by Gena Moore, CFSA Organic Research Coordinator | Monday, Sept. 21, 2020 —
As we all know, starting, building, and managing a farm is no easy task. Developing or refining a business plan to effectively guide a growing farm enterprise, on top of regular farm work, can seem impossible. However, a business plan is an effective tool for farms. Not only can a business plan help guide the development of an enterprise (or multiple enterprises), it can also serve as a necessary tool when seeking business partners, employees, and even funding. Business planning does not need to be difficult. If you struggle to know where to start or want to improve your current plan, keep reading to learn about a free resource for farmers that we like: AgPlan.
You can also see our interview with Curtis Mahnken, Extension Economist with the Center for Farm Financial Management at the University of Minnesota.
One tool that greatly eases the stress of business planning is AgPlan, through the University of Minnesota. It’s free, you don’t have to download it, and, yes, it’s worth trying out!
All you need is an email address to get signed up. Once you have created an account, you can choose a template that best fits your operation.
If you’re unsure which template is right for you, look at several before you make your final decision. Throughout the templates, you’ll find sections and prompts to ensure that you include all the necessary information for a robust plan.
The AgPlan interface for the organic transition business plan template includes space for you to develop a mission statement and goals. Creating a mission statement and sharing it with customers helps them understand why you farm and what your priorities are for production, land management, and conservation.
During our interview with Curtis, he noted that the AgPlan templates have some great features that make creating a business plan easy. In the template, each prompt or section includes tips, samples, and developer comments. These tips and samples help provide a framework for the sections and guide user content. Additionally, there are resources included in each section of the template if you want more information on a specific topic.
Finally, users can add reviewers to their plans. This is helpful if you have business partners, family members, or consultants who are helping build the business plan.
Some take away tips for using AgPlan or developing your own business:
- Take your time. Plan to develop your plan over a few weeks; it helps to allow enough time to think about and review content as it develops.
- Leave your executive summary for last. Curtis explained that this section is easier to think about once all the other information is in place.
- Use your plan. If you have a new opportunity, consult your business plan to help make the right decision.
Consider all your priorities for your business and who is involved. In many cases, farming is a family affair, so making space for everyone to engage in and enjoy the business is important.
Enjoy the process of developing or refining your business plan. Completing the AgPlan templates can be thought-provoking and stimulate personal reflection on your business, which is helpful no matter what stage of development you’re in.
Commit to the process and your completed business plan will be an asset for your growing business.
Questions?
If you’re interested in learning more, contact us!
Thanks to AgPlan for use of their logo. All other images are by CFSA.