planning your business plan - rutgers...
TRANSCRIPT
![Page 1: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/1.jpg)
Planning Your Business Plan
Madeline Flahive DiNardo, MBA
Rutgers Cooperative Extension of Union County
![Page 2: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/2.jpg)
What did you need to do be able to be
here today?????
![Page 3: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/3.jpg)
Chances are
you had do
some
planning!!
![Page 4: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/4.jpg)
What are some things you will need to think about
for planning your farm business?
![Page 5: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/5.jpg)
The Business Plan
What is a business plan used for?
• Communicate ideas to lenders, business partners and family
• Evaluate production alternatives
• Identify new market opportunities
5
![Page 6: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/6.jpg)
The Business Plan
How should I organize
my business plan?
– There are many
formats
– Be realistic
– Avoid technical
jargon, too many
acronyms!
6
![Page 7: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/7.jpg)
The Business Plan
• The Executive
Summary
– Appears in the
beginning of the report
– but write it last – it’s
overview of your plan
• Objectives and Goals
• Table of Contents
7
![Page 8: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/8.jpg)
The Business Plan
• Vision and Mission Statement
– Vision is where your business is going
– Mission is who you are, your values,
your products and WHY YOU ARE IN
BUSINESS !
8
![Page 9: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/9.jpg)
The Business Plan
• Business Background
• Marketing Strategy
• Production/Operation Strategy
• Management and Human Resources
• Financial
![Page 10: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/10.jpg)
The Business Plan
A Brief History of Your Business
– How you are legally organized
– Names and titles of all firm managers / Board of Directors
– Location
10
![Page 11: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/11.jpg)
The Business Plan
A Brief History of Your Business
For a new business you can write
about…….
• Personal, economic, environmental or
community experiences that motivate
you to start this business
• History of the land you will be farming
• Viable markets you will be targeting
11
![Page 12: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/12.jpg)
The Business Plan
• Marketing Strategy
– SWOT analysis
– Product or service you offer
– Differentiating your product
– Describe the industry and how your
business fits in
– Who are your competitors?
12
![Page 13: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/13.jpg)
The Business Plan
• Marketing Strategy
– Advertising and promotions
– Distribution
– Pricing strategies
– Sales goals - % of market you plan to
capture
13
![Page 14: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/14.jpg)
The Business Plan
Operations / Production Strategy
• Do a SWOT analysis specifically for
the production aspects of your farm
- Land - Buildings
- Equipment - Machinery
- Materials -Supplies
14
![Page 15: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/15.jpg)
The Business Plan
Operations / Production Strategy
• Describe production practices- Flow chart or timeline would be a good
visual
- Costs of production
15
![Page 16: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/16.jpg)
The Business Plan
Management and Human Resources Strategy
• Areas of expertise of your business team
– Finance
- Marketing
– Production
– Labor Management
• Education and Experience
16
![Page 17: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/17.jpg)
The Business Plan
Management and Human Resources Strategy
• An organizational chart with names, titles
and responsibilities
– The chart shows supervisory roles
• Compensation and benefits
• Job descriptions and recruiting
• Training and operating procedures
• Performance evaluations
17
![Page 18: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/18.jpg)
The Business Plan
Management and Human Resources Strategy
• Other professional resources available
such as your accountant, attorney,
consultants
• Plans for unexpected loss of a key
management team member
18
![Page 19: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/19.jpg)
The Business Plan
Financial Strategy
• Discuss projected income and
cash flow
• Financial goals, such a % of
growth in income
19
![Page 20: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/20.jpg)
The Business Plan
Financial Strategy
• Total Capital Requirements
– Short term
– Long term
• Collateral
• Financial ratios and break-even analysis
20
![Page 21: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/21.jpg)
The Business Plan
Other Items
• Appendices with supporting
documents such as resumes,
brochures, tax returns, market
research, balance sheets, cash
flow
• Glossary for technical terms
21
![Page 26: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/26.jpg)
Planning Your Business Plan
• Promote your great business idea to potential partners, employees,
vendors, customers and lenders with your well thought out plan.
• Learn about the many aspects of growing / raising your agricultural
commodity
• Accounting will be an essential part of your business plan
• Network with professionals who can provide you with coaching in
the financial, marketing, production and human resource aspects of
your business
![Page 27: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/27.jpg)
![Page 28: Planning Your Business Plan - Rutgers Universityfarmmgmt.rutgers.edu/workshop12_14_2018/Planning... · Planning Your Business Plan •P romote your great business idea to potential](https://reader035.vdocuments.us/reader035/viewer/2022062311/5fb6773d447e3f13e6414031/html5/thumbnails/28.jpg)
References
1. Agribusiness Planning, Providing Direction for Agricultural Firms, Penn State Agricultural Research and Cooperative Extension, 2002, available at: https://extension.psu.edu/agribusiness-planning-providing-direction-for-agricultural-firms
2. Building a Sustainable Business, A Guide to Developing a Business Plan for Farms and Rural Businesses, Minnesota Institute for Sustainable Agriculture, 2013, 4th printing ISBN 1-888626-07-0
3. Agricultural Finance 7th Edition, Lee, Boehlje, Nelson & Murray, Iowa State University Press, Ames Iowa, 1980 ISBN 0-8138-0050-1
4. Your Guide to FSA Farm Loans, United States Department of Agriculture, Farm Service Agency, June 2012, FSA-BR-01
5. Planning for On-Farm Success, A Workbook for Montana’s Beginning Farmers and Ranchers, Module 6: Financing, Community Food and Agriculture Coalition, Montana State University Extension, 2015
28