Engaging in a small scale farming business is one hell of a hectic investment, I will say my truth. Now, another truth you might want to hear is that you need more than a green thumb and the willingness to get your hands dirty to run that business, you need a plan. It might not be your first time hearing this, but a good business plan will always help identify stumbling blocks in any enterprise even before they arise. To ensure that you start your small scale farming business on the right foot, this guide will give you basic details on how to carefully handle the startup process, in addition to that, you will also get to use our unique template to create a plan for yourself.
We have also made provisions for a ready-made small farming business plan, in case you have limited time to formulate one yourself. Without further ado, let’s get into the details.
What is a Small Farming Business Plan?
A small scale farming business plan is a living document as well as a road map that is set to guide every activity you carry out on your small farm. A business plan will help you manage your agricultural enterprise, crop rotations, and everything that has to do with cash and revenues your business generates. Aside from these functions, a business plan can help you manage and meet up to those numerous goals and ideas you have till you achieve them.
Read Also; FARMING BUSINESS PLAN: Template & Best Start-Up Guide
If you are also seeking financial aid, it’s only a good business plan that can help you actualize that. With the presence of a business plan, you will be able to curb and avoid any shortcomings your small farm is prone to experiencing. Since you now know a lot about a small scale farming business plan and its functions, let’s look at how you can create one for yourself.
How to Write a Small Scale Farming Business Plan
When it comes to writing a business plan for your small scale farming firm, you might discover that the process might seem overwhelming and confusing at first, but if you take it one step at a time, it will become more manageable. That is why we have spared so much time to break the components into smaller bits to help you navigate easily and assimilate more. Let’s carefully look at each section of a proper business plan.
#1. Executive Summary
Your executive summary should be the first section that appears in your small scale farming business plan, although it is preferable to have it written last because you will need a summary of all the other sections. In this section, you will try to give a small taste of all the activities that will be going on on your farm. from cropping, through harvesting, production, and then marketing, among others. While giving this information out to your readers, it is important to ensure that your language is clear and concise. At the end of this section, your reader should be able to understand the basics of your business.
#2. Company Overview
This section is where you get to talk about your company’s background and a little bit of its history. You can answer questions like why your small farm exists, the purpose it serves, what it hopes to achieve, your company’s location, your business goals, how How How many acres of land you are farming on, when you began, and a host of other likely questions that describe your business.
#3. Market Analysis
Before settling to write this market analysis section of your business plan, you need to conduct thorough research on your small scale farming industry. Researching your market will give you a broader knowledge of what your industry is about and how to manage and grow your farm in that environment. This research will also let you identify who your target audience is and how best you can reach out to them while offering your services. When you are done analysing your market, you can then come to this section to convince your readers of how well you understand your industry and ideal clients, and how your farm will scale through in the new market.
#4. Competitive Analysis
Just after completing your market analysis, your competitors are not left out either. This is the moment you will have to inspect them, analyse and detect who they are and what they do. Research their strengths and weaknesses and what makes customers buy their services. Doing this will also help you make a few edits on your farm and keep you up to date with market trends. After getting information about them, you can then pick and choose some of the factors you discovered about them. You will also need to inform your readers about who your competitors are and how your small farm is more unique than theirs.
#5. Marketing and Sales Plan
What is the marketing and sales plan for your products and services? How do you intend to attract attention and create awareness for your small farm? What about how you intend on selling your products and services to your customers? Who will carry out the delivery process? These are the questions you need to answer in the sales and marketing strategies section of your small scale farming business plan. You will also have to tell your readers where your marketing strategies will be carried out. Would you be using an online presence or the traditional printing of fliers and the rest? For each product and service, you offer, you should provide its pricing, placement, and promotional ideas.
#6. Financial Plan
In your financial plan section, you will need to detail all the financial aspects of your small farm. This section is quite important when seeking financial support from a bank or an investor, so you need to convince them of how capable your business is and how you can generate profit within a specific period. For this, you need to list all your current finances in detail and also include your income and operating expenses. You can include all the new strategies you want to employ and then forecast what you will need for future growth.
#7. Appendix
In your appendix section, you will need to provide any supporting documents that will validate all the information you have highlighted in your small scale farming business plan. Examples of these types of documents include a licence, resume, permits, legal paperwork, and a host of others.
What is the Best Business Type for a Farm?
The best business type to run and manage as a farmer is a sole proprietorship. It is when farmers work on their own accord while managing, financing, and sustaining the farms by themselves. It is also the most common type of business structure among farms. Some farms also go for limited liability companies or corporation business types of farming.
What Type of Farm is the Most Profitable?
If you wish to scale in the farming business, then you need to select some niches that are more profitable and popular in the farming industry and invest in them. Some of the most profitable types of farming include farming catfish, poultry farming, agricultural farming, vermicompost organic fertiliser production, pig farming, and a host of other options.
What Kind of Small Farming is Most Profitable?
There are profitable small farming ideas you can start with little or no money and they are not limited to:
- Dairy farming
- Bee farming
- Herb gardening
- Microgreens farming
- Aquaponics
- Tree nursery
- Fish farming
- Dual crop farming
What Crop is in Highest Demand?
The most widely grown crops in the UK based on the current statistics are wheat, barley, oats, corn, and rice, among others.
What are 4 Major Crops?
The four major crops that farmers invest more in include:
- Wheat
- Potatoes
- Maize
- Soybean
How do I Start a Small Farm?
The process of starting a small scale farm is indeed a straightforward
journey. Once you know the right steps to follow, then rest assured that you are on the right track. To start on the right foot, you need to carefully practice these steps below.
- Build your business ideas
- Get a real-world experience
- Research and pick a niche
- Get a location
- Get your products ready
- Fix your pricing
- Have a strong financial support
- Market, grow and sell your farm products.
How do I Start a Farm with no Money?
If you have always dreamt of owning a farm but have been slacking on your dreams because you don’t have enough capital to start, then you need not worry. You can start your farm business with zero funds by first having grounded experience in farming, looking for great deals in the market, purchasing young livestock you can afford, getting a truck, stocking up on their feed, renting the best farm, and seeking grants.
Finding it Hard to Construct a Small Farming Business Plan?
I understand your plight and the stress involved in creating a business plan. Most people won’t tell you this, but creating a business plan can be fun and daunting at the same time, especially when it’s your first time trying.
But because time waits for no man, you have to take the easier route out, and for this reason, we have created a ready-made small farming business plan for your convenience.
Over the years, businessyield consult has specialised in creating professional business plans and, so far, has helped millions of businesses stand on their feet, and we are happy to help you too. Get started here.
Final Thoughts
If you fit into the skills needed to become a farmer, which include organisation, management, and fitness, then you should not give up on that dream of owning a small farming business, but not with the absence of a business plan. No matter how little or big you want your new start-up to be, it can only work and grow better when you plan out the processes involved. To make the journey easier, you should create a copy of your business plan using the simplified template we have provided above.
FAQs
What is the easiest crop to farm?
There are some easy crops you can farm and grow from seed and still make great returns from selling them, and they include lettuce, peas, turnips, radishes, beans, sweet potatoes, sunflowers, and pumpkins, among others.
Do small farms make money?
Both large and small farms make money, including farmers who provide little production. According to recent statistics, small farms that make gross sales from their farms make an income greater than many large businesses. Most of the time, it does not depend on how big or small it is, but instead, it is based on the commitments of the business owner.
Why do small farms fail?
It is possible for small farms to also experience failure, and most of the time, this is because of the failure of the farm owner to treat their farms as a business. They fail to approach farming as an actual business and, hence, failure keeps occurring. You can only succeed as a farmer when you see your farm differently and always look out for it, as you would do for any other form of business.
