How do I describe my orchard’s cider and baked goods sideline to a buyer?
Describe the sideline as its own small business: what you make, who buys it, what it costs to produce and how much of your time and equipment it uses. Keep its sales and costs separate from the fruit so a buyer can judge each part on its own.
A buyer deciding about an orchard will wonder whether the cider and baking are a bonus or a burden. Help them see it. Begin with a short description of each product, how it is made, when it sells and who buys it, whether visitors, shops or events. Note which items sell steadily and which are seasonal.
Then give the numbers by line. Separate revenue from fruit, cider and baked goods, and pair each with its costs: ingredients, packaging, labour, energy and equipment. Cost of goods sold is the plain way to show what each item costs to produce. Be fair about your own labour, since a sideline that relies on family hours may look different once they are paid for.
Explain what the sideline needs to run. List the equipment, the space, the staff and any seasonal help, and say who has the skills. Ask yourself whether a new owner could learn the recipes and the routine, and write down what they would need. Finally, check with your accountant that the split of costs is reasonable, so the story matches the financial statements. Photos of the stand or tasting area and a few customer comments also make the sideline easier to picture.
Key takeaways
- Report cider and baking sales and costs separately from the fruit.
- Be honest about family or owner labour the sideline relies on.
- List the equipment, space and skills a new owner would need.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is the cost of goods sold (COGS)
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 04Business Development Bank of CanadaIndustryHow to sell your business
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