A Kentucky farm business plan can be presented to a bank for funding (outright loan) or a line of credit, or it can be submitted to private/angel investors who want to share in your profits over the long-term. As a working farm, you may be eligible for certain government subsidies or operating grants, so don't forget to look into this possibility as well as it might help you cash flow the business and/or reduce the amount of up-front capital you need from the bank or investor. A Kentucky farm business plan will work best if you describe in it everything your farm can offer, list out the ongoing expenses tied to working it, and show the market need for different outputs you have. The plan should answer:
• What are the main crops you have?
• What are the harvesting timelines?
• How does seasonality impact your sales projections?
• Who are the off-takers for your cash crops?
• What livestock do you have?
• What risks do you face (competition, weather, etc.)?
In addition to a comprehensive risk analysis – which can be put together in the traditional SWOT style, if you choose to create that table – you should also look into the competitive comparables. This might be farms right near yours that service the same customer base, or larger commercial operations that can take market share from your Kentucky farm. The business plan needs a full market analysis about these issues along with a complete pro forma that models out a minimum of 3-5 years of projected revenues and expenses. Not sure how to calculate your net profits, ensure that the business cash flows, or determine a fair break-even point? Contact the experts at MasterPlans by calling 877-453-2011.
