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market-farming - Part One - Business Plan

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  • From: Marcie Rosenzweig <fullcircle AT jps.net>
  • To: "Market Farming" <market-farming AT franklin.oit.unc.edu>
  • Subject: Part One - Business Plan
  • Date: Thu, 12 Jul 2001 08:23:06 -0700


Hi All,

This is adapted from some of what I've been working on for other
projects. When I'm in a workshop setting, I use questionnaires and
forms that help participants "get their arms around" some new
concepts and thinking. I also like people to interact with each
other so I use flip chart exercises with break-out groups to get
folks out of their chairs. Unfortunately, none of this works
particularly well virtually.

My partner and I are working on a series of seminars and workshops we
could take to Winter meetings on various pieces of the business
planning process. It's not possible to take folks all the way
through writing a business plan in such a short timeframe,
especially since all the people who should be included wouldn't be
there. We could use some feedback on your interests in something
like this in that venue including tolerance for 1) time in a
classroom, i.e., two days? one day? four hours? 2) incorporated into
Winter meetings, i.e. short course within?, two days adjacent to? 3)
cost?


WHY CREATE A BUSINESS PLAN?

Stepping back and taking a fresh look at your business is valuable
whether or not you decide to actually produce a formal written plan.
Especially when the business is in crisis, this process can solidify
your vision of why you do what you do, give new insight into what
actually is working toward your goals, and create a renewed sense of
purpose. Whether you are adding an enterprise to an existing farm or
ranch or starting a whole new business, the business planning will
help you think through each piece of the venture. This allows you to
see the challenges on paper first, before committing resources.

Business plans provide a map for how to get from where you are now to
where you want to be with your business. They allow other
stakeholders, i.e., insurance companies, building and zoning
departments, your accountant and lawyer, and financial institutions,
to see what your vision is and how you intend to accomplish it.
Formal written business plans are a necessity if you will need access
to capital to help your business grow or to make improvements to
property. In any case, you will probably want to write the
Strategic, Marketing and Financial pieces. This is the minimum
needed for someone to understand your business if something happens
to you.

Business planning is a dynamic, ongoing process sometimes referred to
as the planning cycle. Just as the seasons change on the farm and
ranch and each year provides different challenges, business plans
continue to move forward. The creation of a business plan is not an
end in itself. Like a tractor, it is a tool. Some pieces will wear
out and need to be replaced, some new implements will be added as
needs change, and, sometimes, a complete overhaul may be necessary.

Planning may be for the whole farm or a single enterprise. The format
for your business plan will be unique to your business. In the
references section, we will give you a list of software and websites
that have plan formats available as well as a local reference for
where to get the training to write your plan. But, as long as it's
typed neatly and checked for spelling and grammar errors, the format
of the business plan is less important than the content. Business
plans tend to follow a certain outline that flows from the business
concept and background through the marketing and financing of the
business.

Here's the outline we will be using ......

Cover Page
Table of Contents
Executive Summary
Vision & Mission
One of the main differenciators between your business and all others
are the values you and your family hold dear and how those values are
expressed every day in your business. Those values are the filter
through which you make (or should make) decisions about your business.

Your values are expressed in your dealings with both clients and
vendors, in your interactions in your community, and in your
advertising and marketing.

Why is this important? Your values are at the very core of who you
are. If you do not consciously incorporate your values into your
business planning process, you may begin to make business decisions
that are risk being at odds with your values- a sure recipe for
business failure.

Because farm and ranch businesses are home-based and traditionally
use family in the business, it is important for all members of the
family to participate in deciding on any new business direction.
This is especially true when the new enterprise is to involve
inviting others onto the family lands. One good way to see where
everybody is with the new enterprise is to hold a family meeting.

Here are some other questions to ask:

What do we want this ranch or farm to look like at the end of our stewardship?



What quality of life is important for us to have while we achieve this?



How do I (we) want my (our) relationships to be
with my family members?

with my community?

with my vendors?

with my clients?


What am I willing to change about my operation to make that happen?

What am I willing to change about myself to make that happen?

Who can help me (us) to achieve this?



What resources do I(we) have to achieve this?
Human Resources (family, friends, community, professionals, vendors, clients)
Natural Resources (including on farm/ranch and in the community)
Buildings and Infrastructure

New entreprises should make use of existing and underutilized
resources and should complement rather than detract from existing
profitable operations. From your values and that choice you can
construct a Vision/Mission Statement reflecting what you want to do
and how you want to do it and how it will be measured.
MARCIE A. ROSENZWEIG
FACTS
Farm & Agriculture Collaborative Training Systems

(530) 885-9201
3377 Early Times Ln
Auburn, CA 95603
Full Circle Organic Farm



  • Part One - Business Plan, Marcie Rosenzweig, 07/13/2001

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