E-TAP Program, Kenan Institute, UNC-CH

Ashwini Rathi, 2nd Yr. MBA, KFBS

12th December 2014

TERRA CEIA FARMS – EXPANSION PLAN

AGENDA

Introduction

Terra Ceia Farms

The Opportunity

Our Approach

Validating Assumptions

Understand Investors

Substitute Analysis

Final Deliverables

Expansion Locations

Finances

Business Plan

INTRODUCTION

• Terra Ceia Farms

• Based in Pantego, Beaufort County

• Carl van Staalduinen – 3rd Gen.

• Grow Flowers, Corn, Soya Bean

• Nursery & Mail Order Business

• The Opportunity

• Flower production in 1 site

• Expand Production to 3 Sites

ASSUMPTION VALIDATION

• Demand Assumptions:

• Additional demand?

• Current customers buy more?

• Supply Assumptions:

• Current supply?

• Validation:

• Met current customers

• Confirmed additional demand and procurement

UNDERSTANDING INVESTORS

• Elizabeth Basnight got us in touch with Self-Help Credit Union

and Carl got his banker to meet with us

• We discussed about various financing instruments, loan types,

financing terms, hurdle rates, DCRs, interest rates, LTVs, etc.

SUBSTITUTE ANALYSIS

• Are we better off growing something else?

• List of crops growing in North Carolina vs per acre profits for

comparison

LOCATION ANALYSIS

Source: NCSU NC State Climate Office

FINANCIALS – LIFECYCLE

FINANCING STRATEGIES

• The BIG question: was how much to finance?

• Scenario models: 15 yr. vs 13 yr. lifecycles

• How much funding to raise, from where at what interest rates?

• Potential partnerships, collateral for loans, etc.

BUSINESS PLAN