Business Plan
 Once the research is complete, questions answered, and strategy decisions made – it’s time to write the business plan.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Plan
 Sometimes, writing the plan can seem more intimidating than the research that went into it.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Plan
 If using the software all along, writing the plan may simply mean:
Pushing “print” on your computer!
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Plan
 If using the Business Planning Guide and worksheets exclusively, you’ll have a bit of typing and organizing to do.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Plan
 Information to organize:
• Farm description (history and current situation)
• Values, goals, mission
• Strategy summaries
• Financial analyses, tax returns
• Implementation plan
• Contingency statement
• Historical tax returns
• Resources
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Planning
 Begin by preparing an outline.
 The purpose of your business plan will determine how it is organized.
 The Guide contains six business plan outlines related to purpose of the plan on pages 234-235.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Plan
 Outlines in Guide differ according to:
 Overall strategy (new product vs. buyer)
 Intended use (internal vs. external)
 Business structure (individual vs. coop.)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Plan
 Next, prepare the strategy sections for:
 Marketing
 Operations
 Human Resources
 Finances
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Planning
 The executive summary is typically the last section written. It summarizes all the work you have put into developing your plan.
 Example of Cedar Summit Farm “Executive
Summary” on page 185 in Guide.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Planning
 When writing the plan, remember:
 Only use the sections needed
 Make it concise and to the point
 If you want someone to read it, remember their time is valuable
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Planning
 More writing and organization tips:
 Don’t include graphics without substance
 Always prepare an executive summary
 Communicate clearly
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Planning
 Additional writing/organization tips:
 Don’t use technical language or jargon
 Make sure presentation is professional presentation (typed, proofed)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Planning
 Take-home ideas:
• Talk to others, ask questions
• Study your markets
• Be honest with yourself when evaluating ideas
• Reject a strategy if it doesn’t make money on paper
• Ask for feedback from family, team members
• Get started!
Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Business Planning
 Lastly, remember that a business plan should be used:
 Distribute copies to those involved in business
 Review plan periodically
 Monitor progress, meet with planning team
 Keep records
 Compare actual outcomes to projected outcomes
 Make changes to plan as needed
Copyright © 2003 Center for Farm Financial Management, University of Minnesota