abcd

Slide 6: 

Alan Linnebur Washington County Extension Blue Prints for Building Your Business

Blue Prints for Building your Business: 

Blue Prints for Building your Business Blue prints A plan for the design and construction of a machine or building. Bringing together many parts into a functioning unit. Business Plan Similar Idea

Planning Quotes: 

Planning Quotes You got to be careful if you don’t know where you are going Because you might not get there. - Yogi Berra Forewarned, Forearmed; To be prepared is half of the victory - Cerevantes (Don Quixote) Plans are worthless. Planning is essential – Dwight D. Eisenhower Good plans shape good decisions. That’s why good planning helps to make elusive dreams come true. - Lester Robert Bittel

Why Most Do a Business Plan ?: 

Why Most Do a Business Plan ? Required for Loan Grant Money Starting a New Venture Expanding What Will Motivate You to Plan?

Those who have Formally planned Say : 

Those who have Formally planned Say Learned A lot Confidence in moving forward Contingency Plans Put them in drivers seat do you run the business or the business run you Provided discipline toward goals Identified Unseen Risks Provided Continuity for new team Members Roadmap for Future Saved time with lenders Family direction and goals identified Quantified Risks Prioritized Values and Goals Holistic Coordination Better Prepared for the Good and Bad

Planning Steps: 

Planning Steps What is important to you? Identifying your values and needs What have you got? Review history and inventory your situation Where do you Want to Go? Draft Vision / Mission / Goals How to Get There? Research, Develop and Evaluate Strategies Implement plan and monitor

Planning Steps: 

Planning Steps What is important to you? Identifying your values and needs What have you got? Review history and inventory situation Where do you Want to Go Draft Vision / Mission / Goals How to Get There Implement plan and monitor

Step 1: Identifying Values / Needs: 

Step 1: Identifying Values / Needs What Kind of Life do you Want to Lead? Pressure – Laid Back – Own Boss – Competitive Being Successful To you Means? Security – Size – Profit – Spare Time ? What do I consider financially Important? Low Debt and Risk – Simple Living – Getting Rich? What Kind of Work Environment do I want? Indoors – Work with People – Crops ? Personal / Family / Community / Environment

Step 1: Identifying Values / Needs: 

Step 1: Identifying Values / Needs Personal Values Team Values Family – Partners - Key Employees Reluctant Partners are not as Productive . Values in common Reconcile Differences Write your values portion of the Plan

Planning Steps: 

Planning Steps What is important to you? Identifying your values and needs What have you got? Review history and inventory situation Where do you Want to Go Draft Vision / Mission / Goals How to Get There Implement plan and monitor

2. What Have you got: 

2. What Have you got Review History How did you manage to get yourself to this point. I was born here? Does the History Reflect My Values? Take an Inventory Realistic Human Physical Mental labor Material Land Equip Financial Market?

Planning Steps: 

Planning Steps What is important to you? Identifying your values and needs What have you got? Review history and inventory your situation Where do you Want to Go Draft Vision / Mission / Goals How To Get There Research, Develop and Evaluate Strategies Implement plan and monitor

Step 3: Where Do You Want to Go Vision – Mission - Goals : 

Step 3: Where Do You Want to Go Vision – Mission - Goals Dream a Vision for the Future Develop a Mission Set and Prioritize Goals Write the Vision/Mission/Goals part of the Plan

Step 3: Where Do You Want to Go? Vision : 

Step 3: Where Do You Want to Go? Vision “You’ve got to think about big things, so that all the small things go in the right direction” - Alvin Toffler “The very essence of leadership is that you have a vision that you articulate clearly and forcefully on every occasion. You can’t blow an uncertain trumpet.” - Theodore Hesburgh. “To the person who does not know where he wants to go there is no favorable wind.” - Seneca

Step 3: Where Do You Want to Go Vision: 

Step 3: Where Do You Want to Go Vision Dream a Vision for the Future for your family and business What you want it to be in 1, 5, or 10 yrs. Outline Description Story Map

Slide 22: 

The future looks bright! Cedar Summit Farm is still a diversified livestock enterprise after ten years. We have listened to our customers and have adjusted our product line to suit their needs. All of our products are sold at our farm store, farmers’ markets, CSA’s, church drop-off spots, food co-ops or delivered to homes and restaurants within a 25-mile radius of the farm. Included in our product line are a large variety of dairy and meat products. The customer base at Cedar Summit Farm has grown to the point that we must ally with neighboring sustainable producers. The fact that the farm is almost totally surrounded by homes has played a part in this growth.

Step 3: Where Do You Want to Go Mission: 

Step 3: Where Do You Want to Go Mission “Outstanding people have one thing in common: an absolute sense of mission.” –Henry David Thoreau A Mission is the definition of the 'special assignment' being undertaken by the business WHY you’re making the journey.

Step 3: Where Do You Want to Go Mission: 

Step 3: Where Do You Want to Go Mission Develop a Mission Statement Who are we? What should the business to be known for? What do we want to accomplish? Why we do what we do? Core Purpose! Internal and External Purpose Internal to help business stay on task! External to communicate and promote! May be the same

Slide 25: 

“ The mission of this farm is to produce organic food that: is sold to local customers at a fair price; provides us with enough income; improves the soil, air and water quality on our farm; is a vehicle to raise community awareness of sustainability and environmental issues.” Sample Mission Statement

Mission: 

Mission Wal-Mart To give ordinary folk the chance to buy the same thing as rich people. McDonald’s To be the worlds best quick service restaurant experience. Being the best means providing outstanding quality, service cleanliness and value so that we make every customer in every restaurant smile. Microsoft At Microsoft , we work to help people and businesses throughout the world realize their full potential.

Step 3: Where Do You Want to Go Vision – Mission - Operations : 

Step 3: Where Do You Want to Go Vision – Mission - Operations Values lead to the Creation of Vision & Mission Vision and Mission are Operationalized by Goals Goals are directed at what you Value MISSION VISION VALUES GOALS

Planning Steps: 

Planning Steps What is important to you? Identifying your values and needs What have you got? Review history and inventory your situation Where do you Want to Go? Draft Vision and Mission How to Get There? Research, Develop and Evaluate Strategies Set Goals Implement plan and monitor

Step 4: How to Get There Research, Develop, & Evaluate Strategies: 

Step 4: How to Get There Research, Develop, & Evaluate Strategies Marketing Strategies Operations Strategies Financial Strategies Human Resources Whole Farm Strategy

Inter-Connected: 

Inter-Connected Production Marketing Human Resources Customers Environment Finance Family Public Relations Regulations Taxes Personal Time Suppliers

4. How to Get There? Comprehensive Plan: 

Generate Alternatives Evaluate and Choose courses of action Best Fit Tests to help select Values, Mission, Goals Feasibility Tests Contingency Plans 4. How to Get There? Comprehensive Plan

Step 4: How to Get There Set and Prioritize Goals : 

Step 4: How to Get There Set and Prioritize Goals Values lead to the Creation of Vision & Mission Vision and Mission are Operationalized by Goals Goals are directed at what you Value MISSION VISION VALUES GOALS

Step 4: How to Get There Set and Prioritize Goals : 

Step 4: How to Get There Set and Prioritize Goals Personal Values and Goals The WHY you get up in the morning. Business Goals The HOW you achieve your personal Goals Personal and Professional Development Goals The TOOLS (skills) you need to achieve.

Step 4: How to Get There Goals : 

Step 4: How to Get There Goals You must have long term goals to keep you from being frustrated by short term failures. Charles C. Noble Goals determine what you're going to be. Julius Erving You don't have to be a fantastic hero to do certain things - to compete. You can be just an ordinary chap, sufficiently motivated to reach challenging goals. Edmund Hillary People with clear, written goals , accomplish far more in a shorter period of time than people without them could ever imagine. Brian Tracy

Step 4: How to Get There Set and Prioritize Goals : 

Step 4: How to Get There Set and Prioritize Goals Long Term Goals – D.R.I.V.E. D irectional Moves you toward your mission R easonable Are practical and obtainable I nspiring Challenging and affects you positively V isible Able to measure, easy to visualize E ventual Will be fulfilled at a future time

Step 4: How to Get There Set and Prioritize Goals : 

Step 4: How to Get There Set and Prioritize Goals Short Term Goals – S.M.A.R.T. S pecific The Goal achieves a specific result Increases Chances of success M easurable Able to determine the Goal is achieved A ttainable Within capabilities of business R ewarding Profitable and self-satisfying T imed Have a deadline

Slide 37: 

Must Be Written and Communicated Need an action Plan to Achieve Goals should originate and have team support Group Goals are an added incentive Establish discipline: P ersonal discipline is really lacking in our society Simple Goal setting Doubled performance of Some athletes Step 4: How to Get There Set and Prioritize Goals

Slide 38: 

“ Short-term Goals (1-5 years) -Market a wide range of high quality, differentiated dairy and meat products. -Improve the landscape and local environment. -Generate enough profit in year one to cover expenses, including our salaries. Intermediate Goals (5-10 years) - Reduce year-to-year income fluctuations (reliance on commodity prices). Long-term Goals (10 Years +) - Reduce overall debt 50%. -Transfer the farm business to our children. -Begin drawing retirement income from the business.

Planning Steps: 

Planning Steps What is important to you? Identifying your values and needs What have you got? Review history and inventory your situation Where do you Want to Go? Draft Vision / Mission / Goals How to Get There? Research, Develop and Evaluate Strategies Set Goals Implement plan – Monitor – Modify?

Slide 40: 

Step 5: Plan Implementation Process Write up and Organize Plan Develop an Implementation TO DO LIST Maintain Records Establish Monitoring Checkpoints Review Progress Consider Modifications

Planning Steps: 

Planning Steps What is important to you? Values/Needs What have you got? Where do you Want to Go? How to Get There? Implementing and monitoring the Plan.

Resources: 

Resources UW Extension Ag Innovation Counselors Small Business Development Centers (SBDC’s) Building a Sustainable Business www.misa.umn.edu/publications/bizplan.html Farming Alternatives a Feasibility Tool Natural Resource Agriculture and Engineering Service NRES-32 Purdue Strategic Business Planning for Commercial Producers (On Line) http://www.agecon.purdue.edu/extension/sbpcp/stratmgmt.asp