Business Plans for Farming An Introduction to Business Plans Frank Gublo MSU Product Center Lenawee Economic Development Corporation-Lenawee Farm Bureau Ag Seminar March 10, 2010
What We’ll Discuss Today Discuss Why Business Plans are Important Who writes the Business Plan? What are the elements of a business plan Situation Strategy Planning Where to get more assistance
Why Are Business Plans Important? Business plans provide the map for determining where you are taking your business Helps you in your decision making-a tool to reach your business goals Business Plans help to manage change Tells the story of your farm business to those outside of your farm
Who Writes the Business Plan Why many people do not write a business plan Assemble the team to write the plan. Team should consist of individuals that understand and enjoy certain areas of farm business. Production, Marketing, and Finance Assembling the team is key to completing a well written business plan
First Step-Understand Your Current Situation Current Situation-what are your strengths, weaknesses, opportunities and threats Study your market-analyse What are the keys to success What is your core competency-what do you do better than your competitor What is your competitive advantage?
Second Step-Strategy Strategy helps to focus-relatively few priorities that focus on market and or product Your Farm-Your Strategy (no two farms alike) Strategy is long term-consistently applied Market demands are the basis for strong strategy. Demand drives growth The strategy you will displace other options
Third Step: Develop The Plan Have the team work on parts that they have expertise in: Executive Summary Farm/Company Description Products/Service Description Market Analysis Strategy Implementation Summary Management Team Financial Plan
Where to Get More Assistance Cooperative Extension Lenawee Economic Development Corporation Online: SBA Webinar at: http://bit.ly/cOQP15 Presentation Slides are available at: www.frgublo.wordpress.com Frank Gublo Contact information: firstname.lastname@example.org 313-401-6283