Mark Mahnken The MBA Cowboy

Transcription

1 Mark Mahnken The MBA Cowboy

2 Manken Cattle Company started as a custom feed yard serving their first customer in While custom feeding, a growing demand was identified for local branded beef. The opportunity arose to research and develop a niche branded grass fed beef product. This would produce cleaner, better tasting beef.

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10 Why sell niche beef? Customers these days are looking for a superior product and are willing to pay for the right product. Superior products Quality control

11 To offer MLB customers the best possible quality products, MU extension professionals score each carcass of beef. The process of scoring allows Missouri Legacy Beef to manage its defined quality standards. The data gathered from carcass is gathered and presented to producers.

12 Branding the beef assures the customer a consistent quality standard. Several Missouri Producers participate in the the Missouri Legacy Beef brand.

13 Designing the right balance of health and taste did not come easy. The initial 6 head of cattle that were strictly grass fed tasted terrible. We quickly found that there was a science to designing the right balance of flavor and proven health benefits over traditional grain fed beef. This lead to the formation of a proprietary grass supplement feed designed by MLB and the University of Iowa. It offered the benefits of grass during months when it was not as plentiful.

14 High in Omega 3s, Documentation of Genetic lines, USDA approved processing, dry aging, and grass fed. Development of the proper cattle is crucial to pricing, health benefits, and superior taste. Over the course of several years and many failures and successes, we were able to offer a superior beef product to the Mid-Missouri market.

15 Producers who do find success with creating great niche beef must resist the urge to grow too fast, too quick. As with all good things, take the time to control growth and make sure you don t burn out after you experience the new pitfalls of a growing business.

16 Sales projection, your best friend. What else do you need? Projected financial documents Cash Flow Balance Sheets Profit and Loss Business Equity Ensure you know where your financing will come from and be able to produce them for a possible financier. This ensures you know what your goals and anticipated income is as well as your financier knowing you are serious and that this is indeed viable.

17 Make sure you do your research so that you can ensure that the processor you start with will be the one you stay with. Ask yourself, In 5 years time, will the processor be able to handle the demands of my potential growth needs? Are they reputable? USDA Certified? (If applicable)

18 The mentality that when a Client buys beef, they are buying direct from the farmer and therefore feel better about the product they purchase. Know your market and your consumer. Research, research, research. Sales is not marketing and vice versa. Service

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21 Retail- Stay close to the customer to capture the retail dollar but keep volume low here. Selling Sides and Quarters- Lower cost and risk, less marketing, customer pays up front. Farmer s Market- Labor intensive but better margins. E-Commerce- High startup cost, low labor, best margins.

22 Wholesale- High marketing, labor, and service cost; very competitive, low margins. Institutions- A whole presentation could be dedicated to this. Festivals- Great to attend on your own but Ill advised as a business venture

23 It took selling out of the back of an Explorer with freezers while making the initial deliveries to start marketing MLB. Start small, ensure you are controlling your quality and prices. When the time comes to ramp up, YOU WILL BE READY!

24 Best way for you would be to start with chest freezers in your garage. Move up to rented freezer space when you outgrow your current space. Consider a multi-purpose building to store your beef as well as to rent out the extra space for a variety of uses! All of this is dependent on size of the business, what you re willing to spend, and your anticipated growth!