The four seasons of a good Farmer’s business plan
Farmers, of all people, understand seasons and cycles. There is a time to sow and a time to reap. There is a time to sell and a time to store. Through every season though, there are things that need to be done to ensure the smooth running of a good farm. Like any other business, Farmer’s need to plan, hire and fire, manage their finances, take stock of their growth (or shrinkage) and try to build an asset that will be of some future worth.
Many farms are not sold, but just passed on from generation to generation and so many Farmers may never have had to create a business plan at the beginning of their businesses. A good business plan however, is also an invaluable on-going business tool that can help Farmers to manage and build a better operation. So, let’s look at it as a Farmer would …and in this article we try to demonstrate the four seasons of a good Farmer’s business plan.
Spring is sprung!
A time for seed to be sown – a time for new beginnings …winter has passed and new crops and ideas alike come into being. A good business plan sets out in detail what a business aims to do, over what period and how. Just as seed is sown with an end result in mind, a good business is planned and structured with the same purpose. Should you need to raise capital to buy your seed, Financiers will need to know, in detail, your aims and projections.
Summer is hot!
Rainy days may get other people down, but they are a time of rejoicing for Farmers. Rain and sunshine are the lifeblood of the crops. Similarly when business is going well, it is a good time to maximise the potential of your farming business. Make short and long term goals – decide when to harvest and make the most of it. Familiarise yourself with your staff and management. Who is performing and who is just taking up the slack? An effective on-going business plan helps you to do all this.
Autumn is the fall
Just as autumn is a time of waiting and leaves falling, a proper business plan will guide your business to know when to sit back and take stock, build financial resources and make new plans. There are times of failure in every business, but with preventative plans in place these times are fewer and further between. One thing that is inevitable is change. Every business needs to adjust and change course from time to time. With a business plan you will be geared for it. If you need bridging finance or a new Investor to expand or diversify, your business plan will give a clear overview of your assets and projections.
Winter is consolidation
Just as you have stored for winter, the assets of your business will build, until one day you will be ready for a final course of action. Whether it is to sell, or retire and hand over the farm to the next generation, if you have run your business according to plan, you will have the best ‘exit strategy’ and final results. So there they are – the four seasons of a good Farmer’s business plan. Seasons will forever change and cycles forever repeat themselves, but contact us to ensure that with an effective on-going business plan, every season and cycle will produce its greatest yield!