Do you want to start a small farm on a small scale? Looking forward to developing a farm business plan? If yes, find in this article a sample business plan on an agriculture farm that will help you in creating one of your own.
Before you start writing a business plan for the farm, it is worthwhile to mention that the executive summary section which comes first in the final plan document needs to be written after you finish writing all the other sections.
8 Steps to Write a Farm Business Plan
Your farm business plan should cover the following elements:
- Executive Summary
- Company Description
- Products and services offered
- Operational plan
- Management team
- Pricing strategy
- Marketing Plan
- Financial plan
We’ll break down each segment, step by step for you to understand better.
1. Executive Summary
The first section of your farm business plan should include a summary of the entire plan. Furthermore, mention in brief the company profile highlighting your goals for the next three to five years.
It is known as a short five-year plan, and it should summarise where you want to locate your business, the company’s operating costs over the first five years, and so on.
You can also include your revenue and expected obligations over the next five years, as well as the goals you want to achieve during that time. It should be written in a concise manner with 6 to 10 concise objectives.
Read: How to Write an Executive Summary
2. Farm Company Description
You must provide information about the type of farm you want to own, the farm products you will offer, and the unique selling proposition (USP) that will set your program apart from others.
For example, if your farm-produced items are less expensive than competitors’ prices, include that USP in your company description. It is also necessary to explain why you chose this location as well as the demographic makeup of the area you will serve.
3. Farm Products
While the products of any farm business are generally straightforward, you still want to get into the specifics of what you intend to do. Describe all of the essential services you can offer.
Some of the basic topics that must be addressed in this chapter are the following;
- Where is your farm located?
- How many acres of land are you planning to farm?
- What products or farm-related services are you offering?
4. Farm Operational Plan
Here in this chapter, you will be writing all the details related to day to day operation of your farm activities. Your manpower hiring plan with job profile must be written with full clarity. Write in detail about how you plan to maintain the far, equipment, animal care, time of sowing and harvesting, etc.
Read: Profitable Vegetable Farming Business Ideas
In addition, a successful farm needs strategic partnerships with vendors, suppliers, and wholesalers. Mention the type of professional who will be in charge of the specific departments and how are going to perform their roles.
5. Farm Management team
Define your organizational, managerial, and staffing strategies in detail. It will cover the owner’s (or owners’) role, as well as the responsibilities and pay of managers, clerks, receptionists, and all service providers.
You could be a sole proprietor or the owner of a large corporation. In any case, it is critical to provide the reader with a complete biography of the minds behind this endeavor.
Farm owners typically contract out their staff, and you will have some guidelines that govern all of your actions.
6. Farm Pricing strategy
Pricing is the core of a farm-related business. It influences everything you do and is affected by everything you do.
The accurate price should fall between your cost and the value you offer to customers. Within this range, your rates should be closer to the value of what you’re selling.
7. Farm Marketing plan
The first step in creating a farm marketing plan is to categorize all demographic factors according to age, gender, level of education, average income, occupation, description of needs, preferences, desires, and even customer perceptions.
Read: How to Write a Marketing Plan
Set achievable goals and describe a series of accurate data on how to capture your target audience and market share through specific promotions, advertising, and public relations programs.
8. Farm Financial plan
Writing the financial is one of the most important tasks of writing the farm business plan. Topics like cash flows, projected budget, the first five-year financial projections, expected liabilities, and estimated profit margins are some of the key figures to be mentioned here.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.