If you’re a small farmer who wants to start a farming operation of any kind, you might wonder if you really need a farm business plan. Maybe you just wants to sell a few eggs on the sideline or plan to grow or sell some vegetables for an income. Do you still need a farm business plan?
If you plan to start a farming operation where you grow produce on your farm, you really do need a business plan in some form. If you need money and want to apply for a loan or grant of some kind, you will surely need a farming business plan.
A Business Plan can be thought of as a process, not just a product. Even if you don’t intend to apply for loans or grants (which often requires a business plan as part of the application), writing a business plan for your farm venture can help you to plan properly. That’s the purpose: to get you thinking about where you want your farm to go, what you envision for the future – and how, specifically, you plan to get there.
A good portion of the business planning process is spent gathering information on markets. This is an extremely important part of making any farm dream a reality. You may want to grow a particular product or work with a particular animal, which is also something to consider. Matching your strengths and resources with the opportunities that exist in the real world is the key to writing a really effective, powerful business plan.
A Business Plan is a roadmap for your farm operation. It is both process and product. During the writing of a farm business plan, you’ll develop an overall vision and mission for your business. You will think about your short-term and long-term goals. You’ll define the steps needed to achieve those goals, and you’ll set the direction for your business to develop over the next five years. If you’re already have an established business, your new business plan will show where you’re going.