What are value-added activities?
So what “value-added activities” exist in your business today, and how do you identify them? Well, if the customer defines value, then it would be those that you could put as a line item on your final bill and the customer would be willing to pay for. For example, if one of the activities you must perform to process a customer through to completion is to fill out a special file folder containing all of the customer’s information, would the customer be willing to pay for this activity if it was charged for on the final invoice? Let’s say, Line 2 prepare file folder .5 hours. Or how about this: One of the activities you must perform is to have a tech tear down a vehicle once it has arrived to identify missed or supplemental damage. And don’t forget the activity of placing and receiving a parts order for any of these supplemental issues. Could you add these activities to the final bill? Would the customer willingly pay for these things? Line 3 place a parts order, again, for stuff we miss
Grants must be used to promote activities that will improve the customer base for the commodity or product and allow the producer of the commodity or product to keep a greater portion of the revenue derived from value-added activities. These activities include: • Changing the physical state of the product such as processing milk into cheese • Producing and marketing a product in a manner that enhances its value such as organically produced. • Physical segregation of an agricultural commodity or product in a manner that results in the enhancement of value such as an identity preserved marketing system. • Using any agricultural product or commodity to produce renewable energy on a farm or ranch. What can grants be used for? There are two kinds of grants. Applicants must apply for either a planning grant or a working capital grant. Planning Grants: Applicants who have not completed the required planning activities can use the funds to conduct a feasibility analysis of the proposed venture
