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1 6 EEKEEPEREXAMPLEP reparinga Business PlanA Guide for Agricultural Producersova 0 00008 oo~ooo0 Province ofBritish ColumbiaMinistry of Agriculture,Fisheries and FoodPreparinga Business PlanA Guidefor Agricultural ProducersBee Keeper ExampleProvince of British ColumbiaMinistry of Agriculture, Fisheries and FoodACWe would like to thank the following people for theirsupport in the preparation of this publication:+ Howard Joynt, Financial Management Specialist, of Agriculture, Fisheries and Food,+ John Gates, Apiculture Specialist, Ministry ofAgriculture, Fisheries and Food,* and the following members of the HoneyProducers Association:Ted Hancock, Dog Creek,Colin Pullein, Kelowna,Terry Huxter, Rock Creek,Allen Paulson, under contract with Ministry ofAgriculture, Fisheries and Food by:J.

2 A, Lloyd Management ServicesKelowna, ..1 What Planning Can Do For You .. 2 What Goes Into Your plan ..3 Giving Your plan the Right Look .. 4 Componentsof a Business :..5 Title Profile .. 40 Glossaryof an Agricultural business in the 1990s andbeyond will be more complex with good planningskills becoming increasingly important. As farmingbecomes more capital intensive, margins narrow andthe adoption of rapidly changing technology becomesthe norm, planning techniques which are used in otherbusinesses must be applied to agriculture. One ofthese planning techniques is preparing the formalbusiness plan . A formal business plan integrateswritten goals with marketing, production and financialtargets into a management strategy for the businessalong with identifying human resource factors such as increased environmentalawareness and the globalization of agricultureemphasize the need for effective planning at the purpose of this publication is to provide farmerswith business planning information and a format fordeveloping a business plan for his or her farmbusiness.

3 While information and sample businessplans are available for non-farm businesses, examplesof business plans for farms are difficult to business is unique in terms of physicalcharacteristics, income level and people involved inowning and operating the farm. This publication willprovide a good starting point to assist farm managersto prepare formal business plans for their Peterson, DirectorFarm Management BranchMinistry of Agriculture and FisheriesVernon, British ColumbiaYou have a plan . You need to write it a Business plan is a working Guide to helpyou do just will show you what a business planlooks like and be a Guide to refer to as you prepareyour own business to use this guideThis Guide is set up to use an explanation and then anexample to show you the process for preparing yourplan.

4 The example follows through a business planwhich has been prepared to provide direction for themanagement of a 500 hive beekeeping left hand page of the Guide explains what shouldgo into the section. The right hand page gives anexample of how it might the back of the Guide , you will find blankworksheets that you may want to use to help you instructuring your plan . Remember, however, that whilethis Guide will give you a framework, your plan willfocus on your needs and your business you need more informationIf you need more information, contact your Ministry of Agriculture, Fisheries and Fooddistrict office, the Apiculture Specialist for your area,or the Farm Business Management Branch. BCMAFF provides a wide range of factsheets and worksheetssuch as Planning for Profit contribution margins andthe Planning is a vital part of your successful plans are routinelyprepared by larger urban firms as a normal businesspractice.

5 They improve communication, generalefftciency and decision making - important advantagesfor all businesses, including your beekeeping does not replace enterpreneurial skills but itcan help avoid failures by:* discovering the problems and pitfalls* making the right moves to avoid them* preparing to take advantage of new opportunitiesCommunication helps create a common purpose. Youcan use your written plan to explain your goals andstrategies to people inside and outside the operation:+ where the business is going,+ what needs to be done,+ the role of investors, family members andemployeesThe business plan is your game plan within which you+ set objectives and guidelines on paper.+ create a standard against which to compare youractual results with your anticipated results.

6 + identify problems quickly, before they becomeunmanageable.+ keep on trackBecause planning is so crucial to your operation, it simportant to examine every aspect of your businesscarefully and honestly. Be realistic in assessing whatyou are capable of and the possibilities that exist foryour business. Some questions you should be askingyourself are:What exactly is the purpose of my business?How good is my concept? Will I be able tomarket my products?What are my personal and business goals?Do I have the necessary skills and abilities?What are my approximate cash needs? Do I havethe resources? If not, where could the fundscome from?* Am I willing to take time to plan for my success?A business plan puts a lot of valuable information atyour fingertips, ready to help you make those toughdecisions.

7 The plan will also help you monitor progressand cope with change and business plan should be prepared by you, theowner/manager of the farm. Even if you use outsideprofessional help, your plan must be your own. Youhave to be able to present it, summarize it and to develop a plan ?To many farmers, planning is synonymous with numbercrunching. Your business plan is much more. A look atinto your planyour business should start with the foundation and buildon the goals and priorities of your business and this Guide , the business plan works through a processv of development:+ Analyzing the farm business and the industry* Determining the goals of the business and thefamily+ Choosing the strategies to achieve the goals interms of:* markets for the products of the business+ production resources+ management and labour resources* financesThe number crunching builds in each step of theprocess.

8 The financial planning serves as the realitycheck for the business plan rather than being the driverof the business plan will answer three main questions:1. Where are you now ?2. Where do you want to get to?3. How are you going to get there?The Right lookYour business plan will likely be used to explain whatyou want other individuals, both inside and outsidethe business, to do for you. It is important to follow arecognized process and format to set up your , as your business plan is a formal document,appearance is important. The document should* include a title page giving business name, dateand time period coveredhave a detailed table of contentsbe typed, double-spaced with clean marginsbe simple and easy to readbe geared to outsiders - avoid industry jargonbe organized with essential information at thefronthave extra information in AppendicesThe background papersThe formal plan will have the information needed toguide the user though the scenario you are , you will likely be collecting all kinds ofadditional information about your business.

9 Thesebackground papers are very helpful for furtheranalysis and for future planning. You will want to setup an informal or working file to keep otherinformation and ideas such as:+ detailed analyses and other numbers+ support and source documents* inventories and valuations* projections based on other scenarios.+ other opportunities not pursued and why+ confidential information+ competitive edge information+ details of goals and objectives* newspaper and magazine clippings+ sensitive or confidential informationcavlPoNENIsOFABUSINESPIANA complete business plan will include the componentsshown in the diagram below. Although each componentshould be considered, the amount of detail and depth ineach will depend on the importance to your business plan may look different from theexamples used in this book.

10 You should emphasizethose sections which best reflect the nature of ProfileTitle PageThe Title Page helps your business plan lookprofessional. Remember that first impressions arevery important, especially to readers, such as bankers,who see many the example on the right shows, you shouldinclude:+ your farm name* address* telphone/FAX number4 the period the plan covers+ the person to contact+ the date your plan was prepared6 Tie PageExampleBUSINESS PLAN1995 - 1999toOperateGOLDEN GLOW FARMSa 500 hive Beekeeping by:Bill and Lila WashingtonDate:December 3 1,1994 Address:Box 10808 Quesnel, British Columbia, V2J 2 ClTelephone/Fax:(604) 999-44447 ContentsThe Table of Contents outlines the topics covered bythe allows readers to jump immediately tothose sections which are of most that people who may read your plan , suchas perspective lenders, are busy people.