small agriculture business plan

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Farm Business Planning

Farm Business Planning is key to beginning farmer success.

It helps beginning farmers :

• Plan for the economic sustainability of a new farm enterprise.
• Obtain funding to purchase land, equipment and other resources from lending institutions, investors and/or grant making agencies.
• Articulate what their farm will look like.

On this page, we compiled free farm business planning resources to help you understand what a formal business plan is, and how to start planning your farm business. Sections include:

• Developing a Farm Business Plan
• Enterprise Budgeting

Enterprise budget resources are included on the farm business planning page because such tools are usually essential in helping you to develop your business plan.

Planning your farm business involves more than is outlined on this page alone. You’ll probably also be interested in funding (loans/grants) , farm incorporation , and risk management . Our  starting a farm page is worth visiting first. Also, you might find the following article helpful, because it touches on many farm business planning topics: Farm Products, What to Charge: Marketing, Price, Calculating Costs, Strategy and Much More .

1. Developing a Farm Business Plan

A  business plan  is a decision making tool that takes the form of a formal document. It states your business goals, why you think you can achieve them, and lays out your plan for doing so. Farm business planning is also a process, not an end product. A business plan is a work in progress, which farm business owners or operators will want to revisit regularly. 

Planning and Funding Your Farm Business  from the Cornell University Small Farms Project has lots of important and useful farm business planning resources.

Rural Businesses  is a web and print publication from the Minnesota institute for Sustainable Agriculture (MISA).

Building a Business Plan for Your Farm: Important First Steps  is a 20 page farm business planning publication that discusses the initial steps to help you move toward writing a formal business plan.

The Center for Agroecology has a Small Farm Business Planning publication that goes over many of the basics in a step by step format.

Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses is a farm business planning publication available from SARE.

Do I need a Business Plan for my Farm? is a web resource from the New England Small Farm Institute. It’s a great place to get started.

AgPlan  from the University of Minnesota helps rural business owners develop a business plan for free, while also offering sample business plans for ideas, and a way to print or download your plan.

Developing a Farm Business Plan includes several helpful resources from the USDA National Agricultural Library’s Rural Information Center.

Organic Farm Business Planning Page  from North Carolina State University features a number of publications and links related to financial planing for organic farmers.

Agricultural Business Planning Templates and Resources   is an ATTRA publication most relevant to smaller-scale or alternative agricultural entrepreneurs.

Beginning Farmer and Rancher Resources offers comprehensive resources on Bookkeeping and Other Basics ; Cash Flow Budgeting and Managing Debt ; Small Farm and Ranch Income Taxes , and more.

Purdue University’s Center for Food and Agricultural Business  has educational resources to explore, such as the New Ventures in Food and Agriculture in Indiana , which offers business planning assistance.

Purdue University Cooperative Extension offers strategic farm business planning tools for commercial farm producers.

Penn State University College of Agricultural Sciences has many Business Planning tools and information.  Penn State Cooperative Extension has a Developing a Business Plan page. Penn State also has a Farm Business Plan Template that allows you to plug in your information and create a basic business plan.

The U.S. Small Business Administration  works with local partners to counsel, mentor and train small businesses. It is worth getting to know their programs and connect with your local office.

The Martindale Center Reference Desk has an extensive  compilation of links to calculators, applets, spreadsheets, courses, manuals, handbooks, simulations, animations, videos and more. Martindale’s Agriculture Center can be of great use to farmers making business plans.

2. Enterprise Budgets

Enterprise budgets project costs and returns for a particular farm production practice. You can use enterprise budgets to make smart business management decisions, and to help you develop a viable business plan.

Enterprise Budgeting Tools of all sorts from the Agricultural Marketing Resource Center, including organic crop budgeting tools, many vegetable budgeting tools, the crop conversion tool for side-by-side crop comparisons, specialty crop and livestock budgets, hydroponics budgets, wind calculators, composting calculators, manure calculators, distillers grain budgets, biomass calculators and specialty foods calculators.

Introduction to Farm Planning Budgets for New and Beginning Farmers (Virginia Tech)

Importance and Use of Enterprise Budgets in Agriculture   (University of Nevada)

Enterprise Budgeting (Kerr Center)

Organic Specific Enterprise Budgets

• Enterprise Budgets and Production Costs for Organic Production (ATTRA)
• Organic Crop Production Enterprise Budgets and Information   (Iowa State)
• Organic Enterprise Budget (Kansas Rural Center)

More Enterprise Budget Pages and Information

• Enterprise Budgets List (Virginia Cooperative Extension)
• Dairy Sheep Enterprise Budget (Center for Integrated Ag Systems, UW-Madison)
• Crop Budgets (University of Maryland)
• Farm Management Enterprise Budgets (Ohio State)
• Alabama Enterprise Budget Summaries (Alabama A&M and Auburn) 
• Start developing your business plan with the resources at   https://www.beginningfarmers.org/farm-business-planning/
• You can find more gr eat farming resources at   https://www.beginningfarmers.org/additional-farming-resources/

How to Start a Farm: Your Complete Guide to Success

Candice Landau

25 min. read

Updated February 7, 2024

Free Download:  Sample Farming Business Plan Templates

Your day begins before the sun has even risen. You don your clothes and rain boots and set out into the crisp morning to feed the chickens and the cattle. It’s a clear morning and you feel good being outside, feeling frost crunch beneath your feet, watching the yard cat stretch and yawn lazily.

Already you’ve got a slew of tasks running through your head. Call the accountant about what to write off this year as a business expense. Check in with the neighbors about using that extra acre of land at the bottom of your property. Make sure to order a few more bags of chicken scratch. Fix the fence. Talk to the farm down the street about how they’re using their hilly, forested land to plan for a future logging operation.

It’s a lot, but it’s exciting that in between all the chores, there are so many opportunities for the future.

In this guide, I’m going to walk you through how to start a farm, as well as give you the resources to help you get started with a farming business today.

To supplement this guide, I interviewed two experienced farm hands: Gregory Heilers , previously an assistant farm manager, and Dr. Cindy Jones , the owner of Colorado Aromatics, a small herb farm in Colorado.

• The state of small farm business in the U.S.A.:

In the U.S., small farms are considered the backbone of the agricultural industry, with 97 percent of all U.S. farms being family-owned .

In order to be considered a small farm, the USDA Economic Research Service states that you need to gross less than $350,000 per year.

There are almost two million small farms in the U.S., a data set that includes retirement farms, off-farm occupation farms, and farm-occupation farms. You can learn more about the small farm classification system from the USDA’s website, but so long as you’re within the $0-$350,000 bracket, you can guarantee your operation will be classified as a small farm business.

• Why are you starting a small farm business?

Gregory Heilers has helped on two startup farms: his father’s 200-acre grass-fed beef and goat farm, which also includes an orchard, a berry patch, and a vegetable garden, with areas set aside for future logging; and on a seven-acre organically grown market garden in upstate New York.

Gregory believes that if you want to be successful, you should think about why you want to start your own farm before anything else. He says, ask yourself, “Is it for profit? A hobby? An altruistic contribution to society and/or animal welfare? Environmental stewardship?”

This is because your motivation for starting a farming business is the thing that will directly impact your strategy.

For Stacie and Larry Overman, starting Lavender Kisses Farm in Tennessee was a mixture of business opportunity and passion. At first, they only planned to plant lavender up their driveway, but as the couple learned more about lavender’s medicinal uses, they ultimately decided to invest in 64 acres of farmland and start a lavender farm.

The Overmans use their crops to make and sell dozens of lavender products, and aim to use some of their proceeds to support causes and organizations they care about.

The Overmans incorporated information about their farm’s mission, operating model and financial projections into a business plan that they could show to mentors with university agricultural programs, as well as banks, to demonstrate proof of concept. 

You will need to be able to answer questions about your motivation for starting a farming business, and questions like them as honestly as possible, so that you know what direction to go in. You may find that what you’re really hoping to start is a hobby farm that you can run as a side-business. If this is the case, beware that the tax implications for hobby farms are quite different that for business farms.

If you want to know whether or not you have what it takes to be a farmer, give this quiz a try . It was created by Taylor Reid, the founder of Beginning Farmers.

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Where to start if you’ve never farmed before:

If you didn’t grow up on a farm and haven’t worked on one, you may be wondering how on earth you’re going to make your dream a reality. This is a very real concern. The reality may prompt you to consider another line of work because farming is hard, and farming as a business is doubly so!

Get some real-world experience

For many modern-day farmers, especially those running large commercial farms in the Midwest, skills have been passed from generation to generation.

This isn’t the same for small startup farms. These farmers have had to acquire their skills in order to learn how to start farming, and they’ve either done so by apprenticing with other farmers, going to farm school, or doing some intense self-directed study (see the resources section at the end of this article).

According to Gregory Heilers, it’s essential to get that hands-on training. “While some claim you can learn how to be a farmer through YouTube videos or books (and those can be excellent tools), it’s very important to get some hands-on training. If you haven’t grown up around farms, you’ll want to buddy up to someone who knows what they are doing.”

Agricultural jobs are among the most dangerous in the world , so it’s no surprise that Gregory makes such a strong recommendation to learn from people who can teach you what you need to know, and share stories from their past, to bring the sometimes surprising dangers of working on a farm to life.

Gregory says, “Farm work can be extremely dangerous, so it would be great to hear some scary stories from an old timer (or, at least, someone who’s been around a bit) to let you learn from others’ mistakes and knock some sense into you before you find yourself in a potentially fatal situation.” If you need a very real scare to bring you to your senses, read this chilling article from Modern Farmer.

Aside from the dangers, there is a lot to learn about how to start a farm and how to start farming, not the least of which is how to balance the books and come out ahead! Of course, as with any profession, be careful who you choose as your mentor as there are both competent and incompetent farmers. Use the list of resources at the end of this article to help you find ways to get experience before you start your own venture.

If you are willing to put in the time, and learn the necessary farming and business skills to become the profitable small business farmer you know you could be, there’s good news. It’s doable!

Learn to farm as you go

Dr. Cindy Jones is a trained biochemist and herbalist. About eight years ago, she and her husband decided to start a small herb farm in their home state of Colorado.

Although Cindy had never farmed before, she had been an active gardener, growing the herbs she needed for her skin care product business , in her own large garden.

Starting a small herb farm seemed like a natural next step, even without any of the farming experience. “We came into farming with no background other than gardening and learned that farming is much different. We have learned a lot just from doing, networking, and talking to other farmers. We do a farmers market each Saturday during the summer so have met other farmers that way,” Cindy says.

There are of course other ways to fast track your learning, and Cindy is no stranger to setting aside reading time in order to better her business. “Recently, there have been a few books published that have been helpful, both ‘ Woman Powered Farm ‘ by Audrey Levatino and ‘ The Organic Medicinal Herb Farmer ‘ by Jeff Carpenter and Melanie Carpenter.”

Of course, not everything—including learning how to start a farm—can be learned from a book. Building good relationships and networking also go a long way to helping you pick up relevant skills, especially in the early days.

“Much of what I have learned has been from fellow lavender growers who are quick to share what works and doesn’t work for them. The United States Lavender Growers Association was founded specifically to help growers. I am one of the founding members of this group and we have many opportunities for sharing and learning through USLGA. Each year we extend our growing area slightly and each year we learn more about what we are doing. Someday we’ll get it right!” With a thriving business that relies on the farm’s produce, there’s no doubt Cindy’s already done just that.

Decide whether you’re starting a business or a hobby farm

If DIYing your farm learning experience is something you’re more interested in, hobby farming could be a better fit for you, and there’s nothing wrong with that. Hobby farming gives you the opportunity to experiment on a micro scale first.

For example, before you plant an acre worth of vegetables, plant a much smaller patch, and take the time to address and learn from problems as they arise. After a while, you’ll have developed the skills you need in order to expand. The University of Vermont Extension has a whole lot more to say about hobby farming versus running a farm as a business. If you’re interested in the topic, read their hobby farming business fact sheet .

• Step 1: Identify your niche

Even if you know exactly what type of farm you want to start, diving head first into just doing it is never a good idea.

Say you start the passion fruit farm you’ve been dreaming of for years in your home state in Florida. What if, as you’re getting ready to harvest your first batch, you then find out that all the demand for passion fruit is centered in Southern California, and not in Miami like you thought? Even if you do somehow manage to find affordable transport to get your goods to California, what if you then learn that locally-grown passion fruit is all the rage?

Within just one yield, you’re out of business and all because you didn’t know where your target market was located, or what their values were. If you’d taken the time to do your market research, you would have learned there was no demand for passion fruit in Florida. You would then have been able to choose to grow another product that was in demand, or start your farm somewhere else. Either way, you would have saved yourself a lot of trouble.

Don’t skip the market research phase

Learning to do market research is that step you really can’t skip, because while it certainly helps if you know what you want to grow, you’re still going to need to know who is going to buy your products, where you’re going to sell them, and how you’re going to do this, all while taking competitors into consideration.

Even if you know nothing about formal market research practices, you can do your own research by getting out to learn more about your customers, distribution channels, and about how to start a farm.

If you are already interested in a particular product, learn more about your local market. Check out farmers’ markets, meet other local producers, speak to customers as you shop. Better yet, survey farmers’ markets to see if any crops or products are under-represented.

Additionally, consult your local extension. Extension services provide localized resources for most aspects of gardening and small farming. For example, Oregon State University Extension has a “Small Farms” portal where you can find out more about crops, grains, soil, livestock, and much more.

The best part of these portals is their local bent. If you’re based in Oregon and want to know more about growing blackberries, you couldn’t find a better resource. Many University extensions also publish reports specific to different farm products. They may include estimates for production costs and returns, like this Crop Budgets page on the University of Maryland Extension Portal . As part of the research process, it is also highly recommended that you turn to your local state department of agriculture. Not only will they be able to provide you with the latest information on farming in your state, but they will also be able to help you figure out what licenses you need to register for, and give you local information on food safety, pesticides, market access and much more.

If you still have trouble choosing an enterprise, here’s a guide on how to pick a high-value crop , including detailed advice on how to evaluate your resources and personal considerations. If you’re willing to spend a bit of money, the Profitable Plants Digest has some niche-specific guides.

Keep an eye on emerging market trends as well. States that have legalized cannabis and hemp production have shown promise for small farmers in recent years, for example.

If you’d still like to know more about formal market research processes , you can read this complete guide.

• Step 2: Find the right farm land

Once you’ve figured out what you’re going to farm, you’re going to need to decide whether to buy land or lease it.

If you buy land, you’ll have complete control over its use, but you will also assume financial risk for the success of your enterprise. This is one of the major reasons leasing land is a popular option for many new farmers. It minimizes financial risk and requires reduced capital at the outset.

If you’re interested in leasing farmland, consider finding people who own land , but who aren’t doing anything with it. Many landowners with arable land aren’t using it for farming but could benefit from it either in the form of tax credits associated with the agricultural use or in order to raise property value. If this model interests you, read “No-Risk Ranching” by Greg Judy.

If you can’t find anyone to lease your land, there are still a few options open to you, including incubator farming , rooftop farming , and SPIN farming .

Buying your own land

Buying a farm, or farmland, isn’t for everyone learning how to start a farm, but if you feel like it’s the best option for you, there are some handy ways to figure out where to start your search. Ann Larkin Hanse, writing for Mother Earth News, suggests you narrow your search area by considering only those areas that have off-farm employment options (or markets for your farm products and necessary farm support services).

“It’s helpful to get an old-fashioned paper road map and draw two circles: one with the off-farm job in the center and a radius as long as the distance you are willing to commute, the other with your customer base in the middle and a radius as long as the distance you’re willing to travel to market,” says Ann. “Where the circles overlap is where you should look for land.”

Things to consider when looking for land

Before you find the right people to help you buy land, it’s worth familiarizing yourself with the things you’ll need to consider as you browse. At the very least this will include:

Your proximity to markets: Consider where you’re going to sell your products, or how you’re going to reach sales channels. If they’re hundreds of miles away, you’re going to struggle much more getting to market. Often it’s easiest to start local and go from there. You will likely already have completed your market research by now and should have a pretty good idea of where your market is located. Use the above diagram to help you determine the “right” area to start your land search.

Access to water: It’s important to make sure you have a steady supply of water, so be sure to ask plenty of questions and consider all of your options. How will you provide water for the plants, animals, and processing needs of your business?

If the land you are purchasing has a well, it is always good to obtain information about the well, such as type, depth, output, and age. You may also want a water quality report.

If the property is connected to a municipal water supply, knowing the price of the service can also help you determine the feasibility of a particular enterprise. If you have to pay per gallon or cubic foot, you might reconsider trout farming and try a camel dairy instead.

Soil quality: As with water, high-quality soil is a must for most farmers. Ask the current owner for soil test results. Soil tests are often available through the local extension service and sellers should expect to provide test results.

Soil testing can be an important predictor of production capacity and expenses. Accurate predictions of fertilizer needs for specific crops can be made based on the test results, which breaks down to an actual dollar value when growing. For livestock, different soil can even impact growth and health, sometimes requiring supplementation.

Facilities and Infrastructure: Depending on the type of farm you want, you may also need different outbuildings. A produce stand or farm shop might require an up-front investment. What about your livestock? Does the land include shelters for the animals you plan to raise? What about processing facilities? Different crops and animal products will require different processing and storage facilities.

Make sure to also think about things that aren’t directly related to the property. What sort of transportation and roads are available to and from the area you’re farming? While you’ll want a balance of easy access and proximity to your sales markets, keep in mind that busy roads can have an impact on livestock, soil, and water quality.

Neighbors: These can be a great resource, or a great hindrance, depending. Do they produce farm goods? What are their production practices? Are they compatible with yours? If you plan on starting an organic vegetable farm, but your neighbors spray their Christmas tree plantation with harsh pesticides and herbicides several times a year, it could dramatically impact your success.

Operating a successful farming operation will happen a lot more easily if you have a good relationship with your neighbors. Farm manager Greg Heilers says, “Meet your neighbors. Offer to help your neighbors. Be a good neighbor. Farming used to be so much more about community. It is so much easier to be successful as a farmer if you have even the slightest bit of support from your community.

“For example, if you’re a beef cattle farmer, when a calf or cow or bull breaks loose and enters a neighbor’s field, do you want them to a.) keep your animal and never come asking to see if you had an animal get loose, b.) sell it off immediately and keep the truth from you, c.) come knocking and ask if you have any cattle or d.) recognize your cattle instantly and drive ’em back to your place for you?”

In this same vein, make sure that any property you are looking at has good fences. Installing your own will likely cost a lot, and if you think you can do without good fences, remember that it may well impact the relationship you have with your neighbors. They say “good fences make good neighbors,” so find a place that has them and you won’t risk upsetting the neighbors if your cattle or goats escape onto their luscious looking bean patch.

You may even be able to cultivate a relationship with your neighbors that goes beyond just agreeing to perimeter fencing. In a best-case scenario, you might find that your farms’ outputs (especially those that are not your primary value-added product, such as manure), can be valuable inputs on your neighbor’s farm, or vice-versa.

• Step 3: Getting your farm financed

If—like most small farmers—you haven’t inherited a farm, finding the money to learn how to start a farm, and to turn your dream into a reality is going to be a core part of your go-to-market strategy.

Research your funding options

Cornell University’s guide to planning and funding your farm business is a good place to begin. It will walk you through different financing options, including self-financing options . What it won’t do is recommend you take out a credit card loan. In fact, this guide specifically suggests this is the one thing you don’t do, as you’ll be best served to invest any profits straight back into the farm, and if you don’t pay the loan back fast enough, your interest rate will spiral out of control.

Bplans also offers a comprehensive guide to funding a new business to help you think through your options.

That said, make sure to be realistic when you initially apply for funding. If you can avoid buying expensive equipment at the start, do it. Cindy Jones, the owner of Colorado Aromatics, and a small herb farm in Colorado says, “Starting a small farm is a lot of physical work and there is little equipment available to help growers on a small scale so much of the work is by hand […] We finally invested in a small tractor this year to help with tilling, ditching, and post hole digging, so some of our early plantings of perennials such as lavender are not spaced properly for a tractor.”

Once your business takes off, you can buy the things that will make life easier. And even if you don’t have a lot of cash on hand at this later date, a bank will be more likely to give you a loan if they can see you are running a profitable operation.

• Write a farm business plan

For anyone seeking a loan, writing a business plan is going to be essential. This isn’t any different for an aspiring farm owner. Even if you’re not seeking  a loan, a business plan is a useful tool to help you figure out which of your ideas are feasible, and to remind you of your goals. You can find out more about writing a business plan on our Business Planning Guide page. If validating your business ideas interests you more than funding at this stage, you might prefer to opt for a Lean Plan —or a shorter, more nimble planning process.

Look at sample farm and agriculture business plans

Not quite sure how to format your farming business plan? Take a look through our library of free farm-specific sample business plans , including a fruit farm business plan, a botanical perennials business plan, a feed and farm supply plan, a hydroponics business plan, and more!

Obviously, before you sit down to write your business plan, you’ll need to determine your cost of production . You’ll also need to know how much your rent/lease will cost you.

• Step 4: Market and sell your agricultural products

There are many different ways to market your farm products. While farmers’ markets are probably the most obvious example that comes to mind, there are a number of other channels you can use to market and sell your products.

If you have enough traffic nearby, you might find that a produce stand or farm shop right on your own property is a good option.

Another trending model is to sell your products through a CSA (which simply stands for “Community Support Agriculture”), in which patrons purchase a “share” of the season’s yield for a set price in exchange for regular deliveries of the products as they are ready. This model is especially popular because you receive payment at the beginning of the season, which can help reverse the notorious cash-flow issues faced by most farm businesses.

You could even find a local growers’ cooperative that allows you to team up with other producers to sell your products under a united brand.

Finally, even though the age of the supermarket has made retail sales of farm goods more difficult, there are still plenty of small, local health and natural food stores with whom you could partner, with the advantage of their often fiercely loyal customer bases.

Start by putting together a marketing plan. If you’re creating a business plan you’ll work on your marketing plan as part of that process.

• Learning resources for farm businesses:

Use the resources below to find out where you can learn more about how to start a farm, farming, and where you can gain some hands-on experience.

ATTRA : Attra has a great database of internships and apprenticeships for aspiring farmers. Usually, room and board are offered in addition to a small stipend. The best part of the site is the ability to search by state. That said, there are so many internships and apprenticeship programs around the U.S.A., that if you’re looking for something more niche, you can check out this list of websites that offer a variety of working opportunities.

Helpx.net : On this site, you can find a variety of small farms, rural B&Bs, and so on, where you can work in exchange for room and board (no cash stipend) and learn the ropes of your intended trade through informal and formal internships/apprenticeships. This is a global site.

WWOOF : WWOOF is a pay-per-country list directory of organic farms around the world. Again, room and board are included, but usually no cash stipend. Work through WWOOF is usually considered an informal or semi-formal internship.

The Cornell Small Farms Program : If you’re looking for enterprise-specific books, fact sheets, and articles on farming, this is a great place to start, especially if your starting point is bulking up on as much knowledge as possible.

The 20 Best College Farms : If you’re interested in finding a college where you can get hands-on experience and a modern farming education, Best College Reviews has a list of places you might want to start looking. These top 20 colleges were selected based on a number of criteria, including farm size, integration with the main campus, sustainability, courses taught at the farm, students using the farm, and integration with the community.

Other resources

Publishing houses: While Amazon does stock a handful of good books on starting a farm business, you’ll find that your particular niche might not be included. If this is the case, there are other options, including going straight to publishing house websites. The Northeast Beginning Farmers Project recommends browsing Acres U.S.A. , Chelsea Green Publishing , and Storey Publishing .

Farming magazines: There are also a number of farming magazines you can subscribe to. This is a good way to stay on top of the latest farming buzz, as well as to find out more about farming techniques and hacks, equipment, and best practices. Some popular magazines include Growing for Market , Acres U.S.A (they put on a great conference each year as well), Graze , the Stockman Grass Farmer , and the Packer . This is by no means a comprehensive list, so make sure to do your own research as well, perhaps in relation to your particular niche.

Online communities: There are also a number of great online communities that can help you get started, or where you can simply ask questions and get answers, directly from people in-the-know, or who like you are dabbling. Permies is now the largest permaculture site on the internet, and a great resource for all manner of interests, from homesteading through raising animals.

Although based in the U.K., the Farming Forum has a lot of really great conversations around topics like weather, livestock and foraging, machinery and much more. The slightly messier U.S. equivalent of this site is Agriculture.com’s community forum .

Farm Chat is another good forum for anyone interested in commercial farming.

Free Farm and Food Production Sample Business Plans : The 14 sample business plans in this section should give you an excellent sense of how to write your own small farm business plan.

• Next steps for starting a small farm business

In the wise words of Gregory Heilers, “There is always something else to do. You’ll run yourself ragged trying to get it all done. Prioritize, organize, and build efficient systems.”

A great place to start is writing a business plan. To simplify the process and ensure you include everything needed to start a farm, check out our free business plan example and template .

Clarify your ideas and understand how to start your business with LivePlan

Candice Landau is a marketing consultant with a background in web design and copywriting. She specializes in content strategy, copywriting, website design, and digital marketing for a wide-range of clients including digital marketing agencies and nonprofits.

Table of Contents

• Where to start if you’ve never farmed before:

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Horizon Farm Credit

How to write a farm business plan.

Getting a loan for your agricultural business — no matter the size or scope — means asking the lender to have faith in your ability to manage a full-fledged operation and your finances in a healthy way. The best way to prove that is by coming prepared with a farm business plan proposal.

No pressure, right? While it may seem daunting and scary, we’ve broken down the steps to writing the perfect business plan below. Read on to learn more and check out the end of this guide for additional resources to help you craft a top-notch business plan.

Creating a Farm Business Plan

You can set yourself up for success — both in business and with your lender — by having a detailed business plan for your farming operation. It doesn't need to be pretty, but you do have to prove that you're willing to put the time and effort into creating a well thought out course of action for your operation.

Are you already operating but don't have a plan? That's okay! It's never too late to put extra thought into how your operation will continue to fulfill your livelihood.

What to Include in your Agricultural Business Plan

Whether you're a new farmer looking for a loan , or a seasoned grower that needs funding for a new agribusiness , there are a few things that you want to make sure you include in your agricultural business plan.

Title/ Cover Page

Keep it simple on the cover page. The most important information here is accurate contact information so your lender can get in touch with you easily. Include your mailing address, phone, email, and fax if you have it.

Business Overview

Although it will be the first page of your farm plan, this will be the last section that you write, since it acts as a summary of all your key points in your plan. Remember that this is the first section that your lender will read , so they’ll expect to see all of the highlights that make approving this loan a good financial decision for both you and the lending organization. Include points about expansion plans, market opportunities, financial trends and projections in a short and easy to read summary. Treat this section as if you're telling a stranger about your operation and you want to give them an overview of what you do and what sets you apart from other businesses in your industry.

What are your key business objectives? In this part of your farming business plan, you'll want to describe your products and services your business will offer. 

Start by describing how your business will operate and include what makes your business unique. Provide details regarding the size of the operation, location, and note any expansion plans.     

Who is your target audience? Who will benefit from your products or services produced from your farm business?   

Think about the desire and drive behind why you want to pursue this business venture. It is common to connect your business why with your mission statement.  

If applying for a loan:

If you’re starting a new operation, clearly state how much money you are applying for, how you plan to use it and how it will make your business more profitable, thereby ensuring repayment. 

Creating your own farm business plan will take time and effort. As you complete sections, send them to partners or colleagues to review as you go along. If you have any questions on farm business plan examples or more specifically what lenders are looking for, give us a call. 

Business Management and Organization

Business history:.

How long have you been in operation? Are you starting from scratch or did the business have previous owners?

Strengths and Weaknesses:

Describe the strengths and weaknesses of your business.

Implementation Timeline:

What is your plan of action? What specific tasks need to be completed in order to reach your business goals?   

Goals are often broken into two categories — short term and long term. Short term goals are focused on actions likely to be achieved in 1-3 years, and long term goals are likely accomplished in 3-10 years, or beyond.  

Risk Management:

What risk management practices do you have in place? Think about your business contingency plan, insurance coverage , regulatory requirements, and your market and production diversification.   

For some people, this can be the most fun or the most challenging part of creating your small farm business plan. Before thinking about your marketing tactics, think about the data you need to make informed business decisions .  

Market Share:

Researching your target market is key to understanding what opportunities are available in the marketplace. Is there current market share to gain? How will you remain competitive as a farm business? Who are your biggest competitors in the marketplace? Do you anticipate any obstacles?    

How will your farm business generate farm income? Think about how your product will be sold and priced? What is your projected or estimated income? How are you going to gain commitments and contracts to sell your products? 

What marketing strategy will your business use to reach your business goals? As a small business, will you utilize tools like social media, email marketing, and/or ecommerce to maximize your marketing efforts to connect with your target audience? Check out our blog on how to create a marketing plan for your farm and download a free template!

Arguably, the most important part of your agricultural business plan is how you will finance your operation. In this section, make sure to take time to complete your balance sheet. The balance sheet will identify your cash-basis income trend, breakeven analysis, and sensitivity analysis. This statement is a summary of what you own vs. what you owe. 

The income and expenses statement shows your business’ profit and loss over a period of time, determined by taking all the revenue and subtracting all expenses. This will show the profitability of your operation. 

Business Advisors

Business advisors are a group of professionals who serve as subject matter experts to enhance productivity, business, and on-farm profitability, while offering technical insight for your farm operations. Surrounding yourself with people who know how to support your farming venture will help to support and find your long-term business success. You will want to organize your team that might consist of an attorney, accountant, lender, insurance provider, and consultants in the last section of the business plan.  Did you know Farm Credit offers services for Accounting, Records, Payroll and Taxes, Appraisal, Business Consulting, Farm Succession Planning, and more? Give us a call at 888.339.3334 or view our full list of services here .

Congratulations! You’ve made it through each section of how to write your business plan! If you’re interested in more coaching on your business plan, check out the resources below or give us a call to connect with a local lender — we're happy to help. 

Additional Resources to Help You Write Your Farm Business Plan

Request your Business Plan Template and replay of our How to Write a Business Plan webinar here.

Click here to request a mentor with SCORE Small Business Resources.

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Starting a Small Farm: A Complete Beginner’s Guide

Starting a small farm can be a challenging and rewarding experience. As someone who has started their own small farm, I can tell you it takes a lot of hard work and dedication.

Still, it is also incredibly fulfilling to see your crops grow and your animals thrive. ,,

Whether you’re looking to start a small farm for personal consumption or to sell your products at local markets, there are a few key steps you’ll need to take to get started.

The first step in starting a small farm is to identify your niche. What do you want to grow or raise? Are you interested in sustainable agriculture, organic farming, or specialty crops?

Once you’ve identified your niche, you’ll need to find suitable land to start your farm.

This can be challenging, especially if you’re on a tight budget. Still, various resources are available to help you find affordable land.

Once you’ve secured your land, you’ll need to develop a business plan and figure out how you’ll finance your farm. This may involve applying for grants or loans or finding investors interested in supporting your vision.

You’ll also need to consider marketing your products and building relationships with local consumers and businesses. With the right plan and hard work, starting a small farm can be fulfilling and profitable.

Assessing Your Goals and Resources

Defining Your Goals

Before starting a small farm, it is essential to define your goals. Ask yourself what you want to achieve by starting a farm. Do you want to grow crops, raise animals, or both?

Are you looking to make a profit or just have a self-sustaining homestead? Do you want to sell your products locally or nationally?

Defining your goals will help you determine the size and scope of your farm, what resources you will need, and what steps you need to take to achieve your goals.

Assessing Your Resources

Assessing your resources is also an important step in starting a small farm. You need to determine what resources you have available to you, such as land, water, equipment, and capital.

Start by evaluating your land. Do you own land or will you need to lease or purchase it? Is the land suitable for farming, or will you need to make improvements? Consider the soil quality, drainage, and access to water.

Next, evaluate your equipment needs. Do you have the necessary tools and machinery to operate a farm? If not, what equipment will you need to purchase or lease?

Finally, assess your financial resources. Starting a small farm can be expensive, so it is important to determine how much capital you have available and how you will finance your farm.

Consider applying for grants or loans from organizations like the USDA or local banks.

READ ALSO: How Farmers Can Earn Money From YouTube (Complete Guide)

Choosing a Farming Method

Conventional Farming

When it comes to conventional farming, the focus is on maximizing yield and minimizing costs. This method relies heavily on synthetic fertilizers, pesticides, and herbicides to control pests and maximize crop yields.

Conventional farmers also use genetically modified seeds engineered to resist pests and diseases.

While this method can be effective in producing high yields, it can also negatively impact the environment and human health.

Organic Farming

Organic farming is a method that relies on natural processes to cultivate crops and raise livestock. This method avoids the use of synthetic fertilizers, pesticides, and herbicides and instead focuses on building healthy soil through the use of compost and other organic matter.

Organic farmers also avoid using genetically modified seeds and instead rely on natural methods to control pests and diseases.

While organic farming can be more labor-intensive and may result in lower yields, it has many benefits for the environment and human health.

Permaculture

Permaculture is a method of farming that focuses on designing sustainable ecosystems that mimic natural systems.

This method involves using a variety of plants and animals that work together to create a self-sustaining ecosystem.

Permaculture farmers focus on building healthy soil through the use of compost and other organic matter, and they avoid the use of synthetic fertilizers, pesticides, and herbicides.

This method can be highly effective in creating a sustainable and resilient farm ecosystem. When choosing a farming method, it’s essential to consider your goals and values as a farmer.

Conventional farming may be a good choice if you’re looking to maximize yields and minimize costs, but it can negatively impact the environment and human health.

Organic farming may be a better choice if you’re looking to build healthy soil and cultivate crops in a way that is sustainable and environmentally friendly.

Permaculture may be the best choice if you’re looking to create a self-sustaining ecosystem that mimics natural systems.

Ultimately, the choice of farming method will depend on your goals, values, and resources as a farmer.

READ NEXT: Farm Insurance vs. Homeowners Insurance: A Quick Comparison Guide

Selecting Your Farm Site

When starting a small farm, choosing the right location is crucial to success. Here are some factors to consider when selecting your farm site:

Climate and Soil

The climate and soil of your farm site will determine which crops and livestock you can raise. Research the average temperature, rainfall, and growing season length of your area.

You can also test your soil to determine its pH level, nutrient content, and texture. This information will help you decide which crops will thrive on your farm.

Water Resources

Access to water is essential for any farm. Look for a site with a reliable water source, such as a well or a nearby stream.

You should also consider the quality of the water, as it can affect the health of your crops and livestock. If you plan to irrigate your crops, make sure your site has the necessary infrastructure in place.

Access to Markets and Customers

Consider the proximity of your farm site to potential markets and customers. If you plan to sell your products at farmers’ markets or to local restaurants, you’ll want to be within driving distance.

You should also research the demand for your products in your area to ensure a viable market for your farm.

By taking these factors into account, you can select a farm site that will set you up for success in the long run.

RELATED: Is Farm Insurance Necessary? Here Are The Answers!

Planning Your Farm

Developing a Business Plan

To start a small farm, it’s crucial to have a clear idea of what you want to achieve and how you plan to achieve it. Developing a business plan is an essential step in this process.

A business plan is a written document that outlines your goals, strategies, and financial projections for your farm. It can help you secure funding, attract investors, and make informed decisions about your farm’s future.

When developing a business plan, consider the following questions: What crops or livestock will you produce?

Who is your target market? How will you market your products? What are your start-up costs and ongoing expenses? What are your projected revenues and profits?

Creating a Farm Layout

Creating a farm layout is another important step in planning your farm. A farm layout is a map or diagram that shows the location of buildings, fields, and other features on your farm.

It can help you optimize your use of space, improve efficiency, and reduce costs. When creating a farm layout, consider the following factors: What is the size and shape of your land? What is the topography and soil type?

What are the climate and weather patterns in your region? What is the water source and availability? What are the zoning and land use regulations in your area?

Choosing Crops and Livestock

Choosing the right crops and livestock for your farm is crucial to success. You need to consider factors such as market demand, climate suitability, and profitability.

Here are some tips to help you choose the right crops and livestock for your farm:

• Research market demand and trends for different crops and livestock in your area.
• Consider your climate and soil type when choosing crops. Choose crops and livestock that are well-suited to your level of experience and resources.
• Consider the profitability of different crops and livestock, including the cost of production and potential revenue. By developing a business plan, creating a farm layout, and choosing the right crops and livestock, you can set yourself up for success when starting a small farm.

READ NEXT: The Key to Safe Towing: Understanding Trailer Tongue Weight

Financing Your Farm

Finding Funding Sources

As a small farmer, it can be challenging to find funding sources for your farm. However, there are several options available to you.

The USDA offers various programs and services to help farmers get started or grow their operations, including farm loans, crop insurance, conservation programs, and disaster assistance.

Additionally, there are private lenders, grants, and crowdfunding platforms that you can explore. When researching funding sources, it’s essential to consider the eligibility requirements, interest rates, repayment terms, and any other fees associated with the loan or grant.

It’s also crucial to have a solid business plan to demonstrate to lenders or grant providers that you have a clear vision for your farm’s success.

Applying for Loans and Grants

Once you’ve identified potential funding sources, it’s time to start the application process. Applying for loans and grants can be a time-consuming and challenging process, but it’s essential to be thorough and accurate in your application to increase your chances of approval.

When applying for loans, you’ll need to provide financial statements, tax returns, and other documentation to demonstrate your ability to repay the loan.

You must also provide a detailed business plan outlining your farm’s goals, objectives, and financial projections.

When applying for grants, you’ll need to provide detailed information about your farm and explain how the grant will help you achieve your goals.

You may also need to provide financial statements, tax returns, and other documentation to demonstrate your eligibility for the grant.

In conclusion, finding funding sources and applying for loans and grants can be a challenging but necessary process for small farmers.

By researching your options and being thorough in your application, you can increase your chances of securing the funding you need to start or grow your farm.

Managing Your Farm

One of the most important aspects of running a successful farm is managing it effectively. This involves managing your finances, marketing your products, and managing your land and livestock. In this section, I will discuss each of these areas in more detail.

Managing Your Finances

Managing your finances is crucial to the success of your farm. You need to keep track of your income and expenses and ensure you stay within your budget.

This can be done using financial software or by hiring an accountant.

It is also important to have a solid business plan in place. This will help you stay on track and make informed decisions about your farm. Your business plan should include your goals, marketing strategy, and financial projections.

Marketing Your Products

Marketing your products is another key aspect of running a successful farm. You need to identify your target market and develop a marketing strategy that will reach them.

This can include advertising, social media, and attending farmers’ markets and other local events.

You should also consider offering CSA (Community Supported Agriculture) shares. This is a great way to build a loyal customer base and secure a steady source of income.

Managing Your Land and Livestock

Managing your land and livestock is essential to the success of your farm. You need to ensure that your land is being used efficiently and that your livestock is healthy and well-cared for.

This involves regular maintenance and upkeep of your farm, including fertilizing, planting, and harvesting. You should also have a plan in place for managing pests and diseases.

When it comes to livestock, it is important to provide them with proper nutrition, shelter, and medical care. You should also have a breeding plan in place to ensure the sustainability of your herd or flock.

Jack is the owner, chief editor, and senior writer of this website.

Machinery, engines, and farming have always been a passion of his since he was a young boy. Growing up on a small farm in rural America, he learned the value of hard work and dedication from an early age.

After completing his degree in Engineering, he decided to follow his dream and became a farmer in 2009.

Since then, he has gained a wealth of knowledge and experience in the field. He has grown a variety of crops, tended to farm animals, and worked with all sorts of farming machinery. Continue reading…

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#34 Business Planning

Back to the Guide to Urban Farming Table of Contents>>

What is a Business Plan?

A business plan is a document that summarizes the operational and financial objectives of a business and contains the detailed plans and budgets showing how the objectives are to be realized.  Developing a business plan is essential to begin to analyze if your idea for a farm is realistic, achievable and in what time frame. Additionally, a business plan is often required to receive bank loans to start your business or convince private investors to invest in your farm.  Whether you plan to setting up a not-for-profit or for-profit urban farm, a business plan is essential in planning the organization and laying our a strategic approach to getting started. A good business plan contains the following:

• Resumé or brief explanation of your background and relevant experience
• Information on your legal structure and management team
• Current balance sheet
• Your business vision, mission statement, key values, and goals
• Production plans
• Marketing plans
• Estimated start-up costs
• A projected income statement with a written explanation of your budget assumptions
• A projected balance sheet with a written explanation of your budget assumptions
• A sensitivity analysis showing the business’s break-even point
• A one-to-two-page executive summary if your business plan is long (more than 10 pages)

Helpful Publications for Writing a Business Plan

The NY FarmLink’s publication, Starting an Agricultural Business? , is a pre-planning guide to help beginning farmers focus their thoughts before writing a business plan and is available online at https://dyson.cornell.edu/wp-content/uploads/sites/5/2022/04/Cornell_StartingAgBizPrePlanning2021_e-VD-2.pdf or by calling (800) 547-3276.   The Sustainable Agriculture Research Education (SARE) publication, Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses , includes sample worksheets and exercises to help beginning farmers develop a business plan and is available for free download or for purchase online at http://www.sare.org/Learning-Center/Books/Building-a-Sustainable-Business .  

Getting Help Writing a Business Plan

Cornell Cooperative Extension offices often staff a farm management or small business development educator who can help you develop a business plan.  The type of programming in each county is unique, however, and you should contact your local office, which can be found online at https://smallfarms.cornell.edu/contact/local-contacts/ . NY FarmNet ( www.nyfarmnet.org ) has business plan writing publications in addition to several farm counselors throughout the state who offer free and confidential help on any topic of concern, including finances, farm changes, farm transfer, natural disaster, personal stress, family communication, and marital conflict. The New York State Small Business Development Center ( www.nyssbdc.org ) is a network of 23 regional centers delivering business counseling and training free of charge to New Yorkers who want to start a business or improve the performance of an existing business. The New York State License Center Business Wizard website ( https://www.its.ny.gov/nys-license-center-business-wizard ) will help you find the New York State business permits you may need. The Empire State Development’s Entrepreneurial Assistance Program ( https://esd.ny.gov/entrepreneurship-assistance-centers ) is part of New York State’s economic development agency and has 9 centers across the state to provide specialized help to women, minority group members and persons with disabilities who are starting or operating an early stage business. The Federal Small Business Association ( https://www.sba.gov/offices/district/ny/new-york ) is a federal agency with offices throughout the state providing counseling services and loan guarantees.  They have a special emphasis area to work with women, minorities, veterans, and businesses involved in international trade. SCORE ( www.score.org ) is a non-profit organization offering free advice and training using experienced volunteers.  Check their website for chapters in your area. The Groundswell Center for Local Food and Farming , based in Ithaca, NY, offers an eight-session Farm Business Planning Course, in collaboration with Cornell Cooperative Extension of Tompkins County and Alternatives Federal Credit Union’s Business CENTS (Community Enterprise Network and Training Services).  This course covers assessing resources, enterprise planning basics, financial planning and marketing.  Visit http://www.groundswellcenter.org/ or contact [email protected] or (607) 319-5095 for more information. Cornell Small Farms offers 5-7 week long interactive, online business planning courses for farmers on topics such as marketing, financial planning and general business planning. Visit  https://smallfarms.cornell.edu/online-courses/ The Greenhorn’s Guide is a unique resource for young, beginning farmers – not specific to urban farming. The goal of the publication is to help young people make the transition into a career of farming. It is a compilation of references about farming, including where to find an apprenticeship to how to preserve food and repair a tractor. An important aspect of the guide is that it seeks to forge a connection between young farmers and older farmers who are more experienced and can act as mentors.  www.thegreenhorns.net. Business Planning Resources for Urban Farmers For urban-specific business planning information, “The Urban Farm Business Plan Handbook” from the Partnership for Sustainable Communities provides a framework for developing an urban farm on cleaned brownfields or vacant sites, and includes guidance on marketing, operating, and financial strategies.  This handbook and affiliated worksheets are available for free download at https://www.epa.gov/brownfields/resources-about-brownfields-and-urban-agriculture . Various urban farming educational programs such as Just Food’s Farm School NYC (see Factsheet #50, General Resources) also provide information on urban farm business planning.  Contact individual organizations for details.

Tara Hammonds

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Agricultural Business Plan Template

Written by Dave Lavinsky

Agricultural Business Plan

You’ve come to the right place to create your Agricultural business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Agricultural companies.

Below is a template to help you create each section of your Agricultural business plan.

Executive Summary

Business overview.

Schrute’s Roots is a startup agricultural business that produces crops for Scranton, Pennsylvania and the surrounding area. Schrute’s Roots will specifically grow root vegetables, including potatoes, onions, and beets. The company’s mission statement is to work hard to grow these vegetables organically and without any chemicals. We will sell our produce at local farmer’s markets as well as to local restaurants and other establishments that would like to use or sell our produce.

Schrute’s Roots is owned and led by Dwight Schrute. Dwight has been a farm operations manager for the past twenty years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, Dwight desired to run his own agricultural farm business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

Product Offering

Schrute’s Roots grows a variety of root vegetables for Scranton, Pennsylvania and the local community. All produce will be organically grown. We alternate our crops, so the exact crops that are grown will be dependent on the season and current crop cycle. Some crops that we plan to grow include the following:

Customer Focus

Schrute’s Roots will primarily serve the residents and businesses of Scranton, Pennsylvania and the surrounding areas. Any individual or establishment that is interested in purchasing our crops is welcome to partner with us. We will sell our crops to individuals at local farmer’s markets and directly to wholesalers, grocery stores, and restaurants.

Management Team

Schrute’s Roots’ most valuable asset is the expertise and experience of its founder, Dwight Schrute. Dwight has been a farm operations manager for the past twenty years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, Dwight desired to run his own agricultural business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

Success Factors

Schrute’s Roots will be able to achieve success by offering the following competitive advantages:

• Management: Schrute’s Roots’ management team has years of experience in agricultural operations, which will prove invaluable to all aspects of the business.
• Relationships: Having lived in the community for twenty years, Dwight Schrute knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for Schrute’s Roots to build brand awareness and an initial customer base.
• Quality products at affordable pricing: Schrute’s Roots will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.

Financial Highlights

Schrute’s Roots is currently seeking $750,000 to start the company. The funding will be dedicated towards securing the land and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs and marketing costs. Specifically, these funds will be used as follows:

• Land: $200,000
• Equipment: $200,000
• Three Months of Overhead Expenses (payroll, utilities): $150,000
• Marketing Costs: $100,000
• Working Capital: $100,000

The following graph below outlines the pro forma financial projections for Schrute’s Roots.

Company Overview

Who is schrute’s roots.

Schrute’s Roots is a startup agricultural business that produces crops for Scranton, Pennsylvania and the surrounding area. Schrute’s Roots will specifically grow root vegetables, including potatoes, onions, and beets. The company’s mission is to grow vegetables organically and without any chemicals. We will sell our produce at local farmer’s markets as well as to local restaurants and other establishments that would like to use or sell our produce.

  Schrute’s Roots is owned and led by Dwight Schrute. Dwight has been a farm operations manager for the past twenty years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, Dwight desired to run his own agricultural business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

Schrute’s Roots’ History

Dwight Schrute incorporated Schrute’s Roots as an S-corporation on May 1st, 2023. The operations aspects of the business will be run from Dwight’s home, while the agricultural aspects will be run from the land purchased for crop production.

Since incorporation, the company has achieved the following milestones:

• Found land to grow the crops and wrote a letter of intent to purchase it
• Developed the company’s name, logo, and website
• Determined agricultural equipment and inventory requirements
• Began recruiting key employees

Schrute’s Roots’ Services

Industry analysis.

The agricultural industry is vital to all communities. The crops and products grown by local farmers and crop production companies are essential to the health of local communities. They provide jobs to the locals and result in locally grown food that the nearby residents can purchase. Larger agriculture businesses do not offer these benefits to smaller communities. Because of this, there has been a greater demand and emphasis on the sustainability of local agricultural companies that can directly benefit the local community.

Furthermore, market research shows that local communities are demanding that crop production and other agricultural companies grow their products organically. Organic foods are much healthier for individuals to eat because they provide more nutrition and aren’t laced with chemicals. Improved technology and research into organic methods are making this form of crop production more profitable and sustainable.

Therefore, with the increasing demand for local organic farms, we are confident that Schrute’s Roots will succeed in the local market and benefit the residents of the Scranton area.

Customer Analysis

Demographic profile of target market.

Schrute’s Roots will serve the industries and community residents of Scranton, Pennsylvania and its surrounding areas. We will sell our produce at farmer’s markets to individuals and directly to establishments that wish to partner with us.

The demographics of Scranton, Pennsylvania are as follows:

Customer Segmentation

Schrute’s target audience segments include:

• Individuals
• Restaurants
• Grocery Stores

Competitive Analysis

Direct and indirect competitors.

Schrute’s Roots will face competition from other agriculture businesses. A description of each competitor company is below.

AgraFarm is one of the largest raw food manufacturers in the U.S., owning a 15,000-acre farm for agriculture. It has well-established connections with big FMCG companies and has been thriving in the agricultural industry for 12 years. It also has automated equipment and machines, which helps in improving its operations and reducing costs. AgraFarm is also known for delivering large orders at the right time without delay.

BDA Farms was established in 1998. BDA Farms is a very well-known company that provides good quality organic produce to companies. It also has a very good brand value, and its product packaging is second to none. BDA Farms is located in Scranton, Pennsylvania, and it has a very effective distribution and supply chain network.

BeetFarms was initially a beets producer company and then branched out to other vegetables. BeetFarms is now one of the ten largest vegetable producers in the state. The Company’s packaging and processing units are located in Scranton, Pennsylvania. It has recently acquired other local vegetable producers, expanding its operations as well as limiting the variety of farms producing vegetables for the community.

Competitive Advantage

Schrute’s Roots will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Schrute’s Roots will offer the unique value proposition to its clientele:

• Production of high-quality organic produce
• Affordable pricing
• Providing excellent customer service and customer experiences

Promotions Strategy

The promotions strategy for Schrute’s Roots is as follows:

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content in terms of various forms and technologies of commercial cultivation and post customer reviews that will increase audience awareness and loyalty.

Website/SEO

Schrute’s Roots will develop a professional website that showcases pictures of the farm and the products we will grow. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Industry Events

By attending regional farming conferences, association meetings, and symposia, Schrute’s Roots will network with agricultural industry leaders and seek referrals to potential customers.

Direct Mail

The company will use a direct mail campaign to promote its brand and draw customers, as well. The campaign will blanket specific neighborhoods with simple, effective mail advertisements that highlight the credentials and credibility of Schrute’s Roots as a high-quality crop production agriculture business.

Schrute’s Roots’ pricing will be competitive. Pricing will be about 50% lower than retail prices to allow wholesalers and retailers to earn their margins.

Operations Plan

Operation Functions: The following will be the operations plan for Schrute’s Roots.

• Dwight Schrute will be the Owner and President of the company. He will oversee all staff and manage client relations. He will help with the produce cultivation until he has hired a full staff of farmhands. Dwight has spent the past year recruiting the following staff:
• Meredith Grant – will oversee all administrative aspects of running the farm. This will include bookkeeping, tax payments, and payroll of the staff.
• Kevin Baird – Head Farmhand who will oversee the farming staff and day to day operations.
• Oscar Smith– Assistant Farmhand who will assist Kevin.

Milestones:

Schrute’s Roots will have the following milestones completed in the next six months.

• 07/202X Finalize land purchase
• 08/202X Design and build out Schrute’s Roots
• 09/202X Hire and train initial staff
• 10/202X Kickoff of promotional campaign
• 11/202X Launch Schrute’s Roots
• 12/202X Reach break-even

Financial Plan

Key revenue & costs.

Schrute’s Roots’ revenues will come from the sales of root vegetables to its customers and local food establishments.

The major cost drivers for Schrute’s Roots will be labor expenses, land purchase, equipment purchases and maintenance, and marketing plan expenses.

Funding Requirements and Use of Funds

• Three months of overhead expenses (payroll, utilities): $150,000
• Marketing costs: $100,000
• Working capital: $100,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of customers per month:
• Annual equipment maintenance costs: $20,000

Financial Projections

Income statement, balance sheet, cash flow statement, agricultural business plan faqs, what is an agricultural business plan.

An agricultural business plan is a plan to start and/or grow your agricultural business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Agricultural business plan using our Agricultural Business Plan Template here .

What are the Main Types of Agricultural Businesses?

There are a number of different kinds of agricultural businesses , some examples include: Animal feed manufacturing, Agrichemical and seed manufacturing, Agricultural engineering, Biofuel manufacturing, and Crop production.

How Do You Get Funding for Your Agricultural Business Plan?

Agricultural businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Agricultural Business?

Starting an agricultural business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Agricultural Business Plan - The first step in starting a business is to create a detailed agricultural business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your agricultural business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your agricultural business is in compliance with local laws.

3. Register Your Agricultural Business - Once you have chosen a legal structure, the next step is to register your agricultural business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your agricultural business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Agricultural Equipment & Supplies - In order to start your agricultural business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your agricultural business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

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Farming Business Plan

Agriculture is the one industry that consistently does well, irrespective matter the economic conditions of the world. So, for a stable income and career farming business is a great option.

Are you looking to start writing a business plan for your farming business? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared a farming business plan template for you to help in start writing yours.

Free Business Plan Template

Download our Free Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Farming Business Plan?

Writing a farming business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, management team:.

Name all the key members of your management team with their duties, responsibilities, and qualifications.

Financial highlights:

Call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview . Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name of your farming business and the type of business you are running or will run: organic farming, agricultural farming, dairy farming, commercial farming, or something else.
• Company structure of your farming business whether it is a proprietorship, LLC, partnership firm, or some other.
• Location of your farm and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your farming business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your farming business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of an agriculture business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the products & services:

• List the products you will produce or sell, such as crops, fruits, flowers, livestock, or value-added products like cheese or jams.
• Describe each product: Explain the features of your products, such as their quality, variety, and uniqueness. Also, discuss how your products will be packaged and marketed.

Emphasize safety and quality:

Overall, the product and services section of a business plan should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business operations. Here are the components to include in an operations plan:

Operational process:

Technologies:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your farming business.

6. Management Team

The management team section provides an overview of the individuals responsible for running the farming business. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe your company’s key personnel and highlight why your business has the fittest team.

7. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

8. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the agriculture industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your farming business should only include relevant and important information that supports the main content of your plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This farming business plan sample will provide an idea for writing a successful farming business plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready agriculture business plan to impress your audience, then download our farming business plan pdf .

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Frequently asked questions, why do you need a farming business plan.

A business plan is an essential tool for anyone looking to start or run a successful farming business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your farming business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your farming business.

How to get funding for your farming business?

There are several ways to get funding for your agriculture business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are!

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting many people to invest in your farming business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your farming business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your farming business plan and outline your vision as you have in your mind.

What is the easiest way to write your agriculture business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any farming business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Agricultural Business Plan Template

Written by Dave Lavinsky

Agricultural Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their agricultural companies.

If you’re unfamiliar with creating an agricultural business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an agricultural business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Agricultural Business Plan?

A business plan provides a snapshot of your agricultural business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Agriculture Business

If you’re looking to start an agricultural business or grow your existing agricultural company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your agricultural business to improve your chances of success. Your agricultural business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Agricultural Businesses

With regards to funding, the main sources of funding for an agricultural business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for agricultural companies.

    Finish Your Business Plan Today!

How to write a business plan for a agricultural business.

If you want to start an agricultural business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your agricultural business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of agricultural business you are running and the status. For example, are you a startup, do you have an agricultural business that you would like to grow, or are you operating an established agricultural business you would like to sell?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the agricultural industry.
• Discuss the type of agricultural business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of agricultural business you are operating.

For example, you might specialize in one of the following types of agricultural businesses:

• Animal feed manufacturing: the production and sale of food formulas for farm animals.
• Agrichemical and seed manufacturing: the production and sale of agrichemicals (e.g., fertilizers, pesticides, and fungicides) and seeds to farmers that support the growth of their crops.
• Agricultural engineering: development, testing, and implementation of new agriculture tools and machinery to improve the process for farmers.
• Biofuel manufacturing: the production of energy from biomass.
• Crop production: the process of growing and harvesting a variety of crops such as fruits, vegetables, and grains.

In addition to explaining the type of agricultural business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include reaching X number of harvests per year, the number of customers served, or reaching $X amount in revenue.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the agricultural industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the agricultural industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your agricultural business plan:

• How big is the agricultural industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your agricultural business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your agricultural business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of agricultural business you operate. Clearly, schools would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other agricultural businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of farmers, wholesalers, and distributors.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of agricultural business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to engage with you?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a agricultural business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of agricultural company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you produce fruit, soy, or vegetable products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your agricultural company. Document where your company is situated and mention how the site will impact your success. For example, is your agricultural business located on a small or large farm near your customer base?  And, will you operate one or multiple locations? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your agricultural marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your agricultural business, including scheduling employees, tracking inventory, accepting orders and payments, and meeting with customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your Xth harvest, or when you hope to generate $X in revenue. It could also be when you expect to expand your agricultural business to a new region.  

Management Team

To demonstrate your agricultural business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing agricultural businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an agricultural business, or owning their own farm.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many pounds of each crop do you plan to yield each season? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your agricultural business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a agricultural business:

• Cost of farm equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your farm’s location lease or a list of agricultural equipment and machinery used on your farm.  

Writing a business plan for your agricultural business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the agricultural industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful agricultural business.  

Agricultural Business Plan Template FAQs

What is the easiest way to complete my agricultural business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your agricultural business plan.

How Do You Start an Agricultural Business?

Starting an agricultural business is easy with these 14 steps:

• Choose the Name for Your Agricultural Business
• Create Your Agricultural Business Plan
• Choose the Legal Structure for Your Agricultural Business
• Secure Startup Funding for Your Agricultural Business (If Needed)
• Secure a Location for Your Business
• Register Your Agricultural Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Agricultural Business
• Buy or Lease the Right Agricultural Business Equipment
• Develop Your Agricultural Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Agricultural Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Agricultural business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan professional services can help you create a winning business.  

Other Helpful Business Plan Articles & Templates

How to Start a Small Farm Business

• Swarthmore College

Treehugger / Lexie Doehner

• Urban Farms
• Planting Guides
• Indoor Gardening

If you want to start a small farm business, you may be wondering what step to take first. You might not even have land yet, but you are still thinking and planning for the time when you will make your move. And finding farmland is one important step in farming - one that you'll want to take after considering some other factors.

Learn About Farming

You can't go wrong starting with this step. If you're new to farming, learn everything you can about it within the time you have. But be reasonable, too. You can't know everything there is to know. Some learning will have to be on the job, and trial and error is messy, time-consuming and sometimes costly. Yet it's inevitable with farming, so embrace the process. But learn some, too. Balance.

If you can find a mentor - someone you can learn from directly, perhaps in your community now or where you hope to farm - it can be extremely helpful. If you haven't already, work on a farm. Volunteer. Gain experience before you begin.

Design and Plan Your Farm

An important part of starting your farm business is defining what it will be. Do you want to have a micro-scale vegetable farm? Do you plan to grow acres of hay for other farmers? Maybe you want to have a diversified farm - a small-scale operation that grows a variety of animals and crops. You might even be wondering how to start an ecotourism farm, where people will come to stay to see the workings of your farm and perhaps even participate in farm chores.

Write a Business Plan

You may wonder if you need a business plan . The short answer: if you want to start a business, you will need a business plan.   In the writing of the business plan, you will consider markets, supply and demand, as well as anything and everything that pertains to your farm operations, management structure, financial analysis, products, and price points. You may cycle between this step and the previous one, designing and planning because they are interconnected. But a business plan is a significant enough part of starting a business to take up an entire step. It's where you take your dreams and brainstorms and make them a reality.

Find Grants and Loans

You might not have all the capital you need to start farming on the scale that you'd like. You can start small, dip a toe in the water and see how you enjoy farming on a micro scale, using whatever you can glean from your monthly household budget to invest in the farm. But it might take a long time to get anywhere using this method, as you may not be able to invest a significant amount, enough to bring product to market. Grants and loans aimed at young and beginning farmers are out there! Help is available for established farmers, too. Programs offer subsidized equipment like high tunnels, assistance in certifying organic, and more. ​

Get Business Licenses and Permits

Your local and state law may vary when it comes to the requirements for establishing a small farm business.   But the basics are the same: you will probably need to register your business name, purchase a business license, get an employer identification number, and carry product liability insurance.

Set Up Finances

You will also need to decide on your business structure. Will this be a sole proprietorship, an LLC or something else? Contact an accountant to get information specific to your situation. Financial planning should be in your business plan. It's very important to set up a system for bookkeeping and accounting from the start of your small farm business.

“ First Steps .” U.S. Department of Agriculture.

“ Growing Opportunity: A Guide to USDA Sustainable Farming Programs .” U.S. Department of Agriculture.

• Tips for Converting Small Farms to Organic Production
• Raising Pullets for Your Small Farm or Backyard Coop
• Small Farm Grants and Financial Assistance
• Best Urban Farming Certifications
• Details of a Small Farm Business Plan
• Starting Your Small Farm from Scratch
• How to Keep Farm Records
• How to Start a Small Farm
• How to Start a Hobby Farm
• How to Start an Egg Business
• No-Dig Gardening Tips For Small Farms and Gardens
• Should You Raise Turkeys?
• 10 Tips for Starting a Plant-Based Diet
• Interesting Backyards Make the Best Playgrounds
• How to Sell Small Farm Products Online
• Tips for Starting Your Hobby Farm

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• In the News
• Upcoming Events
• Online Classes
• Agricultural Tourism
• Beginning Farmers
• Dry Farming
• OSU Organic Agriculture
• Olive Research for Oregon
• Whole Farm Management
• Business Planning Resources
• Refine Your Business Plan

Sample Business Plans

• Start Your Business Plan
• Berries & Grapes
• Biodiversity & Pest Management
• Harvest & Handling
• Herbs & Flowers
• Nursery Crops & Greenhouses
• Tree Fruits & Nuts
• Winter Farming
• Drought, Fire, Flood, Disaster Relief and Resiliency Programs
• Dry Farming Research
• Community Support Agriculture
• Marketing Your Farm
• Meat & Eggs
• Raw Agricultural Products
• Value Added
• Farmers' Markets
• Organic Fertilizer and Cover Crop Calculators
• Hay Production
• Irrigation & Fencing
• Mud & Manure Management
• Nutrient Management
• Pasture and Grazing Management
• Weeds, Poisonous Plants, & Other Pests
• Soil Testing
• Soil Surveys
• Improving Soil Quality & Cover Crops
• Agricultural Composting and Water Quality
• Water & Irrigation
• Business Planning

Below are examples of different farm business plans and a loan application:

Oregon Flower Farm Business Plan Example

Interval Farm Business Plan Sample

Peach Farm Business Plan Sample

USDA FSA Sample Microloan Application

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Secure .gov websites use HTTPS A lock ( ) or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.

• Economics, Business, and Trade

Small Farm Funding Guide

This guide contains information about issues to consider before starting a farming operation. 

Find links to full-text guides on how to start a small farm business and develop business and marketing plans.  Identify information about funding programs for beginning and experienced farmers, technical assistance contacts, disaster assistance, and organizations with available resources.

Farm Business Planning

• Agribusiness Planning: Providing Direction for Agricultural Firms [extension.psu.edu] Jeffrey Hyde, Sarah Roch. University Park: Penn State University Cooperative Extension. Updated 2017
• Business Development AgMRC
• Business Guide U.S. Small Business Administration
• Guide to Farming: Business Plans Cornell University. Small Farms Program
• Organic Transition: A Business Planner for Farmers, Ranchers and Food Entrepreneurs Sustainable Agriculture Research and Education (SARE)
• Urban Farm Business Plan Handbook U.S. Environmental Protection Agency
• Your Farm’s Business Plan USDA . Farmers.gov
• Farm Sector Income and Finances (publications) . Washington, DC: U.S. Department of Agriculture, Economic Research Service.
• Exploring the Small Farm Dream . Belchertown, MA: New England Small Farm Institute.
• Family Farming in the United States. James MacDonald. Amber Waves. Washington, DC: U.S. Department of Agriculture, Economic Research Service, March 4, 2014.
• National Farmers Markets Directory Search. Washington, DC: U.S. Department of Agriculture, Agricultural Marketing Service. Updated 2022.
• Financing Small-Scale and Part-Time Farms. Gregory D. Hanson, Jayson K. Harper, George L. Greaser. University Park: Penn State University Cooperative Extension, 2004.
• Small Farm Handbook. 2nd Edition. University of California Agriculture and Natural Resources. 2011.
• Starting or Diversifying an Agricultural Business. Lynne F. Kime, Sarah A. Cornelisse, Jayson K. Harper. University Park: Penn State Small-scale and Part-time Farming Project. Updated 2018. [2005 online; download 2018 edition.]
• Business Structure for Small Farms: A Quick Guide. [wsu.edu] Issued by Washington State University Extension and the U.S. Department of Agriculture. 2015. [PDF 1.75 MB]
• Resources by Topic for New Farmers. [smallfarm.org] B elchertown, MA: Growing New Farmers Consortium.

Contacts for Technical Assistance: Both SBA  and USDA provide small business planning technical assistance and USDA also provides technical farming specifics through the extensive network of USDA, Cooperative Extension Service (CES) specialists.

• Cooperative Research and Extension Services
• Small Business Development Centers (SBDC)
• Disaster Resource Center
• Risk Management Agency
• Animal Welfare: Disaster Planning NAL. Animal Welfare Information Center
• Disaster Assistance Food and Nutrition Service
• Protection and Recovery
• Disaster Assistance Discover Tool  

Disaster Assistance for Agricultural Producers ATTRA - National Sustainable Agriculture Information Service  

Farm Aid  1-800-FARM AID

• Small and Family Farms USDA. National Institute of Food and Agriculture  
• Contact the Alternative Farming Systems Information Center [nal.usda.gov] for assistance with your research.

Funding and Program Assistance

State Programs

You may want to start your financial assistance search with your  state  Department of Agriculture to see if your state has a Beginning Farmer Loan Program or other type of grants or loans for farming and ranching.

• National Association of State Departments of Agriculture (NASDA)  is comprised of the departments of agriculture in all fifty states and the territories of American Samoa, Guam, Puerto Rico, and the U.S. Virgin Islands.
• Types of state agricultural finance programs may be identified through your Council of State Agricultural Finance Programs. Check with your state agriculture department for programs, like Aggie Bonds.  

Agricultural Lenders

Information on Farm Financial Management & Performance can be located on the  USDA's Economic Research Service web site.

• Farm Economy [usda.gov]
• Rural Economy & Population [usda.gov]  

The nation's farm banks (defined by the Federal Reserve Board as banks that have above average proportions of farm real estate and production loans in their loan portfolios) offer a variety of loans to small and large farms and agribusiness firms; they also handle many of the loans made under USDA's guaranteed farm loan programs.

• American Bankers Association: Agriculture Banking (ABA). [aba.com] ABA has a "special section dedicated to providing advocacy, information, training, education, and public relations for banks that make and service agricultural loans or provide credit and other financial services to those living and working in rural America for nearly 100 years."  

Farm Credit : Farm Credit is a nationwide network of 70 customer-owned financial institutions across all 50 states and Puerto Rico and provides loans and related financial services to U.S. farmers and ranchers, farmer-owned cooperatives and other agribusinesses, rural homebuyers and rural infrastructure providers.​

• Farm Credit System Lenders in your state
• USDA Veterans [usda.gov] USDA opportunities in and programs for education, employment and entrepreneurship.
• Veteran Affairs, Farm Loans: Home Loans for Rural Residents [va.gov] . 2018 [PDF 415 KB]
• Farmer Veteran Coalition
• Veteran Farmers Project from the Center for Rural Affairs
• Veterans to Farmers
• Farm Loan Program Information  
• Beginning Farmers and Ranchers Loans
• Minority and Women Farmers and Ranchers  
• Microloan Programs
• Locate Farm/Ranch Properties for Sale by the USDA RD and FSA
• Locate Farm Service Agency Offices by State
• Financial Assistance Programs
• Locate Natural Resources Conservation Service Offices by State
• Renewable Energy for America Program, Renewable Enery Systems, and Energy Efficiency Improvement Guaranteed Loans & Grants Program
• Value-Added Producer Grants
• Socially-Disadvantaged Groups Grant  
• Locate Rural Development Offices by State
• Search for a Funding Opportunity in Agriculture  
• Small and Family Farms  
• Contact the  Alternative Farming Systems Information Center  for assist with your research.
• Farmers Market Promotion Program
• Specialty Crop Block Grant Program  
• Agriculture Center
• National Agriculture Compliance Center 1-888-663-2155

Information and Contacts

• ABA Agricultural Banking Washington, DC: American Bankers Association.
• Alternative Farming Systems Information Center USDA . National Agricultural Library.
• ATTRA, National Sustainable Agriculture Information Service , 1-800-346-9140 Fayetteville, AR.
• Begin Farming Ohio Ecological Food and Farm Association , Columbus, OH: Public-Private Collaborative.
• Beginning Farmers East Lansing: Michigan State University.
• Center for Farm Financial Management 1-800-234-1111 St. Paul: University of Minnesota.
• Farm Answers 1-800-234-1111 St. Paul, Minnesota: The Center for Farm Financial Management (CFFM) at the University of Minnesota.
• Farm Credit Greenwood Village, CO.
• Growing Small Farms North Carolina Cooperative Extension.
• Hawai'i Guide for New Farmers Manoa: University of Hawaii.
• National Ag Risk and Farm Management Library St. Paul: University of Minnesota.
• National Association of State Departments of Agriculture Washington, DC.
• New England Small Farm Institute Belchertown, MA.
• Beginning Farmers and Rancher U.S. Department of Agriculture.
• Cornell Small Farms Program Ithaca, NY: Cornell University, Small Farm Program, Cooperative Extension Service.
• Small Farms Program Corvallis: Oregon State University Extension Service.
• Small Farm Research and Extension Davis: University of California.
• Women's Agricultural Network Burlington: University of Vermont.

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Small Business Trends

How to create a business plan: examples & free template.

This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.

Executive Summary

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.

It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

• Introducing three new products within the first two years of operation.
• Achieving annual revenue growth of 30%.
• Expanding our customer base to over 10,000 clients by the end of the third year.

Company Description

The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.

Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).

Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.

This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.

Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.

Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.

Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

• Innovative and eco-friendly product offerings.
• Strong commitment to sustainability and environmental responsibility.
• Skilled and experienced team with expertise in technology and sustainability.

Weaknesses:

• Limited brand recognition compared to established competitors.
• Reliance on third-party manufacturers for product development.

Opportunities:

• Growing consumer interest in sustainable products.
• Partnerships with environmentally-focused organizations and influencers.
• Expansion into international markets.
• Intense competition from established technology companies.
• Regulatory changes could impact the sustainable technology market.

Competitive Analysis

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.

Example: Key competitors include:

GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.

EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.

By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.

Organization and Management Team

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.

Marketing and Sales Strategy

In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.

Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.

Logistics and Operations Plan

The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.

Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.

Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.

This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.

By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:

• Year 1: $1.5 million in revenue, with a net profit of $200,000.
• Year 2: $3 million in revenue, with a net profit of $500,000.
• Year 3: $4.5 million in revenue, with a net profit of $1 million.

These projections are based on realistic market analysis, growth rates, and product pricing.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.

Example: The income statement for EcoTech’s first year of operation is as follows:

• Revenue: $1,500,000
• Cost of Goods Sold: $800,000
• Gross Profit: $700,000
• Operating Expenses: $450,000
• Net Income: $250,000

This statement highlights our company’s profitability and overall financial health during the first year of operation.

Cash Flow Statement

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.

Example:  The cash flow statement for EcoTech’s first year of operation is as follows:

Operating Activities:

• Depreciation: $10,000
• Changes in Working Capital: -$50,000
• Net Cash from Operating Activities: $210,000

Investing Activities:

•  Capital Expenditures: -$100,000
• Net Cash from Investing Activities: -$100,000

Financing Activities:

• Proceeds from Loans: $150,000
• Loan Repayments: -$50,000
• Net Cash from Financing Activities: $100,000
• Net Increase in Cash: $210,000

This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.

Tips on Writing a Business Plan

1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.

2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.

6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.

7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

The template is divided into the following sections:

• Mission statement
• Business Overview
• Key products or services
• Target market
• Financial highlights
• Company goals
• Strategies to achieve goals
• Measurable, time-bound objectives
• Company History
• Mission and vision
• Unique selling proposition
• Demographics
• Psychographics
• Pain points
• Industry trends
• Customer needs
• Competitor strengths and weaknesses
• Opportunities
• Competitor products and services
• Market positioning
• Pricing strategies
• Organizational structure
• Key roles and responsibilities
• Management team backgrounds
• Product or service features
• Competitive advantages
• Marketing channels
• Advertising campaigns
• Promotional activities
• Sales strategies
• Supply chain management
• Inventory control
• Production processes
• Quality control measures
• Projected revenue
• Assumptions
• Cash inflows
• Cash outflows
• Net cash flow

What is a Business Plan?

A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.

Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.

A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.

Why You Should Write a Business Plan

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

• Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
• Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
• Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
• Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
• Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.

What are the Different Types of Business Plans?

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

• Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
• Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
• Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
• Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
• Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
• Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
• Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
• One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
• Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
• Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.

Using Business Plan Software

Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.

1. LivePlan

LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.

2. Upmetrics

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

5. Tarkenton GoSmallBiz

Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:

• It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
• It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
• It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
• It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
• It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
• It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
• It presents the company’s financial projections, showing its potential for profitability and return on investment.
• It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
• It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
• It establishes clear, measurable objectives that serve as performance benchmarks.
• It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
• It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
• It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
• It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.

Can I write a business plan by myself?

Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.

What is a business plan outline?

A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.

What are the 5 most common business plan mistakes?

The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.

What questions should be asked in a business plan?

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

What’s the difference between a business plan and a strategic plan?

A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.

How is business planning for a nonprofit different?

Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.

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2024 federal budget's key takeaways: Housing and carbon rebates, students and sin taxes

Budget sees nearly $53b in new spending over the next 5 years.

What's in the new federal budget?

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Finance Minister Chrystia Freeland today tabled a 400-page-plus budget her government is pitching as a balm for anxious millennials and Generation Z.

The budget proposes $52.9 billion in new spending over five years, including $8.5 billion in new spending for housing. To offset some of that new spending, Ottawa is pitching policy changes to bring in new revenue.

Here are some of the notable funding initiatives and legislative commitments in budget 2024.

Ottawa unloading unused offices to meet housing targets

One of the biggest pillars of the budget is its housing commitments. Before releasing the budget, the government laid out what it's calling Canada's Housing Plan — a pledge to "unlock" nearly 3.9 million homes by 2031.

The government says two million of those would be net new homes and it believes it can contribute to more than half of them. 

It plans to do that by:

• Converting underused federal offices into homes. The budget promises $1.1 billion over ten years to transform 50 per cent of the federal office portfolio into housing.
• Building homes on Canada Post properties. The government says the 1,700-plus Canada Post offices across the country can be used to build new homes while maintaining postal services. The federal government says it's assessing six Canada Post properties in Quebec, Alberta and British Columbia for development potential "as a start."
• Rethinking National Defence properties. The government is promising to look at redeveloping properties and buildings on National Defence lands for military and civilian use.
• Building apartments. Ottawa is pledging a $15 billion top-up to the Apartment Construction Loan Program, which says it will build 30,000 new homes across Canada.

Taxing vacant land?

As part of its push on housing, the federal government also says it's looking at vacant land that could be used to build homes.

It's not yet committing to new measures but the budget says the government will consider introducing a new tax on residentially zoned vacant land. 

• Freeland's new federal budget hikes taxes on the rich to cover billions in new spending
• Are you renting with no plans to buy? Here's what the federal budget has for you

The government said it plans to launch consultations on the measure later this year.

Help for students 

There's also something in the budget for students hunting for housing.

The government says it will update the formula used by the Canada Student Financial Assistance Program to calculate housing costs when determining financial need, to better reflect the cost of housing in the current climate.

The government estimates this could deliver more aid for rent to approximately 79,000 students each year, at an estimated cost of $154.6 million over five years.

• Updated Federal budget's funding boost for defence spread out over multiple years
• Liberals pledge $9B in new money for Indigenous communities in 2024 budget

The government is also promising to extend increased student grants and interest-free loans, at an estimated total cost of $1.1 billion this year.

Increase in taxes on capital gains

To help cover some of its multi-billion dollar commitments, the government is proposing a tax hike on capital gains — the profit individuals make when assets like stocks and second properties are sold.

The government is proposing an increase in the taxable portion of capital gains, up from the current 50 per cent to two thirds for annual capital gains over $250,000. 

New investment to lead 'housing revolution in Canada,' Freeland says

Freeland said the change would impact the wealthiest 0.1 per cent.

There's still some protection for small businesses. There's been a lifetime capital gains exemption which allows Canadians to exempt up to $1,016,836 in capital gains tax-free on the sale of small business shares and farming and fishing property. This June the tax-free limit will be increased to $1.25 million and will continue to be indexed to inflation thereafter, according to the budget.

The federal government estimates this could bring in more than $19 billion over five years, although some analysts are not convinced.

Disability benefit amounts to $200 per month 

Parliament last year passed the Canada Disability Benefit Act, which promised to send a direct benefit to low-income, working-age people with disabilities. 

Budget 2024 proposes funding of $6.1 billion over six years, beginning this fiscal year, and $1.4 billion per year ongoing, for a new Canada Disability Benefit.

Advocates had been hoping for something along the lines of $1,000 per month per person . They'll be disappointed.

According to the budget document, the maximum benefit will amount to $2,400 per year for low income individuals with disabilities between the ages of 18 and 64 — about $200 a month.

• Federal government plans to lease public lands for construction through new housing strategy
• Alberta premier says she's prepared to take Ottawa to court over housing deals

The government said it plans for the Canada Disability Benefit Act to come into force in June 2024 and for payments to start in July 2025.

Carbon rebate for small businesses coming 

The federal government has heard an earful from small business advocates who accuse it of reneging on a promise to return a portion of carbon pricing revenues to small businesses to mitigate the tax's economic costs.

• What's behind the carbon tax, and does it work?
• Federal government scales back carbon tax rebates for small businesses

The budget proposes to return fuel charge proceeds from 2019-20 through 2023-24 to an estimated 600,000 businesses with 499 or fewer employees through a new refundable tax credit.

The government said this would deliver $2.5 billion directly to Canada's small- and medium-sized businesses.

Darts and vape pods will cost more 

Pitching it as a measure to cut the number of people smoking and vaping, the Liberals are promising to raise revenues on tobacco and smoking products.

• Just Asking  wants to know:   What questions do you have about quitting smoking or vaping? Do you think sin taxes will encourage smoking cessation?  Fill out the details on  this form  and send us your questions ahead of our show on April 20.

Starting Wednesday, the total tobacco excise duty will be $5.49 per carton. The government estimates this could increase federal revenue by $1.36 billion over five years starting in 2024-25.

The budget also proposes to increase the vaping excise duty rates by 12 per cent effective July 1. That means an increase of 12 to 24 cents per pod, depending on where you live. 

• 'Stay the hell away from our kids': Health minister vows to restrict nicotine pouches — but how?

Ottawa hopes this increase in sin taxes will bring in $310 million over five years, starting in 2024-25.

More money for CBC 

Heritage Minister Pascale St-Onge has mused about redefining the role of the public broadcaster before the next federal election . But before that happens, CBC/Radio-Canada is getting a top-up this year. 

The budget promises $42 million more in 2024-25 for CBC/Radio-Canada for "news and entertainment programming." CBC/Radio-Canada received about $1.3 billion in total federal funding last year.

The government says it's doing this to ensure that Canadians across the country, including rural, remote, Indigenous and minority language communities, have access to independent journalism and entertainment.

Last year, the CBC announced a financial shortfall, cut 141 employees and eliminated 205 vacant positions. In a statement issued Tuesday, CBC spokesperson Leon Mar said the new funding means the corporation can balance its budget "without significant additional reductions this year."

Boost for Canada's spy agency 

As the government takes heat over how it has handled the threat of foreign election interference, it's promising more money to bolster its spy service.

The Canadian Security Intelligence Service is in line to receive $655.7 million over eight years, starting this fiscal year, to enhance its intelligence capabilities and its presence in Toronto.

• CSIS chief defends his spies' work after PM casts doubt on reliability of agency's reports
• Trudeau says it's his job to question CSIS intelligence, call out 'contradictions'

The budget also promises to guarantee up to $5 billion in loans for Indigenous communities to participate in natural resource development and energy projects in their territories.

These loans would be provided by financial institutions or other lenders and guaranteed by the federal government, meaning Indigenous borrowers who opt in could benefit from lower interest rates, the budget says. 

ABOUT THE AUTHOR

Catharine Tunney is a reporter with CBC's Parliament Hill bureau, where she covers national security and the RCMP. She worked previously for CBC in Nova Scotia. You can reach her at [email protected]

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