Developing A Business Plan

 A business plan is a written statement that describes a business or proposed business.  Lists the goals of an agribusiness and the ways and means of achieving those goals.

 Planning is the process of specifying goals and allocating resources.  Without a plan in which the goals have been carefully developed, a manager may use resources in ways that do not move the agribusiness in the desired direction.  Good plans promote success!  Set priorities and serve as bench marks.

 Contribute to the success of agribusiness.  Conceptualize what and how to do the business.  Obtain finances  Initial plan, research, interviewing, and other research.  Long-term plan or direction of business  Resource allocation- help make wise choices in the use of resources.  Assess achievement- help to measure goals and accomplishments.

 Description of Business  Management Plan  Marketing Plan  Financial Plan

 The “description of the business” section begins with the name and location of the business. This includes the names of the owners and a brief statement of the nature of the business. The brief information is followed by more detail.  Include a detail description of the business, the products and services that will be provided, the location of the business, and why this is a desired location.

 A management plan is a statement that describes how a business is organized and managed.  This includes information about workforce requirements.  Includes a detailed description of how the business operated on a day-to-day basis.

 A marketing plan is a written, detailed blueprint that describes specific strategies and goals to get customers to purchase your product or service.

 A financial plan is a set of basic financial statements or forecasts.  Basic financial statements to be included are:  Cash-flow statement (page 100)  Profit and loss statement (page 102)  Projected balance sheet(page )

 Good information is needed!!!!!!  Must be factual!!!!!!  Gathering information takes time!!!!!!  Sources are:  Local chamber of commerce or economic department.  Government and ag association offices (Ag Credit)  Local business leaders  Government and industry reports  Library: books on business planning and related areas  Carefully selected web sites  Interviews  professionals who are involved with accounting and attorneys

 Part 1: Description of the business: 35 points  Part 2: Management plan: explain how the business will be managed. 30 points  Part 3: Marketing plan: 35 points  Part 4: financial management plan: 30 points. Must use charts and graphs in excel  Part 5: List of resources used, bibliography. 10 points  Part 6: Title page 10 points  Total Business Plan: 150 points Due date: Dec 11 th  Presentation of Business Plan will be the day of final 50 pts  See handout