Post on 17-Dec-2015
Where are you headed?
Will you be the first to know when you have “arrived?”
What’s your vision of the future of your operation?
What you would imagine your business to be under the best of
circumstances.
It’s a statement that declares what you expect your business to become
Vision:
Attractive FutureRepresents a Target
AttainableRealisticCredible
Example: Beef produced on High Noon Ranch will represent the protein of choice by American consumers
Are you on a Mission?
Every business should be!
What is your mission?
Mission: Defines an organization and its function. A mission statement gives a farm/ranch an identity by defining its
purpose.
Describes what will be done to fulfill the vision
Commitment to action
Mission
Example:
High Noon Ranch chooses to raise and market fed cattle through a vertically coordinated alliance that responds to the demands of the consumer.
Defines the business in which the ranch is engagedNeed to satisfy the consumer
Where is your business plan?
Plan Outline1) Company Overview
a.) Vision
b.) Mission
c.) Guiding principles
Plan Outline
2) Market Opportunity Analysis
A.) Economies
1) International Economy
a.) Debt
b.) Unemployment
c.) Expectations
Plan Outline
2) Market Opportunity AnalysisA.) Economies (continued)
2) Domestic Economy
a.) CPI and consumer confidence
b.) Unemployment
c.) Expectations
2) Market Opportunity Analysis A.) Economies (continued)
3) Farm Economy
a.) Commodity Supply & Demand
b.) Prices
c.) Agribusiness profitability
d.) Local, state, national, world competition
e.) Financial health
f.) Land prices
2) Market Opportunity AnalysisB.) Market Analysis
1- Size and number of farms
2- Industry life cycle
a.) Introduction
b.) Growth
c.) Maturity
d.) Decline
3- Competition
4- Customers
5- SWOT
2) Market Opportunity Analysis
C.) Marketing Goals/Objectives
1- Goals, objectives, strategies, tactics
2- Commodity mix
3- Promotion
2) Market Opportunity Analysis
D.) Implementation Controls, Measuring and Monitoring1- Organizational Structure2- Operations3- Risk Management4- Records and Controls
2) Market Opportunity Analysis
E.) Financial Forecasts (5 years)1- Assumptions2- Net Farm Income3- Cash flow4- Proforma balance sheet5- Net Present Value6- Graphs & charts
Executive Summary
“Contains the important information from each outline category”
Farm Plan
• Done correctly, it will take time (“no pain, no gain”)
• Reality check and road map to future
• Guidance system through difficult times
• Nearly eliminates the probability of misunderstanding business’s future
• Minimizes conflict
• Incorporate values and morals
Goals
Is an end toward which one directs some specific effort
Why goals?
Why Set Goals?
• Serve as a benchmark to measure success and levels of performance
• Establish a sense of direction that is necessary for growth and success
• Written goals can be reviewed by others to ensure each element of the goal is included
People who set goals
• Suffer less stress & anxiety
• Concentrate better
• Show more confidence
• Perform better
• Happier with their performance
• Improved teamwork
SMART Goals
• S pecific
• M easurable
• A ction-oriented
• R ealistic
• T ime and resource constrained
Example: SMART Goal
Learn about price risk management strategies and use one price risk tool by 12/31/00, while spending up to $1,000.00 for the
training.
Success
Individual Decisions Vision, Mission, Goals
Vision
____________________________________________________________________________________________________________________________________________________________________________________
Mission
__________________________________________________________________________________________________________________________________________________________________________________________
SMART Goals
_____________________________________________________________________________________________________________________________________________________
Build A Team
• Establish Goals• Define expectations of personnel• Allow for mistakes, create a plan to minimize
them• Evaluate company, team, and personal goals• Always be positive!• Do “teaming” activities• Hire “coachable” employees
Build a Team (continued)
• Allow time for training and personal development
• Recognize “personnel for performance”
(ex: trips, supper, etc…)
• Allow a system of feedback
(start, stop, continue)
• Commitment and trust are essential
• Have FUN!
Farm Analysis
• Big is not always better
•Net income is important
•Change in net worth is the key
Gross Net Net Farm % ReturnFarm Farm Income on Mgmt. Mgmt.
Farm Returns Income % of GFR Investment Returns %1 45027 -15381 -34.2 -9.9 -50,892 -1132 67483 20924 31 6.7 -85 -0.13 69290 23275 33.6 8.4 -884 -1.34 75225 12139 16.1 -0.7 -8,447 -11.25 82674 8301 10.0 -0.4 -29,967 -36.26 84961 31880 37.5 3.8 11,199 -13.27 91533 21130 23.1 -1.2 36,136 -39.58 105055 4174 4.1 -1.1 34,272 -33.69 108324 22887 21.1 8.7 -1015 -0.9
10 155874 63025 40.4 25.9 27439 17.611 228133 115003 50.4 43.6 79845 35.012 354451 62025 17.5 7.3 -2486 -0.713 397105 72367 18.2 8.2 1,540 0.4
Gross Net Net Farm % ReturnFarm Farm Income on Mgmt. Mgmt.
Farm Returns Income % of GFR Investment Returns %1 45027 -15381 -34.2 -9.9 -50,892 -1132 67483 20924 31 6.7 -85 -0.13 69290 23275 33.6 8.4 -884 -1.34 75225 12139 16.1 -0.7 -8,447 -11.25 82674 8301 10.0 -0.4 -29,967 -36.26 84961 31880 37.5 3.8 11,199 -13.27 91533 21130 23.1 -1.2 36,136 -39.58 105055 4174 4.1 -1.1 34,272 -33.69 108324 22887 21.1 8.7 -1015 -0.9
10 155874 63025 40.4 25.9 27439 17.611 228133 115003 50.4 43.6 79845 35.012 354451 62025 17.5 7.3 -2486 -0.713 397105 72367 18.2 8.2 1,540 0.4
Gross Net Net Farm % ReturnFarm Farm Income on Mgmt. Mgmt.
Farm Returns Income % of GFR Investment Returns %
1 45,027 -15,381 -34.2 -9.9 -50,892 -113.02 67,483 20,924 31.0 6.7 -85 -0.13 69,290 23,275 33.6 8.4 -884 -1.34 75,225 12,139 16.1 -0.7 -8,447 -11.25 82,674 8,301 10.0 -0.4 -29,967 -36.26 84,961 31,880 37.5 3.8 11,199 -13.27 91,533 21,130 23.1 -1.2 36,136 -39.58 105,055 4,174 4.1 -1.1 34,272 -33.69 108,324 22,887 21.1 8.7 -1,015 -0.910 155,874 63,045 40.4 25.9 27,439 17.611 228,133 115,003 50.4 43.6 79,845 35.012 354,551 62,025 17.5 7.3 -2,486 -0.713 397,105 72,367 18.2 8.2 1,540 0.4
Source: KFBM, 1993.