Developing a farm business plan is required when starting a new, expanding your current, or buying an existing farm. The sector is important in South Africa as it fosters economic growth, thus reducing poverty, and increases food security. By 2050, the global population is expected to exceed 9 billion, with the UN projecting a required 70% increase in food production to match this growth. When taking into account the whole agricultural value chain, the sector is estimated to contribute about 12% to the national GDP.
A business plan is a crucial development for any stage of your business. At Dream Team Capital, our developments are often used regularly to create a vision for businesses, secure funding, secure non-repayable business grants, attract members of the team and/or manage the business.
Elements of a detailed Farm Business Plan include:
Executive summary: This is an overview of the contents of the business plan. Include key management information, the amount and purpose for funding.
Mission statement: This mission statement is based on your aims, values, and core identity as a farm.
Background information: Where are you located? How many acres is your farm? When did you begin farming? How are you currently operating? What general practices do you use for such things as conservation, tillage, environmental impact and marketing?
Farm strategy: Gather information and research markets. Make sure that your farm plan fits into the general market in terms of supply and demand. Investigate and analyse industry trends, identify competitors, and define buyers. A SWOT analysis is vital. Create alternative strategies.
Marketing strategy and plan: Include the price, placement, and promotion ideas. Consider how you will convey real and perceived value to consumers.
Financial projections: Eight documents namely the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortisation schedule, and fixed asset schedule. Include charts, ratios, and calculations.
Annexes: Statutory information needed by funders in an application namely management documents (CV’s and ID’s), company documents, tax returns, and images to support.
At DTC
We fully understand the required criteria and requirements for a well-developed business plan. Whether the document is used to raise funding and/or non-repayable business grants, we guide you through the process and provide access to our vast funding network.
For more information & assistance – Contact DTC today!