YOUTH & FAMILIES AGRICULTUREHEALTHECONOMYENVIRONMENTENERGY COMMUNITIES Agricultural Entrepreneurship and Business Planning Tools and Training for Agricultural Entrepreneurs © 2014 Cultivating Success

What is a Business Plan? It’s a: Formal statement of business goals List of reasons why they are believed attainable Plan for reaching those goals

Do you need a Business Plan? According to the U.S. Small Business Administration, roughly 50% of small businesses fail within the first five years A farm business requires a written business plan.

Do you need a Business Plan?  Are you a new or expanding business?  Do you have multiple family members who need to be on the same page?  Are you involved in creative, niche, value added, or alternative-agriculture enterprises?  Are you seeking financing from a lender?

Purpose of a Business Plan Demonstrates that you have taken the time to think through the details required to make the business succeed.

Purpose of a Business Plan Effectively communicates your business Internally to family members & employees Externally to lenders, investors, partners

Business Plan 6 major components: 1.Executive Summary 2.Mission Statement and Goals 3.Product and Industry Descriptions 4.Marketing Your Product 5.Management and Operations 6.Financial Statements

Business Plan Why write one? It provides a game plan or roadmap for directing and guiding your business. It’s a communication tool to entice investors and help you gain financial resources.

Lessons Learned Business planning is: time consuming expensive best done by the business owners/management Your business plan is a living document… Revisit and revise it at least annually!

A G P LAN Business Plan Website University of Minnesota

A G P LAN Web-based; no software Innovative features solve some of the business plan development challenges Designed for multiple rural business types  Traditional commodity agriculture  Value-added agriculture  Rural small business  Commercial fishing

Agricultural Entrepreneurship & Business Planning Vision & Mission Statements

Vision Statement What is a Vision Statement? Sums up aspirations, hopes, and dreams Phrase describing your organization’s future What your image is of a perfect world Long-term view Do you need to write one?

Example Vision Statement “Farm to Market Organics wishes to improve the health of the environment and its people.”

Mission Statement What is a Mission Statement? Overall mission of the business. A written statement that in broad terms describes what the business hopes to do and be. Business and Personal Start with the basic concept of your agricultural business then consider your business values and vision for the business.

Mission Statement cont. It is about ACTION Touches on core purpose of your organization It should be: More specific Include your farm name Include a brief description of your product/services and a marketing plan

Mission Statement Example 1 “Farm to Market Organics sustainably produces quality vegetables, herbs, and flowers. Our fresh organic produce is delivered weekly, in season, to our customers.”

Mission Statement Example 2 “To become the #1 branded beef producer in the United States by offering only the highest quality branded products and superior delivery service.”

Mission Statement Example 3 Once-A-Day Apple Farm provides only the best variety of apples available in the State of Washington. We pride ourselves on our high quality produce and timely delivery to all our customers.

Goals and Objectives Goals Targets that you hope to reach Expressed in concrete terms/time periods Objectives Means by which goals are achieved Steps/strategies necessary to reach goals

SMART Goals S – specific M – measurable A – attainable R – results-oriented T – timely

Business Plan Presentation Assignment Presentations during last class Present only one single component of your business plan to class Required to get course certificate Communication learning opportunity!