A Business plan development is crucial for a successful farm business. A farm business plan is the road-map to a successful agriculture business. Furthermore most successful businesses are born out of a dream, a hobby, a vision, a passion or a drive. Every human being has a dream (some of them from child hood), But until you do something about the dream it remains a mere dream and never materializes. I can almost hear you asking, “What should I do with my dream? Don’t worry. You are in the right place as this article will teach you how to be successful in business. The components of a business plan are discussed below:-
- Write down the dream in details: The dream is the most important thing in your business, as it will drive your passion and motivate you to achieve it. The dream shows you where you are taking your business and it will keep you going when things get hard; therefore never loose focus of the dream.
- Identify the opportunity what human problems will your business solve? Or define the reason for existence of your business. A business must offer solution to a human problem or need for it to succeed. Therefore it goes without saying that every human problem is a business opportunity.
- Set simple achievable targets: write down what you need to do to make your dream come true. This should be simple achievable targets also known as SMART objectives.
S
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Specific
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The
targets should be simple and clear
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M
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Measurable
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Quantify
the targets to enable measuring of results
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A
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Attainable
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Set
a measure that you can deliver as you pursue your dream
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R
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Realistic
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The
target must be practical in relation to available resources
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T
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Time-frame
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Set
a period within which you need to achieve the dream
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4. Decide on the form of business ownership: e.g. Family business, sole proprietorship, partnership, limited company etc
- Identify your products or service which you will offer the market.
- Conduct a simple market survey or research. Research need not be complicated and it involves:-
- Asking the right questions.
- Getting information.
- Decision making based on the information.
Important Questions in market survey
- What market am I targeting?or Who will be my major customers? e.g supermarkets, school children, people in estates.
- What are the customer’s preferences or what are they looking for. what are their needs?Remember people will only buy what satisfies their existing need.
- Is there any competition in the area for the product / service which I want to offer?
- What are the strengths and weaknesses of competitors? take advantage of the competitors weaknesses.
- How much must I sell per month and at what price to break even and make profit?
a) 7. Write down the marketing plan for your dream business: Marketing is a fight to have your product or service as the preferred choice of your customers. How you carry out your marketing determines how far you will go in sales. The marketing plan is your master plan and it will be consulted more than any other document.
The key items that you must include in your marketing plan are as follows:-
- The pricing of your product or service: The price should recover the cost of production and earn a profit. A profit of between 20%-50% can be earned depending on the purchasing power of your customers, the price of competitors, and the inflation rate.
- Sale tactic.
- What will you do with spoiled products / returns?
- How will you advertise your product /service? e.g. through radio, newspaper, word of mouth.
- How will you deliver the product / service to the customers? e.g. bicycles, vans, internet or short message service can be used.
- Remember that the market is dynamic and the answers to these questions may change or require modification during implementation.
Financial plan: This section of your business plan is fed by all the above covered sections. Financial plan is about where the money will come from, how much you will need, what your income and expenditure will be, and by when you will have recovered the capital invested in the business.This section requires at least knowledge in basic book keeping skills and high level of accountability. Finally a business plan can help you get additional financing from financial institutions and/ or partners. Consult an expert after you have written down the basics of your business plan, in order to have a comprehensive business plan made for you. Remember a good business plan is the key to a successful business dream.
