msu product center resources
DESCRIPTION
2009 FSEP ConferenceTRANSCRIPT
Business innovation in agriculture, food and natural resources
The MSU Product Center Services
Tom Kalchik
Associate Director
Business innovation in agriculture, food and natural resources
Product Center• March 2003 (operational Jan. 2004)
• Memorandum of Understanding (MOU)– College of Agriculture and Natural Resources
(CANR)– Michigan State University Extension (MSUE)– Michigan Agricultural Experiment Station (MAES)– Renewed 2009 for 5 years
• Department of Agricultural, Food and Resource Economics (AFRE)
Business innovation in agriculture, food and natural resources
Mission• Create networks of resources• Deliver services that support the development of new
ventures, entrepreneurs, and entrepreneurial communities
• Strive to spark business innovation and economic development in agriculture, food, natural resources and bioeconomy through collaboration, knowledge and best practices
• Work on behalf of our Michigan stakeholders– Customers who want to develop ventures and their
entrepreneurial talents– Service providers from Michigan State University and from the
broader private and public sectors– Sponsors both inside and outside the university
Business innovation in agriculture, food and natural resources
Strategies
• Venture Development and Service Networks
• Entrepreneurial Development
• Market Research
Business innovation in agriculture, food and natural resources
How does the PC help?
• Develop a concept– Is there a market?– Can you produce it?– Can you deliver it?– Can you finance it?– What is your risk tolerance?
Business innovation in agriculture, food and natural resources
How does the PC help?• Develop a concept• Basic business plan
– Executive Summary– Mission Statement, History, & Objectives– Business Organization/Operations– Marketing Plan– Management/Human Resources– Financial Plan– Supporting Documents
Business innovation in agriculture, food and natural resources
How does the PC help?• Develop a Concept• Basic business plan• Advanced planning
– Detailed feasibility analysis– Production processes– Supply chain arrangements– Legal/organizational issues– Regulatory compliance– Financing
Business innovation in agriculture, food and natural resources
Resources of PC
Innovation Counselor/ Educator Network
Business innovation in agriculture, food and natural resources
Resources of PC
• MarketMaker– A web-based resource that provides a
link between producers, processors, wholesalers, retailers, farmers' markets, food service providers and end-consumers within the food supply chain
– www.mimarketmaker.msu.edu
Business innovation in agriculture, food and natural resources
Resources of PC• Access to MSU resources
– Food Science and Human Nutrition– Packaging– Advertising, Public Relations, & Retailing– Agriculture, Food and Resource Economics– College of Law – Small Business and Non-profit
Law Clinic– Eli Broad College of Business– Capstone Courses
Business innovation in agriculture, food and natural resources
Resources of PC
• Market Research– Market analysts– Mintel consumer research reports– Mintel Global New Products Database (for
food and beverage)
• On-line public reports
• Private for-fee reports
Business innovation in agriculture, food and natural resources
Resources of PC
• Website:
www.productcenter.msu.edu
Business innovation in agriculture, food and natural resources
Resources of PC• Outreach staff
– Tom Kalchik, Associate Director• [email protected]• 517-432-8752
– Matt Birbeck, Project Consultant• [email protected]• 517-432-8753
– Dianne Novak, Specialized Services Consultant• [email protected]• 517-432-5754
– Janice Harte• [email protected]• 517-355-8474
Business innovation in agriculture, food and natural resources
Resources of PC• Market Analysts
– Chris Peterson, Director• [email protected]• 517-355-1813
– Bill Knudson, Market Analyst• [email protected]• 517-355-2176
– Getachew Abate• [email protected]• 517-355-0337
Business innovation in agriculture, food and natural resources
Resources of PC
• Bioeconomy– Ruben Derderian, Associate Director
• [email protected]• (517) 432-1676
Business innovation in agriculture, food and natural resources
The Challenge• To systematically turn a business or product idea into
a real start-up or launch.• Desire often overwhelms reason.
– The glory of the idea• “Build it and they will come.”
• “Everyone will want it.”
• “It’s the greatest thing since sliced bread.”
– Missing the logical flow of development• Operational detail before concept/strategy development
• Production before marketing
• No consideration of the real return potential
Business innovation in agriculture, food and natural resources
The Intuition about Process• First, tell a plausible “fairy tale” about the idea
of the venture?– Market/customer driven– Internally consistent and appealing
• Then, will the venture make a reasonably profit if everything goes well?
• Finally, what is the venture’s potential to work (feasibility)?
Business innovation in agriculture, food and natural resources
Service Portfolio(examples)
Service Tiers
Venture Development
Market Research
Entrepreneurial and Community
Development
Concept Development Concept Definition Market Briefings “Road to Independence”
“Creating Innovation”
Venture Fundamentals
NxLeveL, Purdue Software, Fastrac, workbooks, etc.
Market Analyses Business Boot Camp
Specialized Services Faculty teams, consultant referrals, sensory testing
Market Feasibility Analyses
Seminar modules, e.g., contracting, venture capital
Services for Start-ups
Referrals to added expertise or back to other services
Analysis updates E&I Club
Business innovation in agriculture, food and natural resources
Results(since 2004)
Number
Total counseling sessions 11,509
Concept development 1,094
Business fundamentals 754
Specialized services 538
Launched new ventures 606 new jobs (actual) + 348 retained $194 million annual sales increase $201 million invested
127
Business innovation in agriculture, food and natural resources
Results(FSEP Area)
Customers Sessions Hours Miles
Jackson 35 301 408 676
Lenawee 29 345 354 1,041
Monroe 27 239 282 466
Washtenaw 62 744 882 858
Wayne 77 941 1,131 1,334
Total 230 2,570 3,057 7,375
Business innovation in agriculture, food and natural resources
Results(FSEP Area)
Customers
Concept Development 149
Venture Fundamentals 146
Specialized Services 37
Service after Start-Up 42
Total Customers = 230
Business innovation in agriculture, food and natural resources
Results(FSEP Area)
Ventures Launched 24
Jobs Created 180
Jobs Retained 17
Sales Increase $ 116,905,850
Capital Invested $ 95,592,143
Business innovation in agriculture, food and natural resources