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If you’re considering joining the agricultural industry, you’re passionate about working the land and growing food. While starting a farm is much different than starting an office-based company, you still need to make a business plan. Use these questions to guide this document’s creation.
What Is Your Purpose?
Every business needs a mission statement, so you need to decide why you’re becoming a farmer. Are you passionate about organic farming, or do you want to break up agricultural monopolies? Perhaps you want to improve the quality of people’s food, or you want to stop unethical farming practices. Regardless, decide what your main reason for joining the industry is and craft your mission statement.
Who Are Your Suppliers?
Your business plan proves to your investors that you’ve thought through your idea, so you must demonstrate that you have suppliers. These include companies that sell you seeds and provide you with equipment as well as hopper bottom carriers who transport your goods. List potential vendors on your business plan and reach out to a few to find out if they offer deals for local businesses.
What Is Your Market?
Do you plan on selling your produce locally or to large grocery store chains? This determines how much you need to invest in shipping, marketing, and packaging. Investigate your area’s food culture to see if it’s already oversaturated with local products. Many small farmers operate their own produce stands and send the rest to larger stores, but you must find a model that works for your farm’s size and location.
As you look at different plots of land to buy and decide which plants to grow, you must think seriously about your business plan. If you’re not sure where to start, use these questions to craft an outline that your investors will love.