5 Key Components of a Good Farm or Ranch Business Plan

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To make any business allow you to earn a living you have to be sure that the numbers add up. It is not hard to see why you might be attracted by the prospect of running a ranch when you think of the lifestyle it offers. However, you need to have a good business plan to know you will be able to make it pay.

Checking the listings available in Colorado, for instance, will confirm that there are plenty of exciting opportunities to own a farm or ranch business. Here are some of the key components to consider when putting a business plan together for running that ranch.

RELATED ARTICLE: WHY ARE BUSINESS PLANS IMPORTANT?

Decide What Your Goals Are and How You Are Going to Use the Land

Your business plan needs to start by taking a look at the history of the current operation. In particular, pinpoint the ways in which the farm or ranch has generated income in the recent past.

Your aim should be to produce a mission statement that encapsulates why you want to own a ranch. It should also show what you intend to do to change or improve the way it is run. That includes identifying what your plans are for land resource management.

A grazing and livestock management plan should underpin how your ideas are going to work if you plan to run a ranch. If you expect to farm, show data on the profit you could expect from the crops you plan to raise.

What Are the Equipment and Livestock Requirements?

You can’t run a good farm or ranch without having the tools and resources you need to achieve that aim.

Your plan has to address what tools and equipment you will need. It should also address your livestock requirements and plans.

It stands to reason that you need the equipment and animal resources to be able to generate an income and earn a living. Your plan needs to accurately state what you need and how much it will cost.

What Are Your Marketing Plans?

Your primary objective when putting a marketing plan together is to identify the products and services you will be able to sell. Basically, you need to show that you will be able to generate revenue.

If you are raising money to purchase and run the ranch you will need to illustrate how you will market the business. For example, can you show that you have identified a target market for these products and services?

How Will You Run Your Ranch?

Another key point that you might be overlooking is human resources. You will probably need to hire help since a business like this needs a workforce to do all the chores on a daily basis.

Your business plan should explain what your staffing plans are. Specify who will take responsibility for key aspects of running the ranch.

Do the Numbers for Your Farm or Ranch Add Up?

Your business plan has to outline exactly how the business is going to earn money. Also describe the expenses it has to cover in order to make it financially viable.

The financial section of your business plan has to cover things such as cash flow forecasts, loan schedules, and a detailed account of expenditures.

Any lender will need to see exactly how you intend to make the business work and how much money you need.

Can you see that everything works when you put it all together in your business plan? Then now is the time to start getting excited about the prospect of turning your farm or ranch dreams into reality.

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