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How to develop a business plan
Today's businesses need much organization, effective communication, proper direction and measurable successes. Obtaining this crucial information may not be as easy as one would think, but with a well-developed business plan, businesses can see amazing results, as they are able to plan and measure the success of their business.
Ken Swanson, executive director of Agri-Solutions, recently conducted a workshop at the conference "Putting More Profit in Your Pocket thru Value-added Agriculture" in Lansing on Sept. 3. In the workshop, he outlined eight key steps in developing an effective business plan. "A business plan is very detailed and management specified, something every business today needs," Swanson said.
Swanson outlined the first step of the business plan as writing the mission statement. According to Swanson, this short sentence outlines the values of the business, explains what you think about technology, and identifies the target market.
Obtaining a vision and creating short -- and long-term goals was the next step to take into consideration according to Swanson. He warned that in making goals, especially the short-term goals, keeping them attainable is key to evaluating the business. "Setting out the vision and goals will point you in the direction you want to go in," he said.
The business strategy follows, and answers the questions, "What will be the core?" and "How will we approach the business -- buy, build, who will lead?" This strategy also answers the level of technology the business is taking, or will be taking in the near future.
"Many times, businesses overlook a very key step, and that's outlining the competitive opportunities and threats," Swanson noted. "Many businesses don't take a real look at what could happen; they need to clearly look at what the competition is doing, and what the businesses' strengths and weaknesses are versus the competitors."
The fifth step, the marketing plan, describes the market in terms of size, trend and how to approach the market. The plan also answers how to sell, produce and what distribution channels are to be taken in moving the product to the proper places.
In addition to the marketing plan, an operational plan can provide answers to the type of business management, the location of the business and business procedures to be handled by the employees. The process of hiring of employees can also be outlined in this plan.
The seventh step of the business plan includes financial formatting. "In this step, one- and five-year expectations are listed, along with capital requirement," Swanson said. "Income and expense projections are also recorded, and the capital beyond the first year can be figured."
The final step to the business plan is timing. According to Swanson, timing is everything. Events needs to be outlined and listed, along with, the necessary steps needed in order to carry out these tasks. "If you have no timetable, you don't have a business plan," explained Swanson. "It's very key -- it tells you if you are pulling the whole plan off."
Ken Swanson farms 3,000 acres of corn, soybeans and wheat in mid-Michigan and has been farming for the last 30 years. Swanson has been a consultant to farming operations for more than 15 years with SLF Management.
Today's businesses need much organization, effective communication, proper direction and measurable successes. Obtaining this crucial information may not be as easy as one would think, but with a well-developed business plan, businesses can see amazing results, as they are able to plan and measure the success of their business.
Ken Swanson, executive director of Agri-Solutions, recently conducted a workshop at the conference "Putting More Profit in Your Pocket thru Value-added Agriculture" in Lansing on Sept. 3. In the workshop, he outlined eight key steps in developing an effective business plan. "A business plan is very detailed and management specified, something every business today needs," Swanson said.
Swanson outlined the first step of the business plan as writing the mission statement. According to Swanson, this short sentence outlines the values of the business, explains what you think about technology, and identifies the target market.
Obtaining a vision and creating short -- and long-term goals was the next step to take into consideration according to Swanson. He warned that in making goals, especially the short-term goals, keeping them attainable is key to evaluating the business. "Setting out the vision and goals will point you in the direction you want to go in," he said.
The business strategy follows, and answers the questions, "What will be the core?" and "How will we approach the business -- buy, build, who will lead?" This strategy also answers the level of technology the business is taking, or will be taking in the near future.
"Many times, businesses overlook a very key step, and that's outlining the competitive opportunities and threats," Swanson noted. "Many businesses don't take a real look at what could happen; they need to clearly look at what the competition is doing, and what the businesses' strengths and weaknesses are versus the competitors."
The fifth step, the marketing plan, describes the market in terms of size, trend and how to approach the market. The plan also answers how to sell, produce and what distribution channels are to be taken in moving the product to the proper places.
In addition to the marketing plan, an operational plan can provide answers to the type of business management, the location of the business and business procedures to be handled by the employees. The process of hiring of employees can also be outlined in this plan.
The seventh step of the business plan includes financial formatting. "In this step, one- and five-year expectations are listed, along with capital requirement," Swanson said. "Income and expense projections are also recorded, and the capital beyond the first year can be figured."
The final step to the business plan is timing. According to Swanson, timing is everything. Events needs to be outlined and listed, along with, the necessary steps needed in order to carry out these tasks. "If you have no timetable, you don't have a business plan," explained Swanson. "It's very key -- it tells you if you are pulling the whole plan off."
Ken Swanson farms 3,000 acres of corn, soybeans and wheat in mid-Michigan and has been farming for the last 30 years. Swanson has been a consultant to farming operations for more than 15 years with SLF Management.
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