CROP FARMING BUSINESS PLAN SAMPLE TEMPLATE
Agriculture is huge business across the world. As such, whether you are interested in starting on a small scale or establishing a large scale agro-farming business, one thing you cannot do without is your business plan.
Your plan is your guide as it contains every aspect of the business worth paying attention to. As your blueprint, you will need to pay considerable attention when writing it. Without it, there will be no systematic implementation of worthwhile business objectives (if any exists) as all your entire business will resort to guess work which is unhealthy for starting a business.
Here are some business plans for starting a small scale produce farm.
- Hydroponics farm business plan
- Plantain farming business plan
- Vegetable farming business plan
- Mushroom farming business plan
- Christmas tree business plan
- Pepper farm business plan
- Plant nursery business plan
- Rice farming business plan
- Chili farming business plan
- Onion farming business plan
- Wheat farming business plan
- Moringa plantation business plan
This article discusses helpful ways you can write your business as well as basic areas to pay close attention to.
If you have wondered how to put together an effective crop farming business plan, this article will show you how shortly;
The Executive Summary Section
The executive summary section of a crop farming business plan summarizes the entire document into a short yet comprehensive outline of actions as contained in the main document. If you need to raise funding through loans for your crop farming business, then this executive summary section is even more important as this is the first section of the document investors are most interested in when going through your plan. The money lender/investor requires the plan to enable them assess the viability of the business. This helps them to understand if the business is viable enough to guarantee a return on their investments.
Because of how important the executive summary section is, it requires you to carry out a detailed work. In this section, you need to be very concise and clear. It should also contain the financial specifics. You should also be able to convey the information that your business has the capacity to repay the loan in addition with interests incurred during the specified time.
The Legal Structure
For any type of business including crop farming businesses, taking on a legal structure is mandatory. Without a legal structure, your business has no clear structure. There are several legal structures to choose from. However, the most important thing required is for you to choose a legal structure that fits the type of business you operate. There are Sole Proprietorships, Partnerships (of several types), Limited Liability Companies LLCs and several others.
The legal structure should contain vital information that include supporting documents as well as a provision for exit for partners (for crop farming businesses which have partnership structures) as well as for the dissolution of the business. There should be a clear picture of how profits will be shared as well as liability for losses. You also need to be able to state why a particular structure was chosen.
What is expected under this section is for you to provide a description of your crop farming business products and services as well as general details about your business. It is also necessary to state your business assets as well as industry trends, marketability, your rate of turnover and also the size of your business among other things. This enables anyone going through your business plan to gain perspective on the services and scale of your business in addition to other general information.
You will have to state the location of your business especially if it is important to your marketing plan. Just stating the location alone is not enough as you will also need to give reasons why such a location is important for your business. The supporting documents section of your crop farming business plan should contain all necessary documents including pictures or drawings of your location where applicable.
Any serious business will have an insurance cover for all its operations. Here, all equipment being used should be fully insured. Varieties of insurance covering exist. It is necessary that you find out which among the several types best suites your crop farming business, and to explain in this section which type of coverage you have as well as what led you to choosing this. Your insurance covering should always be kept up-to-date.
Marketing is crucial to the success of your crop farming business. For marketing to be very effective, you should be able to identify your customers as well as also finding effective ways to make your produce and services readily available to them. It is important that you do not rush this section of your plan as it normally takes time to draft an effective marketing plan due to market research which needs to be properly conducted. While conducting this research, you need to answer the question on who your target customers are as well as why your products will be preferred. Also, what channels of information will your products/services be made known to your target market?
Financial Analysis and Projections
This section will contain financial states that include actual financial statements as well as projected financial statements. When borrowing money, the lender/investor needs to know how monies will be used and into which specific areas they would be channelled. When presenting these projections, you should ensure that you are able to back up such information with relevant data. The general cash flow should properly documented and presented.
This crop farming business plan template presents a direct and easy to use method for writing your business plan. This document is highly important to the success of your business and should be properly written to act as a guide towards implementing the blueprints contained in the plan.