Msu Product Center Resources

Business innovation in agriculture, food and natural resources

The MSU Product Center Services

Tom Kalchik

Associate Director


Product Center• March 2003 (operational Jan. 2004)

• Memorandum of Understanding (MOU)– College of Agriculture and Natural Resources

(CANR)– Michigan State University Extension (MSUE)– Michigan Agricultural Experiment Station (MAES)– Renewed 2009 for 5 years

• Department of Agricultural, Food and Resource Economics (AFRE)


Mission• Create networks of resources• Deliver services that support the development of new

ventures, entrepreneurs, and entrepreneurial communities

• Strive to spark business innovation and economic development in agriculture, food, natural resources and bioeconomy through collaboration, knowledge and best practices

• Work on behalf of our Michigan stakeholders– Customers who want to develop ventures and their

entrepreneurial talents– Service providers from Michigan State University and from the

broader private and public sectors– Sponsors both inside and outside the university


Strategies

• Venture Development and Service Networks

• Entrepreneurial Development

• Market Research


How does the PC help?

• Develop a concept– Is there a market?– Can you produce it?– Can you deliver it?– Can you finance it?– What is your risk tolerance?


How does the PC help?• Develop a concept• Basic business plan

– Executive Summary– Mission Statement, History, & Objectives– Business Organization/Operations– Marketing Plan– Management/Human Resources– Financial Plan– Supporting Documents


How does the PC help?• Develop a Concept• Basic business plan• Advanced planning

– Detailed feasibility analysis– Production processes– Supply chain arrangements– Legal/organizational issues– Regulatory compliance– Financing


Resources of PC

Innovation Counselor/ Educator Network


Resources of PC

• MarketMaker– A web-based resource that provides a

link between producers, processors, wholesalers, retailers, farmers' markets, food service providers and end-consumers within the food supply chain

– www.mimarketmaker.msu.edu


Resources of PC• Access to MSU resources

– Food Science and Human Nutrition– Packaging– Advertising, Public Relations, & Retailing– Agriculture, Food and Resource Economics– College of Law – Small Business and Non-profit

Law Clinic– Eli Broad College of Business– Capstone Courses


Resources of PC

• Market Research– Market analysts– Mintel consumer research reports– Mintel Global New Products Database (for

food and beverage)

• On-line public reports

• Private for-fee reports


Resources of PC

• Website:

www.productcenter.msu.edu


Resources of PC• Outreach staff

– Tom Kalchik, Associate Director• [email protected]• 517-432-8752

– Matt Birbeck, Project Consultant• [email protected]• 517-432-8753

– Dianne Novak, Specialized Services Consultant• [email protected]• 517-432-5754

– Janice Harte• [email protected]• 517-355-8474


Resources of PC• Market Analysts

– Chris Peterson, Director• [email protected]• 517-355-1813

– Bill Knudson, Market Analyst• [email protected]• 517-355-2176

– Getachew Abate• [email protected]• 517-355-0337


Resources of PC

• Bioeconomy– Ruben Derderian, Associate Director

• [email protected]• (517) 432-1676


The Challenge• To systematically turn a business or product idea into

a real start-up or launch.• Desire often overwhelms reason.

– The glory of the idea• “Build it and they will come.”

• “Everyone will want it.”

• “It’s the greatest thing since sliced bread.”

– Missing the logical flow of development• Operational detail before concept/strategy development

• Production before marketing

• No consideration of the real return potential


The Intuition about Process• First, tell a plausible “fairy tale” about the idea

of the venture?– Market/customer driven– Internally consistent and appealing

• Then, will the venture make a reasonably profit if everything goes well?

• Finally, what is the venture’s potential to work (feasibility)?


Service Portfolio(examples)

Service Tiers

Venture Development

Market Research

Entrepreneurial and Community

Development

Concept Development Concept Definition Market Briefings “Road to Independence”

“Creating Innovation”

Venture Fundamentals

NxLeveL, Purdue Software, Fastrac, workbooks, etc.

Market Analyses Business Boot Camp

Specialized Services Faculty teams, consultant referrals, sensory testing

Market Feasibility Analyses

Seminar modules, e.g., contracting, venture capital

Services for Start-ups

Referrals to added expertise or back to other services

Analysis updates E&I Club


Results(since 2004)

Number

Total counseling sessions 11,509

Concept development 1,094

Business fundamentals 754

Specialized services 538

Launched new ventures 606 new jobs (actual) + 348 retained $194 million annual sales increase $201 million invested

127


Results(FSEP Area)

Customers Sessions Hours Miles

Jackson 35 301 408 676

Lenawee 29 345 354 1,041

Monroe 27 239 282 466

Washtenaw 62 744 882 858

Wayne 77 941 1,131 1,334

Total 230 2,570 3,057 7,375


Results(FSEP Area)

Customers

Concept Development 149

Venture Fundamentals 146

Specialized Services 37

Service after Start-Up 42

Total Customers = 230


Results(FSEP Area)

Ventures Launched 24

Jobs Created 180

Jobs Retained 17

Sales Increase $ 116,905,850

Capital Invested $ 95,592,143


Education

Msu Product Center Resources