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How to write a business plan for your agribusiness venture/dairy farming/horticultural farming

A business plan could be a good tool to help you plan for your farming business. In most cases its also a requirement of securing grants and loans. The process of writing one may be seen as overwhelming and intimidating at first, but when broken down, it becomes easy to manage and write. A business plan is a roadmap for your farming business venture. During the process of writing one, you will need to develop an inclusive vision and mission for your business. You are required to think about both short term and long-term goals. You will define the major steps required to achieve your goals. You will also set the direction for your business to grow over the next five years.

Read: Ultimate guide for beans farming in Kenya

Mission Statement

Your farm business mission statement is your main purpose for your business. Why does your farm exist? What purpose does your farm serve? Where is your farm headed? This should be beyond making money. Your mission statement should be based on your values and your core identity as a small farm.

Goals

These should be specific, measurable, things that you might achieve with your little farm. Short term goals are considered to take shorter than one year while long-term goals take more than an year to accomplish.

Smart Goals are:

  • Specific
  • Measurable
  • Attainable
  • Rewarding, and have a
  • Timeline​

Background Information

In this area of your business plan, take account of what you have right now. These might include;

  • The area of land that you are farming
  • When you began farming
  • How you are operating currently
  • What general practices do you use for such things as conservation, tillage, environmental impact, and marketing?

Farm Strategy

This is where your business plan gets to looking forward. You are going to formulate your farm strategy from now into the next five years or so.

You will need to gather information and research markets. Make sure that your farm plan fits into the general market in terms of supply and demand. Investigate and analyze industry trends, identify competitors, and define buyers. Another requirement is a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. This is an analytical tool that can be used in making decisions

Marketing Plan and Strategy

You need to develop and outline a marketing strategy for your products and services. This can build on the research you did in the previous step. For each product, include price, placement, and promotion ideas. Consider how you will convey real and perceived value to your customers.

Management Summary

This part of your business plan details your farm business’ structure. Everyone who is involved in the management of the business should be listed here. External resources are listed here as well.

Financial Analysis

In this section, you will need to detail the financial aspect of your farming operation. List your current finances in detail, including all income and operating expenses. Referring to your new strategy, you will forecast what is needed for future growth and to meet the goals you have outlined in terms of capital. Include what your future operating expenses will be.

Read: Why you should have a working business plan for you to succeed in commercial maize farming

People view a business plan as a big project. Don’t be put off by that, your plan can be as simple as it needs to be. Begin with your mission statement and goals. Do your homework by analyzing markets and researching competitors and trends. Have fun brainstorming alternative strategies and let them marinate a while.

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11 Ways to Succeed In Agri-Business Even After Failing Several Times In The Past

In the long run, the key to success in an Agri-business is being a low-cost producer. The following are the main pointers for success in turbulent times:

Oversee working danger

  • Keep money expenses and land leases in accordance with incomes.
  • Recognize proceeded with slenderer net revenues and edge chance.
  • Take favorable position of forward estimating and harvest protection to oversee hazard.

Oversee cash and capital

  • Protect your working capital. Expand your terms for things bought on 10-and 20-year terms. “Right now, is an ideal opportunity to renegotiate that land on a 20-year contract,”.
  • Lock in the present moderately low financing costs on capital costs.

 Accentuate execution

  • Do less things better. Distinguish territories that lose cash.
  • Use standard working strategies (SOPs). “Each assembling plant utilizes SOPs, and you are a biologic maker,”
  • Optimize data administration.
  • Simplify tasks and computerize where conceivable.
  • Pay attention to details.

Increase asset utilization (asset turnover)

    • Observe 24-hour-per-day administrators. Trucking, numerous processing plants and the aircraft business do this to build returns on resources. For instance, utilize autosteer.
    • Lease instead of purchase. Here and now working leases increment resource turnover.
    • Use joint wander and shared apparatus to strengthen creation.
    • Think as far as “gains and turns,” the key budgetary measurements known by each apparatus merchant and handyman shop proprietor. Expressed in an unexpected way, they are working overall revenues on deals and resource turnover.
    • Outsource or custom farm. “You as of now outsource your duties and lawful work,”. “Perceive where you catch an incentive by enlisting things done.”
  • Read Also: How well-planned are you for tree fruit farming this season?

Increase margins

    • Control costs. You need to gauge before you can oversee.
    • Buy right.
    • Use best administration practices and innovation.
    • Market as opposed to cost.

Use time efficiently

    • Focus on administration.
    • Hire gifted representatives.
    • Use booking and work process organizers.
    • Develop standard working strategies.

Grow volume and sales

    • Increase efficiency.
    • Generate more volume with less venture.
    • Joint venture for size and volume to gain market access.

Focus on a strategy

    • Practice operational magnificence.
    • Develop client closeness.
    • Focus on item and process advancement.

Create value for your customer

  • Understand your customer and what you can do to create value for him or her.
  • Differentiate on service, such as quality, storage and just-in-time delivery.

Get smart

    • Use consultants.
    • Network with successful farm and non‐farm business managers.
    • Develop management skills

Adopt the thought process of a CEO

    • Manage individuals, cash, connections and procedures.
    • Think all the more deliberately; agriculturists are great operationally.

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