Small farm business plan final - Community Farms

[Pages:35]Business Planning

for Small-Scale Community Farming Enterprises

Community Farms Program

Published by FarmFolk/CityFolk April 2009

? 2009 by FarmFolk/CityFolk All rights reserved

FarmFolk/CityFolk Society is a non-profit society that works with farm and city to cultivate a local, sustainable food system. We develop and operate projects that provide access to and protection of foodlands; that support local, small scale growers and producers; and that educate, communicate and celebrate with local food communities.

Business Planning

for Small-Scale Community Farming Enterprises

by Robin Tunnicliffe Saanich Organics robintunnicliffe@ April 2, 2009

FarmFolk/CityFolk and The Land Conservancy of British Columbia Community Farms Program

The Community Farms Program brings together landowners, farmers, local communities, and resources to develop and support community farm models in BC.

Acknowledgements

The Community Farms Program is supported by program partners FarmFolk/CityFolk and The Land Conservancy of British Columbia. We thank the Law Foundation of BC, Organic Sector Development Program, Real Estate Foundation of BC, Vancity Community Foundation, and Vancouver Foundation for funding projects under this Program. Thanks also to the Minnesota Institute for Sustainable Agriculture, the Small Farm Centre at UC Davis, and Vancity Credit Union for their business planning resources.

About the author Robin Tunnicliffe is an organic vegetable farmer and a partner in a local organic produce distribution company. She studies food policy and food sovereignty theory at the University of Victoria in an Interdisciplinary M.A. program. Robin is also a board member of USC Canada.

Cover photographs by Brian Harris Photography

Business Planning for Small-Scale Community Farming Enterprises

Table of Contents

1. Why plan?

2

1.1 What are the key factors motivating you to plan?

2

1.2 Who is part of your team?

2

1.3 How will you use this business plan?

2

2 . Values

3

2.1 Identifying personal values

3

2.2 Identifying group values

4

3 . Goals

5

3.1 Identifying goals

5

3.2 Prioritizing goals

6

3.3 About you

7

3.4 Imagining your business

8

3.5 Mission Statement

9

4 . Farm and Farmer History

10

4.1 Details about the farm and the farmer(s)

10

4.2 Physical resources

11

4.3 Assessing your resources

13

5 . Operations

14

5.1 Marketing

14

5.2 Distribution

17

5.3 Pricing

18

5.4 Promotion

19

5.5 Changing market conditions

20

5.6 Community relationships

20

5.7 Institutional considerations

21

6 . Human Resources

22

6.1 Annual operations schedule

22

6.2 Current work force

23

6.3 Job descriptions

24

6.4 Labour

25

7 . Finances

26

7.1 Annual family expenses

26

7.2 Annual family income

27

7.3 Income Statement

27

7.4 Balance Sheet

28

7.5 Earned Net Worth Change Analysis

29

8 . Executive Summary

30

8.1 Getting feedback

30

8.2 Last thoughts

30

Robin Tunnicliffe

Page 1 Community Farms Program

April 2009

Business Planning for Small-Scale Community Farming Enterprises

1. Why plan?

The primary motivation for individuals to complete business planning is often to secure funding from either banks or family. We'd like you to think about this as an exercise also for yourself and your support network. It is a way to harness and focus your creative energy during the planning stages of your farm. A business plan is an excellent way to share your ideas with others, and to give supporters the information they need to help you.

Embarking on a new business can be stressful. This exercise can help you get a handle on the unknown elements and give you a way to proceed forward on your research. Don't worry about leaving blank spaces, and feel free to add sections that are relevant to you.

Once your plan is completed, think of it as a working document that will help you work through new scenarios at the farm, or to ground yourself by reviewing your values and goals in the context of your business. If you are willing, we'd love for you to share your completed business plan, or any part of it, with us. The Community Farms Project is always gathering information and we're interested in learning from your experience with business planning.

1.1 What are the key factors motivating you to plan?

Are you a new farmer starting up or an experienced farmer hoping to get a better handle on running the farm more efficiently?

1.2 Who is part of your team?

If you are a single operator, are there any other resource people that you would like to be involved in your operation? If you are part of a team, describe who is involved. Does your team include other external consultants, business instructors, or neighbours?

1.3 How will you use this business plan?

Is it primarily an internal planning tool? Will it be used for communication outside your business? Who is your audience?

Robin Tunnicliffe

Page 2 Community Farms Program

April 2009

Business Planning for Small-Scale Community Farming Enterprises

2. Values

Every farm is a unique combination of the farmers' personality and the farm's physical elements. This section is designed to help you get to know yourself. It will be useful to reference the values that you list here when completing later sections of your plan, to make sure that your business model is consistent with who you are and what you want to do. If you are planning as a group, it might be useful to do this part separately, and then come together to assess compatibility. It could be that you have already decided to work together. In this case, a reflection on personal values will help you gain insight into each other and what is important so you can manage your business for everyone's fulfillment. 2.1 Identifying personal values a) Personal values (stability, family, time, quality of life)

b) Economic values (standard of living, security, income needs)

c) Environmental values (the relationship between your farm and the surrounding land)

Robin Tunnicliffe

Page 3 Community Farms Program

April 2009

Business Planning for Small-Scale Community Farming Enterprises

d) Community values (how you feel about the interaction between your business, the farm and the community)

2.2 Identifying group values e) Identify values that are common to your group and that you share as a team (ethics, sense of

fun, responsibility)

f) Identify any values that are or might be at odds within the group.

g) Discuss how these values are compatible with farming as a profession/occupation.

Robin Tunnicliffe

Page 4 Community Farms Program

April 2009

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