UNIVERSITY OF MARYLAND EXTENSION
Contents of a Business Plan
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Executive Summary
Mission and Goals
Background Information
Farm Strategy
Marketing Strategy and
Plan
• Enterprises Analysis and
Plan
• Financial Plan
• Management Plan
• Implementation
Strategy
• Resource Inventory
*Note the action words!
UNIVERSITY OF MARYLAND EXTENSION
Farm Strategy
• Step 1: Gathering information and market research.
• Step 2: Analyzing the external and internal components
of your business using the S.W.O.T. analysis.
• Step 3: Creating alternative plans of action and
identifying areas of competitive advantage.
• Step 4: Formulating a strategy is selecting the best plan
that fits your overall farm mission.
• Step 5: Implementing and evaluating the strategy.
UNIVERSITY OF MARYLAND EXTENSION
UNIVERSITY OF MARYLAND EXTENSION
Step 1: Gathering information and market
research.
• Market Research: Research your current and
potential markets to identify trends,
competitors, needs and buyers.
• Focus groups, demographics, surveys,
observation, interviews
UNIVERSITY OF MARYLAND EXTENSION
Primary Research
• Primary research can be as simple as asking customers or
suppliers how they feel about a product, or as complex
as surveys conducted by professional marketing research
firms.
• Examples of primary research are:
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Interviews
Observations
Direct-mail questionnaires
On-line or telephone surveys
Experiments
Panel studies
Test marketing
Behavior observation
UNIVERSITY OF MARYLAND EXTENSION
Secondary Research
• Secondary research is faster and less
expensive than primary research.
• Gathering secondary research may be as
simple as making a trip to your local library or
business information center or browsing the
Internet.
• It utilizes information already published.
– Surveys, books, magazines, etc.
UNIVERSITY OF MARYLAND EXTENSION
Food Trends for 2015
1. Grazing Golden-Agers: Snacking
2. Same-Day Delivery Not Just for City Clickers:
Grocery Shopping Goes 24/7
3. Everything Smoked
4. The Rise of Fermented Foods
5. Gen Z: Chefs Everyday
6. Craft Foods Make its Way into Kitchens
Everywhere
Source: ConAgra Foods Inc.; December 2012
UNIVERSITY OF MARYLAND EXTENSION
Secondary Research Cont.
• Localized figures provide better information as
local conditions might buck national trends.
– Newspapers and other local media are helpful.
• Many sources of secondary research material are
available. It can be found in:
– Census and Consumption Data
– Colleges
– Trade and general business publications and
newspapers
– Trade associations and government agencies are rich
sources of information.
UNIVERSITY OF MARYLAND EXTENSION
If you don't know your customer, then
you don't know your business.
• Determine your target market. A target market is the group or
groups of people you will be promoting, advertising, and ultimately
selling your product to. To find your market, you should begin by
answering some simple questions:
• What are the demographics of the area you are competing in?
• Who will buy your products based on price?
• What is the age range?
• Males or females (or both)?
• Are they single or married? Do they have kids?
• What kind of lifestyle does your product relate to? Is it everyday
use, specific to times of the year or to specific activities?
FIRST AND BEST CUSTOMER
UNIVERSITY OF MARYLAND EXTENSION
Fads vs Trends
• Fads are something people talk about.
• Trends are something people do.
• Analyzing trends helps identify niche markets for
profitability.
• The ideal niche market must be large enough to be
profitable but small enough not to attract larger
competitors.
UNIVERSITY OF MARYLAND EXTENSION
Step 1: Gathering information and
market research.
Final Thoughts
• Keep an electronic folder of findings
• Can be used as support documentation
• Be sure to save or bookmark the site
UNIVERSITY OF MARYLAND EXTENSION
Step 2: Analyzing the external and
internal components of your business
using the S.W.O.T. analysis.
• S.W.O.T. is an acronym for:
– Strengths
– Weaknesses
– Opportunities
– Threats
UNIVERSITY OF MARYLAND EXTENSION
S.W.O.T.
Strengths & Weaknesses
• Evaluation of the Internal
Environment
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Financial resources
Management capability
Human resources
Location
Facilities
Threats & Opportunities
• Evaluation of the External
Environment
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Competitor analysis
New/expanding markets
Regulations
Technology
Economics
UNIVERSITY OF MARYLAND EXTENSION
UNIVERSITY OF MARYLAND EXTENSION
Competitor Analysis
Competitor #1
Name and Location of Company:
Product and Price Offerings:
Promotional Activities:
Competitive Advantages:
% Market Share:
UNIVERSITY OF MARYLAND EXTENSION
Step 3: Creating alternative plans of action
and identifying areas of competitive
advantage.
• Pulling it all together – Internal Strengths with
External Opportunities
• Plan of Action
• What is unique, what is your competitive
advantage, what will your consumers value
• List the various strategies that you could
implement on your farm
UNIVERSITY OF MARYLAND EXTENSION
Step 4: Selecting the best plan that fits
your overall farm mission.
• It is now time to select the plan that best fits your
overall farm operation
• Keep in mind SWOT
• Can you see yourself doing this in 5-10 years?
• Include marketing, production, finances and
management along with your competitive
advantages.
UNIVERSITY OF MARYLAND EXTENSION
Step 5: Implementing and evaluating the
strategy
• How are you going to get it done!
• Following the financial plan there is a section
that focuses on implementation
Be sure to review and evaluate your plan periodically. Demographics,
markets, competitors and SWOT may change over time. As you update your
plan, you will also want to revise your farm strategy.
UNIVERSITY OF MARYLAND EXTENSION
DO IT!
www.extension.umd.edu/mredc
www.extension.umd.edu/newfarmer
www.agplan.umn.edu
www.mdsbdc.umd.edu/
Shannon Dill
sdill@umd.edu
410-822-1244
UNIVERSITY OF MARYLAND EXTENSION