Business Plan
Sustainable
Green, Sustainable, Growth
This business plan is
intended solely for informational purposes to assist in determining if you with
a due-diligence investigation of this project.
The information contained herein is believed to be reliable, but the
management team makes no representations or warranties with respect to this
information. The financial projections
that are part of this plan represent estimates based on extensive research and
on assumptions considered reasonable, but they are of course not
guaranteed. The contents of this plan
are confidential and are not to be reproduced with express written consent.
Table of Contents
Executive Summary.......................................................................... 3
Project Description............................................................................ 3
Marketing
& Sales............................................................................. 4
Development
…...…………………………………………………..…………..5
Operations/Management.................................................................... 5
Financial Sumary
…..………………………………………………………….6
Company
Overview........................................................................... 6
History,
Background & Current Status............................................... 7
Markets
& Products........................................................................... 7
Objectives ........................................................................................ 9
Description...................................................................................... 10
Market Comparison.......................................... ……..…………………11
Proprietary
Rights........................................................................... 11
Stage of
Development...................................................................... 11
Marketing
& Sales............................................................................ 11
The Market....................................................................................... 12
Market Trends.................................................................................. 12
Customer
Analysis.......................................................................... 13
Marketing
Strategy........................................................................... 13
Product........................................................................................... 13
Price................................................................................................ 14
Place............................................................................................... 14
Promotion....................................................................................... 14
Sales
Strategy................................................................................. 15
Community
Strategy........................................................................ 16
Development Introduction............................................................... 16
Current
Status ................................................................................ 17
Development
Plans.......................................................................... 17
Development
Timetable................................................................... 17
Development
Risks.......................................................................... 18
Operations
(Introduction)................................................................. 18
Competing with Operations............................................................. 18
Scope of
Operations........................................................................ 18
Ongoing
Operations........................................................................ 18
Management .................................................................................. 19
Company
Organization.................................................................... 19
Management
Team.......................................................................... 19
Board of
Directors........................................................................... 20
Management Compensation............................................................ 20
Summary of
Financials (Introduction).............................................. 20
Financial
Assumptions.................................................................... 20
Financial
Forecasts......................................................................... 20
Capital
Requirements...................................................................... 21
Financial
Risks................................................................................ 21
Exit
Strategies................................................................................. 21
Appendices..................................................................................... 21
Table of
Appendices........................................................................ 21
Executive
Summary
Sustainable
Introduction
Sustainable
Project Description
Sustainable
Marketing
and Sales
The market for organic food and
beverages in the
A study of
In 98001, the Kids & Cul De Sacs segment tends to be college educated, white
collar professionals. This segment is more likely to include consumers of
organic products.
In
Sustainable Auburn activities such
as a Farmer’s Market and Subscription Farm would be affordable to Family Thrifts, (vastly improving their
diets,) would be appealing to the Kids
& Cul De Sacs and Country Squires
segments, and would give Auburn the added benefit of keeping those dollars in
town, rather than see them spent in Federal Way and other nearby towns.
Overall, there is an obvious
demand for the projects Sustainable Auburn would support, but in addition to
the economic benefits, healthy lifestyles would be more prevalent, and the
already strong sense of community identity in
Development
The challenges affecting
Operations/Management
Under contract with the city
of
A 16 year Auburn resident and
long-time teacher and arts advocate, Paul Nelson is Executive Strategist of
Sustainable Auburn. He works with an Advisory Board that currently includes
Greg Watson, Rebecca Rose Nelson and Chuck Goodwin. Other personnel including Meredith
Sedlachek, (Marketing Strategist), Deanna Burnett Keener, (Small Business
Assistance Specialist and Community Supported Agriculture Advocate,) Deena
Cornish and Amalio Madueno, (Development and CSA consultant).
Poet/Teacher/Interviewer Paul
Nelson earned a B.A., in Communications from
With more than 13 years
of experience as a writer, editor, brand champion and Web
strategist for a broad array of print and digital media, Meredith A.
Sedlachek’s expert word-wrangling talents have been used by a wide range
of clients including: The Seattle Times Company, Holland America Line,
USAToday.com, Microsoft Corporation, and others. She earned her B.A. in English
and M.F.A. in Creative Writing at
Financial Summary
Budget Scenario for
operating/delivering the programs, personnel, travel, etc. Including funding.
Company Overview
Sustainable
Artist Housing—Encouraging
More Artists to Live in
Cultural Programs—Visiting Poets Series,
Green Construction/Building—Work with Local Developers to Employ Green Methods.
Innovative Water Conservation Methods—Encourage Drought-Resistant Landscapes and Non-Toxic
Landscape Treatment.
Urban Agricultural Programs—Subscription Farms, Farmer’s Markets, Land Trusts.
Visionary Clean Air Initiatives—Tree Planting, More Open Space, Additional Bike
Paths and Alternatives to Automobile Transportation.
Youth Programs—Internships
and Increased Youth Participation in all seven focus areas.
Ultimately, we seek to
increase the visibility of
Introduction
Sustainable
History, Background and
Current Status
Sustainable
Markets and Products
Artist
Housing & Cultural Programs
Change is challenging, and throughout history,
communities have been radically changed and shifted perspective thanks to local
visionaries who are capable of envisioning limitless possibilities and implementing those
ideas. Such change requires the
innovation and creative re-imagining of artistic individuals who care about
improving the cultural community of
Green Construction/Building
In the
Innovative Water Conservation Methods
The
Urban Agricultural Programs
As rising fuel prices continue to increase the cost of
food, the need for sustainable agriculture has never been more critical. The
prevalent use of chemical pesticides combined with genetically modified food
products (GMO’s), has contributed to the pollution of watersheds, made
the United States more dependent on fossil fuels from abroad and has created a
food system with fewer nutrients. The need for organic food products produced
locally and without genetic modification or pesticides has never been greater.
A return to
Visionary Clean Air Initiatives
Clean, healthy air is essential to our day-to-day
wellbeing, our long-term health, and the health of the environment we depend
on. Through programs that improve our air quality, like planting more trees,
increasing the number of green spaces, building additional bike paths that
connect greater
Youth Programs
Inviting young people to participate in the
reinvention of the local culture will allow the town to retain more young
minds. Offering opportunities for internships in the different programs that
exist under the Sustainable Auburn umbrella, combined with a more vibrant
artistic community and healthy and sustainable local food products, will result
in more lifelong
Objectives
Our overall strategy is to develop
this non-profit project as a brand known locally and regionally for quality,
environmentally-friendly approaches. During an initial five year period, we
seek to work on seven different focus areas and reinvent
After five years of activity,
we will re-evaluate our efforts and act accordingly. We could allow the project
to become its own distinct non-profit corporation, or further develop and/or
expand the seven focus areas.
Product or
Service Description
In the decades before World
War II,
Introduction
With the dramatic rise in the
costs of fuel and the attendant rise in food costs, there have been food riots
in other countries and in general, global food inflation.[5] According
to one survey, consumers who demonstrate a
willingness to incorporate sustainability into their daily lives – make up 93%
of adult consumers.[6] There
is a tremendous need for food security and sustainability. In addition, there
is a need to help reinvent
This non-profit project will
help create awareness of, and help initiate, sustainability programs. These
initiatives would include, but not be limited to: encouraging more artists to
live in Auburn, developing a visiting poets series, art galleries, a theater
troupe, work with local developers to employ Green methods, encourage
drought-resistant landscapes and non-toxic landscape treatment, subscription
farms, a farmers markets, land trusts, tree planting, more open space, additional
bike paths and alternatives to automobile transportation, internships and increased
youth participation in all seven focus areas. By involving local organizations
and businesses, services would include: facilitating projects and organizing
residents and local businesses to create a farmer market, a food co-op, community
gardens, subscription farms, Green construction and building projects,
specialty agricultural products and artistic and cultural opportunities.
By involving local businesses and organizations in these efforts, we
would not only increase their profits and return on investments, but do so in a
community-focused, sustainable and impactful way.
The products and services we
envision being created by this project are sustainable and lessen as much as
possible the dependence on fossil fuels imported from volatile regions. Sustainable
Sustainable
Sustainable
Market Analysis
Introduction
Sustainability has evolved from
buzzword to guiding business principle with the power to literally reshape our
communities. Powerful forces are driving
this change: recognition of an urgent need to protect the environment, rising
fuel costs, a shaky and uncertain economy and a drive toward producing local,
sustainable goods that reduce costs, improve quality and increase profits for
local businesses. Add to this list an emerging force that will fuel further
change and will take the sustainability movement in new directions: the
consumer.
The Market
A
recent survey[8] of
Among
these factors, organic benefits have the broadest appeal currently. This is
likely a result of the fact that organic products are also considered
healthier, and there is now wide availability of organic food, beverages and
personal care products in mainstream channels. By contrast, increased focus on
“Green” and “fair trade” products and practices has been relatively recent. In
addition, these products are not as widely available in mass market outlets.
In
these findings, it is clear that sustainability issues are impacting shopping
and purchase decisions to some extent among a high proportion of consumers;
however, roughly one-in-five consumers is “sustainability-driven,” citing at
least two of the factors as key influences in brand selection and at least two
in store selection. These consumers are important target segments to consider
in consumer-facing sustainability initiatives.
Market Trends
In the aforementioned survey,
thirty-nine percent of consumers consider organic benefits when selecting food
and beverages. In
With nearly one-quarter of
consumers actively looking for products that are inherently better for the
environment, there is a sizable opportunity emerging. Demand is growing for
products that are biodegradable, non-toxic, and plant-based. For example, in
2006, Green, non-toxic laundry detergent product sales increased 66% and Green
household cleaners grew 28% in a category that declined 2% overall.
Customer Analysis
In the IRI survey, young
adults were often considered to be the most “tuned in” to sustainability
issues. But in fact, sustainability concerns sweep across generations. And,
older consumers are actually more likely to consider multiple sustainability
factors in their shopping and purchase decisions than their younger
counterparts. Presumably, these consumers have the budget to afford sustainable
products –many of which are priced at a premium, and the time to locate them,
as not all are readily accessible.
Household size also plays a
role. The data provided by the city of
Marketing Strategy
Target
Market
In
the short term, Sustainable Auburn envisions the implementation of multiple
initiatives in seven distinct areas. These include Artist Housing, Cultural
Programs, Green Construction/Building, Innovative Water Conservation Methods,
Urban Agricultural Programs, Visionary Clean Air Initiatives, and Youth
Programs. In the long term, Sustainable
Auburn will become THE destination for regional consumers seeking the freshest,
most readily available locally-produced foods, food products and goods. Auburn
products will be well-known throughout the region and state and the city will
become a destination for young people regionally and nationally seeking to live
in a town that is moving, as much as possible, to total sustainability,
including agricultural and economic independence.
Product
As a non-profit project, our
service is helping to create awareness of opportunities that a focus on
sustainability would create and help initiate them. These programs and
services would include, but not be limited to: encouraging more artists to live
in Auburn, developing a visiting poets series, art galleries, a theater troupe,
work with local developers to employ Green methods, encourage drought-resistant
landscapes and non-toxic landscape treatment, subscription farms, a food co-op,
a farmers market, land trusts, tree planting, more open space, additional bike
paths and alternatives to automobile transportation, internships and increased
youth participation in all seven focus areas. These
projects will foster community involvement and growth in the city of
Price/Marketing Methods
Sustainable
Place
Using the expertise of our Advisory Board, Sustainable
Auburn will use multiple media outlets, including the current column on
sustainability in the Auburn Reporter, to create buzz and word-of-mouth on the
many programs and projects that Sustainable Auburn seeks to create and develop
in the city of
Promotion
Key elements in the promotion of Sustainable Auburn,
its projects and services include:
· The use of environmentally-friendly products when
creating marketing materials.
· Development of Sustainable Auburn Web site to promote
projects and encourage community and business involvement.
· Advertising where environmentally-conscious consumers
shop, such as local natural and organic foods stores.
· Connecting with other Green and sustainable businesses
in the area and promoting each others' services.
· Attending local festivals to get the word out about
Sustainable Auburn and encourage community involvement.
· Getting involved in the community, including donating a percentage of any profit to local charities and/or partnering with the
local food bank to provide healthy food options for local families in need .
Sales Strategy
Funding Strategy
Part of the sales strategy of Sustainable Auburn
includes securing funding and support from outside the city and community of
· Kellogg
Foundation, whose mission to “support children, families, and
communities as they strengthen and create conditions that propel vulnerable
children to achieve success as individuals and as contributors to the larger
community and society.” Directly connects with our youth programming
components. Another of their key approaches focuses on developing a sense of
“place.” For grant seeking, Sustainable Auburn falls under the Food, Health
& Well-Being program element.
· Puget Sound
Access, with a strategic partnership designed to create
programming on Sustainability issues for the cable channel with funds acquired
through funding partnerships which would allow us to utilize a powerful tool
for additional outreach via TV.
· The King
County/Seattle Built Green® incentive provides funding for single-family,
townhome, and multi-family residential and community development projects to
help offset the cost of certifying and designing innovative green projects throughout
· Seattle
Foundation Community Grantmaking Program, which is “committed to providing general support
to a diverse group of
Community
Strategy
Key elements in the outreach strategy of Sustainable
Auburn, its projects and services include:
· Development of Sustainable Auburn Web site to promote
projects and encourage community and business involvement.
· Working with local water conservationists and clean
air initiative organizations to promote and roll out programming in these
target areas.
· Developing a strategic partnership with Puget Sound
Access to leverage funds for time spent in creating TV programs on
Sustainability and create greater awareness of issues
· Working with local and regional artists to further the
missions of our cultural programming
· Establishing a youth council, in partnership with the
Auburn High Key Club and other high school clubs and organizations, to develop
rich youth programming components in all seven target areas.
· Advertising where environmentally-conscious consumers
shop, such as local natural and organic foods stores.
· Connecting with other Green and sustainable businesses
in the area and promoting each others' services.
· Attending local festivals to get the word out about
Sustainable Auburn and encourage community involvement.
· Getting involved in the community, including donating a percentage of any profit to local charities and/or partnering with the
local food bank to provide healthy food options for local families in need.
Development [Introduction]
Sustainable
We are working to enhance a
well-respected and active Advisory Board which will lead to development of the
Board overseeing the corporation under which Sustainable Auburn operates. As
programs are enacted, participating farms and local businesses will carry
information about Sustainable Auburn and how we are helping to foster a
thriving community of sustainability and culture. Program brochures will be
distributed by local social service programs and agencies that serve the target
population groups. In addition, these programs and agencies will serve as
advocates of using Sustainable Auburn and its programs to positively impact
youth in the community and in response to the need for quality, local food
products for families in need. Eventually, securing office space will be
necessary to further develop and support our array of programs.
Sustainable
Explore project development
opportunities, including:
·
Assess
market potential of projects and services with sustainability benefits (i.e.
organic, eco-friendly, fair trade) within our target market
·
Consider
local resources and businesses (eg. Specialty stores, Green businesses) for involvement
and partnership
·
Evaluate
other city sustainability projects and non-profits before launch
·
Identify
opportunities to leverage recycled, recyclable and biodegradable materials
Build sustainability marketing campaigns, including:
·
Ensure
that all sustainability claims are well-documented and measurable
·
Highlight
specific benefits alongside the term “sustainability” in communications
·
Stress
comparable or superior quality compared to other products in addition to
sustainability benefits
·
Emphasize
personal benefits, in addition to environmental/social benefits (eg. Health and
wellness, cost savings, performance) to reach a broader audience beyond core
“sustainability-driven” consumers.
Development
Timetable
(See attached Document.)
Now-ongoing, develop Advisory
Board.
Now-ongoing, develop Corporate
Board of Directors.
August 1, finalize Business Plan.
Early August, make presentation
to Rich Wagner.
Mid-August, get initial contract
from the city.
Mid-August, apply to Seattle
Foundation and Kellogg Foundation for funding.
Late August, make initial
contacts to potential participants in CSA project, Farmers Market and Food
Co-op.
Early September, get Key Club
involvement in these projects, more Youth Advisory Board Members.
September – December, take
Sustainable Connections workshop, work to establish Co-op, other tasks.
Foreseeable obstacles
include: acquisition of funding, lack of local government and business support,
legal issues with regard to land ownership.
Introduction
Sustainable
Sustainable
Initially, Sustainable Auburn
will operate out of 908 I St. N.E. #4,
When Sustainable Auburn is
fully funded and operational, we anticipate the need to hire the following
personnel: Youth Programs &
Volunteer Coordinator, Agricultural Community Liaison, a sales consultant and a
bookkeeper on an as-needed basis.
Ongoing Operations
On a quarterly basis, the
offices of Sustainable Auburn will be focused primarily on successfully
implementing our agricultural, cultural and artist program initiatives.
On a weekly basis, we will
create or renew contacts and engage in correspondence and communications with
city and regional resources, and national organizations as needed. We will
facilitate any formation of necessary committees, consult with our Advisory
Board, and act as a conduit for local key players to connect and further enhance
the success of our programs.
Management [Introduction]
Sustainable
Paul
Nelson is the Executive Strategist of Sustainable Auburn. Paul works with an Advisory
Board, and reports to the corporate board of the umbrella 501(c)(3)
organization. The Advisory Board
consists of Deanna Burnett Keener, Greg Watson, Rebecca Rose Nelson, Deena
Cornish, Chuck Goodwin and Amalio Madueño, (Development and CSA consultant).
Other personnel include Meredith Sedlachek, (Marketing Strategist).
Poet/Teacher/Interviewer Paul
Nelson hosted/produced/syndicated 450 hours of radio programs on the
Whole-Systems transition. These programs gave him a well-rounded understanding
of sustainability issues. He earned a B.A., in Communications from
Amalio Madueño is the Principal
of Community Development Consulting Services. He is a private consultant to
local governments, institutions, nonprofits, private corporations and Los
Alamos National Laboratory on community development, various economic
development initiatives, plans and projects including public buildings, arenas,
parks, health facilities, solid waste repositories, water pollution control
programs and renewable energy (solar).
With more than 13 years
of experience as a writer, editor, brand champion and Web
strategist for a broad array of print and digital media, Meredith A.
Sedlachek’s expert word-wrangling talents have been used by a wide range
of clients including: The Seattle Times Company, TBA Global Events, Arnold
Worldwide, Holland America Line, USAToday.com, Booz Allen Hamilton, Fannie Mae,
Microsoft Corporation, Doug Fox Travel & Cruise, Red Baron Pizza and more.
She earned her B.A. in English and M.F.A. in Creative Writing at
Sustainable
Paul Nelson and Meredith
Sedlachek will each work for a below-market rate of $65 per hour.
Summary of Financials [Introduction]
Sustainable
Financial Assumptions
The financial plan depends on
important assumptions. The key underlying assumptions are:
·
We assume a
slow-growth economy, without major recession.
·
We assume
population growth that will contribute to additional clients.
·
We assume, of
course, that there are no unforeseen changes in funding availability.
·
We assume a
continued need for clean air, water, food and increased cultural opportunities
in the city.
Appendices
Table of Appendices (To be developed)
Support for Product/Service
Description (e.g., diagrams, pictures, etc.)
Support for Marketing and
Sales Plan
Support for Development
Plan
Support for Operations Plan
Resumes of Management Team
Financial Statements
·
Cash Flow
Statements [5 years]
·
Income Statement
[5 years]
·
Balance Sheets [5
years]
·
Other supporting
financial statements
[1] Source:
2007 OTA Manufacturer Survey
(See: http://www.ota.com/organic/mt/business.html)
[2] Global Voices Radio, formerly It Plays in Peoria Productions. http://www.GlobalVoicesRadio.org
[3] Source: Environmental Protection Agency
[4] Source: The Partnership for Water Conservation, http://www.bewatersmart.net
[5] http://www.csmonitor.com/2008/0305/p99s01-duts.html
[6] http://www.foodnutritionscience.com/index.cfm/do/monsanto.article/articleId/172.cfm
[7] http://www.ithacahours.org/
[8] Source: IRI Sustainability Survey; 22,267 respondents, December 2007




