- Writing a Business Plan
- Financial Statements
- Business Forecasting
- Business Checklist
The Maple Syrup Company
The Maple Syrup Company is a partnership between two established Smith Island farmers. They have launched this Company with the intention of becoming a leading force in the creation of the pure maple syrup industry on Smith Island.
The partner's of The Maple Syrup Company own substantial maple woodlots. There is also an abundance of sugar maples in the surrounding area.
Far too often, woodlots have been destroyed in order to either generate revenue from the sale of wood or to obtain farm land for other agricultural crops such as potatoes. The destruction of woodlots contribute to increased environmental problems including erosion and run offs into our fragile river system.
The partner's do not want to destroy their own woodlots. They would like other woodlot owners to retain theirs. The introduction of the maple industry will convert woodlands into revenue producers. This will contribute to the retention and preservation of a precious natural resource.
The owners intend to establish a viable commercial maple syrup enterprise on Smith Island on a larger scale than ever before. There currently exists an ample supply of sugar maple trees on Smith Island to accomplish this.
The Maple Syrup Company intends to start with 2,000 taps in year one. This will increase to 5,000 taps in year two. An additional 5,000 taps will be added during year three to bring the total to 10,000. During year four, 10,000 more taps will be added to bring the total to 20,000. The Company plans to remain at this level throughout year five.
It takes 40 gallons of raw sap to produce 1 gallon of pure maple syrup. The process of converting raw sap into maple syrup has changed significantly over the years. Technological advances have pipelines transporting sap from the sugarbush to the sugarhouse. There, equipment such as evaporators and reverse osmosis systems quickly process raw sap into high quality maple syrup products.
This industry has become capital intensive. Our venture requires substantial capital at various intervals during the five year projected period. We plan to contribute cash, woodlands, and sweat equity in order to achieve our goals. External financing will also be required during this time. It is estimated that external financing requirements in year one will be $32,000 and will increase to approximately $150,000 during our growth periods.
Consumer life styles and preferences are changing. Today's consumers are more health conscious and seek out more natural products. Maple syrup is truly a natural product. It fits very well within the changing trends of the new consumer.
Canada, the leader in the production of maple syrup, exceeded $100 million in export sales during 2008. We are of the opinion that the maple syrup industry will continue to grow as more people recognize it as a natural, chemical free, fat free product. Today's health conscious consumers recognize the value products such as maple syrup provides.
To be risk adverse, we plan to sell our finished syrup into the two existing markets which are, the bulk market and the retail market. Although the margins are more favourable in the retail segment, we want to ensure we have an avenue to sell any excess inventory. The bulk market will accomplish this.
The retail market will have us penetrating 5 primary targets including larger retail grocery chains, health food stores and speciality shops that cater to the ever present tourist industry on Smith Island. All of our retail customers will realize a favourable profit margin.
We intend to spark this industry by media promotions and advertising. We have budgeted 7.6% of our retail sales towards this end. The budget will be shared amongst press releases, brochures, radio and print media. We feel we can generate interest in the development of this industry for Islanders and tourists alike.
We anticipate with the interest we generate, more woodlot owners will become involved in the maple syrup industry on Smith Island. The more interest generated within this industry, the faster the economies of scale will come into play. This will create spin off opportunities in the market place.
We conclude that our maple syrup operation can realize a profit. It will be a long term project. We intend to work towards this end. We will take great pride in knowing that we generated income from a resource that may otherwise disappear.