Business Plans

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As an urban farmer, you have a long list of responsibilities and tasks. You have plenty of plans and exciting ideas to support and grow your business – but do you have a formal, written business plan? It is understandable if you don’t, since your full schedule includes learning to grow food, planning and planting, managing volunteers, harvesting crops, and arranging produce sales or donation.

However, as your backyard or community garden plot has grown and perhaps expanded into a full city lot, you may have started to think about formalizing your efforts. Production growth may have already led you to apply for and receive 501c3 status or register as a commercial business. No matter what stage your urban farm is in, take the next steps to success by using this resource to start developing your business plan.

Why write a business plan?

A business plan is a guide or road map to help you get where you want to go. It can also be thought of as a resume for your business.

A business plan will...

  • Help clarify your thinking.
  • Force you to ask and answer hard questions.
  • Define the scope, values, and goals of your farm.
  • Formalize your business structure.
  • Facilitate clear communication to others.
  • Identify market opportunities.
  • Require you to evaluate your finances.
  • Provide written material you can use to apply for grants and loans.

Are you ready to own a business or operate a non-profit?


Before you begin writing a plan ask yourself the questions below. Positive answers will indicate readiness. You may also want to consider starting your business as a part-time side hustle while keeping your day job to ensure a steady income.

  • Are you a leader/self-starter?
  • Do you have significant/sufficient capital?
  • Have you worked in a similar business?
  • Are you willing to invest your savings?
  • Are you willing to commit long hours to make
  • your business work?
  • Are you prepared to lower your standard of living to establish your business?

Prepare to Write a Business Plan

Step 1: Define who you are and what you do.

Write vision and mission statements. Seek feedback and involve others in the writing and design.
 

Step 2: Asses the market demand for your product or need for your service.

Are you sure your product or service fills a specific market or community need? Do you know your target market? Do you know where to find demographic information about your customers/ clientele?

  • Visit similar businesses and organizations.
  • Sample similar products.
  • Test your products with friends and family.

Step 3: Develop practical skills.

Take a course, read, listen to podcasts, work on a farm, and attend farming conferences. Learn how to prepare and interpret balance sheets, income statements, and cash flow statements. Learn how to develop a marketing plan. Consider legal issues and how to mitigate risk.

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Begin writing your plan. 

After working on Steps 1 to 3 above, begin filling in the Simple Farm Business Plan Template. You don’t have to complete the sections in order. Save the Executive Summary section for last.

Non-profits need business plans, too.

Yes! A non-profit is a type of business and requires money and labor to function. Having a plan in place will help you establish clear systems, labor requirements, and determine your need for ongoing funding.

For More Information

Urban growers who need help creating a whole-farm business plan or need ongoing farm business coaching may contact: Kathryn Pereira, University of Illinois Extension Educator, Local Food Systems and Small Farms, kpereira@illinois.edu.

Additional Resources

 

Authored by: Kathryn Pereira. Local Food Systems and Small Farms Educator, Illinois Extension

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