WHAT IT TELLS YOU WHAT IT DOES FOR YOU The Business Plan: This Ones for You

The Business Plan Process Preparing a business plan is a process that results in a written document. The best one is the one you do for yourself. During this process, you will be making assumptions and educated guesses about the level of risk you are assuming. You will identify potential liabilities. You will decide if the effort is a good fit for you.

The Business Plan Basics Describe your vision, what you want to do, your products, your company. Survey and describe the assets you already have to help you accomplish your goals. Describe the liabilities that hinder you and how you will minimize them or overcome them.

Business Plan Basics (cont) Describe the marketplace: who else is already doing what you want to do? do these people appear to be successful? are they growing their business? Are they being sued? in general, who are the customers for this activity? is this activity simply a fad or does it have long-term potential? how will you fit in? what makes you different?

Business Plan Basics (cont) Describe your marketing plan: how are you going to advertise? are you going to have a brand? how will you get the customers? Describe your cash flow (not an income statement): when does your money come in? (Put it on a calendar) when does it go out? will you have enough cash on-hand to pay your bills when they are due?

Business Plan Basics (cont) Look at everything youve pulled together so far and decide if this is still a good idea. If so, then... Describe your projected income & expenses. (Here is some educated guesswork, based on the research you do.) Re-assess your decisions.

The Business Plan: Research Ways to research your business idea: talk to other people who are doing it already read the literature (statistics, demographics, newspapers, internet, et cet.) see if the IRS has an audit guide look at future trends watch people ask your family/friends if it is a good idea

The Business Plan is Due Diligence Do the research Write it down Review it Get Feedback from others (let someone read it!) Tweak it Implement it Revisit it at least once a year

Assessing Your Risks! Brainstorming.... what will I offer? when will I offer it? how will I offer it? Organization....what business/tax organization will I use? Who is my market? Who will come? What can I charge? Is it enough? What will my expenses be? As you answer questions for the business plan, you are also addressing your risks and liabilities.

Different Efforts. Different Risks North Carolina agritourism activities: Farm Tours Corn mazes, petting zoos, childrens playground Single Annual Event (e.g., concerts, farm park, events centered around Christmas,Halloween) Wineries/Cider making

Different Effort/Risk (cont.) Team Building Activities Hunting Preserves Working Farm Concept (folks work on the farm) Retreat Pick-Your-Own Choose and Cut Farm Stands Community Supported Agriculture (variation of above)

Different Effort/Risk (cont.) Wedding Venue Communal Dinners Flower/shrub/tree Nursery Equine Activities: training, boarding, brooding, riding lessons Summer Camps Farm Stores/ Craft Stores Farm Eatery

Different Effort/Risk (cont.) Recreational Therapy (usually nonprofit) Exotic Animal Show Farm Stay or Overnight Accommodations Seminars/Educational classes. (For example, medicinal herbs, soap making, cheese making) Firing Range Other Any combination of the above

Business Organization How will you organize your endeavor? for-profit corporation? non-profit corporation? sole proprietor (e.g., simple farmer)? partnership? hobby?

Your Market Who are your customers? children? adults? non-English-speaking people? elderly? handicapped? people with allergies? people who have never been on a farm before? How many will come? When will they come?

$$ The Budget $$ What can I charge? How will I charge? How much will I make? Is it enough? is it enough to pay myself? is it enough to cover my expenses? is it enough to justify my time? is it enough to satisfy the IRS?

The Business Plan helps you decide: WILL YOU EARN ENOUGH NET INCOME TO JUSTIFY THE AMOUNT OF RISK THAT YOU ARE ASSUMING?

The End If Yes!, Go Forth and Prosper!