Starting an agribusiness is not always easy. Like any other business, one key problem new agribusiness entrepreneurs face is establishing business priorities, budgeting and optimization of business resources such as land, finances, inputs and human resources. To overcome this challenge and set a successful path, agribusinesses need to create a business plan for their first time agri-investment.
What is a Business Plan?
It is a document that outlines the objectives your business intends to achieve with a realistic timeline and strategies of how to achieve them.
Why is it important?
A business plan is like a drivers map to a desired destination. Without it you are a driver without a focus to your desired destination. You need a business plan to help you set out priorities amidst competing tasks, plan timelines for operations as well as plan for the most effective use of your limited resources.
Where can you use a business plan?
You can use a business plan as a pathway when starting a new business, evaluating the performance of an existing business as well as planning for growth and expansion for your agribusiness. It is also used when seeking funding from credit agencies such as banks.
Features of a Business Plan.
A Good Business Plan has the following Key components:
- Business Description – this outlines the background information about the business, the ownership, nature of operations, location and goals you want to achieve.
- Marketing Plan – here you strategize about your market and how to meet the market needs. It is important to note about the 5Ps of marketing.
Product – plan how your product will meet the customers’ needs.
Price – establish a competitive pricing for your product that the market is willing to pay always providing consistent quality and value.
Place – make your products easily accessible to the consumer. Locate your business where your market is.
Promotion – lay out a selling plan for your product i.e how you will advertising and promote your product to your customer e.g advertising, social media e.t.c.
People – create a plan on how you and eventually your staff will meet your business objectives e.g good customer service, professionalism, work ethics e.t.c
- Administration Plan – in this section you plan for the management of your business as well as staffing needs and requirements for the business e.g how many professional and casual workers, management style e.t.c
- Financial Plan – in this section you plan for the source of finances needed to establish the business and run the business operation. You will also need to set your profit margins and understand your operational costs such us cost of inputs, technology and capital infrastructure
- Technology Plan – it is also important to establish and plan for the technology your business will need to adopt, where, when and how it will be acquired. i.e drip irrigation, cctv cameras and accounting software.
- Implementation Plan – a good business plan is one that is properly implemented. In the implementation plan, you strategize on how to best run the business operations, maximize your workers and their skills and meet your set targets and timelines.
- Growth Plan – Lastly you will also need to create a plan for growth and expansion of your business in the future.
Starting a new business is both challenging and frightening but the rewards can be great. The staff at FarmLINK Kenya are always here to provide the support you need to build a successful business. Contact us at email: firstname.lastname@example.org or cell 0705554425