Many start-ups and especially the small size farmers donΓÇÖt think of their farms as businesses. This type of thinking has led many to fail and it has been shown that it is rather appropriate to think of a farm as a business. Even you are a self financing farmer or you need funding for your venture, you have to demonstrate that your idea is feasible and it can eventually generate money. This is why you need to create a business plan or at least an outline of one.
The internet is full of business plan templates, some of which are especially designed for farming purposes. It is not wrong to use one of them. Still, keep in mind the fact that if you need a loan you need to make your own research. Your business plan must include the market, the market segmentation, a customer analysis, the competition, the productΓÇÖs benefits and features, the positioning, a competitive analysis, the advertising and promotion, sales, research and development, the people, operations, profits, an exit plan and a professional financial projection.
Absorb as much information as you can on your type of business! It is advisable to even take some courses or programs that are related to farming and the type of farming you want to turn into business. Try to work on a farm and see all the advantages and disadvantages and learn how to run it. Study the conditions in which you can have your farming business (think of environmental, climatic aspects and even economic and political aspects ΓÇô there might be some requirements from the state in what regards licenses and operating permits).
After you have made your research and have determined some of the expected and some unexpected expenses, calculate how much everything would cost and what the sources of funding would be. Through this your future investors will be aware of their own profits on the long run and if your business is a profitable one. Still, donΓÇÖt look at lenders as your enemies who just want their money back in the end. On the contrary, they are partners, as they can point out deficiencies and weaknesses of your business plan. Their observations should be looked at as opportunities to make your project stronger and increase its chances for success. It is no oneΓÇÖs business but yours to make your venture successful. So, good luck in your strive!