UNIVERSITY OF MARYLAND EXTENSION

UNIVERSITY OF MARYLAND EXTENSION

Contents of a Business Plan

• Executive Summary• Mission and Goals• Background Information• Farm Strategy• Marketing Strategy and

Plan

• Enterprises Analysis and Plan

• Financial Plan• Management Plan• Implementation

Strategy• Resource Inventory

*Note the action words!

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Farm Strategy

• Step 1: Gathering information and market research. • Step 2: Analyzing the external and internal components

of your business using the S.W.O.T. analysis. • Step 3: Creating alternative plans of action and

identifying areas of competitive advantage. • Step 4: Formulating a strategy is selecting the best plan

that fits your overall farm mission.• Step 5: Implementing and evaluating the strategy.

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UNIVERSITY OF MARYLAND EXTENSIONUNIVERSITY OF MARYLAND EXTENSION

Step 1: Gathering information and market research.

• Market Research: Research your current and potential markets to identify trends, competitors, needs and buyers.

• Focus groups, demographics, surveys, observation, interviews

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Primary Research • Primary research can be as simple as asking customers or

suppliers how they feel about a product, or as complex as surveys conducted by professional marketing research firms.

• Examples of primary research are:– Interviews– Observations– Direct-mail questionnaires– On-line or telephone surveys– Experiments– Panel studies– Test marketing– Behavior observation

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Secondary Research• Secondary research is faster and less

expensive than primary research. • Gathering secondary research may be as

simple as making a trip to your local library or business information center or browsing the Internet.

• It utilizes information already published.– Surveys, books, magazines, etc.

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Food Trends for 2015

Source: ConAgra Foods Inc.; December 2012

1. Grazing Golden-Agers: Snacking2. Same-Day Delivery Not Just for City Clickers: Grocery Shopping Goes 24/73. Everything Smoked4. The Rise of Fermented Foods5. Gen Z: Chefs Everyday6. Craft Foods Make its Way into Kitchens Everywhere

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Secondary Research Cont.• Localized figures provide better information as

local conditions might buck national trends. – Newspapers and other local media are helpful.

• Many sources of secondary research material are available. It can be found in:– Census and Consumption Data– Colleges– Trade and general business publications and

newspapers– Trade associations and government agencies are rich

sources of information.

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If you don't know your customer, then you don't know your business.

• Determine your target market. A target market is the group or groups of people you will be promoting, advertising, and ultimately selling your product to. To find your market, you should begin by answering some simple questions:

• What are the demographics of the area you are competing in?• Who will buy your products based on price?• What is the age range?• Males or females (or both)?• Are they single or married? Do they have kids?• What kind of lifestyle does your product relate to? Is it everyday

use, specific to times of the year or to specific activities?

FIRST AND BEST CUSTOMER

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Fads vs Trends

• Fads are something people talk about.• Trends are something people do.• Analyzing trends helps identify niche markets for

profitability.• The ideal niche market must be large enough to be

profitable but small enough not to attract larger competitors.

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Step 1: Gathering information and market research.

Final Thoughts• Keep an electronic folder of findings• Can be used as support documentation• Be sure to save or bookmark the site

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Step 2: Analyzing the external and internal components of your business

using the S.W.O.T. analysis. • S.W.O.T. is an acronym for:

– Strengths– Weaknesses– Opportunities– Threats

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S.W.O.T.

Strengths & Weaknesses• Evaluation of the Internal

Environment– Financial resources– Management capability– Human resources– Location– Facilities

Threats & Opportunities• Evaluation of the External

Environment– Competitor analysis– New/expanding markets– Regulations– Technology– Economics

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UNIVERSITY OF MARYLAND EXTENSIONUNIVERSITY OF MARYLAND EXTENSION

Competitor Analysis

Competitor #1

Name and Location of Company:

Product and Price Offerings:

Promotional Activities:

Competitive Advantages:

% Market Share:

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Step 3: Creating alternative plans of action and identifying areas of competitive

advantage.

• Pulling it all together – Internal Strengths with External Opportunities

• Plan of Action• What is unique, what is your competitive

advantage, what will your consumers value• List the various strategies that you could

implement on your farm

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Step 4: Selecting the best plan that fits your overall farm mission.

• It is now time to select the plan that best fits your overall farm operation

• Keep in mind SWOT• Can you see yourself doing this in 5-10 years?• Include marketing, production, finances and

management along with your competitive advantages.

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Step 5: Implementing and evaluating the strategy

• How are you going to get it done!

• Following the financial plan there is a section that focuses on implementation

Be sure to review and evaluate your plan periodically. Demographics,markets, competitors and SWOT may change over time. As you update yourplan, you will also want to revise your farm strategy.

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DO IT!www.extension.umd.edu/mredc

www.extension.umd.edu/newfarmerwww.agplan.umn.edu

www.mdsbdc.umd.edu/

Shannon Dillsdill@umd.edu410-822-1244