A livestock business plan will vary dramatically depending on the sort of animals you keep, the number of them you plan to acquire, where your farmland is located, and the intended use of the livestock. If you need to acquire a herd of goats because you're going to become the milk and cheese supplier for a small community, that would require a very different business plan than the document you'll need if you hope to raise up a herd of cattle for slaughter. In short, supplying meat vs. wool may seem like only a matter of commodities, but it can substantially change the way you approach the document itself. With that, think about your business model and answer these questions:
• What do you intend to provide and who are the end-users (buyers)?
• Do you have any supplier relationships already in place, or any off-takers lined up (contracts signed, etc.)?
• What are your ongoing costs for livestock upkeep, if you get the full herd you're seeking?
• Are you hoping to pitch to private investors, or the bank?
• What revenues can you maintain (estimates are fine) and what would that mean for your break-even point?
The core questions on the financial side can only be answered by completing a pro forma model. Your business plan financials should include the anticipated revenues, profit and loss, cash flow, break-even point, highlights, balance sheet, and a sensitivity analysis (for advanced readers). The SBA requires that you also show Year One metrics by month, typically in an appendix. The plan might also do well to consider what competitive threats you face and whether there are other business risks your livestock venture is likely to run into. Need assistance creating this business plan so you can present with confidence? Call MasterPlans today: (877) 453-2011.
