The first step to starting any small business—including a farming business—is to draft a business plan. This plan gives you a detailed map of what you can and want to achieve with your farm. By establishing a clear mission statement and concrete goals and timelines, you can turn your small business from a hypothetical dream into a real, tangible success.
But what exactly should you include in your business plan? How do you make sure your plan gives you a solid foundation during the early months of your business? Explore some of the most important tips for making a farming business plan with this helpful guide.
Define Your Specific Scope
The goal of a business plan is to be as specific as possible about your company’s goals and intentions. When you define the scope of your business, you should include a clear mission statement, company values, and market specifics, such as the products you will offer and the demographic you want to serve. Remember that it’s better to fill a new niche than to try to please everybody. When your scope sets you apart from other farming businesses, you gain a competitive edge that makes you more relevant and memorable to potential customers.
Establish Thorough Goals
Another crucial tip for making a farming business plan is to establish effective goals. This should include measurable achievements like revenue numbers and marketing statistics, as well as less measurable goals like implementing company values and building relationships with partners and customers in the community. The more concrete your goals are, the easier they will be to follow. Make sure you adhere to the SMART Goals principle to create goals that are specific, measurable, attainable, rewarding, and have a timeline.
Build Your Financial Plan
Your business plan should outline financial information, such as your budget, upfront costs, investments and their expected returns, projected profits, and more. This is also a good time to research different loan options, such as hiring an agricultural finance company. Creating and analyzing a financial strategy will help you stay within budget and make informed decisions about expenses while you get your business off the ground.