Management

Business Planning

Managing Labor

Once the decision has been made to further explore a particular enterprise, business planning and business management decisions need to be made. In particular, who should run the new enterprise, how should it be run, how should it be financed, and how should risks be managed are key considerations in determining the appropriateness of a particular enterprise.

Key Questions

1. What are the business/management skills of those involved?

2. Does everyone involved agree on how the business should be run?

3. Does everyone involved know, understand, and agree on objectives, both short- and long-term?

4. Who's in charge of what?

5. Will the new enterprise complement my current enterprise?

6. Do I have the skills and experience necessary to do this?

7. Do I like to supervise people?

8. Who is the customer and what are their needs and desires?

9. Should I do this by myself, or should I assemble a group of other like-minded people?

10. Are there legal or food-safety considerations?

 
Key Publications

• Small Business Insurance & Risk Management Guide (Part 1 of 4) - Iowa Business Network - This publication presents information about the various losses that can be incurred by small businesses.
• Organizing the Farm Business - Iowa State University Extension publication PM 878. It describes the various organizational structures that farm business can take in Iowa.

Worksheets

There are numerous worksheets that can be used to assist people in developing a new idea or business. The worksheets listed below are some of the better worksheets available. Worksheets generally can be divided into three main topics: (A) value statements, goals and objectives; (B) current assessment and strategic planning; and (C) business plan development, implementation, and monitoring.
Values, goals and objectives worksheets

1. Building a Sustainable Business (Minnesota Institute for Sustainable Agriculture)

• My Values - Worksheet 1.1
• Common Values - Worksheet 1.2
• Dreaming a Future Business Vision - Worksheet 3.1
• Creating My Business Mission Statement - Worksheet 3.2
• Estimating Our Family's Goal for Profit - Worksheet 3.3
• Identifying Our Family Business Goals - Worksheet 3.4
• Prioritizing Goals - Worksheet 3.5

2. Ag-Alternatives (Alberta Agriculture, Food and Rural Development)

Personal and Family Considerations Worksheets

• Business Qualities Checklist (Worksheet 1)
• Family Needs and Preferences (Worksheet 2)
• Goals and Objectives for a New Enterprise (Worksheet 3)

Current assessment and strategic planning worksheets

1. Building a Sustainable Business (Minnesota Institute for Sustainable Agriculture)

• A Brief History of Our Farm Operation - Worksheet 2.1
• Current Market Assessment - Worksheet 2.2
• Enterprise/Calendar Mix - Worksheet 2.7
• Human Resources Matrix - Worksheet 2.8
• Likely Changes in Our Human Resources Situation - Worksheet 2.10
• Estimating Family Living Expenses - Worksheet 2.11
• Risk Management - Worksheet 2.17
• Whole Farm SWOT Analysis - Worksheet 2.18
• Marketing Strategy Summary - Worksheet 4.9
• Operations Strategy Summary - Worksheet 4.17
• Human Resources Strategy Summary - Worksheet 4.23
• Risk Management - Worksheet 4.24
• Business Organization - Worksheet 4.25
• Financial Strategy Summary - Worksheet 4.28
• Summarize a Whole Farm Strategic Plan of Action - Worksheet 4.29
• Scoring and Deciding on a Final Business Strategy - Worksheet 4.38
• Contingency Statement - Worksheet 4.39
• Executive Summary - Worksheet 4.40

2. Ag-Alternatives (Alberta Agriculture, Food and Rural Development)

• Identifying Alternatives Worksheets
  • Physical Resources (Worksheet 1)
  • Market Resources (Worksheet 2)
  • Management and Labor Resources (Worksheet 3)
  • By-Product Resources (Worksheet 4)
  • Financial Resources (Worksheet 5)
  • Idea Evaluation Chart (Worksheet 6)

• Marketing Worksheets
  • Product/Service Definition (Worksheet 1)
  • Target Market Definition (Worksheet 2)
  • Marketing Options (Worksheet 3)
  • Existing Market Demand (Worksheet 4)
  • Competition (Worksheet 5)
  • Market Trends (Worksheet 6)
  • Expected Price (Worksheet 7)

• Production Requirements Worksheets
  • Management and Labor Requirements (Worksheet 6)
  • Quality and Production Rate (Worksheet 8)
  • Business Size (Worksheet 9)
  • Legal, Regulatory, and Liability Factors (Worksheet 10)

Business Plans Worksheets

1. Building a Sustainable Business (Minnesota Institute for Sustainable Agriculture)

• Business Plan Outline - Worksheets 5-1
• Implementation To-do List - Worksheet 5-2
• Monitoring - Worksheet 5-3