A business plan is a key tool that can set you up for business success.
It helps you focus on your goals and provides the answers you need to make your financing and loan process easier.
Here are 10 things you should include as well as some resources to get started. Include: who you are, what your business does, future business plans and how you will be successful.
Also, summarize your current financial state and future needs.
A business plan identifies risk factors for each operation, and allows producers to evaluate alternatives to 100-per-cent ownership of feeder cattle and manage their risk accordingly.
Risk management strategies form a critical component of the business plan, and will be reviewed by lenders and other stakeholders when assessing the financial viability of backgrounding cattle.Backgrounding is a feeding program that targets weight gain in feeder cattle to develop the skeleton and muscle tissue of the animals while minimizing fat deposition.Backgrounding diets typically include high levels of forages and often include limited amounts of cereal grains and various by-products of grain production.A business plan identifies requirements for financing capital items, such as feeding pens, handling facilities and feeding equipment, or sourcing operating credit or financing feeder cattle purchases.In addition, development of the business plan formalizes production practices, such as feeding and health management programs, and describes the marketing program for cattle at the completion of the backgrounding phase.Elements of a business plan include: Ownership of feeder cattle or custom feeding arrangements should be clearly identified in this section, as the content of subsequent elements of your business plan will be affected by this major decision.Custom feeding arrangements will be formalized, with a written contract outlining the responsibilities of both the cattle feeder and investor.Read: FCC Ag Economics sector and production reports Describe the potential size of your market.It helps to include popular market trends and customer profiles.For start-ups: include projected financial statements for the first three years of operation and a monthly cash-flow forecast covering at least 24 months.Get: Ag Expert Analyst: Accounting software built for the farm Describe your product or service and what makes it marketable.