A business plan is a decision-making tool that takes the form of a formal document. It states your business goals, why you think you can achieve them, and lays out your plan for doing so.
Farm business planning is also a process, not an end product. A business plan is an ongoing work in progress which farm business owners or operators need to revisit and update regularly.
Creating a thorough yet concise business plan can be a daunting prospect. Your business plan encompasses all aspects of your farm business and this can be a lot to consider. Obtaining professional support and guidance can ensure that you remain committed to the process and do not forget any important features.
MBC can help you build a robust farm business plan that helps you to map out where you want to take your business.
Research has shown us that businesses with plans do much better than those without. Especially useful for beginner farms, using the information obtained from a plan allows owners to understand the economic sustainability of the farm so that they can borrow money confidently for equipment, land or other resources from investors or lending institutions.
When it comes to farm business planning, we recommend these three strategies which are designed to enable you to answer the right questions, state the right facts and focus on the right direction to take
Effective strategy #1: Ask and answer the right questions
Knowing what questions your business plan should answer is a great first step in creating an effective one. Seek to answer questions such as:
● Who are we and what do we stand for?
● Where do we want to be? And by when?
● How do we know when we have got there?
These questions create goals and bring about a sense of urgency in the right areas. It will also help you identify where to invest your efforts.
Effective strategy #2: Risk management
Risk is an inherent part of running a business and we all know that farming is no exception. Your business plan should identify and consider the potential risks for you and your farm. Your plan needs to specify how you are going to work through these scenarios should they eventuate.
Effective strategy #3: Have a contingency plan
Intelligent planning involves the pursuit of adaptation and being able to demonstrate flexibility. Your business plan should include a contingency plan which is a roadmap to help your business respond to an event that may or may not happen in the future. A contingency plan, should an alternative course of action need to be taken, will build your credibility as a business owner and demonstrates your in depth understanding of your business.
Remember that it is important to update your plan often, as conditions and circumstances change and evolve. The team at MBC suggest a yearly review of your business plan and we are available to meet with you at either our Orange or Molong office. Fill out our contact form to book in a time for your business plan to be put into action.