Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Plan Once the research is complete, questions answered, and strategy decisions made – it’s time to write the business plan.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Plan Sometimes, writing the plan can seem more intimidating than the research that went into it.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Plan If using the software all along, writing the plan may be a matter of pushing the “print” button on your computer!
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Plan If using the Business Planning Guidebook and worksheets exclusively, you may have a bit of typing and organizing to do.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Plan Information to organize: Farm description (history and current situation) Values, goals, mission Strategy summaries Financial analyses, tax returns Implementation plan Contingency statement Historical tax returns Resources
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning Begin by preparing an outline. The purpose of your business plan will determine how it is organized. The Guide contains six business plan outlines related to purpose of the plan on pages
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Plan Outlines in Guide differ according to: Overall strategy (new product vs. buyer) Intended use (internal vs. external) Business structure (individual vs. coop.)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Plan Next, prepare the strategy sections for: Marketing Operations Human Resources Finances
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Business Planning The executive summary is typically the last section written. It summarizes all the work you have put into developing your plan. Example of Cedar Summit Farm “Executive Summary” on page 185 in Guide.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning When writing the plan, remember: Only use the sections needed Make it concise and to the point If you want someone to read it, remember their time is valuable
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning More writing and organization tips: Don’t include graphics without substance Always prepare an executive summary Communicate clearly
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning Additional writing/organization tips: Don’t use technical language or jargon Make sure presentation is professional presentation (typed, proofed)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning Any other advice to business managers?
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning Help business managers get their ideas on paper: Share examples of completed plans Help draft outline Organize working sessions Provide access to computer software Schedule meetings to review progress
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning Help business managers prepare for visit with lender or potential investors: Describe what lender will want to see Review business strategies together Review financial projections together Review market assumptions together Review operations plan together
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning What else could you do?
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning Educator take-home ideas Don’t write the plan Mix workshops with one-on-one sessions Limit workshop duration (no more than 4-6 weeks) Make computers available during workshop Identify and connect business managers with mentors Encourage managers to form business planning “support groups!”
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning Take home ideas for business managers: Talk to others, ask questions Study your markets Be honest with yourself when evaluating ideas Reject a strategy if it doesn’t make money on paper Ask for feedback from family, team members Get started!
Copyright © 2003 Center for Farm Financial Management, University of Minnesota Business Planning Remember, a business plan should be used: Distribute copies to those involved in business Review plan periodically Monitor progress, meet with planning team Keep records Compare actual outcomes to projected outcomes Make changes to plan as needed