is dedicated to improving our customers farming operations,

promoting sustainability, and being stewards of the land. Utilizing the latest technology, we

provide our customers with advanced equipment and farming techniques so that they can

optimize their yields while reducing inputs and minimizing their impact on the environment.

Company Info

Caldwell Precision Ag is a startup precision ag dealer that sells a variety of precision

agriculture equipment as well as provide installation, maintenance/repairs, and advisory services.

We employ a secretary, (3) technicians, and a laborer. We are located in Lapeer, Michigan.

Company Growth and Future Plans

After our first location opens and we establish a customer base, we would like to open up

other locations statewide and then regionally in the Midwest.

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Company Description

Caldwell Precision Ag will sell a wide range of precision agriculture equipment. From

entry level light bars to advanced optical sensors, GPS guidance systems, and much more, we

will be able to outfit any size farming operation with the products and knowledge to optimize

yields and increase productivity. In addition to product sales, we will offer consulting services as

well as installations and repairs. Our main focus for our customers is ROI and to increase their

revenue. Finding the balance of increased productivity while keeping costs at a minimum is key.

For instance, adding a lower cost light bar to a tractor for a smaller operation might achieve the

desired increased revenue, whereas outfitting that same tractor with an advanced GPS guidance

system would also achieve the desired increase in revenue, but at a much greater cost to the

farmer.
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Market Analysis

Industry Description

With all the technological advancements that have come along in the past decade, and

continue to come, precision agriculture has given farmers a whole new way to farm. Doing more

with less, sustainability, and a reduced impact on the environment are all major driving factors in

precision agricultures implementation. Due to increasing demand from crop farmers who have

pushed to maximize crop output to meet growing global demand, industry growth has been

strong over the five-year period. During the five years to 2021, steady growth is set to continue

for the industry (IBISWorld, 2016). The precision farming market is expected to grow from USD

3.20 Billion in 2015 and is expected to reach USD 7.87 Billion by 2022 (Market Watch, 2017).

Target Market

Our target market will include farmers looking to get more out of their operations. We

will offer a wide range of products that will help the small hobby farmer all the way up to the

large-scale production farmer. ROI is a major factor when figuring out what products will be best

for each individual customer.

Pricing and Structure

With our wide variety of products, pricing will be broken down into entry level,

intermediate, and advanced level products. Also, products will be broken down into groups based

on different types of operations (full production, guidance, spraying, planting, etc.).

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Organization and Management

Organizational Structure

Owner

Technicain Technician Technician

Secretary
1 2 3

Laborer
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Ownership Information

Ownership of Caldwell Precision Ag is a sole proprietorship LLC. The owner will be

myself, Zac Caldwell. Initially, the owner will be responsible for dealing with manufactures,

training technicians on new products, assisting the technicians with sales/service of products,

managing inventory, providing customer support, making all final business related decisions, and

deciding which products to offer and pricing. After the business has been established, the owner

plans on handing many of these responsibilities off to a hired manager.

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Service/Product Line

Services
 Consulting
 Installation
 Repairs
Products
 GPS/GIS
 Planting
 Remote Sensing
 Spraying
 Weather tracking
 Irrigation
Product Life Cycle

Technology is always changing and advancing. We will offer our customers warranties

on our products, as well as trade in programs for customers wanting to upgrade to newer

products. Used products in good working order can be resold at a reduced price.

Research and Development

We will primarily be a dealer for larger companies. We will work closely with reps from

different companies to make sure we are offering the newest and most advanced products to

better serve our customers.

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Marketing and Sales Management

Marketing Strategy

Some marketing strategies we will use will include using social media pages for the

company, running a farm radio commercial, taking part in ag expos and workshops, having open

houses/product demos, and having sales.

Sales Strategy

Sales will primarily be done by our technicians/sales reps. We will meet with potential

customers to go over their needs and concerns, and develop a plan to best suit their operation.

Keeping ROI in mind, we can offer entry level products to get our customers started, and

intermediate and advanced level products for those customers ready to take a bigger step.

Customers will also be able to take advantage of trade in programs when they are ready to take

the next step in their farming operation.

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Funding Request

Current Funding Requirement

I am seeking $500,000 to be repaid in full 5 years.

Five Year Funding Requirement

In 5 years, I will be seeking $1,000,000 to be repaid in full in 10 years.

Use of Funding

The current funding requirement of $500,000 will be used to build our first office/warehouse as

well as purchase inventory and work trucks.

In five years, we will require an additional $1,000,000 in funding to open 2 new locations.
11 Business Plan Caldwell

Financial Documents
Income Statement

Balance Sheet
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Cash Flow Statement

Assets/Collateral
Cash $150,000
House $200,000
Land $350,000
Vehicles $80,000
Equipment $120,000
Family Living Expenses

(Swenson, 2015)
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Appendix
Resume
ZAC CALDWELL
1771 Nemoke Trail Apt. 8, Haslett, MI
48840 | zacjcaldwell@gmail.com | 248-891-1076

OBJECTIVE To gain employment in a capacity where I can be working outdoors

and assisting others.

SKILLS & Hard Working Customer Service

ABILITIES
Reliable Facilities Maintenance

Organized Equipment Operation

Motivated Public Safety

EXPERIENCE DELIVERY DRIVER EATSTREET

1/2017- PRESENT
STATE WORKER 4- RANGE OFFICER MICHIGAN DNR
4/2016- PRESENT
WILDLIFE TECHNICIAN CRITTER CONTROL
4/2013-2/2016
STATE WORKER 4- RANGE OFFICER MICHIGAN DNR
12/2012-4/2013
ANIMAL CONTROL OFFICER OAKLAND COUNTY ANIMAL
CONTROL
2/2012-4/2013
PARKS HELPER OAKLAND COUNTY PARKS
8/2011-11/2011
SECURITY GUARD PROJECT SERVICES INC.
5/2011-7/2011
PARK RANGER OAKLAND COUNTY PARKS
5/2007-9/2010
LABORER HOMETOWN POOL SPA & PATIO
5/2006-9/2006
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EDUCATION BAKER COLLEGE, OWOSSO, MI

AGRICULTURE TECHNOLOGY 2017-2018
GPA: 3.94
Presidents List: Fall 2016, Winter 2017

UNIVERSITY OF MICHIGAN-FLINT, FLINT, MI

CRIMINAL JUSTICE 2008-2011
OAKLAND COMMUNITY COLLEGE, AUBURN HILLS, MI
CRIMINAL JUSTICE 2007

BRANDON HIGH SCHOOL, ORTONVILLE, MI

GRADUATED 2007

REFERENCES CHARLIE BRAUER

248-941-7195
MIKE MCGUIRE
989-666-7871

SCOTT PURR
586-291-2076

Market Growth

(Sonka, 2015)
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References
(2016, February). Retrieved from IBISWorld: https://www.ibisworld.com/industry-trends/specialized-
market-research-reports/technology/scientific-systems-devices/precision-agriculture-systems-
services.html

(2017, January 10). Retrieved from Market Watch: http://www.marketwatch.com/story/precision-

farming-market-worth-787-billion-usd-by-2022-2017-01-10-9203317

Sonka, S. (2015, November 5). Retrieved from Farm Doc Daily:

http://farmdocdaily.illinois.edu/2015/11/precision-agriculture-not-the-same-as-big-data.html

Swenson, A. (2015, June 15). Retrieved from NDSU Extension:

https://www.ag.ndsu.edu/news/newsreleases/2015/june-15-2015/n-d-farm-household-
expenditures-flat-in-2014