Transcript Developing a Business Plan

Agricultural
Microeconomics
Presentation
Title
Lesson 9: Developing a Business Plan
“Cattle at Sunset” by Andrew S. Gray Photography, Creative Commons CC BY-NC-SA
http://www.andrewsgray.com/2012/07/cattle-at-sunset/
This
coursedeveloped
developed
by Environmental
The Environmental
at UNC
Chapel
Hill for
The North
of and
Science
This course
by The
FinanceFinance
Center atCenter
UNC Chapel
Hill for
The North
Carolina
School Carolina
of ScienceSchool
and Math
NCDPI
is
licensed
a Creative
Commonsunder
Attribution-NonCommercial-ShareAlike
3.0 Unported License
and
Mathunder
and NCDPI
is licensed
a Creative Commons Attribution-NonCommercial-ShareAlike
3.0 Unported License
“The business that fails to
plan, plans to fail.”
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Why Does Your Farm Need
a Business Plan?
• Serve as a guide for your farm’s future
needs.
• Helps to develop a marketing and
promotion strategy for products.
• Facilitates the cost/benefit analysis of
future innovation.
• Required for financing a new project
or expansion of business.
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Key Components
1.
2.
3.
4.
SWOT analysis
Management team
Description of product(s)
Marketing plan
– Customer assessment
– Competitor analysis
5. Financial summary (actual and
projected)
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
What is a SWOT Analysis?
• Strengths
• Weaknesses
• Opportunities
• Threats
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Completing a SWOT Analysis
Take a look at your personal and business
strengths:
• Your advantages over your competition
• Your current production and management
capabilities
• Your location
• Your personal philosophy
• Your access to or ability to secure capital
• Your knowledge and skills
• Your product’s value to consumers
• Your customer’s perception of your products’
quality
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Completing a SWOT Analysis
Be honest about your weaknesses:
• Lack of experience
• Lack of knowledge
• Unknown or poor reputation
• Lack of financing
• Current production schedule
• Access to processing facilities
• Production timelines
• Marketing challenges
• Limited, or no, farm help
• Distribution
• Pricing
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Completing a SWOT Analysis
Find the opportunities you can take
advantage of:
• Market trends
• Consumer preferences
• Unfilled niches
• New or emerging markets
• International potential
• Competitors’ susceptibilities
• Innovations and developments
• Partnerships
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Completing a SWOT Analysis
Recognize the threats to your business:
• Market instability
• Competitors with lower production costs
• Negative health claims about product
• Legal considerations that may affect
your operation
• Weather
• Lack of market awareness
• High market-entry costs
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Your Own SWOT Analysis
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Marketing Plan
• Who are your customers? Who are
your competitors?
• What are you selling? At what price
will you sell each product?
• Where are your customers located?
• When are your customers most likely
to purchase your products?
• How will you reach your customers?
(farmers market, stores, online, farm)
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Marketing Strategies
• Define your market niche
• Know your customers and assess your
competitors
• Price your products appropriately
• Create your marketing message
• Adjust strategy as needed
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Your Own Marketing Plan
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Financial Summary
• Net Earnings (Income) Statement
• Balance Sheet
• Cash Flow Statement
• Three-Year Income Projections
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Next Class:
Presentation Title
Successful Business Planning
“Cattle at Sunset” by Andrew S. Gray Photography, Creative Commons CC BY-NC-SA
http://www.andrewsgray.com/2012/07/cattle-at-sunset/
This course developed by The Environmental Finance Center at UNC Chapel Hill for The North Carolina School of Science and Math and NCDPI
is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License