Transcript businessplan (1)

Strategic Business Planning for Commercial Producers
What Is A Business Plan?
Strategic Business Planning for Commercial Producers
Objectives
• To develop a document that presents a
picture of the business, where the
business is going, and how it will get
there
• To understand the organization of a
business plan
Strategic Business Planning for Commercial Producers
“If you don’t know
where you’re going,
you may end up
somewhere else.”
-Casey Stengel
Strategic Business Planning for Commercial Producers
What Is A Business Plan?
• A document that conveys your organization’s
prospects and growth potential. It describes:
– You and your products and services
– The market and your role in it
• Shows you are committed to achieving a vision
• Good follow-up to developing a strategic plan
• Keeps focus on end product
Strategic Business Planning for Commercial Producers
Format of the Business Plan
1.
2.
3.
4.
5.
6.
7.
Title Page
Executive Summary
Vision/Mission and Goals
Current Position
Strategic Analysis
Implementation
Projections
Strategic Business Planning for Commercial Producers
Executive summary
• Written last
• Maximum of two pages
• Major points of each section
Strategic Business Planning for Commercial Producers
Vision/Mission & Goals
• Where is the business headed?
• What do you want the business to
achieve?
• What time frame?
Strategic Business Planning for Commercial Producers
Current Position
• How do you describe the farm?
– History: important milestones
– Products/services: What? How much?
– Resources: Who owns what? What is their
reward?
– Management: Who? What do they do?
– Organizational Structure: Who’s the boss?
– Marketing: What tools? What customers?
– Ownership Structure: Legal form?
Strategic Business Planning for Commercial Producers
Current Position
Production
Resources
Land (shares)
Farm
Business
Land (cash rent)
Management
Resources
•Management
Responsibility
and Authority
•Organizational
chart
Machinery
Paid Labor
Unpaid Labor
Products/Services
Pie Chart
Of Gross
Sales by
Enterprise
Strategic Business Planning for Commercial Producers
Strategic Analysis
• What opportunities and threats does the
business face?
• What are our strengths and weakness?
• What do we do better than others?
• What strategy will we use?
Strategic Business Planning for Commercial Producers
Implementation
• For each business unit
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What size?
What resources will be needed?
How will the resources be acquired?
How will product/service be marketed?
What performance targets will be set?
Strategic Business Planning for Commercial Producers
Implementation
• For the firm as a whole
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What is the scope of business?
How will it be financed?
How will the business be organized?
What are our social responsibilities?
How will we develop new management skills?
When will it happen?
How much will it cost/generate?
Strategic Business Planning for Commercial Producers
Projections
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What numbers can we put behind our plan?
What assumptions have we made?
What do we expect for our ROA and ROE?
What is our contingency plan?
What will we do in an emergency?
Strategic Business Planning for Commercial Producers
Be sure that . . .
1. Your goals are tied to your vision
2. You can point to major opportunities
3. You’re prepared for threats
4. You’ve described your customers
5. You know your strengths/weaknesses
6. Your strategy makes sense
7. Your data is accurate
8. You’re really ready for change
9. Your plan is clear, concise, and current
Strategic Business Planning for Commercial Producers
Keep in mind that. . .
• This is an opportunity to work on the business
• This is important and difficult work but not
urgent
• The value of the work will increase as you
share, review, and update the business plan
Strategic Business Planning for Commercial Producers
Now what?
• Share your plan judiciously
• Live it
• Revisit and revise
Strategic Business Planning for Commercial Producers
Strategic Business Planning for
Commercial Producers
Strategic Business Planning for Commercial Producers
References
• The Business Plan: Roadmap to Success.
www.sba.gov/starting/indexbusplans.html
• Tiffany, Paul and Steven D. Peterson.
Business Plans for Dummies. Foster City,
CA: IDG Books, 1997.