Although farming is a simple concept, have a solid business plan before planting a single seed is critical to the success of your venture.
As in any business, there is a necessary step of preparing by planning every phase to ensure your desired results will be achieved. The concept is pretty straight forward; plant a seed, protect it and harvest it in due time to enjoy the fruit of your labor – pun intended.
Here are 5 elements you will need to have in your farming and agriculture business plan:
1. Start With a Vision
A vision is the art of seeing the end before you begin. What do you want your venture to be? A small family-based business, a large corporate agriculture or a hobby? Once you’ve determined what you’d like to accomplish with your agribusiness, write it down so you can always refer back to it.
2. Market Analysis
This phase is the determining factor of whether you should even launch this business. You have to gather trusty-worthy data from reliable sources on the potential in the market. Here are a few questions among many that you need to know.
- How much money does the industry boast already
- Who buys the product
- How much of it do they buy
- Is this s seasonal product
- Who are the potential competitors
- What do they do well and is there room for improvements
Make sure your fact-finding mission is thorough.
3. The Target Market
Agricultural products have many opportunities. You can produce to become a supplier and provide wholesale pricing or you can provide a product ready for consumers. The latter requires the transformation of the product which will require longer process and more money. Determine this early on so you can plan your financial capital more accurately.
4. The Marketing Plan
Since you’ve decided to launch your agribusiness, you need to understand how you’re going to sell it. Many products are spectacular however, the lack of sales and marketing strategy kill the business. Don’t just get excited about your idea or product, but carefully plan your go-to-market strategy.
5. Financial Capital and Projections
Without money it is impossible to launch your agriculture business. Financing is a pivotal point in agribusiness. Having a solid plan will help you seek for funding from several sources. Who can finance an agribusiness project?
- Banks
- Individuals
- Joint Venture Capitalists
- Private Investors
- Family Members
- A Group of People who believe in your vision
Your financial projections include the gross revenue and net profit of your business, weekly, monthly or yearly. You can base these from existing sources and customized based on your infrastructure. Other farmers may be a reliable financial projection source. Here are a few questions amongst many that you need to know when planning for financial projections in an agribusiness.
- How many hectares do you have
- How much seed do you need per acre
- How much produce will yield 1 acre
- What’s your selling price
6. Human Resources
Many people have neglected this phase and found out the hard way, they were not able to sustain the business. You need to understand the team you must have to produce the desired results.
Here are some indispensable positions for a successful ventures:
- Legal: An attorney will make sure you’re protecting your investment. One small mistake can sweep away your agribusiness.
- Accountant: An accountant will help you understand your numbers better without which you could drown in an otherwise profitable business.
- Marketing and Sales: A proficient sales and marketing person will help grow the business by securing contracts and market deals.
- Agronomist: These are connoisseurs of the agriculture world and without them your business will never take off.
- Laborer: This can be yourself or a small team. The high cost of labor is prohibitive in some countries and they turn to us in Africa, India, China or Mexico with more affordable labor cost. If you have a project, we can help with lower labor and farming cost. Connect with us to discuss how we can help you develop, execute and deliver your agricultural produce.
Depending on your vision, you may or may not need all these roles so planning is crucial as you’re developing your business. If you do not have the needed skills to develop a business plan, reach out to us for assistance. Contact us via email at hello@biohappyfarms.com or phone and WhatsApp at +1(909) 279-5487.
