Farm and Business management (FBM), also known as farm and business planning, is the process of coordinating every aspect of your agricultural operation with a view to maximizing your income and profit. This process requires a broad range of skills, including management, economic analysis, and marketing.
The following are the key practices to implement for managing your farm and business:
Marketing is the sale of products or services to customers; financing is the borrowing of money to finance operations; and risk management is ensuring that you are protected from disasters.
Financial – creating pro forma and actual enterprise budgets in order to forecast income and expenses, calculating ratios, and setting financial goals.
The first step is to write down a plan of how you are going to accomplish your objectives. This will allow you to think about the different functions of your business and identify any weaknesses.
Next, you will need to determine if your land is zoned for production or if it has zoning regulations that limit the type of production you can do. Check with your township or county if there are any restrictions and how they might affect your plans.
Your business will also need adequate public facilities, such as parking areas, signage, and customer assistance. These facilities will be needed to accommodate your customers and visitors and should be in compliance with food safety, environmental and zoning laws.
Ultimately, your business will need to be self-sustaining and a viable source of income. This means you must have use this link enough off-farm revenue to cover your expenses and save for your future business.