Background information should come from the research conducted during the writing process. This portion should include information regarding the history of the industry, the current state of the industry, and information from reputable sources concerning the future of the industry. This portion of the business plan requires the most investment of time by the writer, with information gathered from multiple sources to prevent bias or undue optimism.
The writer should take all aspects of the industry past, present, and future and business into account. If there are concerns or questions about the viability of the industry or business, these must be addressed. In writing this portion of the plan, information may be obtained from your local public library, periodicals, industry personnel, trusted sources on the Internet, and Penn State Extension.
Industry periodicals are another excellent source of up-to-date information. The more varied the sources, the better the evaluation of the industry and the business, and the greater the opportunity to have an accurate plan. The business owner must first choose an appropriate legal structure for the business. The business structure will have an impact on the future, including potential expansion and exit from the business. If the proper legal structure is not chosen, the business may be negatively impacted down the road.
Only after the decision is made about the type of business can the detailed planning begin. This section of the plan describes the current or planned business structure, the management team, and risk management strategies. There are several forms of business structure to choose from, including sole proprietorship, partnership, corporations subchapter S or subchapter C , cooperative, and limited liability corporation or partnership LLC or LLP.
These business structures are discussed in Starting or Diversifying an Agricultural Business. The type of business structure is an important decision and often requires the advice of an attorney and an accountant. The business structure should fit the management skills and style s of the owner or owners and take into account the risk management needs both liability and financial of the business.
If the business is not a sole proprietorship, the management team should be described in the business plan. The management team should consist of all parties involved in the decisions and activities of the business. The strengths and backgrounds of management team members should be discussed to highlight the positive aspects of the team.
Even if the business is a sole proprietorship, usually more than one person often a spouse, child, relative, or other trusted person will have input into the decisions and therefore should be included as team member s. Regardless of the business structure, all businesses should also have an external management support team.
This external management support team should consist of the business's lawyer, accountant, insurance agent or broker, and possibly a mentor. These external members are an integral part of the management team. Many large businesses have these experts on staff. For small businesses, the external management team replaces full-time experts; the business owner s should consult with this external team on a regular basis at least once a year to determine if the business is complying with all rules and regulations.
Listing the management team in the business plan allows the reader to know that the business owner has developed a network of experts to provide advice. The risk management portion of the business plan provides a description of how the business will handle unexpected or unusual events. For example, if the business engages in agricultural production, will the business purchase crop insurance? Does the business have adequate liability insurance? Is the business diversified to protect against the unexpected, rather than "putting all its eggs in one basket"?
If the business has employees, does the business carry adequate workers' compensation insurance? All of these questions should be answered in the risk management portion of the business plan. More information how liability can affect your business and on the use of insurance as a risk management tool can be found in Agricultural Business Insurance and Understanding Agricultural Liability. All marketing strategies or objectives carry a degree of risk and must be evaluated, and mitigation strategies should be included in this portion of the plan.
Every purchase decision that a consumer makes is influenced by the marketing strategy or plan of the company selling the product or service. Products are usually purchased based on consumer preferences, including brand name, price, and perceived quality attributes.
Consumer preferences develop and change over time, and an effective marketing plan takes these preferences into account. This makes the marketing plan an important part of the overall business plan. In order to be viable, the marketing plan must coincide with production activities.
The marketing plan must address consumer desires and needs. For example, if a perishable or seasonal crop such as strawberries will be produced, the marketing plan should not include sales of locally grown berries in January if the business is in the northeastern United States. If the business plans to purchase berries in the off-season from other sources to market, this information needs to be included. In this way, the marketing plan must fit the production capabilities or the capability to obtain products from other sources.
A complete marketing plan should identify target customers, including where they live, work, and purchase the product or service you are providing. Products may be sold directly to the consumer retail or through another business wholesale. Whichever marketing avenue you choose, if you are starting a new enterprise or expanding on an existing one, you will need to decide if the market can bear more of what you plan to produce. Your industry research will assist in this determination.
The plan must also address the challenges of the marketing strategy proposed. This portion of the plan contains a description of the characteristics and advantages of your product or service. Identifying a "niche" market will be of great value to your business. Other variables to consider are sales location, market location, promotion and advertising, pricing, staffing, and the costs associated with all of these.
All of these aspects of the marketing plan will take time to develop and should not be taken lightly. Further discussion on marketing fruits and vegetables can be found in Fruit and Vegetable Marketing for Small-scale and Part-time Growers. An adequate way of determining the answers to business and marketing issues is to conduct a SWOT analysis.
Strengths represent internal attributes and may include aspects like previous experience in the business. Experience in sales or marketing would be an area of strength for a retail farm market. Weaknesses are also internal and may include aspects such as the time, cost, and effort needed to introduce a new product or service to the marketplace. Opportunities are external aspects that will help your business take off and be sustained. If no one is offering identical products or services in your immediate area, you may have the opportunity to capture the market.
Threats are external and may include aspects like other businesses offering the same product in close proximity to your business or government regulations impacting business practices and costs. The financial plan and assumptions are crucial to the success of the business and should be included in the business plan. One of the foremost reasons new businesses fail is not having enough startup capital or inadequate planning to cover all expenses and be profitable.
The scope of your business will be determined by the financial resources you can acquire. Because of this, you will need to develop a financial plan and create the supporting documents to substantiate it. The financial plan has its basis in historical data for an existing business or from projections for a proposed business.
The first issue to address is recordkeeping. You should indicate who will keep the necessary records and how these records will be used. Internal controls, such as who will sign checks and handle any funds, should also be addressed in this section. A good rule to follow for businesses other than sole proprietorships is having at least two people sign all checks.
The next portion of the financial plan should be assumptions concerning the source of financing. This includes if and when the business will need additional capital, how much capital will be needed, and how these funds will be obtained. If startup capital is needed, this information should be included in this portion. Personal contributions should be included along with other funding sources.
The amount of money and repayment terms should be listed. One common mistake affecting many new businesses is underfunding at startup. Owners too often do not carefully evaluate all areas of expense and underestimate the amount of capital needed to see a new business through the development stages including living expenses, if off-farm income is not available. Typically, a balance sheet, income statement, cash flow statement, and partial budget or enterprise budgets are included in a business plan.
More information on agricultural budgets can be found in Budgeting for Agricultural Decision Making. These documents will display the financial information in a form that lending institutions are used to seeing. If these are not prepared by an accountant, having one review them will ensure that the proper format has been used. Financial projections should be completed for at least two years and, ideally, for five years.
In agricultural businesses, five-year projections are sometimes difficult to make because of variability in prices, weather, and other aspects affecting production. One way to illustrate these risks is to develop several scenarios covering a range of production assumptions. This attention to detail will often result in a positive experience with lenders because they realize that the plan covers several possible circumstances and provides insight into how the business plans to manage risk.
More information on financing agricultural businesses can be found in the publication Financing Small-scale and Part-time Farms. A balance sheet is a snapshot of a business's assets and liabilities and its owner's equity at a specific point in time. A balance sheet can be prepared at any time but is usually done at the end of the fiscal year for many businesses, this is the end of the calendar year. Evaluating the business by using the balance sheet requires several years of balance sheets to tell the true story of the business's progress over time.
A balance sheet is typically constructed by listing assets on the left and liabilities and owner's equity on the right. The difference between the assets and liabilities of the business is called the "owner's equity" and provides an estimate of how much of the business is owned outright. Owner's equity provides the "balance" in a balance sheet. Assets are anything owned by or owed to the business.
These include cash and checking account balances , accounts receivable money owed to the business , inventory any crops or supplies that the business has stored on farm , land, equipment, and buildings. This may also include machinery, breeding stock, small fruit bushes or canes, and fruit trees. Sometimes assets are listed as current those easily converted to cash and fixed those that are required for the business to continue.
Assets are basically anything of value to the business. Balance sheets may use a market basis or a cost basis to calculate the value of assets. A market-basis balance sheet better reflects the current economic conditions because it relies on current or market value for the assets rather than what those assets originally cost.
Market values are more difficult to obtain because of the difficulty in finding accurate current prices of assets and often results in the inflation of the value of assets. Cost-basis balance sheets are more conservative because the values are often from prior years. For example, a cost-basis balance sheet would use the original purchase price of land rather than what selling that land would bring today.
Because purchase records are easily obtained, constructing a cost-basis balance sheet is easier. Depreciable assets, such as buildings, tractors, and equipment, are listed on the cost-basis balance sheet at purchase price less accumulated depreciation. Most accountants use the cost-basis balance sheet method. Whether you choose to use market basis or cost basis, it is critical that you remain consistent over the years to allow for accurate comparison.
Liabilities are what the business owes on the date the balance sheet is prepared. Liabilities include both current liabilities accounts payable, any account the business has with a supplier, short-term notes, operating loans, and the current portion of long-term debt, which are payable within the current year and non-current liabilities mortgages and loans with a term that extends over one year.
Owner's equity is what remains after all liabilities have been subtracted from all assets. It represents money that the owner has invested in the business, profits that are retained in the business, and changes caused by fluctuating market values on a market-basis balance sheet. Owner's equity will be affected whenever changes in capital contributed to the business or there are retained earnings; so, if your practice is to use all earnings as your "paycheck" rather than reinvesting them in the business, your owner's equity will be impacted.
On the balance sheet, owner's equity plus liabilities equals assets. Or, stated another way, all of the assets less the amount owed liabilities equals the owner's equity sometimes referred to as "net worth". The income statement is a summary of the income revenue and expenses for a given accounting cycle. If the balance sheet is a "snapshot" of the financial health of the business, the income statement is a "motion picture" of the financial health of the business over a specific time period.
An income statement is constructed by listing the income or revenue at the top of the page and the expenses and the resulting profit or loss at the bottom of the page. Revenue is any income realized by the sale of crops or livestock, government payments, and any other income the business may have including such items as fuel tax refunds, patronage dividends, and custom work. Other items affecting revenues are changes in inventory and accounts receivable between the start of the time period and the end, even if these changes are negative.
Expenses include any expense the business has incurred from the production of the products sold. Examples of expenses include feed, fertilizer, pesticides, fuel, labor, maintenance and repairs, insurance, taxes, and any changes in accounts payable. Depreciation, which is calculated wear and tear on assets excluding land , is included as an expense for accounting purposes. Interest is considered an expense, but any principal payments related to loans are not an expense.
As the income statement is created, the desired outcome is to have more income than expenses, so the income statement shows a profit. If not, the final number is shown in parentheses signifying a negative number. Another name for this financial record is a "profit and loss statement. A cash flow statement is the predicted flow of cash into and out of a business over a year. Cash flow statements are prepared by showing the total amounts predicted for each item of income or expense. This total is then broken down by month to show when surpluses and shortfalls in cash will occur.
In this way, the cash flow statement can be used to predict when additional cash is needed and when the business will have a surplus to pay back any debt. You need to design your website such that it shows off your business while standing out from the crowd.
Take a look at the variety of web design website templates to find the one for your own website. Remember to get reliable hosting for your website, as a hosting provider influences your SEO. Buy Hosting. Being technical is definitely important, but your website should not be designed by a technician.
You need creativity and you need to market good quality design. This is why you need to focus on designing and marketing both. A good web developer business plan always highlights the importance of marketing properly and strategically. In order to succeed and generate revenue, you need to attract masses of potential customers and, that too, on a cost-effective basis.
The best way to do this is through social networking. Be active on social media and maximize your profits by spreading the word about yourself with influencer marketing , promoting yourself everywhere, attracting traffic , using your customers to introduce your company to other potential customers, etc.
You are most likely to start alone or with the help of a very small management team but you will definitely to hire more staff. Think of everything you are excellent at doing and can manage to do all on your own, then determine the stuff which you could hire someone to do for you, or which you need help doing. You will need human resources to build a team and you will need to describe the reason behind choosing to work with certain people or firms and how they have the skills or resources you need.
Web developer business plan? Marketing Strategy? Management team? Website traffic? You have everything you need to start and succeed — but guess what? There are thousands of developers out there with the same building-blocks and other resources at their disposal. You think your idea is unique?
There is most likely another company out there doing something similar. What you can do is be critical of the work of your competitors and determine what you can do to provide better service for the customers and stand out in the crowd by marketing what makes you different, better, and more deserving of consideration.
Mention any and all educational or professional details such as degrees, certifications, diplomas, work experiences, etc. Stay in tune with the latest industry trends and enhance your credibility by giving visual examples of what you specialize in. Competition is plenty, but you need to be patient and persistent if you believe you have what it takes. Building an effective foundation is very likely to guarantee things go as you want them to in the future.
You actually allow it to become appear to be simple with all your presentation on the other hand to find this disorder to become actually an element that In my opinion I might in no way have an understanding of single page website designer. Seems like very sophisticated and wide in my situation. My business is wanting onward inside your next offered, I will aim to have the their hands on them!
Your email address will not be published. Please fill out this field. Brenda Cagara 27 November, Importance of Following a Web Developer Business Plan Due to reasons such as operational demands or simple underestimation of the amount of time and effort that goes into web development, people ignore that it is important to have a web development business plan if they want to be successful in web development and marketing.
Know Your Strength and Weaknesses Your strengths will help you to choose the main services you would be offering and your weaknesses will help you identify your areas for growth and will help to avoid wastage of energy and time that can be handled by someone else. Know Your Market Try to know what people are looking for and tailor your services according to their needs.
Your Website Is Important You are marketing yourself as a web development company, so obviously having a visually and functionally appealing website should be the first step in your web developer business plan.
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