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Grown in Totnes Case Study

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Planning Your Enterprise

Everyone always says that the planning stage is one of the most important phases of realising any vision, we found it to be true too. We did a lot of research and held a lot of meetings before the concept of Grown in Totnes took form. We were supported by the larger organisation that we were a part of, Transition Town Totnes, this made it easier for us, and influenced many decisions that we made. It gave us the courage to think big, knowing that we already had a willing audience. Being in Totnes was also an important factor. Our little town has a justified reputation for innovation, doing the unconventional, working collaboratively, and caring about the health of our ecology; both land and people. We felt that if we couldn’t achieve our vision in Totnes, there was nowhere we could achieve it. A sense of place is important to a venture of this nature.



Link to Checklist


Chapter 1 Sections


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1.1 Organisational and Financial


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1.2 Fundraising

1.2.2 Crowdfunding


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1.3 Market Research

 

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1.4 Marketing and Communications Strategy


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1.5 Understanding Our Product, Processing and Quality Issues


1.6 Finding Advisors

 

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1.7 Producing Our Business Plan

1.7.1 Financial Forecasting


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1.8 Setting Up Financial Record Keeping


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1.9 Relevant Legislative & Certification
Obligations



1.1 Organisational Structure and Financial Implications

Grown in Totnes was a Transition Town Totnes (TTT) project, it was beneficial to be supported by the larger organisation. TTT is a registered charity and company limited by guarantee and is not VAT registered. More information about TTT can be found here. Because we bought a lot of capital equipment, we did explore the possibility of becoming VAT registered, but it was deemed too onerous for the charity with it’s limited resources. The innovative nature of what we were trying to achieve meant that - at least for the early, non-profit making years - it fell within TTT’s charitable aims and objectives; we envisaged that if and when we started making a profit we would set up as a CIC or similar enterprise.  

TTT’s Charitable Objectives

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1.2 Fundraising

Prior to the launch of Grown in Totnes Holly, partly as an employee of TTT and partly as a volunteer, had secured the following monies:

  • Esmee Fairbairn - £117,000 for the first 3 years

  • A Team Challenge - £6,000 on the condition that this was matched by a further £6,000 raised through crowdfunding

  • Crowdfunding campaign - £20,000

  • UnLtd - £5,000

Over the course of the project we secured the following further funding

  • Invest in Devon Fund - £9,125

  • Private donor - £1,700

  • Esmee Fairbairn -  £38,230 for a further year

We applied to a number of other charitable trusts and private individuals unsuccessfully, including Awards for All and The Prince’s Trust.

1.2.1 Not Included in this case Study, see Checklist 1.2

1.2.2 Crowdfunding

One of the most intense periods of the project was pulling together and orchestrating our crowdfunder, throughout which, we had up to 14 volunteers meeting on a weekly basis, to plan and implement the campaign. We had already secured £6,000 from the A Team Challenge - a collaboration between The A Team Foundation, the crowdfunding platform Buzzbnk and Funding Enlightened Agriculture (FEA) - which required that we crowdfund a matching sum using the Buzzbnk platform. Buzzbnk offered us training and guidance in how to run our campaign and, although they are no longer in operation, their advice would stand for other crowdfunding platforms. Their support pack can be found here and will give you the tools to plan your campaign; here is a sample action plan.  

Because we realised that the majority of our target audience would be local, we designed our campaign to interact with the local community as much as possible, and to fulfill the dual purposes of raising funds and pre-marketing our products to our future customers. To this end we put together a wide-ranging programme of events.

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In that first year we were ‘The Oat Project’ and our focus was growing oats. All of our events were around the theme of oats and were designed to be fun and engaging. We piggy-backed on the Dartington Food Festival and hosted a Magic Porridge Pot competition, with Goldilocks and 3 Scottish judges!  We hosted a 4-course “Oat Cuisine” dinner, with oats featuring in every course, served with oat stout from the New Lion Brewery. We gave out free samples of porridge to early morning commuters at the train station and we ran a hilarious Porridge Jousting event at the Dartington Community Day.

Our campaign materials included our Crowdfunding promotional video which appeared on both the Buzzbnk and the Transition Town Totnes websites

our campaign leaflet

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and a totaliser designed to depict what we wanted to use the money for.

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We were asking for £25,000 specifically for the processing equipment, as this felt more appealing than our other costs, such as staff wages, and it strengthened the message that GinT was a community owned project. 24 events ran over the course of May 2014, our hard work paid off, and the addition of a £10,000 anonymous pledge in the final hour ensured that we raised just over £26,000. During the course of the campaign we were told by Buzzbnk that, for that amount of money, we should have run the campaign for 2 months. Our decision to run it for only a month was based on how long we could sustain our energy, weighed against how many people we thought we could reach, plus an amount of naivety!

We offered rewards to donors to the campaign, these all had an oat theme (and name!):

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1.3 Market Research

See GinT Case Study - 8.2 - How Would Our Products be Used and Eaten - for detail of the market research that we carried out in order to assess the likely demand for our products.

We researched into the prices of wheat flour, to help us gauge where we would position ourselves in the market, the results of which can be found here.

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1.4 Marketing and Communications Strategy

See GinT Chapter 8 Marketing and Communications Case Study:

8.1 - Marketing Strategy

8.1.1 - Brand Positioning

8.1.2 - Our Logo and Strapline 

8.1.3 - Our Communication Channels 

8.5 - Our Online Presence 

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1.5 Understanding Our Product, Processing and Quality Issues

When we first planned what to grow we decided to concentrate on oats, a decision based on information gathered from farmers interviewed during our background research, see our Crop Gaps Report, they informed us that oats grow well in the damp conditions of the South West and that they were a resilient crop.  

Also see GinT Case Study:

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 1.6 Finding Advisors

We had an informal group of advisors who made up the shortfall in our knowledge. These included:

  • John Letts was our principal advisor - archeobotanist and grower, farmer and plant breeder - he has spent 35 years trying to understand how crops were grown in the past in order to develop more sustainable farming methods that can be used in the present.

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  • Steven Jacobs - Business Development Manager at Organic Farmers and Growers

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  • Trish Bagley - crop advisor 

  • Andrew Trump - Organic Arable

The volunteer team expanded in the run up to our crowdfunding campaign, then morphed and changed during the running and set up of the project.  We also relied on a dedicated and changing group of volunteers to participate on our weekly processing day. Volunteers were recruited through the TTT food group (a network of people involved in local food projects), the TTT newsletter and website and our own GinT followers, amassed from the supporters of our crowdfunding campaign and from events that we attended. 


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 1.7 Producing a Business Plan

We undertook the essential elements of a business plan for our application to the Esmee Fairbairn Foundation and produced a detailed budget. Key elements of the project changed over the 3 years we were running, something we kept our funders informed about throughout.  

1.7.1 Financial Forecasting

In order to set our price for our products we took into account a number of factors:

  • A detailed breakdown of annual costs, provided by one of our farmers  

  • The price people paid in the independent shops of Totnes for as close to the equivalent item as we could find

  • The markup retailers put on products 

  • Our anticipated costs. This was the hardest part, particularly at the beginning of the project when there were so many unknown factors, such as the cost of running the machinery and the cost of transporting grain  

We have put together a table of the costs that we encountered - see section 1.8 below - to help you create a full cost analysis. Our end-market was local, which gave us the luxury of being able to set our prices independently of world trade prices. Part of the ethos of GinT was to pay our farmers a fair price, and we tried to balance this desire with another ethos, of wanting to make our products affordable to the majority of people; a long-held ambition which had to be balanced with the need to educate people about the true costs of producing nutritious and tasty food, that doesn’t destroy soil and life.

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 1.8 Setting Up Financial Record Keeping

Below are links to our financial record keeping documents and the Excel spreadsheets we created for recording and monitoring. Hopefully you will find these a useful reference for your enterprise, feel free to use and adapt them for your purposes:



1.9 Relevant Legislative & Certification Obligations

See the following documents in the GinT Case Study:

 

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