Strategic Planning
A lot has been said about knowing where
you are going.
People who can articulate their goals and
mission tend to be more successful in life
and business.
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Strategic Planning
How do you know where you want to go
in life, your mission, your goals?
How do you write your mission and goals?
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Strategic Planning
The Building a Sustainable Business guide
states that imagining your future should
be fun.
Most people like to plan and dream – but
few want to write down their goals.
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Mission
A mission and goals describe the dreams
and plans you have for your future.
What do you dream about, how do you
envision your future?
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Mission
The Building a Sustainable Business
worksheets can help you put your dreams
and values into a mission statement.
Let family members or team members
describe individual dreams and desires for
the future and then compile them.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Goals
In addition to dreams, everyone has goals.
Sometimes they are almost subconscious,
but they drive why you choose to do what
you do.
Goals are things you want to accomplish,
not how you will accomplish them.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Goals
Family goals should describe what you
want for your family.
Business goals should describe what you
want from your business.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Developing Your
Mission and Goals
 Work on completing the Guide’s worksheets
during the workshop (worksheets 3.2, 3.4, 3.5).
 Or take the worksheets home to work on.
 Whatever method you use, each family or team
member should develop their mission and goals
independently and then discuss and compile
them into an agreed upon mission and goals.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Additional Questions
Family goals:
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What do I want to accomplish during my life?
What goals do we have for our children?
What do we want to do for others?
What would I like to do before I’m too old to
do it?
• Do we have quality of life goals we want to
meet?
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Additional Questions
Business goals:
• How much money do we want to generate for
our family living?
• Do we want to make a living focusing on
production, managing people, or by
developing people and marketing skills?
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Additional Questions
Business goals:
• What kind of work environment do you want
to work in regarding safety, team, sole
operator?
• What do I really enjoy doing?
• What jobs or tasks don’t I enjoy?
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Strategic Planning
Determine the strategy that helps
accomplish your mission and goals.
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Two Strategies for
Agricultural Producers
Commodity
Strategy
Creative Alternative
Strategy_________
Expansion oriented
Niche oriented
Low-cost producer
Unique product
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Characteristics of Two
Strategies
Commodity
Creative Alternative
Look at
expanding
herd or acres
Look for alternative
enterprises that
generate revenue
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Characteristics of Two
Strategies
Commodity
Creative Alternative
Production emphasis
Manufacturing mentality
Low-cost producer
Large scale operation
Price risk
End-user focus
Marketing mentality
Value-added products
Smaller operation
Relationship risk
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Strategic Planning
The strategic plan should demonstrate
that you understand the future outlook for
your particular industry (Industry Situation
in software).
This is important for both an existing
business or starting a new enterprise.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Strategic Planning
The strategic plan should assess your
competitive position within your industry,
and describe how you are positioned to be
successful (Competitive Position in
software).
What strengths will help you succeed in
this industry?
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Resources
Guide worksheets
• Mission – worksheet 3.2
• Goals – worksheet 3.4 & 3.5
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Resources
FINPACK Business Plan Software
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Mission
Goals
Industry analysis/situation
Competitive position
Business strategy
Implementation plan
Copyright © 2003 Center for Farm Financial Management, University of Minnesota