Farming Business Plan / Agriculture Business Plan: Now that you are well acquainted with how to start a farm and How to become a Farmer, the next step is to develop a Farm Business plan. This Farm Business plan can act as a tool for you to plan your Farming Business. It is also required to show to the grant givers when you are requesting for grant or loan. If we can break down the farm Business plan into smaller and simpler steps, it can be easy to finish. Are you ready to start?
Farming Business Plan
1) What is a Farm Business Plan?
A Farm Business Plan is your personal roadmap to your Farming business. It is both a process and a product. You will be developing a vision and mission statement while you are writing a Farm Business plan. You will think of your short term and long term goals as well as steps to achieve them. This Farm Business plan will set a direction for your business to develop over the next few years.
How to write a Farm Business Plan:
A good business plan has the following characteristics:
It should be:
What is included in Farm Business Plan?
2) Farm Mission statement:
This mission statement gives you an overarching purpose of your business
What is the purpose of your Farm
Why does your Farm exist
Where is your Farm heading towards?
The sole purpose of your mission statement is based on your values and your core identity to start this Farm business which is beyond making money
3) Goals: Goals are the ones which are very specific and which can be measured what you are going to achieve with your small farm. They can be short term or long term. Short term goals are those that can be completed within an year. Long term goals take more than a year to accomplish
SMART Goals are:
Rewarding, and have a
4) Background Information:
In this part, know what you already own such as:
How many acres of land you are farming?
What is your location?
When did you start farming?
What is the state of current operations?
What practices are you using for environmental impact, marketing and conservation?
Agriculture Business Plan
5) Farm Strategy:
This is where you will be looking into vision of how your farm strategy may look in the next five years:
A) Gather all the information regarding Farming practices and do market research. You have to ensure that your Farm Business plan fits into the general market in terms of supply and demand. Identify your competitors, analyze and investigate industry trends, and define your buyers.
B) SWOT Analysis: SWOT analysis is an analytical tool to help you understand your strengths, weaknesses, opportunities, and threats. Strengths and weaknesses can be internal whereas opportunities, and threats are external. Opportunities and threats can be in the form of new markets, economic conditions, competitors and government regulations etc.
C) Create Alternate Strategies: Have a backup plan too. Dont just rely on price alone. Look at other alternate strategies on how to be profitable
D) Dont come to conclusions so fast. Sometimes there are opportunities which might have never thought of. Spend time analyzing the pros and cons of each strategy and select the one with which best has a blend of your internal strengths that can take advantage of external environment opportunities.
E) Recheck all your strategies again and read your mission statement. The ideal business plan will fit your mission
F) Now write an implementation plan to implement the new strategy.
Farming Business Plan
6) Marketing Strategy and Plan:
Now comes Marketing, which is crucial to any business. Develop a marketing strategy for your products and services by building on the research you have done in the previous steps. Include price, promotion and placement ideas.
7) Management Summary:
This part of Farm business plan includes the farm business structure. All the leadership team who is involved in managing the business have to be listed here along with external resources.
8) Financial Analysis:
This sections is about the financial aspects of your farming operation. List all your current finances including income, expenses, operating expenses, net income. Here you need to have some insight into the future needs to meet the goals you have outlines in terms of capital. Include what your future operating expenses your farm business may incur
Writing a Farm Business plan can be daunting, but remember if you do some amount of hardwork, it can last for years. Dont let laziness obscure your goals. Start with simple business plan at the beginning. Begin with your goals, mission and vision as these are already known. Do your investigation by analyzing the competitors, external markets and trends. You can draw a fish bone diagram too if it helps.