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A Business Plan to Implement Procedures and Operations of Snail Farming for Higher Ground Farm

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A Business Plan to Implement Procedures and Operations of Snail Farming for Higher Ground Farm A Business Plan to Implement Procedures and Operations of Snail Farming for Higher Ground Farm A Major Qualifying Project Submitted to the Faculty of WORCESTER POLYTECHNIC INSTITUTE in partial fulfillment of the requirements for the Degree of Bachelor of Science By: Travis Clark, Zulean Cruz- Diaz, Hannah Navarro, Alyssa Perry Date: March 3, 2017 Report Submitted to: Karla Mendoza-Abarca, Assistant Professor, Foisie Business School, WPI Michael B. Elmes, Professor, Foisie Business School, WPI John Stoddard, Owner and Head Farmer of Higher Ground Rooftop Farm 1 Abstract The local food movement is influencing the food industry in cities like Boston and Worcester, Massachusetts. Sponsored by Mr. John Stoddard, owner of Higher Ground Farm (HGF) in Boston, this project aims to increase profitability by expanding the current organic vegetable farm into a snail farm. To achieve this goal, we developed a business plan on how to implement strategies for a snail farm business. Based on interviews with locally sourcing restaurants, secondary research, and analytical tools, we assessed the market for snails in the Boston and Worcester areas. 2 Acknowledgements The authors of this project would like to acknowledge those who made contributions to this report. Firstly, we would like to thank our sponsor Mr. John Stoddard, owner and co-founder of Higher Ground Farm (HGF) as well as Foisie Business School professors, Dr. Michael Elmes and Dr. Karla Mendoza-Abarca for their advising and collaboration. We would also like to thank Armsby Abbey, Asta, Bancroft, Boynton, deadhorse hill, Figs & Pigs, Garden Fresh, Niche Hospitality Group, Sole Proprietor, and The Hourly for their participation in our research. Next, we would like to thank Research Librarian, Laura Robinson, for her expertise. Finally, we would like to thank the Foisie Business School at Worcester Polytechnic Institute for this opportunity to complete the Major Qualifying Project. 3 Executive Summary Introduction Higher Ground Farm (HGF) is an example of a small business that struggles to make a profit. Mr. John Stoddard, owner and co-founder of HGF, has been operating HGF for the last five years. Unfortunately, the farm is making lower profits than originally expected. HGF makes just enough money to pay off the operational costs of the farm. Currently, he is the only full time employee on the farm, relying on volunteers to help him grow and sell his crops to current business partners in Boston. However, his only source of income is from his other full time job. To overcome the financial burdens he faces with HGF, he is looking to expand his business by adding a snail farm to his brand. This Major Qualifying Project (MQP) aims to develop a business plan for a profitable rooftop snail farm in the city of Boston. Objectives This Major Qualifying Project (MQP) will expand the research concluded by the IQP team by developing a business plan for John to successfully grow and sell snails to a number of restaurants in Boston and Worcester area by applying the following methods: ● Research the aspects for a business start-up plan for Higher Ground Farm. The business plan aspects are: Executive Summary, Company Description, Products and Services, Marketing Plan, Operational Plan, Management and Organization, Financial Plan, and Appendix. We used analytical tools such as the Business Model Canvas (BMC) and the SWOT analysis to outline the sections of the business plan. This business plan will help to implement strategies for a snail farm business for Mr. Stoddard in order to increase profitability for HGF. ● Identify and understand the prospective market. 4 By conducting interviews with various restaurants in Worcester and Boston, we developed a profile of the prospective customers for Higher Ground Farm. The restaurants that we interviewed were Armsby Abbey, Asta, Bancroft, Boynton, deadhorse hill, Figs & Pigs, Garden Fresh, Niche Hospitality Group, Sole Proprietor, and The Hourly. ● Determine the best practices in operations and benchmark known snail farming techniques. We analyzed the following operations in detail: permits, breeding, packaging, delivery, and finances. By performing this research, we were able to develop suggestions on successfully acquiring all the necessary resources to start a snail farm. ● Compare and contrast the most cost effective and efficient containment designs for snails. The purpose of recommending a design is to provide John with different cost and technology levels. We were able to create a list of materials with varying automated systems to perfect the snail containment structures. We visited a recycling center to find materials that could be used in the design and could reduce future costs of the snail farm. Findings Our main sources of data for this project were our interviews and secondary research. Through our interviews, we gained a sense of how restaurants in Boston and Worcester feel about local food. From this we determined what characteristics HGF should be looking for as a potential customer. Some key takeaways from these interviews were: ● Restaurants source local food to stay current with food trends ● 70% of restaurants expressed interest in snails 5 ● Menus are changed every two weeks because they are looking for new dish inspirations ● HGF can benefit from restaurant associations, chef collaborations, and aggregators For creating a containment design for snails, these were the key findings: ● The snail containment structures will consist of materials such as raised wooden boxes, chicken wire, soil, a hammer, nails, lightweight concrete, a trowel and tub, mist systems, a humidity temperature meter and a soil moisture meter. ● The operating expenses will include a PPQ 526 Permit, rent, utilities, liability insurance, advertising, breeding snails, snail feed and packaging for the snails. ● If overcrowded, the growth rate of the snails will slow down and can cause health problems. Therefore, having a free range option in the future will benefit the snails. Otherwise, limited reproducibility and a lowered lifespan is detrimental to the farm. ● A timing system to control and monitor the watering/sprinkler systems will help regulate the moisture within the structures. Recommendations 1. HGF should develop marketing strategies by targeting locally sourcing restaurants and improving its website. 2. For future endeavors, HGF should connect with aggregators and approach new markets. 3. HGF should start the snail farm with ten containment structures and focus on environmental controls. 4. HGF should prioritize environmentally friendly practices by using recycled products and minimizing waste. 5. HGF should continue the volunteer program to help care for the snails. 6 6. Snails should be sold at a price of at least $50 per pound; this price can be modified with customization of the product. 7. HGF should apply for a grant from Beginning Farmer Network (BFN) of Massachusetts. 7 Authorship The Introduction was written by Travis Clark. The Background section was divided amongst the four members of the team in this order: • Business techniques was written by Hannah Navarro • Snail farming, breeding, and containment was written by Alyssa Perry • Farm operations and snail industry overview was written by Zulean Cruz- Diaz • Disease and quality control and the benefits of snails was written by Travis Clark In the Methodology: • Business aspects were written by Hannah Navarro • Understanding the market was written by Travis Clark • Operational aspects were written by Zulean Cruz-Diaz • Snail containment details were written by Alyssa Perry In the Results section: • Market analysis was written by Hannah Navarro • Containment overview was written by Zulean Cruz-Diaz • Cost analysis was written by Alyssa Perry Both the Analysis and Recommendations were written together as a team. All the edits were completed as a team as well. 8 Table of Contents Abstract ........................................................................................................................................... 2 Acknowledgements ......................................................................................................................... 3 Executive Summary ........................................................................................................................ 4 Authorship....................................................................................................................................... 8 List of Figures ............................................................................................................................... 13 List of Tables ................................................................................................................................ 14 1.0 Introduction ............................................................................................................................. 15 2.0 Background ............................................................................................................................. 17 2.1 Business Techniques ........................................................................................................... 17 2.1.1 Business Model Canvas ................................................................................................... 17 2.1.2 Startup Business Plan ....................................................................................................... 19 2.1.2.1 Executive Summary .....................................................................................................
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