Elements of a Business Plan

It is important to note that business planning is not about a ‘document’. It is an ongoing process. It is critical for you as a business owner to understand the plan and be involved in its development (even if written by a consultant). The document is the foundation for a process that involves answering the questions; Where are you now? Where do you want to go? How will you get there? It must be accompanied by subsequent questions; How are we doing? Does this activity fit with our vision? Were our assumptions correct? What has changed? What do we need to change? Do we need to revisit our plan? Review, evaluation and course corrections are all necessary parts of the process.

There are many different templates and models for business plans out there, but the basic structure is the same. The level of depth you will require will probably be determined by the level of time, money and risk involved in your opportunity.

Elements will likely include:

Overview of your current situation

• What are you/your farms strengths and weaknesses?
• Why is this an opportunity for YOU?
• How will this new venture impact other parts of the farm/farmers?

Planned Result

• What is your farm’s vision and mission?
• What do you want to accomplish?
• What are the benefits?

Description of your farm

• Your legal structure, participants and history
• Location, attributes and assets
• Current personnel and management roles

Need and Rationale

• What do you need to capture this opportunity?
• Why? Are requirements linked to the plan?
• Have you explored alternatives?
• Do you have a back-up?

Your Business Model

• How will you get money out of your customer’s pockets into yours
• How much will be left?
• Who are those customers?
• Is it a new or a established model?

Implementation

• Who will do what?
• Are there sufficient time, money, equipment and labour resources?
• How will this change impact the current operation?
• How will you attract customers, manage the operations or finances?

Review and Evaluation

• How will you measure success?
• When will you measure?
• How will you make adjustments

Sub-Plan Components

Your business plan will likely have sections or sub-plans developed to address specific topics. Information gathered throughout The Organic Path will come in handy.

Marketing

• Your marketing method (e.g. direct or wholesale)
• Your primary customers
• Your value proposition
• Supportive trends
• Sales projections

Human Resources

• What are your employee needs (skills and numbers)
• What will they do (job description)
• Who will manage them?
• Do you have a plan for retention?

Production Plan

• What will you be producing/processing
• What facilities, equipment or staff are involved?
• What are the risks and your management plan?
• What are the environmental risks/consequences?
• How are you managing the organic transition risks

Financial Plan

• Your sources of equity and debt financing
• Your expected returns for yourself and investors
• Documents like an income statement, balance sheet, loan summary, cash flow statements and financial indicators
• Back-up information such as estimated or known Costs of Production
• Assets and Collateral
• Equipment available and needed
• Your back-up plan