Farming has become a profitable business not only for traditional farmers and food producers, but for anyone who is enthusiastic about growing food on their own. Farm land owners and cattle owners can benefit from trading and selling cattle for beef, as well as other products, such as milk, hide, and other related farm products. Livestock and farming is gaining popularity not only because of the financial benefits, but also for meeting the global demands for protein.
Making a business plan for cattle farm
In the next decade or so, the responsibility of farmers to produce more food to feed the global population will increase, and therefore, a need for a business plan will become necessary for farmers who want to expand their business and become mid-sized companies for producing farm products. The global population growth and changes in economy will increase the demand for beef around the world in next ten years at a rapid rate. Over the next 40 years the demand for food globally will double, and so, the beef and cattle farmers will need to put in some intensive work at their farms. The good news is that majority of the people who are below the average income level will shift to mid-income levels, and the demand for quality food at a higher price will also increase.
Why businesses plan?
A business plan is necessary for any business to evaluate profits, overheads and other expenses and to make proper financial and production related decisions. As your business grows, you will need to structure your business, divide your goals into smaller goals and make necessary changes accordingly to maximize your profit and make your business feasible.
Reasons for a business plan:
- Start a new business: When you start a new business, you need to make sure that you have the right steps in order to succeed in your business. You also need to make sure that you are not working on something that will bring you profit, or at least you will know you were not “doomed to fail” from the start. A business plan will save you from serious mistakes at start up and you will be able to decide what steps to take to ensure your success.
- Expand your existing business: A business plan is necessary to expand your existing business. It will allow you to develop business strategies that are most beneficial for your business and your situation. You will also be able to make decisions, allocate resources and make changes according to your strategy.
- Manage priorities: Planning will help you allocate resource where they are most needed and prioritizing your work accordingly.
- Track your growth: A plan is also a device that tracks your progress towards your set goals.
- Prepare a business loan application: If you need financial assistance from any government or non government agencies or financial institutes, you will have to show them your business plan. Financial institutes need to make sure that your business is fusible.
- Seek investors or partners: When you seek other investors or partners, you will have to convince them through your briskness plan that your business will make them a profit.
- Valuation of your business: To estimate the value of your business, it takes a business plan as well as professional estimators.
- Make financial decisions : Your business plan will help you to decide the financial decisions you make, such as whether you need to reinvest, put more capital, buy more assets, how much more assets you need and so on. Many businesses fail because they do not have capital set aside or backup capital for emergencies.
- Hire people: When you hire people, your business plan will tell you how many people you need, their skills, salaries, and all other expenses associated with the staff you hire so that you can make sure they will make money for your business.
- Assign tasks to managers: A business will run smoothly if managers are assigned with specific tasks and given guidelines and deadlines. They also need to be monitored and tracked for progress.
- Share your ideas: when you start your business, you may not be the only one involved in managing your business. A business plan will share your goals and ideas, making sure that everyone is on the same page.
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Source: Sustainable Livestock Nutrition