Planning Your Business Plan Annie's...
Transcript of Planning Your Business Plan Annie's...
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Planning Your Business Plan
Madeline Flahive DiNardo, MBARutgers Cooperative Extension of Union County
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What did you need to do be able to be here today?????
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Chances are you had do some planning!!
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What are some things you will need to think about for planning your farm business?
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The Business Plan
What is a business plan used for?
• Communicate ideas to lenders, business partners and family
• Evaluate production alternatives
• Identify new market opportunities
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The Business Plan
How should I organize my business plan?
– There are many formats
– Be realistic– Avoid technical
jargon, too many acronyms!
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The Business Plan
• The Executive Summary– Appears in the
beginning of the report – but write it last – it’s overview of your plan
• Objectives and Goals
• Table of Contents
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The Business Plan
• Vision and Mission Statement
– Vision is where your business is going
– Mission is who you are, your values, your products and WHY YOU ARE IN BUSINESS !
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The Business Plan
• Business Background
• Marketing Strategy
• Production/Operation Strategy
• Management and Human Resources
• Financial
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The Business PlanA Brief History of Your
Business
– How you are legally organized
– Names and titles of all firm managers / Board of Directors
– Location
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The Business Plan
A Brief History of Your BusinessFor a new business you can write about…….• What is your motivation to start this
business venture?• History of the land you will be farming• Viable markets you will be targeting
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The Business Plan
• Marketing Strategy
– Product or service you offer– Differentiating your product– Describe the industry and how your
business fits in– Who are your competitors?
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The Business Plan
• Marketing Strategy– Advertising and promotions– Distribution– Pricing strategies– Sales goals - % of market you plan to
capture
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The Business Plan
Operations / Production Strategy• Give an overview of what you have
available or need to produce your product.
- Land - Buildings- Equipment - Machinery- Materials -Supplies
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The Business Plan
Operations / Production Strategy
• Describe production practices- Flow chart or timeline would be a good
visual
- Costs of production
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The Business PlanManagement and Human Resources Strategy
• Areas of expertise of your business team– Finance- Marketing– Production– Labor Management
• Education and Experience
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The Business Plan
Management and Human Resources Strategy
• An organizational chart with names, titles and responsibilities– The chart shows supervisory roles
• Compensation and benefits• Job descriptions and recruiting• Training and operating procedures• Performance evaluations
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The Business Plan
Management and Human Resources Strategy
• Other professional resources available such as your accountant, attorney, consultants
• Plans for unexpected loss of a key management team member
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The Business Plan
Financial Strategy
• Discuss projected income and cash flow
• Financial goals, such a % of growth in income
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The Business Plan
Financial Strategy• Total Capital Requirements
– Short term– Long term
• Collateral
• Financial ratios and break-even analysis
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The Business Plan
Other Items• Appendices with supporting
documents such as resumes, brochures, tax returns, market research, balance sheets, cash flow
• Glossary for technical terms
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https://tinyurl.com/UNCCertificateCourse
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https://tinyurl.com/UNCCertificateCourse
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https://agplan.umn.edu/
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https://agplan.umn.edu/
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Planning Your Business Plan
• Promote your great business idea to potential partners, employees, vendors, customers and lenders with your well thought out plan.
• Learn about the many aspects of growing / raising your agricultural commodity
• Accounting will be an essential part of your business plan
• Network with professionals who can provide you with coaching in the financial, marketing, production and human resource aspects of your business
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References
1. Agribusiness Planning, Providing Direction for Agricultural Firms, Penn State Agricultural Research and Cooperative Extension, 2002, available at: https://extension.psu.edu/agribusiness-planning-providing-direction-for-agricultural-firms
2. Building a Sustainable Business, A Guide to Developing a Business Plan for Farms and Rural Businesses, Minnesota Institute for Sustainable Agriculture, 2013, 4th printing ISBN 1-888626-07-0
3. Agricultural Finance 7th Edition, Lee, Boehlje, Nelson & Murray, Iowa State University Press, Ames Iowa, 1980 ISBN 0-8138-0050-1
4. Your Guide to FSA Farm Loans, United States Department of Agriculture, Farm Service Agency, June 2012, FSA-BR-01
5. Planning for On-Farm Success, A Workbook for Montana’s Beginning Farmers and Ranchers, Module 6: Financing, Community Food and Agriculture Coalition, Montana State University Extension, 2015
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