Agricultural Education Workshop:
Agribusiness Incubator
Program
Agribusiness Incubator Program
Growing Hawaii’s agriculture industry,
one business at a time
University of Hawaii
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
AIP Background
• Part of CTAHR/UH
• Created through a USDA/CSREES grant
• Helps agribusinesses grow by providing
business consulting services
• Assisted over 100 agribusiness and
organizations statewide
• Provide hands-on, intensive, and wide-ranging
business consulting
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
AIP is…
• Who we are
• http://aip.hawaii.edu
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Who we help
• Statewide program
• Emerging agribusinesses
• Existing agribusinesses
seeking the next level
• Preference to Native
Hawaiians
• Willing and able participants
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
How we’re helping
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Strategic Plans
Business Plans
Marketing Plans
Project Management
Financial Systems
Review
• Financial Analysis
• Other Services
including business
startup assistance,
identification and
coordination of external
resources, value-added
product guidance, and
contract review
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Core Services
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Strategic Plans
Business Plans
Marketing Plans
Project Management
Financial Systems
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Why Should You Care?
• Most agribusinesses in Hawaii do not perform
sufficient business management. Those that do
can $eparate themselve$ from the pack
• Controversial?: From our experience, the most
successful agribusinesses are run by people
who excel at business versus excel at
production
(caveat: their production decisions are business-driven too)
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Selected Practices
• Provide an overview of some key
business management tools and
functions and their benefits
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Cost of Production (COP)
• Determine the total cost of producing what you sell.
Not simply the direct costs! Validate by:
– Units sold X cost per unit should = total expenses
– or, Total Expenses / Units sold = Cost per Unit
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Prioritize cost-cutting efforts
Price your product appropriately
Identify your most profitable products
Know how much you have to sell to break even
Lends itself to forecasting revenues and expenses
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Cash Flow Projections
• Determine best times to spend and
invest
• Identify cash flow issues ahead of time
• Often a lack of cash, not sales, causes
businesses to fail (or at least make
“suboptimal” decisions)
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Accounting
• Track purchases for volume discounts and forecasting
• Track sales for seasonal, product/mix, and customer
analysis
• Know who owes you and speed receipt of amounts
owed
• Help avoid late fees and penalties
• Necessary for grants, loans, taxes, some insurance
• Provides you with INFORMATION to manage your
business
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Marketing
• Get out of being a commodity – be more in control
of pricing and demand
• Expand customer base/markets
• What can you do (not just advertising) that will
encourage customers to do business with you?
• Branding: How else would customers know how to
prefer your product
• Doesn’t need to be creative, expensive, or
complicated -- you just need to have an integrated
plan and take consistent action!
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Making A Difference
“[Our company] owes its existence
in large part to the dedicated
efforts and expert advice
bestowed upon us from the
entire team at the Agribusiness
Incubator Program.”
“[AIP has] helped us to create two
value-added products… guided
us throughout the entire process
and has been active consultants
in our journey to create a new
business and value-added
product lines… “
“[AIP has] helped us come a long
way… helped us create a new
company… [and] given us the
confidence to move forward with
our new venture.”
“The opportunity to have been
selected as a client business to
receive the type of counseling and
support that I have received is a
godsend… [The services provided
by AIP] will enable me to procure
funding for my fledgling
business… “
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
AIP client metrics, averaged
over the past three years:
Average annual revenue change:
+ 64.4%
Average annual profit change:
+ 315.7%
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Becoming a Client
• Download application from http://aip.hawaii.edu
• Complete and return the application
• AIP will call to schedule a meeting (phone or onsite) to
learn more
• AIP scores applications and accepts clients on a spaceavailable basis
• Cost
– Free Strategic Plan (the first step)
– Graduated rate flat fees per project based on client income
– Cost should never be an obstacle!
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Other Local Resources
• College of Tropical Agriculture & Human Resources
– www.ctahr.hawaii.edu/sustainag/NewFarmer/Links.asp
• Small Business Development Center
– www.hawaii-sbdc.org
• SCORE
– www.hawaiiscore.org
• Oahu RC&D (classes)
– www.pacrimrcd.org/SectionIndex.asp?SectionID=48
• Small Business Administration
– www.sba.gov/localresources/district/hi/index.html
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program
Contact Info
Thank you
Steven Chiang, Director
Agribusiness Incubator Program
University of Hawaii
schiang@hawaii.edu
(808) 956-3530
Website: http://aip.hawaii.edu
Agribusiness Incubator Program
Agribusiness Education, Training, and Incubation Program