Maryland Rural Enterprise Development Center
Assessing Your Farm Business Plan
Background Nowhere does the old adage “failing to plan is planning to fail” more applicable than when preparing to launch a new business enterprise or service company. Regardless of the greatness of your product, unless you carefully plan in advance how to operate a profitable, sustainable business; your business success will be limited. This publication contains an assessment tool to assist farmers and agri‐entrepreneurs in evaluating the potential of their farm business planning success. This tool does not, however, guarantee business success, even if the assessment is very positive. No recommendations or interpretations will result from the interaction. It provides you with the opportunity to assess the components of your plan and make revisions before investing your time and resources in the new business. Assessing Your Farm Business Plan is designed to help appraise a new or additional farm business enterprise to determine how well the plan has been completed, the practicality of the plan, and the likelihood of achieving business success. This tool provides a series of statements about farm strategies, product development, human and farm resources, financial needs, and implementation strategies. The tool does not ask every possible question, but rather a sampling of questions about the different sections of your plan‐ the goals you have for the business, product development and marketability, implementation strategies, resource inventories including finances and labor, budgets, and marketing plans. The tool is designed for and targets you, farmers and agri‐entrepreneurs, who have thoughtfully researched and written a business plan and want an assessment of the probability of having your business succeed. The assessment will not be as accurate if it is conducted on just your business ideas or if it is completed on a plan written for you by someone else. Use it on the formal business plan that you have written using the Farm Business Planning workbook (Beale, Dill, & Johnson) posted on the mredc.umd.edu site. The tool provides assessment information to farmers and agri‐entrepreneurs in two ways. 1. Total Scores – Participants are directed to score their responses to each statement and calculate a total score for each tool. The total score is compared to ranges of scores with related feedback indicating the general level of business planning preparedness and potential for business success. The result will indicate the likelihood of your business’s success. No recommendations, marketing plan or interpretations will result from the interaction. Completing the assessment will help you determine if you need to re‐think, add, or make changes to your plan before investing your time, resources and money. University of Maryland Extension programs are open to all citizens without regard to race, color,
gender, disability, religion, age, sexual orientation, marital or parental status, or national origin.
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Assessing Your Farm Business Plan
Background, continued… 2. Preferred Responses & Explanations – Preferred responses to each statement are given in this document beginning on page nine. However, for the most accurate assessment, please do not read the preferred answers on pages 9 through 16 until after you have taken the assessment on pages 4 through 8. The preferred responses are explained based on information found in the University of Maryland Instructional Workbook, Farm Business Planning (Beale, Dill, & Johnson) and an Agricultural Marketing Program article, “Do You Have a Marketable Product?” (Myers). By comparing your response to the preferred response for each statement, farmers and agri‐entrepreneurs are able to identify strengths and weaknesses in their specific business plan. The explanations provide an opportunity for respondents to improve their potential for business success. The interactive version will automatically score responses submitted by the participant. This printed version was developed for use by farmers and agri‐entrepreneurs in training sessions and workshops and for distribution by county Extension agents to those without Internet access. University of Maryland Extension programs are open to all citizens without regard to race, color,
gender, disability, religion, age, sexual orientation, marital or parental status, or national origin.
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Assessing Your Farm Business Plan
Using the Assessment Tool The assessment tool consists of 54 statements. These statements are presented in nine sections and match the planning sections in our on‐line business planning guide, Farm Business Planning: Section 1: Mission and Goals Section 2: Do You Have a Marketable Product? Section 3: Farm Strategy Section 4: Marketing Strategy and Plan Section 5: Enterprise Analysis and Plan Section 6: Financial Plan Section 7: Implementation Strategy Section 8: Human Resources Plan Section 9: Resource Inventory The assessment tool statements are contained in Table 1.1. For each statement, read it as though it was written for you and your specific product and marketing plan. In the statements, “my product” refers to your product – the one you produce or plan to produce. “Competitive products” refer to products that would be competing with or can be substituted for your product. For the most accurate assessment, please do not read the preferred answers beginning on page nine of this document until after you have taken the assessment. Read each statement and circle the response code that best describes your situation and product. If you strongly agree with the statement, circle SA under Response Code. If you agree with the statement, circle A. If you disagree with the statement, circle D, and if you strongly disagree, circle SD. You must answer ALL the questions to receive an accurate score. Remember, the more realistic you are in selecting your response, the more accurate the assessment. Table 1.1 will be used for scoring purposes after you respond to each statement. Further instructions will be given after Table 1.1. University of Maryland Extension programs are open to all citizens without regard to race, color,
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Assessing Your Farm Business Plan
Table 1.1: Statements: Statement The farm’s business and personal goals should be prioritized with the most important first and should be listed early in my business plan. SA—A—D—SD
Everyone involved in this business knows, understands, and agrees on our business objectives, both short‐ and long‐term. SA—A—D—SD
3)
I’m a hard‐worker and if I work hard enough, this business will succeed. SA—A—D—SD
4)
My business will exist to make me money.
SA—A—D—SD
5)
My business must have a large and diverse customer base. SA—A—D—SD
6)
My current inventory of farm resources (human, financial and physical) can support the start‐up of this business. SA—A—D—SD
7)
I can tell you exactly why I want this business.
SA—A—D—SD
8)
My product serves a general market rather than target markets. SA—A—D—SD
9)
Current competitive products and markets were identified and studied. SA—A—D—SD
Section 1: Mission and Goals 1)
Section 2: Do You Have a Marketable Product? Circle Response Code Score
2)
10) I do not have to be too concerned about consumer preferences such as health, safety and environmental issues because these issues will have no positive impact on sales. SA—A—D—SD
11) My product meets the needs of the target audience that are not currently being met by the competitive products. SA—A—D—SD
12) I can produce and market this product at a profit margin that will support my personal and business financial needs. SA—A—D—SD
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Section 4: Do you have a marketable product? Section 3: Farm Strategy Assessing Your Farm Business Plan
13) I can identify what I can do exceptionally well.
SA—A—D—SD
14) I know what valuable resources or assets the farm can bring to this proposed business. SA—A—D—SD
15) It is not necessary to have contingency plans in my initial business plan. SA—A—D—SD
16) There are weaknesses that make my proposed business critically vulnerable to external roadblocks. SA—A—D—SD
17) Technology can change my production methods and possibly market outlets. SA—A—D—SD
18) My financial viability can be greatly impacted by external economic conditions. SA—A—D—SD
19) I do not need to clearly define my marketing strategies before I start producing my product(s). SA—A—D—SD
20) Marketing is an evolving process so I can develop my marketing plan as opportunities arise. SA—A—D—SD
21) Testing my product with family and friends will give me the research results I need to formulate my marketing strategies. SA—A—D—SD
22) Selling my product at a lower price than my competitors is the best way to attract new customers. SA—A—D—SD
23) My product is packaged in a container size and type that best fits my target market. SA—A—D—SD
24) Word of mouth referrals are my least effective promotional tool. SA—A—D—SD
25) Promotional tactics and point of sales materials have been planned for my products. SA—A—D—SD
26) My marketing plan includes a marketing budget.
SA—A—D—SD
27) My marketing budget is less than five percent of the expected annual sales. SA—A—D—SD
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Section 6: Financial Plan Section 5: Do you have a Marketable Product? Assessing Your Farm Business Plan
28) My marketing plan includes evaluating sales and customer responses on a regular basis. SA—A—D—SD
29) This plan clearly states who will do the major part of the marketing. SA—A—D—SD
30) This enterprise is technically feasible for my location given the following production factors‐ climate, soils, water, potential varieties, insects, disease, and growing season. SA—A—D—SD
31) I think I have the production and management skills necessary to operate this type of enterprise. But I can worry about that later. SA—A—D—SD
32) The workload corresponds with the time of year I want to work. SA—A—D—SD
33) I have determined the legal restrictions, regulations or liability factors associated with this new enterprise. SA—A—D—SD
34) I have researched the market and determined that I can expect to capture a profitable share SA—A—D—SD
35) I am excited about producing and marketing this product. SA—A—D—SD
36) I do not need to be concerned about the weaknesses and strengths of my competitor's products. SA—A—D—SD
37) I don’t care what the neighbors think about my new enterprise. SA—A—D—SD
38) Specific, quantified sales goals for the product has been established. SA—A—D—SD
39) Fixed and variable costs were used in determining the price of my product. SA—A—D—SD
40) Market research was used to help determine the “perceived” value of my product. SA—A—D—SD
41) I can acquire the necessary start‐up capital to start this business. SA—A—D—SD
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Section 7: Implementation Strategy Assessing Your Farm Business Plan
42) This enterprise has the promise to deliver large enough revenues relative to the investment required. SA—A—D—SD
43) I have determined whether operating this business will limit off‐farm employment opportunities. SA—A—D—SD
44) Starting small and growing the business incrementally each year is a good implementation strategy. SA—A—D—SD
45) I do not feel the need to approach different people for advice. SA—A—D—SD
46) This plan identifies significant sources of financial and production risk and how these risks will be addressed. SA—A—D—SD
47) I will need management resources and labor resources.
SA—A—D—SD
Section 9: Resource
Inventory
Section 8: Human Resource Plan
48) I have a good handle on how much labor is required to run this business. SA—A—D—SD
49) I have a source of labor and know how much I must budget for it. SA—A—D—SD
50) Housing for my workers is not a problem.
SA—A—D—SD
51) I have considered whether this enterprise will compete with my existing enterprise(s) for land, labor, money or machinery. SA—A—D—SD
52) I have the necessary buildings and land needed to operate this business. SA—A—D—SD
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Assessing Your Farm Business Plan
53) I have the necessary equipment needed to operate this business. SA—A—D—SD
54) I have the necessary transportation to get my products to market. SA—A—D—SD
Scoring, Preferred Responses and Explanations When you have finished providing responses to each statement, you are prepared to score and evaluate the results. First, write the number of points awarded for your response in the Score column in the assessment tool, Table 1.1, according to the point system summarized in Table 1.2: Explanations and Scoring (next page). According to this table, the preferred answer will have the highest score. Add the points for each of your selected responses to determine your total score. Finally, find your total score in the point ranges given in Table 1.3: Total Score Interpretation Key (page 16) and read the interpretation of your assessment. University of Maryland Extension programs are open to all citizens without regard to race, color,
gender, disability, religion, age, sexual orientation, marital or parental status, or national origin.
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Assessing Your Farm Business Plan
Table 1.2 – Preferred Answers and Explanations and Scoring Record the assigned score below for each answer given. Remember, the preferred answer is assigned the highest score. For example, enter “4” in the score column of Table 1.1 if you selected “Strongly Agree” for statement one. Enter a “1” if you selected “Strongly Agree” for statement three. And so on… Explanation
Section 1: Mission and Goals
1) Goals are specific and measurable statements of what the business expects to
achieve in future years. Smart goals are: specific, measurable, attainable, rewarding,
and have a timeline.
2) It’s important for family members and/or partners to agree with the objectives and
goals stated in the business plan. Well defined goals can help them understand their
specific roles in the business. Short-term goals are 1 year or less. Long-term goals are 1
year or longer.
3) While every business requires hard work; diligence alone won’t guarantee business
success. Quality products or services, profitably produced, and marketed to a
sustainable customer base, are the essential elements in every successful business.
4) A business must be profitable to be sustainable. While starting a business is not a getrich quick scheme it can provide good financial and personal rewards, as long as you
design the enterprise to fit your personal needs and financial resources.
5) Not all products or services attract a large customer base. Niche marketing is providing
a new or highly unique product to a market that is not well served or not served, at all,
by current producers. Products that satisfy a niche market sell at a premium price that
more than covers the additional costs of marketing. By definition, a niche market is
small and not well known or clearly defined. The challenge, therefore, is to identify the
product characteristics the market wants and then the ultimate size of the market.
Producers supplying niche markets should have good interpersonal and marketing
skills. Niche markets will only be able to accommodate a few suppliers, so to be
successful you must do a good job supplying the market.
6) Most farms have many resources that can be used to start a new business or
enterprise. However, conducting a resource inventory will help you identify which
resources you lack or may need to supplement.
7) It is important to determine if want to start a business or if you’re trying to create a job
for yourself. Operating a business requires managing the operational duties–
accounting, legal issues, insurance, managing worker, etc–as well as the actually
producing a product or delivering a service.
Score
Assignments
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Assessing Your Farm Business Plan
Section 2: Do You Have a Marketable Product?
8) It is important to ensure you have identified the specific target market and not a more
general market. Advertising and promotion can be costly and time consuming, so you
ought to make certain it is directed at your key customers.
9) It is not enough to know what your competitive advantage is but also how secure it is.
There are four main aspects in evaluating the security of your competitive position:
a) Are there close substitutes to your product and how stable are their prices?
SA
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b) If your competitive advantage is technology-based, how secure is that technology
and what is its life expectancy?
c) Is it easy for competitors to copy you (ease of entry)?
d) Is the resale value of your capital investment low – preventing you from changing
to another product if the market changes (ease of exit)?
10) If social trends exist that could positively affect the product’s sales, obviously the
product would have greater opportunity for success.
11) If a product meets needs of consumers that are not currently being met, for example,
the product is easier to store, stays fresh longer, seems more user friendly, its
opportunity for success is greater.
12) Enterprises vary in their potential to return high profits back to the farm. Although profit
may not always be a major factor in choosing an enterprise, it usually is the main
motivation. Generally those enterprises with the greatest potential returns are also the
ones with the greatest risk or the greatest capital investment required. A business
entrepreneur must determine the desired time frame for the returns to be realized.
Some enterprises, such as vegetable crops for instance, result in income in just a few
months. Other enterprises, like fruit trees, certain nursery crops, large livestock, or
forestry products, may not result in any returns for a few years.
Section 3: Farm Strategy
13) Successful businesses usually requires active involvement in the operation; you need to
enjoy what you are going.
14) Appreciative inquiry is a system of tallying the positive attribute of a situation or
location. Every farm or location has some positive resources or assets. Successful
entrepreneurs make maximum use of their positive resources in their planning process.
15) Having contingency plans to address changes in marketing trends, production costs,
and anticipating labor needs and costs can help your business make course changes
more quickly.
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Assessing Your Farm Business Plan
16) Agricultural regulations, once a minor issue, have become a major consideration to a
modern farm. Basic county zoning requirements may limit certain types of agricultural
activities. County government personnel handle building permits and therefore would
be a logical place to start learning regulations. Enterprises involved in processing of
foods require licensing and inspection by the state.
SA
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17) Technological changes in communications, production, packaging, and genetics
can all affect your product, how you audience perceives your product, or how your
customers locate your product or business. Take the time to stay current on emerging
technology and its use. Adopt what is most beneficial and practical for your business
operation and your level of technical resources.
SA
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18) Being a business owner means managing your external risks. These can include
regulations, taxes, insurance need, and your competition. The one external factor to
consider, but over which you have little control, is the weather.
SA
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Section 4: Do you have a marketable product?
19) Marketing and financial objectives and goals are among the major elements of a
marketing plan.
20) Before launching your business you need to put together a marketing plan that
includes (1) a description of your product and why customers should buy it, (2) your
pricing plan, (3) where and how customer can purchase your product, and (4) how
they will find out about it. The good news is that this plan will act as a guide to the
successful operation of your marketing efforts. The bad news is it will be out of date
tomorrow. Your enterprise is based on opportunities in your community today.
Tomorrow they may change. For the long term success of your enterprise it is important
to regularly update your enterprise plan. The simplest follow-up is to review and revise
both your marketing plan and your financial plan at the end of the fiscal year.
21) Field testing and sampling your product with people who are comfortable giving you
feedback provides the opportunity to obtain information about your product, service
and/or your marketing presentation before your introduce it to the general public.
22) If a product meets the needs of consumers at the same degree that the competitor’s
product meets their needs but is priced lower than the competitor’s, the new product
has a greater opportunity for success. However, be careful that you don’t price your
product too low. It is very difficult to raise your initial price and retain customers.
23) Different sizes and types of containers attract different audiences. The characteristics
of the target audience should be considered when selecting size and type of
containers.
24) Word of mouth referrals carry weight because they are considered genuine, not like
the text of a paid advertisement. Post positive referrals on your website and in your
printed promotional material. Remember a satisfied customer will tell another friend
about your products; and an unsatisfied customer will tell 9 friends about why they
didn’t like your product.
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Assessing Your Farm Business Plan
25) Promotional activities and tactics are ways of promoting your products or service, with
the goal being additional sales. They should be a part of your marketing plan.
26) Your marketing plan is not complete without a marketing budget. Be sure to include
transportation and labor for delivering your products to market in this budget.
27) The suggested guideline for a marketing budget is often 5 to 8 percent of the
expected annual sales.
28) After over-optimistic sales and market projections, one of the biggest reasons for poor
success is lack of follow-up on your competitive position. Tastes and preferences
change rapidly. To ensure that your products maintain their competitive advantage
and that you identify new opportunities your plan must include a program to regularly
monitor your customers. Getting feed-back from your existing customers is a good
start. Surveys, feedback sheets or simply talking to them about your product can
provide you with good information. A full review of your competitive advantage
should be done on a regular basis (every 6 –12 months) to identify any new
opportunities.
29) Not every producer has the personality for marketing. If you don’t, identify who in your
business will fill that role. Be intentional about assigning who will be working on
marketing your products or services from day one in your business. Decide how and
who will market your products before you plant the first seed or the first hoof hits the
pasture.
Section 5: Do you have a Marketable Product?
30) Maryland has been called “America in Miniature” topography, rainfall, growing
conditions and soil types differ greatly from the western mountains to the sand eastern
shores.
31) It helps to start a business in an area where you’ve had experience either in producing
the product or offering a service. While new skill sets and management practices can
be learned, taking the time to learn a business from the ground up can be quite time
consuming. Hone your skill sets before launching your business, not in the middle of
starting it.
32) Crop, vegetable, and fruit production are often seasonal–tillage, planting, harvesting,
and marketing. Livestock and dairy production are year round, daily commitments.
Evaluate your time or additional labor resources needed for the enterprise you select.
If you don’t like working out in the cold, it’s best to look toward an enterprise that has a
busy summer season. Most agritourism businesses are seasonal. For example,
Christmas trees in the winter and pumpkin patches in the fall.
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Assessing Your Farm Business Plan
33) Before starting any new business, make the following calls to discuss your pending
obligations:
i) County Planning Department to check if your idea is a permitted use on the
property where the business will be operated.
ii) Your accountant.
iii) Your lender.
iv) Your insurance agent.
v) Your County Extension Office
vi) Health Department–if processing foods.
34) To estimate the potential size of the market for your product you need to answer three
key questions:
i) How big is the target market in the area I wish to serve?
ii) What portion of that market can I capture?
iii) What price can I sell my product for?
35) Starting and operating a business is demanding and exhausting. You must really enjoy
your work and producing your product to remain a sustainable business.
36) If the strengths and weaknesses of competitive products are addressed when
developing a product, the new product can include and build on the strengths of the
competitive products and avoid the weaknesses of those products. Please click here
to continue.
37) If your new venture is a break from the agriculture traditions in your area, plan to field
questions from inquisitive neighbors and friends about your undertaking. Don’t be
intimidated by their curiosity. However, if you’re starting a business that may cause
additional noise, dust, or odors, you need to help you neighbors understand your new
enterprise and work to address their concerns, before complaints become serious
problems.
Section 6: Financial Plan
38) Specific, quantified sales goals should be established. Goals provide direction and
help with focusing marketing efforts.
39) Because they vary or change as the level of production changes, it is more
challenging to determine “variable costs.” However, they are important and must be
considered when determining the price of a product. Regardless of the level of sales,
there are expenses that will always be incurred. These are “fixed costs” and should
definitely be used in determining the price of a product. In addition to these two
variables, the consumers “perceived” value of the product should also be considered
when establishing prices.
40) Perceived value is the value a customer subjectively attributes to a brand or service. It
is often the perceived image or personality associated with a product that
differentiates one product from a virtually identical competitor.
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Assessing Your Farm Business Plan
41) Agricultural enterprises vary significantly in the need for capital. It is important to know
which enterprises will require high capital investments. Often enterprises that have the
highest potential returns will also require a very high initial investment. Enterprises such
as greenhouse hydroponics, nurseries, or vegetable farms will likely require more
capital than other enterprises. The other consideration regarding capital is the sources
available for credit. Not all lending institutions make agricultural loans. Agricultural loan
policies vary among banks.
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42) A very simplistic approach to evaluating the quality of the business opportunity is
defined by the “rule of 5”; that is, the operating profit should be 1/5 of sales and the
operating profit should be able to pay off the capital expenditures in five years.
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44) New businesses that get caught up in rapid growth often find they cannot meet the
demand or have to dilute their product’s quality to meet orders. Neither is good for
business. Start with quantities or orders you know you can fill and still maintain a high
quality standard. As you experience efficiencies in your product, increase your sales
volume.
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45) "Disagree" or "Strongly Disagree" are the preferred answers. Agricultural enterprises
require considerable technical knowledge. In fact, the most successful farmers,
whatever the size of their operations, are the ones who gain and use new technology
or knowledge before their competitors do. The greater an enterprise's requirement for
technical knowledge or experience, the more difficult it may be for a beginner to
succeed in that enterprise. Farmers should consider how they will obtain the
knowledge they lack. Are there other farmers, suppliers, consultants, and extension
agents in the local area who will be able to help? Evaluate your own skills and
knowledge and develop a strategy to meet the requirements of any new enterprise
before you adopt it.
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46) As you are researching your market in greater detail it is important to estimate a best–
and worst-case scenario. If you are producing breeding stock for the livestock market,
your best-case scenario may be selling all offspring for breeding and your worst-case
scenario may be selling all offspring into the slaughter market. If you are producing a
crop, your best case scenario would be selling a high yield into a strong market while
your worst-case scenario would be selling a low yield into a soft market.
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Section 7: Implementation Strategy
43) Do you want your farm enterprise to provide your primary income or to supplement
your existing off-farm income? If it will supplement your existing income, do you wish to
maximize your income on the property or to simply maximize your income within the
specific time you are prepared to allocate to the farm enterprise?
Section 8: Human Resource Plan
47) Most small business owners are one-person operations or depend on family labor. Your
bookkeeper may also be on your production team. You’ll need to wear many hats
and be able to step wherever needed.
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Page: 14 Maryland Rural Enterprise Development Center
Assessing Your Farm Business Plan
48) Different commodities require differing levels of labor, over different periods. Some
need a little input each day (livestock) and some need a lot of labor at specific times
during the season (field crops).
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52) The expenses tied to construction needs vary with the type of business. Generally, the
more buildings required, the more upfront costs will be incurred. Livestock operations
need different types of structures compared to a greenhouse orchid business. For
vegetable production, a pole barn with a cement slab for equipment storage and
product grading may be all that is necessary.
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53) Equipment can be one of the largest expenditures in a new enterprise. However, there
are ways to reduce the upfront costs of new equipment. The first step in estimating
your equipment costs is to chart all production steps in the new business. You can't
estimate your equipment needs accurately until you develop a thorough business
plan. The second step is to chart each piece of equipment necessary for every step in
the production process. For instance, the list for a roadside produce stand might
include everything from the equipment necessary to grow the crops to the cash
register at the roadside stand.
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49) Producing and marketing agriculture products involves many different types of work,
for example: mechanical work on farm equipment, field work with field and nursery
crops, working with animals, working with people, etc. It is important to keep this in
mind when searching for the type of products you wish to produce and sell.
50) Affordable housing for agricultural workers is a major problem in Maryland. Check with
your Department of Zoning to learn the regulations on tenant houses and rental units in
your county.
Section 9: Resource Inventory
51) Whether starting a new enterprise or adding a new profit center to an existing business,
take time to consider your resource allocation plan. If your tractors are needed to
bale hay, then having them available to haul produce in from the field will be a
problem. Starting to plant grape vines at the same time you need to pay for filed seed
can cause considerable financial strain. Sit down with a12 month calendar and track
what resources are needed each month. Then go back and chart when major
expense or revenues occur. Look for ways to smooth out the months where resources
and income are maxed out. Your cash flow statement helps with this.
Other options than buying new equipment are available for the new business. Used
equipment is available at auctions. If you are not experienced at evaluating the value
of used equipment, take an experienced friend along to help. Remember, when
starting a new business, keep unnecessary equipment purchases to a minimum by
following your equipment needs list. Some equipment can also be leased or rented.
University of Maryland Extension programs are open to all citizens without regard to race, color,
gender, disability, religion, age, sexual orientation, marital or parental status, or national origin.
Page: 15 Maryland Rural Enterprise Development Center
Assessing Your Farm Business Plan
54) In some cases, most or all of a farm's products may be sold at the farm. However,
many businesses require packaging and transportation of products to a market. The
main considerations are the specific types of packaging required and the type and
size of equipment needed. Is the business small enough that a small pickup truck can
do the job, or will you need a truck and trailer, or more?
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Table 1.3: Total Score Interpretation Key The total score you received on the assessment tool provides an indication of your business plan’s potential for success. Find the range of scores below that your total score falls within and read the interpretation. If you scored 216 points, your business plan, marketing and implementation strategies should be positive assets for achieving business success. If you scored between 162–215 points, your business planning is good. However, to strengthen the possibility of a success venture, weak areas need to be identified and re‐evaluated. Contact mredc.umd.edu for assistance. If you scored between 108–161 points, there is evidence your business idea has potential; however, the business would likely suffer from the lack of application of important elements of marketing and finance. If you have scored 107 and below, there are significant gaps in your business plan and possibly your business concept. Consider your sales volume, review your resource inventory, and revise your marketing implementations to make adjustment to your original plan. University of Maryland Extension programs are open to all citizens without regard to race, color,
gender, disability, religion, age, sexual orientation, marital or parental status, or national origin.
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