C A N D I D C O N V E R S AT I O N S
DEVELOPING A BUSINESS PLAN Laying Groundwork for the Future By David Rocha, Senior Vice President, Tulare County
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eginning a career in agriculture is an exciting journey. There is a lot to learn — like the intricacies of the crop, weather and soil. Getting your hands dirty at an existing agricultural operation is a great place to start learning, and as your knowledge grows over time, you may be ready to make the leap and start your own business venture. This is where real-world experience meets thoughtful planning and can be captured in an important document — a business plan. At Farm Credit West, this is the first document we look at when considering a new loan to beginning farmers.
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Specific
Measurable
Achievable
Relevant
Time-bound
State exactly what you want to accomplish (Who, What, Where, Why)
How will you demonstrate and evaluate the extent to which the goal has been met?
Is your goal challenging, but within your scope?
How does the goal tie into your key responsibilities?
Set one or more target dates. Include deadlines, dates and frequency.
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The purpose of a business plan is to identify a strategic roadmap for your business and articulate your vision. It does not need to be overly complicated — oftentimes an overview of 1-2 pages can be enough. The best business plans include the operation’s production targets, cost estimates — like labor and equipment — and a sustainable revenue model. It also outlines the long-term goals and objectives of the operation. At first glance goals and objectives may seem identical, but there are some key differences. Goals are broad, abstract and difficult to measure and need to be complemented by a set of SMART objectives. SMART stands for: specific, measurable, achievable, relevant and time-bound.
Spotlight
SUMMER 2022
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