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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 dont know


where youre 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 organizations
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. Title Page
2. Executive Summary
3. Vision/Mission and Goals
4. Current Position
5. Strategic Analysis
6. Implementation
7. 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: Whos the boss?
Marketing: What tools? What customers?
Ownership Structure: Legal form?
Strategic Business Planning for Commercial Producers

Current Position
Production Management
Resources Resources
Farm Management
Land (shares)
Business Responsibility
Land (cash rent) and Authority

Machinery Organizational
chart
Paid Labor Products/Services
Unpaid Labor
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
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
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
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. Youre prepared for threats
4. Youve described your customers
5. You know your strengths/weaknesses
6. Your strategy makes sense
7. Your data is accurate
8. Youre 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.