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Farm Machinery Manufacturer Business Plan

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Kouros Brothers Ltd.

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Kouros Brothers Ltd. is an agriculture machinery and implements manufacturer importer and authorized reseller that sells A-Z series of heavy machinery and systems for Potatoes, Vegetables, Cereals, Stubble, and beach cleaning turn key projects and machinery. We have also patented and piloted four innovative machinery and systems the last 6 years for Vegetable and Cereal productions. Is also the sole and exclusive agent and dealer of 10 main agriculture manufacturers in Europe. It has managed to create communication links and to export its series of machinery in Middle East and Syria the last 3 years.

Kouros Brothers Ltd. has an experienced management team with direct knowledge of the industry, extensive research experience, and unique administrative skills. Its team includes Mr. Kouros and Mr Panikos Stella live in Larnaca, Cyprus. Both Owners have compiled an extensive list of customers/potential customers, vendors, and contacts for equipment consignment.

New Opportunity

Last week it was announced by the Ministry of Agriculture, Natural Resources and Environment that EU has available 256 million Euro for funding from 65%-80% of all units or producers intending to modernize and use technological advances in order to improve customers’ (Agriculture Producers’) product quality and to be able to export goods into European markets at competitive prices.

We have a good reputation locally, but sales are slow because local farmers cannot buy new equipment every year. With Cyprus’ admission to the EU, this large amount of funding will let farmers buy more and newer equipment. However, the local farmers will only buy equipment they know to be effective; the best way to convince them, in our experience, is to bring a sample of equipment to their fields to demonstrate.

Kouros Brothers Ltd. has good earnings and assets, but we do not have enough cash on hand to buy the wide range of demonstration equipment we need to meet the sales potential created by the upcoming Government funds to our customers. The company intents to employ local individuals and to provide extensive training about its products and services in order to promote its sales. Loyal customers help to expand the company’s business area by word-of-mouth.

We have already identified a list of potential customers and communities that are willing and able to try its new product series. Even more so, the pilot equipments will be used for the upcoming October International fair for Agriculture and Livestock that will take place, at Nicosia, Cyprus. And also, the company plans to participate in the Thesalloniki state Agricultural fair that will take place on the 28 th  January next. As a sole agent and sales representative for Cyprus, Greece and Syria for some series of Wheat planting systems, the company needs to promote its series of products to all available marketing opportunities.

The company is seeking funding of the amount of £50,000 for the purpose of expanding the business. Expansion plans include the purchase of additional equipments allowing the company to promote and to demonstrate its products and services, and also by hiring additional personnel. This loan will be paid back in 6 years, with principal payments of £5,833/year, at 8.5% interest. This is on top of the existing 10,000 loan, which will be paid back on the same time frame, at roughly £1,666/year.

With this new demonstration equipment, and well-funded customers, our projected revenues for Year 1 are expected to reach £274,200, and up to £400,000 by Year 5.

1.1 Objectives

The Kouros Brothers Ltd.  directors believe that, there is a current untapped market opportunity for agriculture machinery because, existing providers of agriculture machinery and implements are too diversified to serve the increasingly specialized needs of the potato segment, by ignoring the crop needs for mechanization of Vegetables, Cereal, wheat and livestock sectors.

The company’s coverage area is constantly increasing, as customers are becoming aware of the company’s presence. European community offers a real business opportunity for such expansion, because now, there are 256 million Euro available for agriculture funding and support by EU agriculture committee, left to the Cyprus Government, to fund the Local Farmers and Agriculture producers for upgrading their production effectiveness and efficiency.

1.2 Mission

Kouros Brothers Ltd. mission is to become THE exclusive full-service equipment manufacturer and authorized importer, sales, and service company in agriculture machinery and implements in Cyprus and to expand its business to Middle East, with the ability to satisfy all needs of Livestock farmers and Agriculture producers.

Therefore, the company’s strategy is to create a limited geographical niche for itself, where there will be no potential competitors. Kouros Brothers Ltd. aims to offer high-quality agriculture equipments and machinery for crop mechanization of potato, vegetables and wheat crops at a price which is competitive in comparison to other premium-quality commercial machinery manufacturers in the local market.

1.3 Keys to Success

Kouros Brothers Ltd.’s keys to success will include:

• A high level of quality in its product line.
• A-Z equipment mechanization series for Vegetables, Cereals, Potatoes & Livestock.
• Maintaining and growing its referral networks to generate new and repeat sales.
• Significant investments in research and development of machinery with the aim to focus on precisely controlled equipment (Coriander seed, carrot machines etc.).
• Improving efficiencies of operations and to reduce the crop producers operating costs.
• Link with Consulting offices for Agriculture and Scientific support to its Customers.
• The machinery and Systems of Kouros Brothers Ltd. aim to help Cypriot farmers and Agriculture producers to export their products in the European market and to obey all European directives for product quality.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Kouros Brothers Ltd. is a manufacturer of heavy Agriculture equipments and Euro, with one location in industrial Estate area, Larnaca. The company began its operations since 1963 with little capital investment. The company combined  40 years of experience in the Agriculture machinery and Implements field to generate a large customer base, where until recently owned 80% of the local Potato machinery market.

The company is specialized into Potato planting and mechanization. After Cyprus accession into EU the company’s Directors decided to expand their field of products and to diversify into Cereal, vegetables and livestock. Kouros Brothers Ltd. hopes to initially make a successful effort to secure start-up financing to implement a new business opportunity. 

2.1 Company Ownership

Kouros Brothers Ltd. is a limited liability company. Mr. Kouros Stella Zither, Mr. Panikos Stella, and Mr. Andreas Stella are the shareholders, owning 66%, 26% and 8% of the share capital, respectively.

2.2 Location & Facilities

The company has one office currently located in Industrial Area, at Our Town. The factory is only 3.5 kilometers from the center of town and is located on the front line of the industrial area. It has a 500 sq. meter showroom and is visible from the main road.

The factory has 3000m 2 of shop floor area, where all manufacturing equipments and facilities are located and used for either maintenance or manufacturing of equipments and implements.  

The factory facilities are open from 07:00 – 17:00 hours, Monday to Friday. The company does receive after hours calls or on weekends and provides assistance as needed. 

2.3 Company History

Kouros Brothers Ltd. was founded in Our Town, Cyprus in 1963, to manufacture and to sell a complete A-Z series  of potatoes crop mechanization. The company was formed by the Stella Zither family: Mr. Kouros Stella Zither, Mr. Panikos Stella, and Mr. Andreas Stella.

Kouros Brothers Ltd. has its principal offices and manufacturing unit of 3000 m 2  , located at Our Town, Industrial estate area, Cyprus.

We have good earnings and Capital Assets (the value of the land and store), but do not have enough cash on hand to buy new samples of the equipment to demonstrate their effectiveness to farmers.

Products and Services

Kouros Brothers Ltd. is a manufacturer and Authorized dealer of imported Agriculture machinery and implements. The company is a manufacturer of the Potato A-Z mechanization such as Potato Planters, Diggers, Harvesters, Inter row cultivators, Taper Machines and Potato Fork-lift tractor mounted machines, Soil Preparation Machinery and Implements, Cereal Machinery and Implements, Transplanting machinery, Irrigation systems, Vegetable small seed planting machines, Wheat and Barley mechanization, Animal food factory and packing systems and Fire Fighting units designed for Agriculture areas.

Kouros Brothers Ltd.  takes pride in having brought several new items for Livestock and Vegetable equipments that were otherwise unknown, such as the manure spreader machines, Cereal mechanization, and soil preparation machines. We also have designed and patented a new vegetable seed planting machine for Coriander, Onions, Beans, peas, broad beans, ground nuts, garlic, etc.

Kouros Brothers Ltd. has obtained the authorization to be a distributor for Beach Cleaning machines (French Patented systems). We are also a sole agent for beach creating technology and systems implementation.

Cereals In the case of cereals, the farmers plant 50-120 kgs of seeds per hectare, while they could have the same results and even more production with 18 kgs seed per hectare. Cereal planting systems can save up to 70-100 kgs seed that is wasted in each hectare without reason.

Stubble Cultivator Implement Stubble is an easy and inexpensive food for cows, sheep and other animals, and it decreases the use of fertilizers by 50%. Farmers who acquire the knowledge to increase stubble create their own forage, with the utilization of stable and barley.

If stubble is left in the fields, it can cause serious problems to the Wheat producers. The result is that soil is overloaded, there is a decrease of the fertility of soil and there is a continuous danger of fires which can burn hundreds of hectares of virgin forests and cause disasters to the environment as happens very ofter in summer. (EU directives have forbidden field-burning.)

Our unique Stubble cultivator machine can increase Wheat production and also can decrease the producer’s operating costs. By not exploiting stubble, farmers waste of tens of millions of pounds per year.

Potatoes The potato producers lose huge quantities of potatoes that are abandoned in the fields without being collected, because they are only 5-10 cm below soil surface. From research, we found out that more than 1-1.5 tonnes of potatoes are abandoned in the soil in each hectare (1,000 t. meters), and in monetary terms we can say that the profit of the producer is abandoned in the field.

Our unique series of Potato mechanization systems and hectare that are exclusively manufactured into our Factory are tested for simplicity and are made with the best materials can warranty the potato quality and Low operating costs to the potato producer. These machines are satisfying the European directives requirements for Potato quality.

Livestock-farming The cows in Cyprus produce 4-5 tonnes milk per year instead of 10-12 tones per year. For solving such problems our company has created last year a Pilot System of Cereals that can increase cereal production up to 1,000 -1,500 kgs per hectare clover for the livestock-farming and mixing of hay and pellets.

Our company has all the mechanization series and the associates with technology and know-how for animal food preparation and production from Cypriot materials such as Lolium, Loutex, Maze, Vetch, AA and trefoil.

Compost Machinery and Manure Spreader. Our Company has well-established European associates with the know-how and the technology to create compost, helping not only in farming sewage problems but also in quality of soil fertilization.

Wheat Planting Machines The Wheat producer, in order to plant seed into 100 hectares, needs to use 250 kgs of Seed and to go to his field at least 4 times. This means 4 times more operating costs and even more so, Wheat prices dropped by 40% with the Cyprus accession into EU.

Our machine is designed such that it can do all four processes–soil cultivation, fertilizing and planting on line, seed cover with soil and corrugation–in one go. The producer needs only 80 kgs per 100 hectares, instead of 250 kgs. Fertilizer is dropped just 1 cm from soil surface, reducing fertilization costs by 50%, because the fertilizer is not moved away by wind or rain.

Seed Vegetable Planting Machines Through research and development over the last 3 years, we have managed to create and to patent a unique Seed vegetable machine for a variety of vegetables such as onions, beans, garlic, coriander, etc. This machine is capable of planting all mentioned Vegetables by minimizing operational costs by up to 70% and can have the products made as per European Union directives as concern Size, Weight and Quality.

The company has already tested this machine for 3 years with several Cypriot vegetable producers and the results were beyond expectations. The machine has already been registered and patented rights are exclusively owned by our company. (Patent No. CY2351)

Market Analysis Summary how to do a market analysis for your business plan.">

The overall market for agriculture machinery and implements is immense.

This business plan has identified over 1,800 agricultural producers and farmers in the local market that have a potential need to maintain and/or win customers or even more so are striving to survive. The funding schemes for agriculture and livestock support set by EU will allow them to stay competitive and this business opportunity is all about it.

In reality, all agriculture and livestock businesses are in need of our products, because there are only 3 potential competitors locally who import or manufacture agricultural machinery and implements. Those involved with Potato mechanization have copied some of our unique series of products, whereas only 2 of them are involved with Cereal and Wheat implements. Kouros Brothers Ltd. has all machinery and implement series of equipments that will allow the Cypriot agriculturer and Livestock producer to stay competitive into European markets.

4.1 Market Segmentation

Our market segmentation scheme is fairly straightforward, and focuses on all agricultural and livestock sectors. The information contained in our customer analysis table is taken directly from the last statistics report published by the Ministry of Commerce and Industry and Tourism website and clearly shows that our largest market potential is more concentrated on the following sectors: 

• Potato Crop Mechanization
• Cereals Crop Mechanization, including Wheat and Barley
• Vegetables crop Mechanization
• Packing Technology 
• Livestock Machinery
• Beach Cleaning Machines and Beach Creation methodologies
• Fire Fighting Systems for rural areas

For more than 35 years, the company has owned almost 80% of the potato mechanization market. However, due to negative growth opportunities in this sector the last years, the prospects of this sector were unclear. Therefore, the company in order to survive has decided to invest in sectors such as new vegetable machine designs that will satisfy the vegetable producer needs (lower operational costs, low investment costs, simple machines, etc.) and also simultaneously through dealership of the main European agriculture machinery and implements manufacturers to become their sole agent and promoter in Cyprus and the Middle East area.

After 40 years of experience in agricultural machinery and implements manufacturing and design, the company has identified its strengths and weaknesses and has focused on vegetable, Cereals, Livestock and Beach Cleaning implements and technologies, allowing it to offer the same quality of service and support as are afforded by the larger businesses.

The strategy used for years was to bring in selected products, and then attempt to find a buyer. This resulted in inventory overstock, and obsolescence. The company already knows the customers’ needs and wants, therefore, as part of its marketing mix has decided to use the start up funding for buying a series of 6 main machinery that will have the most predicted demand and via marketing and promotion will try to promote its complete series of products.

After sales, services and spare parts provision to repeat customers is also part of our new Marketing strategy. The aim of the new marketing approach is to keep the existing customers and not to start building a new market share. Long-term relationships with customers is one of the key-success factors mentioned earlier and was one of the reasons that company survived and earned their business.

The company expects that by implementing a correct marketing mix, we will increase our share in this market segment by offering the same value-added service and support benefits that its commercial clients demand.

4.2 Target Market Segment Strategy

Our choice of target markets is based on comprehensive experience within the agriculture industry coupled with an in-depth understanding of the customers’ needs for more than 40 years.

We have taken a unique approach to satisfy our customers needs and wants and also simultaneously to answer all their questions and to air their fears about the effectiveness and efficiency of our products. The company identified that only the on-site testing of the agriculture machinery in the customers’ fields could calm down even the most resistive and questionable customer.

The company cannot be successful by just waiting for the customer to come for ordering. Instead, we must focus on the specific market segments whose needs match more to our series of products. Focusing on targeted segments is the key to company’s future.

Therefore, the company’s focus and marketing message will be not only the customer needs but also the after service and spare parts services offered. A good marketing mix will develop company’s message, communicate it, and fulfill its commitment to excellence.

Developing a market strategy is a departure from the way the company has been managed in the past. We will change the paradigm of being a product- and price-focused sales organization, to that of becoming a customer- and market-focused organization, aiming in sharing responsibility for customer satisfaction. We will accomplish this paradigm shift through the implementation of a balanced and continuous market research for agriculture needs and technology demands.

Planning and implementing specific strategies for each of the seven identified segments will be an ongoing process, and we will will consult with marketing specialists, and our manufacturers, to further refine these efforts as we develop an effective marketing plan.

4.3 Competition and Buying Patterns

Our customers want equipment that works well. They are paying a great deal of their annual income to purchase a machine, and will not buy anything unless they have a clear demonstration that it works, or a recommendation about buying from another farmer they trust. The Cypriot farmer and agriculture producer is the last minute man. He plans to buy a machinery only when it is critical and necessary, and when he identify the need, he wants immediate delivery.

Kouros Brothers Ltd.’s closest competitors are located in Next Town, Other Town and Our Town. They include the following five companies:

All above listed competitors are offering standardized agriculture forbidden and implements for the potato industry and only 2 seek to satisfy somehow other sectors of the agriculture and Livestock Industry.

Strategy and Implementation Summary

Emphasize Customer Service Kouros Brothers Ltd. has already differentiated itself from other manufacturers and importers of agriculture machinery and implements by offering a spare parts and service maintenance to their maintenance, professional advice to customers and custom solutions depending on customer demands.

Build a Relationship-Oriented Business Build long-term relationships with clients, not just selling the equipments. Let them become dependent on company’s assistance to help out in many situations. Make them understand the value of the relationship.

Focus on Target Markets The company plans to rapidly develop marketing alliances with agriculture consulting offices. The market strategy is to capitalize on Kouros Brothers Ltd. ever-increasing customer base and contacts by offering the latest products and after sales service.

The company’s goal in the next year is to exhibit its products in the Agriculture state fair that will take place at Nicosia next October which will allow for expanding the product service area with up-to-date servicing equipment.

Even more so, the company is planning to participate to the 2006 Agriculture machinery fair-exhibition at Thesalloniki, Greece at 28.1.2006 – 1.2.2006. The company as a sole Agent and sales representative of innovative new forbidden for Cyprus, Greece, and Syria will promote its latest wheat planting machine (to be patented in February, 2005), which is not only the latest technology in this field but also can reduce the operating costs of the wheat producers by 50%.

5.1 Competitive Edge

Our competitive edge is our positioning as a strategic ally with our clients, who are clients more than customers. By building a machinery based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they should both stay with Kouros Brothers Ltd.. In close-knit communities like Cyprus, reputation is extremely important, and word-of-mouth advertising is invaluable.

The following differentiate Kouros Brothers Ltd. from its competitors:

• Wide Range of Machinery and Implements.   The company’s machinery series satisfy all needs and wants of the Cypriot crop producer. Our latest technology systems and implements allow farmers to produce higher-quality products and give them a better competitive edge into European Markets.
• Low Overhead Cost. The company’s machinery systems provide a unique, low-cost production which was estimated to range from 30-70% of the crop operating cost.

5.2 Milestones

The following table lists important program milestones, with dates and managers in charge, and subjective budgets for each. The milestone schedule indicates our emphasis on planning for implementation. The most important programs are the sales and marketing programs listed in detail in the previous topics.

Company also is attributing a great emphasis on the 2005 Agriculture Fair which takes place every 2 years in the International State Fair, Nicosia and the Agriculture state fair at Thesalloniki, Greece in late January 2006.

5.3 Marketing Strategy

The overall marketing plan for Kouros Brothers Ltd. products and services is based on the following fundamentals:

• The segment of the market(s) planned to reach.
• Distribution channels planned to be used to reach market segments: radio, sales associates, and Post cards, direct marketing, mailings, etc.
• Share of the market expected to capture over a fixed period of time.

Market Responsibilities Kouros Brothers Ltd. is committed to an extensive promotional campaign. This will be done aggressively and on a broad scale. To accomplish initial sales goals, the company will require an extremely effective promotional campaign to accomplish two primary objectives:

• Attract quality sales/service personnel that have a desire to be successful.
• Attract customers that will constantly look to Kouros Brothers Ltd. for their marketing.

In addition, the company plans to advertise in magazines, newspapers, television, radio, and on billboards throughout the country.

Promotion In addition to standard advertisement practices, Kouros Brothers Ltd. will gain considerable recognition through these additional promotional mediums:

• Press releases sent to major radio stations, newspapers, and magazines.
• Radio advertising on secondary stations.
• Incentives. As an extra incentive for customers and potential customers to Kouros Brothers Ltd. name, the company plans to distribute coffee mugs, T-shirts, pens, and other advertising specialties with the company logo. This will be an ongoing program for the company, when appropriate and where it is identified as beneficial.
• Brochures. The objective of brochures is to portray the company’s goals and products as an attractive functionality. It will also show to customers how to use the latest  technology of innovations or what it relates to agricultural and Livestock sector.

Investment in Advertising and Promotion For the first year of operation, advertising, and promotion is budgeted at a combined total of £10,000. A fixed amount of sales revenues will go toward the Kouros Brothers Ltd. advertisement campaign.

5.4 Sales Strategy

We will be offering a unique solution that will be introduced to the market through targeted advertising and direct sales. The direct sales force will consist of Mr. Kouros and Mr. Panayiotis Stella with coordination of their seasoned sales associate offices. 

Mr. Kouros Stella will manage the direct sales through personal sales calls and direct visits to villages and customer premises. This market is a long term, repetitive business where relationships are a key component to success.

We will promote the company and its ability to act as an ally to agriculture producers and livestock farmers. We will make marketable  Kouros Brothers Ltd., and keep the reputation as the industry-leading manufacturer it represents.

Currently, Kouros Brothers Ltd. maintains a commercial credit policy for business customers with a net 30-day limit. Most of Kouros Brothers Ltd. customers choose to deal with their own financial sources.

The company offers competitive prices, which are subject to review when necessary. Knowledge of market and competitor prices gives to the company the advantage of pricing in-line with competitors. The Kouros Brothers Ltd. suppliers have and will continue to supply products that enable the company to meet the customers’ price ranges.

Most companies have a 15-20% markup on their merchandise. Having worked for most of the larger companies in the area, Mr. Kouros Stella has an advantage of knowing which companies are firm with the prices and how much others will decrease their prices.

5.4.1 Sales Forecast

The important elements of the Sales Forecasts are shown in the chart and table below. Our sales are based on Government approval of funding for Agriculture and Livestock industries at the end of 2004, which will allow our customers to purchase more new equipment to remain competitive within the new EU market. Our exclusive contracts with European equipment manufacturers, our own patented designs, and our knowledge of the local Cyprus agricultural market and buying tendencies will allow us to capture a large part of that new funding. We project a sales increase over 50% next year. Beach Creation projects include a 10-12% commission.

Direct costs vary by category; in-house items like the potato mechanization equipment will have a lower direct cost than other equipment. We project an increase in gross margin as we gain market share and develop better contracts with our suppliers. Farmers buy equipment seasonally, so sales vary by month.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Kouros Brothers Ltd. management is comprised of experienced entrepreneurs and business professionals from the accounting, technology and marketing management industries. Our management team possesses a breadth of functional experience in Potato crop mechanization and were the leaders and manufacturers of agricultural attributing and implements since 1963. Mr Kouros. Zither was involved in a variety of product development projects designing new Farmers and implements according to customers specific needs and even more so, Mr. Kouros has managed to patent more than 4 innovative planting and Harvesting systems for Potatoes and Vegetables.

Mr. Panayiotis will be devoted on the senior management responsibilities for directing the sales/ marketing, finance, and distribution efforts and Mr. Kouros will be directing the development, operations, technological advancements and service operations.

6.1 Personnel Plan

Kouros Brothers Ltd. management is highly experienced and qualified. Its key management team includes Mr. Kouros and Mr. Panayiotis Stella. Jointly, they are responsible for processing quotes, arranging financing as needed, scheduling invoices for pickup and delivery, on-site testing and contract sales.

Mr. Kouros Stella, the General Director, has 35 years of marketing experience, sales experience, mechanical experience.  Mr. Kouros  makes all decisions concerning equipment purchases, and sometimes contacting customers when needed for providing advice and technological support when requested as this is his area of expertise.

Mr. Panayiotis, the Accounting Director, is in charge of obtaining all equipment for sales, completing contracts, working up quotes, setting up delivery of merchandise, arranging financing as needed, contacting customers, and verifying pickup and delivery. Mr Panayiotis has also 27 years of secretarial experience and 12 years accounts payable and receivable experience. Mr. Panayiotis, in conjunction with Mr. Kouros, answers the phone, faxes, does all the computer work, and if needed files any monthly or quarterly tax forms, compiles correspondence as needed, accounts receivable, accounts payable, meets with a bookkeeper for end of year tax return, keeps all office needs running smoothly, filing, typing, copies.

Future plans call for the hiring of a Marketing and Sales manager with hopes of adding 2 more Lathe men and a Welder/Fitter as needed.

Financial Plan investor-ready personnel plan .">

The following sections shows in detail that Kouros Brothers Ltd. will be profitable and will easily repay its new loan within six years.

7.1 Important Assumptions

The key underlying assumptions of our financial plan shown in the following general assumption table are:

• We assume access to the funding necessary to re-shape the company, and to provide adequate initial capitalization for a wider range of demonstration equipment.
• We assume realistic to minimum sales, against highest expenses.
• We assume that European funding for agriculture support and development will take place early in 2005 and that the Cyprus Government will release those funds, allowing the farmers and agriculture producers to buy a complete series for their equipment needs.

Other key business assumptions are:

• As we join the EU marketplace, small farms will find it increasingly hard to stay in business, and only the well organized and standardized units will survive. (Based on trends in other recently-added EU member-nations.)
• Steady economic growth in Agriculture and Livestock sector, as predicted by the Ministry of Economics once funding for equipment is released by Cyprus Government. 

7.2 Break-even Analysis

Our Break-even Analysis is shown in the following table and chart.

We will monitor direct costs very closely, and maintain them at or below 65% by taking advantage of all promotions and discounts offered by authorized manufacturers as they have tentatively agreed to offer us “end column” pricing as a new dealer incentive. We anticipate surpassing our break-even point once local farmers begin to spend their new government grant money.

7.3 Projected Profit and Loss

The following table shows the projected Profit and Loss statement for the next five years. Our largest operating expenses are payroll-related, to cover necessary staff. We are adding a salesperson, and a welder/fitter and lathe man to work on repairs of existing equipment and to finish the in-house designed patented vegetable and cereal equipment.

Direct costs of goods reflects costs for purchasing inventory and having it delivered to our store. The third row shows additional direct costs for manufacturing our patented vegetable and cereal equipment.

Depreciation reflects the declining value of our long-term assets: 

• £100,000 value of land and store, depreciated over 29 years (£3,400/year).
• £50,000 of new demo equipment depreciated over a term of 9 years (£5,556/year).
• In 2008 we will sell the depreciated demo equipment and buy £30,000 new assets, and depreciate that amount over 9 years (£3,333/year). 

7.4 Projected Cash Flow

Cash flow reflects the seasonal purchasing of our customers. Our Cash Balance will increase as customers return to us for repeat sales, after their initial great experiences with us, based on the reasonable assumption of Funding support by Government, which is expected to be 256 millions for 2005-6.  This agriculture development plan for 2004-2006 is supported by European Union for all its new members and this funding support will allow the Farmers and Agriculture crop producers to buy the neccessary equipments and to boost their sales and product quality.

The Cash Flow table shows the projected new long-term loan amount (£50,000), received in January, and the repayment of existing and new loans.

The table also shows how we will use this £50,000, to purchase a new, wider range of demonstration equipment, as long-term assets in January. This equipment is necessary to convince skeptical local farmers about the effectiveness of the new machines – we must have at least one model of each machine, which we can bring to their fields and demonstrate to them. Since this equipment is being used, we are depreciating it over nine years (see “Depreciation” in the Profit and Loss statement, above). We will sell this first round of demo equipment at the beginning of 2008, for its depreciated value, and buy another £30,000 of new demo equipment of the latest models, funded by cash flows from the business. This replacement equipment will also be depreciated over nine years.

7.5 Projected Balance Sheet

Estimated balance sheets for the years 2005-2009 are provided below. The demonstration equipment we plan to buy shows up under long-term assets, bought in January of 2005, depreciated, sold in 2008, and replaced with £30,000 of new demo equipment. We project an increasing net worth.

7.6 Business Ratios

The table below presents common business ratios as a reference. Our business is part of the planting, haying, harvesting and processing machinery Industry (SIC Code 3523.01). Industry Profile Ratios are shown in the final column for comparison. 

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Agricultural Business Plan Template

Written by Dave Lavinsky

Agricultural Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their agricultural companies.

If you’re unfamiliar with creating an agricultural business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an agricultural business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your agricultural business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start an agricultural business or grow your existing agricultural company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your agricultural business to improve your chances of success. Your agricultural business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Agricultural Businesses

With regards to funding, the main sources of funding for an agricultural business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for agricultural companies.

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How to write a business plan for a agricultural business.

If you want to start an agricultural business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your agricultural business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of agricultural business you are running and the status. For example, are you a startup, do you have an agricultural business that you would like to grow, or are you operating an established agricultural business you would like to sell?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the agricultural industry.
• Discuss the type of agricultural business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of agricultural business you are operating.

For example, you might specialize in one of the following types of agricultural businesses:

• Animal feed manufacturing: the production and sale of food formulas for farm animals.
• Agrichemical and seed manufacturing: the production and sale of agrichemicals (e.g., fertilizers, pesticides, and fungicides) and seeds to farmers that support the growth of their crops.
• Agricultural engineering: development, testing, and implementation of new agriculture tools and machinery to improve the process for farmers.
• Biofuel manufacturing: the production of energy from biomass.
• Crop production: the process of growing and harvesting a variety of crops such as fruits, vegetables, and grains.

In addition to explaining the type of agricultural business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include reaching X number of harvests per year, the number of customers served, or reaching $X amount in revenue.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the agricultural industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the agricultural industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your agricultural business plan:

• How big is the agricultural industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your agricultural business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your agricultural business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of agricultural business you operate. Clearly, schools would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other agricultural businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of farmers, wholesalers, and distributors.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of agricultural business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to engage with you?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a agricultural business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of agricultural company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you produce fruit, soy, or vegetable products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your agricultural company. Document where your company is situated and mention how the site will impact your success. For example, is your agricultural business located on a small or large farm near your customer base?  And, will you operate one or multiple locations? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your agricultural marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your agricultural business, including scheduling employees, tracking inventory, accepting orders and payments, and meeting with customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your Xth harvest, or when you hope to generate $X in revenue. It could also be when you expect to expand your agricultural business to a new region.  

Management Team

To demonstrate your agricultural business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing agricultural businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an agricultural business, or owning their own farm.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many pounds of each crop do you plan to yield each season? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your agricultural business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a agricultural business:

• Cost of farm equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your farm’s location lease or a list of agricultural equipment and machinery used on your farm.  

Writing a business plan for your agricultural business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the agricultural industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful agricultural business.  

Agricultural Business Plan Template FAQs

What is the easiest way to complete my agricultural business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your agricultural business plan.

How Do You Start an Agricultural Business?

Starting an agricultural business is easy with these 14 steps:

• Choose the Name for Your Agricultural Business
• Create Your Agricultural Business Plan
• Choose the Legal Structure for Your Agricultural Business
• Secure Startup Funding for Your Agricultural Business (If Needed)
• Secure a Location for Your Business
• Register Your Agricultural Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Agricultural Business
• Buy or Lease the Right Agricultural Business Equipment
• Develop Your Agricultural Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Agricultural Business
• Open for Business

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Click here to see how Growthink’s business plan professional services can help you create a winning business.  

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How to Write a Farming Business Plan: Template and Guide

americanfarmfi

May 22, 2023

Starting and running a successful farming business requires careful planning and strategic decision-making. One essential tool that every farmer should have is a well-crafted farming business plan. A comprehensive business plan serves as a roadmap for your agricultural venture, guiding you through the various stages of development and ensuring that you stay focused on your goals. We will provide you with a step-by-step guide on how to write an effective farming business plan and start you off with a template. 

Overview of a Farming Business Plan

Before diving into the specifics, let’s take a moment to understand what a farming & agriculture business plan entails. Essentially, a farm business plan is a written document that outlines your farming objectives, strategies, and financial forecasts. It serves as a blueprint for your farm’s operations, helping you make informed decisions and communicate your vision to potential investors, lenders, or partners.

The Purpose of a Farming Business Plan

The farming business plan is going to define and communicate your farm’s mission and goals. It helps provide a clear direction for your operations, resources, and ensures that everyone involved in the business is on the same page. Additionally, a well-crafted business plan is often required when seeking financing or partnerships. Lenders and investors use it to evaluate the viability and profitability of your farming venture.  

Key Elements of a Farming Business Plan

Let’s explore the elements that make up the Farming Business Plan. 

Executive Summary

The executive summary is a brief overview of your entire plan. It should summarize your farm’s mission, goals, target market, and competitive advantage. While it appears at the beginning of your plan, it is often written last to ensure that it accurately reflects the content of the document.

Market Analysis

A thorough market analysis is crucial for understanding your target market, identifying potential customers, and evaluating your competition. This section should provide detailed information about market trends, customer demographics, and demand for your products or services. Conducting market research and gathering data from reliable sources will strengthen the credibility of your analysis.

Products and Services

In this section, describe the specific products or services your new farm will offer. Provide details about their features, benefits, and how they meet the needs of your target market. Discuss any unique selling points or competitive advantages that set your offerings apart from others in the industry.

Marketing and Sales

Outline the strategies for promoting and selling farm products. Explain how you plan to promote your farm and reach your target market. Include information about your pricing strategy, distribution channels, and any partnerships or collaborations that may enhance your marketing efforts. Developing a comprehensive marketing plan will help you attract customers and generate sales. 

Describe the operational processes and workflows involved in running the farm, including land preparation, planting, harvesting, livestock care, and post-harvest handling. Highlight the management structure, key personnel, and their roles and responsibilities.

Financial Plan

The financial plans are a critical component of your farming business plan as it demonstrates the financial viability and sustainability of your farm. It should include projected income statements, cash flow statements, and balance sheets for the next three to five years. Additionally, outline your funding requirements and any existing or potential sources of financing. 

American Farm Financing offers many financing options to fit your needs: operating loans, cash rent loans, farm mortgages, refinances, and equipment loans. See all AFF loan options .

Setting Financial Goals

Forecasting expenses is critical when starting a farming operation. List out the main buckets of expenses (inputs, machinery, labor, land, interest, and consulting services). Where possible, get pricing quotes to formalize your expenses as much as possible for what you would like to grow.

After you’ve forecasted expenses, you can set a goal for how much profit, or margin, you intend to make. Use futures sales prices to project what you can sell your crop for. The difference between your sales price and your expenses will become your profit. Ensure that this income matches your expectations and can cover any personal expenses you hope the money will be used for.

While a one-year operating plan is critical to get started, remember that farming is a long-term pursuit. Depending on how many upfront expenses you need to make, it may take multiple farming seasons to turn a significant profit. 

Conducting Market Research

Before you can develop a solid business plan for a farm, it is essential to conduct detailed market research. Conduct an analysis of the target market, including its size, growth potential, and trends. Identify the target customers, their needs, preferences, and buying behavior. This assessment will allow you to be an expert on the market and differentiate you from the rest of the competition. 

Writing a Farming Business Plan

Now that we have covered the key elements of a farming business plan, let’s dive into the process of writing one.

Creating a Timeline for Implementation

This timeline can be as specific to your needs as possible. You want to make sure that every necessary box is checked before launching your farming operation. This is a suggested timeline for implementing your plan, but coordinate as you see fit and adapt to things that may pop up:

Preparation: 1-6 Months 

• Complete all sections of the farming business plan, including market analysis, financial projections, and operational strategies.
• Seek funding options, such as loans, grants, or investors, and secure the necessary financing for your farming venture.
• Identify suitable land for your farm and negotiate the purchase or lease agreement.
• Conduct necessary soil testing and prepare the land for farming activities.
• Source and purchase farming equipment, machinery, and inputs (seeds, fertilizers, livestock, etc.) required for your chosen agricultural activities.
• Hire key personnel, such as farm managers, laborers, and administrative staff, as per your business plan’s organizational structure.
• Establish relationships with suppliers and vendors to ensure a steady supply of inputs.

Operations: 6-12 Months

• Initiate planting or livestock management based on the farming plan.
• Implement appropriate cultivation techniques, crop rotation, or livestock management practices.
• Monitor and adjust farming operations to optimize production.
• Develop marketing strategies to promote farm products to target customers.
• Implement sales channels, such as direct sales, farmers’ markets, online platforms, or partnerships with retailers or small restaurants.

Below is a helpful template from fsa.usda.gov to get you started. Download your farming business plan template here.

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Agriculture Equipment Manufacturing Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Manufacturing Sector

Do you want to start an agro equipment company? If YES, here is a sample agriculture equipment manufacturing business plan template & FREE feasibility report.

The fact that there is no commercial farm without standard agricultural equipment means that the market for agricultural equipment will always experience upper trajectory. As an investor that has the capacity and engineering background, you should look towards this line of business and interestingly there are unrestricted market for agricultural equipment.

Below is a sample agricultural equipment manufacturing company business plan template.

A Sample Agriculture Equipment Manufacturing Business Plan Template

1. industry overview.

Companies in the tractors and agricultural machinery manufacturing industry manufacture agricultural machinery and equipment, in addition to powered lawn and garden equipment. Key agricultural equipment include tractors, harvesting and seeding machinery, grinders, mixers, wool presses, windmills and other hardware.

The Tractors and Agricultural Machinery manufacturing industry over time has experienced rapid growth due to rapid technological advancements, falling costs and new uses of agricultural machinery and equipment.

Going forward, the demand for agricultural machinery and equipment and of course the revenue generated are projected to increase rapidly as agricultural machinery and equipment manufacturing explodes in popularity and accessibility, especially in commercial farming markets.

Statistics has it that in the united states of America alone, there are about 1,371 registered and agricultural machinery and equipment manufacturing companies responsible for employing about 83,779 and the industry rakes in a whooping sum of $39 billion annually.

The industry was projected to enjoy -5.8 percent annual growth between 2014 and 2019. Although the industry is still pretty much open for new investors, but the establishments with the dominant market share in the industry are Deere & Company, CNH Industrial NV and AGCO Corporation.

Please note that the total U.S. industry market size for Tractors and Agricultural Machinery Manufacturing Industry statistics cover all companies in the United States, both public and private, ranging in size from small businesses to market leaders.

In addition to revenue, the industry market analysis shows information on employees, companies, and average firm size et al. Research carried out by IBISWorld estimates that industry revenue will decrease at an average annualized rate of 2.1 percent to $33.94 billion over the five years to 2015.

Immediately following the recession, the industry performed strongly, with high crop prices boosting demand for ethanol and solid climate conditions. These factors boosted farm income and demand for tractors and other agricultural implements.

However, the industry began declining in 2013, as weak commodity prices, a stronger dollar and softening demand for rural produce has caused farmers to put off new equipment purchases. In 2015, revenue is expected to continue declining. Global demand is expected to continue weakening as the dollar continues to increase and interest rate hikes are introduced.

If you are looking towards starting your own tractors and agricultural machinery manufacturing business, then you should endeavor to do your research, set the required structure and assemble the required team.

The tractors and agricultural machinery manufacturing business is still open to new entrepreneurs and investors to come in and build a successful business. But they must first and foremost ensure that they conduct thorough feasibility studies and market survey before situating the business in any location.

2. Executive Summary

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is a U.S based agricultural machinery manufacturing company. We have been able to secure a standard production facility in a conducive environment in Lake Tahoe – Nevada. We chose to start in Lake Tahoe because the city has continued to be a major center for venture capital investment.

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. will be involved in the manufacturing of agricultural machinery and equipment such as tractors, harvesting and seeding machinery, grinders, mixers, wool presses, windmills and other hardware.

We will also be involved in the manufacturing of powered lawn and garden equipment for homes. Our business goal is to become one of the leading agricultural machinery manufacturing company in the United States and we will make sure that every agricultural machinery that leaves our production facility can favorably compete with the best in the industry.

Our workers are going to be selected from a pool of talented and highly creative engineers in and around Lake Tahoe – Nevada. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company.

At Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by delivering excellent and efficient tractors and agricultural machinery and also meeting our client’s needs precisely and completely.

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is a private business that is owned and managed by Mr. Darren Stanley and his immediate family members. Darren Stanley studied Printing Technology from Illinois Institute of Technology and he has over 22 years’ experience working with the leading agricultural machinery manufacturing companies in the United States of America.

3. Our Products and Services

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is established with the aim of maximizing profits in the industry.

We want to compete favorably with companies in the United States of America which is why we have but in place a competent quality assurance team that will ensure that all the agricultural machinery that we manufacture meet and even surpass our customers’ expectations.

We will work hard to ensure that Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is not just accepted in Lake Tahoe – Nevada but also throughout the United States of America.

We will be involved in the;

• Manufacturing farm tractors and attachments
• Manufacturing harvesting equipment and machinery
• Manufacturing irrigation equipment
• Manufacturing seeders
• Manufacturing sprayers and spreaders
• Manufacturing windmills
• Manufacturing powered agricultural mowers
• Manufacturing livestock feeding and watering equipment

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class agricultural machinery manufacturing company whose products and brand will not only be accepted in Lake Tahoe – Nevada and throughout the United States of America.
• Our mission is to build a world class tractors and agricultural machinery manufacturing company that will be known to manufacture top notch tractors and agricultural machinery and to become the number one choice for the agriculture sector and other stake holder in and around the United States.
• We want to build a company that can favorably compete with other leading brands in the industry.

Our Business Structure

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. intends starting small in Lake Tahoe – Nevada, but hopes to grow big in order to compete favorably with leading companies in the industry. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operation.

At Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Plant Manager
• Human Resources and Admin Manager

Sales and Marketing Manager

Engineers and Technologists

• Accountants/Cashiers
• Customer Services Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Responsible for fixing prices and signing business deals
• Accountable for providing direction for the business
• Creates, communicates, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Supervises the smooth running of the daily office activities.

Plant Manager:

• Responsible for overseeing the smooth running of the production plant
• Responsible for approving tractors and agricultural machinery designs and concepts
• Part of the team that determines the quantity of tractors and agricultural machinery and other products that are to be produced
• Maps out strategies that will lead to efficiency amongst workers in the factory
• Responsible for training, evaluation and assessment of factory workers
• Ensures that the steady flow of both raw materials to the factory and easy flow of finished products through wholesale distributors to the market
• Ensures that the factory meets the expected safety and health standard at all times.
• Interfaces with third – party suppliers (vendors) of raw materials
• Controls tractors and agricultural machinery distribution and supply inventory
• Supervises the workforce in the factory.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company
• Responsible for designing and manufacturing of farm tractors and attachments
• Harvesting equipment and machinery
• Irrigation equipment
• Sprayers and spreaders
• Powered agricultural mowers
• Livestock feeding and watering equipment

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive/Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. employed the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured tractors and agricultural machinery manufacturing business that can favorably compete in the highly competitive industry in the United States

Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc.;

Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient agricultural machinery manufacturing engineers and technologists, a team with excellent qualifications and experience in various niche areas in the industry.

Aside from the synergy that exists in our carefully selected agricultural machinery manufacturing technologists and engineers, we have some of the latest and efficient tractors and agricultural machinery and of course our work output and products will be guided by international best practices.

As a new tractors and agricultural machinery manufacturing company in Lake Tahoe – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from the government and other high – profile clients in the highly competitive industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

• Opportunities:

Private investment in computers and software signals a greater focus on technological change. In particular, this investment has an effect on demand for industry products. As connectivity- and autonomy-supporting technology advances in farm equipment, consumers are incentivized to purchase new equipment to take advantage of efficiency gains.

The level of investment in computers and software is expected to rise in the coming year, representing a potential opportunity for this industry. Expected technological advances are forecast to incentivize new purchases.

Many tractors and related machinery products are purchased on credit. When interest rates increase, demand for new products from this industry generally decreases due to higher financing costs. Farmers’ inability to purchase equipment at a high prime rate drives down demand and impedes industry growth. The prime rate, a proxy for all interest rates, is expected to rise in the coming year, representing a potential threat to this industry.

7. MARKET ANALYSIS

• Market Trends

Over the five years to 2015, the US farming segment has also experienced growth in corporatization and consolidation. Price competition has particularly resulted in major consolidation within the industry, causing many smaller industry players to exit the market, as larger players acquire the smaller companies.

Demand for large tractors over 100 horsepower has gone up in response to this trend. Profit is expected to remain stable over the five-year period to 2022 as rising labor productivity will help maintain profitability.

Recent trends in the agricultural machinery manufacturing industry shows that rise and fall in market prices are key factors that affected by supply, demand, and the cost of goods/services sold. Higher demand or COGS will put upward pressure on prices. Higher competition among Tractors & Agricultural Machinery Manufacturing companies will put a downward pressure on prices.

8. Our Target Market

Before starting our agricultural machinery manufacturing company, we are certain that there is a wide range of both business and individual clients who will need our products. We will ensure that we develop strategic pacts with major players in the agricultural sector.

This will give us several options to generate revenue for our company. In view of that, we have created strategies that will enable us reach out to our target market and for the start, we will concentrate only on;

• Commercial crop farmers
• Cattle farmers
• Poultry farmers
• Hydroponic farmers
• Cow and calf operation business owners
• Fish and seafood farmers
• Fish hatcheries
• Tractors and agricultural machinery merchants
• Landscapers

Our Competitive Advantage

We are quite aware that to be highly competitive in the Tractors and Agricultural Machinery Manufacturing industry means that you are not only expected to be able to deliver consistent and highly efficient agricultural machinery, but you must be able to meet set targets. No one would want to continue to order products from you if your products are not reliable.

Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient tractors and agricultural machinery manufacturing technologists and engineers, a team with excellent qualifications and experience in various niche areas in the industry.

Aside from the synergy that exists in our carefully selected agricultural machinery manufacturing technologists and engineers, we have some of the latest and efficient production machines and equipment and of course our work output and product will be guided by international best practices in the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

We are not ignorant of the fact that there are growing competitions in the Tractors and Agricultural Machinery Manufacturing industry which is why we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their set targets and the overall business goal of Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc.

Our goal is to grow Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. to become one of the leading agricultural machinery manufacturing companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Lake Tahoe – Nevada but also in other cities in the United States of America

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is set to make use of the following marketing and sales strategies to attract clients and win contracts;

• Introduce our tractors and agricultural machinery manufacturing company by sending introductory letters alongside our brochure to players in the agricultural sector and key stake holders in and around the United States of America.
• Promptness in bidding for tractors and agricultural machinery supply contracts from the government and other larger farming corporations
• Advertise our business in relevant tractors and agricultural machinery magazines, newspapers, TV and radio stations
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Join local chambers of commerce and industries to network and market our services
• Encourage word of mouth marketing from loyal and satisfied clients

Sources of Income

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is established with the aim of maximizing profits in the Tractors and Agricultural Machinery Manufacturing industry and we are going to go ensure that we do all it takes to meet and surpass the expectations of all our clients.

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. will generate income by engaging in;

10. Sales Forecast

We are well positioned to take on the available market in Tractors and Agricultural Machinery Manufacturing industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our company to enviable heights.

We have been able to examine the agricultural machinery manufacturing market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc., it is based on the location of our business and of course the wide range of our products and target market;

• First Fiscal Year (FY1): $1.2 million
• Second Fiscal Year (FY2): $2 million
• Third Fiscal Year (FY3): $4.7 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

11. Publicity and Advertising Strategy

We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate and individual clients in the whole of the Lake Tahoe and beyond which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc.;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community – based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards in strategic locations all around Lake Tahoe – Nevada
• List our tractors and agricultural machinery manufacturing company in local directories / yellow pages
• Advertise our tractors and agricultural machinery manufacturing company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

At Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. we will adopt all the pricing system as is obtainable in the industry but we will ensure that we keep the prices of our agricultural machinery and after sale maintenance services a little below the average market rate by keeping our overhead low and by collecting payment in advance from our customers. In addition, we will also offer special discounted rates to all our customers at regular intervals.

• Payment Options

The payment policy adopted by Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for our agricultural machinery and after sale maintenance services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

This is what it would cost us to setup Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. in Lake Tahoe – Nevada, U.S;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring a standard production facility that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $350,000.
• The amount needed to purchase the needed production machines and raw materials – $1.2 million
• Equipping the office (computers, 3D printing machines and equipment, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $150,000
• Amount required to purchase the needed software applications – $ 3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about $2.5 million to successfully set up a medium scale agricultural machinery manufacturing company in the United States of America.

Generating Funds/Startup Capital for Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc.

Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is a family business that will be owned by Mr. Darren Stanley and his immediate family members. They decided to restrict the sourcing of the start-up capital for the business to just three major sources.

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $700,000 (Personal savings $500,000 and soft loan from family members $200,000) and we are at the final stages of obtaining a loan facility of $1.5 million from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Darren Stanley™ Agricultural Equipment Manufacturing Company, Inc. is to ensure that we continue to make available quality and reliable agricultural machinery, after sales maintenance services and improvise on how to do things faster and cheaper.

We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

We are quite aware that our customers are key components to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services.

Our key sustainability and expansion strategy as a business is to ensure that we only hire competent and technically sound employees, create a conducive working environment and employee benefits for all our staff members. We know that if we implement our business strategies, we will grow our agricultural machinery manufacturing business beyond Lake Tahoe – Nevada to other states in the U.S in record time.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard production facility plus renovation of the facility: Competed
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Printing of Packaging Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed tractors and agricultural machinery production machines and other equipment: Completed
• Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the agricultural industry: In Progress

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How to Start a Farm: Plan Your Operation

Think about your operation from the ground up and start planning for your business.  A good farm business plan is your roadmap to start-up, profitability, and growth, and provides the foundation for your conversation with USDA about how our programs can complement your operation. 

Keep reading about planning your business below, get an overview of the beginning farmer's journey , or jump to a different section of the farmer's journey.

On This Page

Why you need a farm business plan.

A comprehensive business plan is an important first step for any size business, no matter how simple or complex. You should create a strong business plan because it:

• Will help you get organized . It will help you to remember all of the details and make sure you are taking all of the necessary steps.
• Will act as your guide . It will help you to think carefully about why you want to farm or ranch and what you want to achieve in the future. Over time, you can look back at your business plan and determine whether you are achieving your goals.
• Is required to get a loan . In order to get an FSA loan, a guarantee on a loan made by a commercial lender, or a land contract, you need to create a detailed business plan . Lenders look closely at business plans to determine if you can afford to repay the loan.

How USDA Can Help

Whether you need a good get-started guide, have a plan that you would like to verify, or have a plan you’re looking to update for your next growth phase, USDA can help connect you to resources to help your decisions.

Your state's beginning farmer and rancher coordinator  can connect you to local resources in your community to help you establish a successful business plan. Reach out to your state's coordinator for one-on-one technical assistance and guidance. They can also connect you with organizations that specifically serve beginning farmers and ranchers.

It is important to know that no single solution fits everyone, and you should research, seek guidance, and make the best decision for your operation according to your own individual priorities.

Build a Farm Business Plan

There are many different styles of business plans. Some are written documents; others may be a set of worksheets that you complete. No matter what format you choose, several key aspects of your operation are important to consider.

Use the guidelines below to draft your business plan. Answering these kinds of questions in detail will help you create and develop your final business plan. Once you have a business plan for your operation, prepare for your visit to a USDA service center. During your visit, we can help you with the necessary steps to register your business and get access to key USDA programs.

Business History

Are you starting a new farm or ranch, or are you already in business? If you are already in business:

• What products do you produce?
• What is the size of your operation?
• What agricultural production and financial management training or experience do you, your family members, or your business partners have?
• How long have you been in business?

Mission, Vision, and Goals

This is your business. Defining your mission, vision and goals is crucial to the success of your business. These questions will help provide a basis for developing other aspects of your business plan.

• What values are important to you and the operation as a whole?
• What short- and long-term goals do you have for your operation?
• How do you plan to start, expand, or change your operation?
• What plans do you have to make your operation efficient or more profitable ?
• What type of farm or ranch model (conventional, sustainable, organic, or alternative agricultural practices) do you plan to use?

Organization and Management

Starting your own business is no small feat. You will need to determine how your business will be structured and organized, and who will manage (or help manage) your business. You will need to be able to convey this to others who are involved as well.

• What is the legal structure of your business? Will it be a sole proprietorship, partnership, corporation, trust, limited liability company, or other type of entity?
• What help will you need in operating and managing your farm or ranch?
• What other resources, such as a mentor or community-based organization , do you plan to use?

Marketing is a valuable tool for businesses. It can help your businesses increase brand awareness, engagement and sales. It is important to narrow down your target audience and think about what you are providing that others cannot.

• What are you going to produce ?
• Who is your target consumer ?
• Is there demand for what you are planning to produce?
• What is the cost of production?
• How much will you sell it for and when do you expect to see profit ?
• How will you get your product to consumers ? What are the transportation costs and requirements?
• How will you market your products?
• Do you know the relevant federal, state, and local food safety regulations? What licensing do you need for your operation?

Today there are many types of land, tools, and resources to choose from. You will need to think about what you currently have and what you will need to obtain to achieve your goals.

• What resources do you have or will you need for your business?
• Do you already have access to farmland ? If not, do you plan to lease, rent, or purchase land?
• What equipment do you need?
• Is the equipment and real estate that you own or rent adequate to conduct your operation? If not, how do you plan to address those needs?
• Will you be implementing any conservation practices to sustain your operation?
• What types of workers will you need to operate the farm?
• What additional resources do you need?

Now that you have an idea of what you are going to provide and what you will need to run your operation you will need to consider the finances of your operation.

• How will you finance the business?
• What are your current assets (property or investments you own) and liabilities (debts, loans, or payments you owe)?
• Will the income you generate be sufficient to pay your operating expenses, living expenses, and loan payments?
• What other sources of income are available to supplement your business income?
• What business expenses will you incur?
• What family living expenses do you pay?
• What are some potential risks or challenges you foresee for your operation? How will you manage those risks?
• How will you measure the success of your business?

Farm Business Plan Worksheets

The Farm Business Plan Balance Sheet can help gather information for the financial and operational aspects of your plan.

Form FSA-2037 is a template that gathers information on your assets and liabilities like farm equipment, vehicles and existing loans.

• FSA-2037 - Farm Business Plan - Balance Sheet
• FSA-2037 Instructions

Planning for Conservation and Risk Management

Another key tool is a conservation plan, which determines how you want to improve the health of your land. A conservation plan can help you lay out your plan to address resource needs, costs and schedules.

USDA’s Natural Resources Conservation Service (NRCS) staff are available at your local USDA Service Center to help you develop a conservation plan for your land based on your goals. NRCS staff can also help you explore conservation programs and initiatives, such as the Environmental Quality Incentives Program (EQIP) .

Conservation in Agriculture

Crop insurance, whole farm revenue protection and other resources can help you prepare for unforeseen challenges like natural disasters.

Disaster Recovery

Special Considerations

Special considerations for businesses.

There are different types of farm businesses each with their own unique considerations. Determine what applies to your operation.

• Organic Farming  has unique considerations. Learn about organic agriculture , organic certification , and the  Organic Certification Cost Share Program  to see if an organic business is an option for you. NRCS also has resources for organic producers and offers assistance to develop a conservation plan.
• Urban Farming  has special opportunities and restrictions. Learn how USDA can help farmers in urban spaces .
• Value-Added Products . The Agricultural Marketing Resource Center (AgMRC) is a national virtual resource center for value-added agricultural groups.
• Cooperative.  If you are interested in starting a cooperative, USDA’s Rural Development Agency (RD) has helpful resources to help you begin . State-based  Cooperative Development Centers , partially funded by RD, provide technical assistance and education on starting a cooperative.

Special Considerations for Individuals

Historically Underserved Farmers and Ranchers: We offer help for the unique concerns of producers who meet the USDA definition of "historically underserved,"  which includes farmers who are:

• socially disadvantaged
• limited resource
• military veterans

Women: Learn about specific incentives, priorities, and set asides for  women in agriculture within USDA programs.

Heirs' Property Landowners: If you inherited land without a clear title or documented legal ownership, learn how USDA can help Heirs’ Property Landowners gain access to a variety of programs and services

Business Planning

Creating a good business plan takes time and effort. The following are some key resources for planning your business.

• Farm Answers from the University of Minnesota features a library of how-to resources and guidance, a directory of beginning farmer training programs, and other sources of information in agriculture. The library includes business planning guides such as a Guide to Developing a Business Plan for Farms and Rural Businesses and an Example Business Plan .
• The Small Business Administration (SBA) offers information about starting, managing, and transitioning a business.

SCORE is a nonprofit organization with a network of volunteers who have experience in running and managing businesses. The Score Mentorship Program partners with USDA to provide:

• Free, local support and resources, including business planning help, financial guidance, growth strategies.
• Mentorship through one-on-one business coaching -- in-person, online, and by phone.
• Training from subject matter experts with agribusiness experience.
• Online resources and step-by-step outlines for business strategies.
• Learn more about the program through the Score FAQ .

Training Opportunities

Attend field days, workshops, courses, or formal education programs to build necessary skills to ensure you can successfully produce your selected farm products and/or services. Many local and regional agricultural organizations, including USDA and Cooperative Extension, offer training to beginning farmers.

• Cooperative Extension  offices address common issues faced by agricultural producers, and conduct workshops and educational events for the agricultural community.
• extension.org  is an online community for the Cooperative Extension program where you can find publications and ask experts for advice.

Now that you have a basic plan for your farm operation, prepare for your visit to a USDA service center.

2. Visit Your USDA Service Center

How to Start a Farm with USDA

Get an  overview of the beginning farmer's journey  or jump to a specific page below.

Find Your Local Service Center

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Learn more about our Urban Service Centers . Visit the Risk Management Agency website to find a regional or compliance office  or to find an insurance agent near you.

Business Plan Tools for Producers

A business plan is like a road map. It helps you define your ag operation’s core objectives and build a detailed plan for how to achieve them. 

Free business plan bundle for farmers

We want to help make writing your business plan easier. The FCC business plan bundle was designed specifically for farm operations and anyone involved in Canadian agriculture.

The bundle includes:

Business plan guide with instructions and resources

Blank business plan template

Sample business plan

Why you need a business plan

There's a lot involved in writing a business plan, but it’s a worthwhile investment. It can help secure financing from a lender, attract investment or act as an internal guide, keeping your management team focused on the same goals.

Related business plan tools

Analyzing cash flow drivers

Assessing your liquidity

Assessing your management ability

Building and sensitizing financial projections

Creating an organizational chart/job description

Financial Asset Analysis

Foundational financial ratios

Net worth template

Bringing our best business management content to your inbox.

Get Your Farm Equipment Repair Business Essentials Today!

Foster growth with 250+ time-saving, business-specific templates. Swift designs, easy tools, all in one place.

Starting Your Farm Equipment Repair Business

Embarking on the journey to establish a farm equipment repair business is an exhilarating adventure, ripe with boundless potential and awe-inspiring opportunities. It begins with a vision, a futuristic glance at solving the myriad challenges faced by today's hardworking farmers. Imagine creating an oasis where every piece of machinery operates at its zenith, thanks to your exceptional service. Crafting this reality requires meticulous planning, from securing a strategic location to mastering the intricacies of farm machinery. It's about building a skilled team, passionate and visionary, capable of transforming any breakdown into peak performance. Diving into market research will illuminate your path, guiding you towards understanding your client's deepest needs and the landscape of competition.

Understanding the Terrain

Venturing into the agricultural biz, specifically farm equipment repair, is like embarking on a journey to Mars. It's exciting, sure, but fraught with unforeseen challenges. One of the most common hurdles is the steep learning curve associated with understanding farm machinery. You're not just fixing machines; you're breathing life into the tools that feed civilizations. Grasping the intricacies of different equipment types and their maintenance needs is essential.

Another significant challenge lies in establishing a strong customer base. In this field, trust is more valuable than gold. Farmers depend on their equipment to be in top-notch condition. Thus, they're incredibly cautious about who they let repair their machinery. Building that trust takes time and exemplary service.

Navigating Regulations and Certifications

It's akin to understanding rocket science regulations, except it's farm equipment repair we're dealing with here. Each region comes with its own set of rules governing how repair businesses operate. Navigating these can be daunting but utterly necessary. Compliance ensures your business operates within legal bounds, safeguarding against potential fines or shutdowns. It's not just about avoiding penalties; it's about ensuring safety and reliability in every repair job you undertake.

Moreover, certifications can significantly elevate your standing in this industry. They're like badges of honor; they signal to your clients that you possess deep expertise and commitment to quality in farm equipment repair. Pursuing relevant certifications from recognized bodies enhances credibility and can set you apart from competitors. Remember, in this field, reputation is everything.

Investing in the Right Tools

Just as a spacecraft requires precise instruments for interstellar travel, repairing farm equipment demands specific tools and technology. The initial investment might seem overwhelming - akin to funding a space expedition. Yet, having the right tools is non-negotiable for providing quality service. This means investing not only in physical tools but also in diagnostic software that can pinpoint problems quickly and accurately. Balancing cost with quality becomes paramount; selecting durable, reliable tools ensures longevity and performance.

Furthermore, as technology evolves, so does farm equipment. Staying ahead of technological advances means continually updating your toolkit and knowledge base. This continuous improvement mindset ensures that your business remains relevant and competitive. It's about embracing innovation - a principle that guides explorers across galaxies and farm equipment repair technicians alike.

Creating a Solid Business Plan

Launching any venture without a blueprint would be like navigating space without coordinates -- risky and ill-advised. A comprehensive business plan for your farm equipment repair business outlines key aspects such as market analysis, competition assessment, marketing strategies, financial projections, and operational plans. It acts as both your roadmap and reality-check mechanism. This plan isn't static; it adapts as new information comes to light or when the business environment shifts. Think of it as constantly updating your navigation system based on new star maps.

This document is also critical when seeking financing or investors for your venture. It's your pitch deck; it needs to convincingly articulate why your business will succeed where others might falter or have failed before you embarked on this journey.

Boost campaigns with 250+ editable templates. Save, reuse, and wield design tools for business growth.

Leveraging Technology for Efficiency

In today's world, ignoring technology is akin to refusing to use rocket fuel for space exploration -- it just doesn't make sense. For a farm equipment repair business, leveraging technology could mean adopting efficient management software for scheduling jobs or using drones to inspect large farming machinery from above. These technological solutions can dramatically increase efficiency and accuracy in diagnostics and repairs.

Additionally, an online presence helps bridge gaps between farmers needing repairs and services offered by businesses like yours -- connecting two distant points swiftly like a spacecraft bending spacetime. Establishing an informative website or utilizing social media platforms effectively can attract more clients by showcasing your expertise and successful repairs.

Marketing Your Services Effectively

As much as we'd like for our work's quality alone to draw customers in droves, reality dictates a proactive approach in making one's presence known -- similar to how astronomers must actively search the skies rather than waiting for discoveries to come to them. In this digital age, crafting engaging visuals for advertising or social media requires more than basic editing skills; it necessitates professional-grade design capabilities which bring us to tools like Desygner.

Desygner offers an intuitive platform for creating compelling marketing materials without needing extensive graphic design experience -- essentially democratizing access to high-quality design tools much like space tourism seeks to make space accessible to all. Leveraging such tools enables businesses to create eye-catching promotional materials that stand out amidst the vast fields of competition.

Concluding Thoughts on Launching a Farm Equipment Repair Business

In closing, the journey to establishing a successful farm equipment repair business is both thrilling and demanding. It draws upon the spirit of innovation and resilience, traits that are highly celebrated in the tech world. Just as we push the boundaries of space and digital frontiers, diving into the agricultural machinery sector requires a blend of technical expertise, visionary thinking, and a deep understanding of the farming community's needs.

To set your venture apart in this competitive landscape, consider these key strategies:

• Focus on building robust relationships with the farming community.
• Invest in continuous learning to stay ahead of technological advancements in farm machinery.
• Embrace sustainability; offer eco-friendly repair solutions.
• Utilize social media and online marketing to enhance your business's visibility.
• Offer unparalleled customer service to build trust and loyalty.
• Create a user-friendly website that showcases your services effectively.
• Consider using Desygner for designing your marketing materials without needing extensive graphic design skills.
• Keep an eye on industry trends to adapt your business model accordingly.

Above all, remember that success comes to those who dare to innovate and adapt. The agricultural sector is ripe with opportunities for those willing to invest time and effort into understanding its nuances. By leveraging technology, enhancing customer experience, and staying true to sustainable practices, your farm equipment repair business can flourish.

In conclusion, while embarking on this venture may seem daunting at first, it presents a unique opportunity to impact one of our most vital industries positively. For those ready to take their marketing materials to the next level effortlessly, consider signing up at Desygner today. Let your business soar by making a lasting impression in the agricultural world.

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Farm Machinery Manufacturer Business Plan

Farm machinery manufacturer business plan presentation, free google slides theme and powerpoint template.

Your business plan says everything about your company. It is the document in which you should collect all the important information about it, such as the business overview, the state of the market and the competition, your sales and marketing plan and the operations and financial plan. If you need to develop your own, this template is specially designed for machinery manufacturer companies, although you can adapt it to any other type. Its elegant and minimalist style, with gradients, make it a success.

Features of this template

• 100% editable and easy to modify
• 39 different slides to impress your audience
• Contains easy-to-edit graphics such as graphs, maps, tables, timelines and mockups
• Includes 500+ icons and Flaticon’s extension for customizing your slides
• Designed to be used in Google Slides and Microsoft PowerPoint
• 16:9 widescreen format suitable for all types of screens
• Includes information about fonts, colors, and credits of the resources used

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How to open an agricultural machinery repair shop?

Want to start an agricultural machinery repair shop but don't know where to begin? Then you've come to the right place!

Our comprehensive guide covers everything related to opening an agricultural machinery repair shop - from choosing the right concept to setting out your marketing plan and financing your business.

You'll also learn how to assess the profitability of your business idea and decide whether or not it can be viable from a financial perspective.

Ready to kickstart your entrepreneurial journey? Let's begin!

In this guide:

• What is the business model of an agricultural machinery repair shop?

What is the ideal founding team for my agricultural machinery repair shop?

Is there room for another agricultural machinery repair shop on the market.

• How should I position my agricultural machinery repair shop on the market?

Where should I base my agricultural machinery repair shop?

What legal form should i choose for my agricultural machinery repair shop.

• How much money do I need to start an agricultural machinery repair shop?
• How will I promote my agricultural machinery repair shop's?

How do I build my agricultural machinery repair shop financial forecast?

• How do I choose a name and register my agricultural machinery repair shop?
• What corporate identity do I want for my agricultural machinery repair shop?
• What legal steps are needed to start an agricultural machinery repair shop?
• How do I write a business plan for an agricultural machinery repair shop?

How to raise finance for my agricultural machinery repair shop?

What to do after launching my agricultural machinery repair shop, key takeaways, understanding how an agricultural machinery repair shop works.

The very first step when exploring a business idea such as starting an agricultural machinery repair shop is to make sure you understand how the business operates and makes money (which is what we call the business model).

This will not only give you an initial idea of how profitable the business can be, but it will also enable you to make sure that this is the right business idea for you, given your skills, start-up capital and family or personal lifestyle, in particular.

The best ways to get to grips with the agricultural machinery repair shop's business model are to:

Talk to agricultural machinery repair shop owners with experience

Work a few months in an agricultural machinery repair shop already in operation, take a training course.

Experienced agricultural machinery repair shop owners have valuable insights and can provide practical advice based on their firsthand experiences. 

They've likely encountered and overcome challenges that a newcomer might not anticipate. Learning from other’s mistakes can save you both time and money and potentially increase your venture’s chances of succeeding.

Obtaining work experience in the industry can be a crucial factor in confirming whether you truly want to start an agricultural machinery repair shop, as it provides insight into the day-to-day activities.

For instance, if the working hours are longer than expected or if other business requirements don't align with your personal lifestyle or preferences, you might reconsider your entrepreneurial goals.

Even if you've decided that this business idea is a good fit for you, gaining work experience will still be valuable. It helps you better understand your target market and customer needs, which is likely to be beneficial when launching your own agricultural machinery repair shop.

Obtaining training within your chosen industry is another way to get a feel for how an agricultural machinery repair shop works before deciding to pursue a new venture.

Whatever approach you choose to familiarise yourself with the business, before going any further with your plans to open an agricultural machinery repair shop, make sure you understand:

• What skills are required to run the business (compare this with your own skills)
• What a typical week in the business is like (compare this with your personal or family life)
• What is the potential turnover of an agricultural machinery repair shop and the long-term growth prospects (compare this with your level of ambition)
• Your options once you decide to sell the business or retire (it's never too early to consider your exit)

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The next step to opening your agricultural machinery repair shop, is to decide whether to assemble an ideal team or venture solo.

The failure rate for business start-ups is high: almost half don't make it past the five-year mark, and setting up an agricultural machinery repair shop is no exception.

Starting with a group of co-founders helps reduce this risk as each of you brings complementary skills and enables the financial risk to be spread on multiple shoulders.

However, managing a business with multiple partners comes with its own set of challenges. Disagreements among co-founders are quite prevalent, and they can pose risks to the business. That's why it's essential to carefully weigh all aspects before launching a business.

To help you think things through, we recommend that you ask yourself the following questions:

Do you need more co-founders for this venture?

Do you share the same vision and ambition as your potential partners for this project, what is your plan b.

Let's look at these issues in more detail.

To answer this question you will need to consider the following:

• Are there any key skills missing for which you would rather have a business partner than recruit an employee?
• Do we have enough equity? Would the company benefit from more capital at the outset?
• Will the proposed number of founders make it easy to make decisions (an odd number of partners, or a majority partner, is generally recommended to avoid deadlock)?

In simple terms, co-founders bring skills, money, or both to the table. Having more partners is beneficial when there's a lack of either of these resources.

One of the main sources of conflict between co-founders comes from a lack of alignment on the long-term vision.

To avoid any risk of disagreement, it is advisable to agree on ambitions from the outset and to provide an exit mechanism for one of the partners in the event of disagreement.

We hope your agricultural machinery repair shop takes off and thrives, but it's smart to have a "plan B" just in case things don't go as expected.

How you tackle potential failure can vary broadly depending on the type of co-founders (close friend, spouse, ex-colleague, etc.) and the personal circumstances of each of them. 

For example, launching a family business with your spouse might seem exciting, but if it fails, you risk losing all of your household income at once, which might be stressful.

Likewise, starting a business with a friend might strain the friendship if things go wrong or if tough decisions need to be made.

Before diving in, make sure to thoroughly think about your choices. This way, you'll be ready for whatever might come your way when starting up.

The next step in starting an agricultural machinery repair shop is to undertake market research. Now, let's delve into what this entails.

The objectives of market research

The goal here is straightforward: evaluate the demand for your business and determine if there's an opportunity to be seized.

One of the key points of your market analysis will be to ensure that the market is not saturated by competing offers.

The market research to open your agricultural machinery repair shop will also help you to define a concept and market positioning likely to appeal to your target clientele.

Finally, your analysis will provide you with the data you need to assess the revenue potential of your future business.

Let's take a look at how to carry out your market research.

Evaluating key trends in the sector

Market research for an agricultural machinery repair shop usually begins with an analysis of the sector in order to develop a solid understanding of its key players, and recent trends.

Assessing the demand

After the sector analysis comes demand analysis. Demand for an agricultural machinery repair shop refers to customers likely to consume the products and services offered by your company or its competitors.

Looking at the demand will enable you to gain insights into the desires and needs expressed by your future customers and their observed purchasing habits.

To be relevant, your demand analysis must be targeted to the geographic area(s) served by your company.

Your demand analysis should highlight the following points:

• Who buys the type of products and services you sell?
• How many potential customers are there in the geographical area(s) targeted by your company?
• What are their needs and expectations?
• What are their purchasing habits?
• How much do they spend on average?
• What are the main customer segments and their characteristics?
• How to communicate and promote the company's offer to reach each segment?

Analyzing demand helps pinpoint customer segments your agricultural machinery repair shop could target and determines the products or services that will meet their expectations.

Assessing the supply

Once you have a clear vision of who your potential customers are and what they want, the next step is to look at your competitors.

Amongst other things, you’ll need to ask yourself:

• What brands are competing directly/indirectly against your agricultural machinery repair shop?
• How many competitors are there in the market?
• Where are they located in relation to your company's location?
• What will be the balance of power between you and your competitors?
• What types of services and products do they offer? At what price?
• Are they targeting the same customers as you?
• How do they promote themselves? 
• Which concepts seem to appeal most to customers?
• Which competitors seem to be doing best?

The aim of your competitive analysis will be to identify who is likely to overshadow you, and to find a way to differentiate yourself (more on this see below).

Regulations

Market research is also an opportunity to look at the regulations and conditions required to do business.

Ask yourself the following questions:

• Do you need a special degree to open an agricultural machinery repair shop?
• Are there necessary licences or permits?
• What are the main laws applicable to your future business?

At this stage, your analysis of the regulations should be carried out at a high level, to familiarize yourself with any rules and procedures, and above all to ensure that you meet the necessary conditions for carrying out the activity before going any further.

You will have the opportunity to come back to the regulation afterwards with your lawyer when your project is at a more advanced stage.

Take stock of the lessons learned from your market analysis

Market research should give you a definitive idea of your business idea's chances of commercial success.

Ideally, the conclusion is that there is a market opportunity because one or more customer segments are currently underserved by the competition.

On the other hand, the conclusion may be that the market is already taken. In this case, don't panic: the first piece of good news is that you're not going to spend several years working hard on a project that has no chance of succeeding. The second is that there's no shortage of ideas out there: at The Business Plan Shop, we've identified over 1,300 business start-up ideas, so you're bound to find something that will work.

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Choose the right concept and position your agricultural machinery repair shop on the market

The next step to start an agricultural machinery repair shop is to choose the company's market positioning.

Market positioning refers to the place your product and service offering occupies in customers' minds and how it differs from how competitors are perceived. Being perceived as a high-end solution, for example.

To do this, you need to take the following considerations into account:

How can you make your business stand out from your competitors?

Is it better to start a new agricultural machinery repair shop or acquire one that is already up and running, how to make sure your concept meets customer needs.

Let's look at each of these in a little more detail.

When you decide to start your own agricultural machinery repair shop, you're facing an upward challenge because your competitors are already ahead. They have a good reputation, loyal customers, and a strong team, while you're just getting started.

Opening an agricultural machinery repair shop offering exactly the same thing as your competitors is risky and potentially doomed to fail: why would customers take the risk of choosing a newcomer rather than a company with a proven track record?

This is why it is advisable to avoid direct confrontation by adopting a differentiated market positioning wherever possible: in other words, by offering something different or complementary to what is available on the market.

To find a market positioning that has every chance of success, you need to ask yourself the following questions: 

• Can you negate direct competition by serving a customer profile that is currently poorly addressed by your competitors?
• Can your business provide something different or complementary to what is already available on the market?
• Why will customers choose your agricultural machinery repair shop over the competition? 
• How will your competitors react to your entry into their market?
• Is the market sufficiently large to allow you to set up a new independent business, or is it better to consider another avenue (see below)?

A way to benefit from a proven concept and reduce the risk of your project is to take over an agricultural machinery repair shop. 

Buying an agricultural machinery repair shop allows you to get a team, a customer base, and above all to preserve the balance on the market by avoiding creating a new player. For these reasons, taking over a business is a lot less risky than creating one from scratch.

Taking over a business also gives you greater freedom than franchising, because you have the freedom to change the positioning and operations of the business as you see fit.

However, as you can imagine, the cost of taking over a business is higher than that of opening an agricultural machinery repair shop because you will have to finance the purchase.

Once you have decided on your concept and the market positioning of your future agricultural machinery repair shop, you will need to check that it meets the needs, expectations and desires of your future customers.

To do this, you need to present it to some of your target customers to gather their impressions.

The next step in our guide on starting a agricultural machinery repair shop involves making a key choice about where you want your business to be located.

Picking the ideal location for your business is like selecting the perfect canvas for a painting. Without it, your business might not showcase its true colors.

We recommend that you take the following factors into account when making your decision:

• Visibility and foot traffic
• Parking space, road and public transport accessibility
• Proximity to target customers
• Adequate infrastructure

This list is not comprehensive and will have to be adjusted based on the details of your project. 

The parameters to be taken into account will also depend on whether you opt to rent premises or buy them. If you are a tenant, you will need to consider the conditions attached to the lease: duration, rent increase, renewal conditions, etc.

Lease agreements differ widely from country to country, so it's essential to review the terms that apply to your situation. Before putting pen to paper, consider having your lawyer look carefully at the lease.

The next step to start an agricultural machinery repair shop is to choose the legal form of your business.

The legal form of a business simply means the legal structure it operates under. This structure outlines how the business is set up and defines its legal obligations and responsibilities.

Why is your agricultural machinery repair shop's legal form important?

Choosing the right legal form for your agricultural machinery repair shop is important because this will affect:

• Taxation: your tax obligations depend on the legal structure you choose, and this principle applies to both personal income tax and business taxes.
• Risk exposure: some legal structures have a legal personality (also known as corporate personality) and limited liability, which separates them from the owners running the business. This means that the business would be liable rather than the owners if things were to go wrong (lawsuit, debt owed in case of bankruptcy, etc.).
• Decision-making and governance: how you make key decisions varies based on the legal form of your business. In some cases you might need to have a board of directors and organise general assemblies to enable shareholders to influence major decisions with their voting rights.
• Financing: securing funding from investors requires you to have a company and they will expect limited liability and corporate personality to protect them legally.
• Paperwork and legal formalities: the legal structure you select determines whether certain obligations are necessary, such as producing annual accounts, or getting your books audited.

Popular business legal forms

The specific names of legal structures vary from country to country, but they usually fall within the two main categories below:

Individual businesses

Individual businesses, like sole traders or sole proprietorships, are made for self-employed entrepreneurs and freelancers rather than businesses which employ staff.

They benefit from straightforward administrative requirements, minimal paperwork to start, simpler tax calculations, and streamlined accounting procedures.

However, the downside is that there's typically no legal distinction between the business and the person responsible for day-to-day operations. This means the owner's personal assets are at risk if the business faces problems or goes bankrupt.

There is also no share capital in such a structure, meaning that individual businesses cannot raise equity from investors which seriously limits funding options.

Companies are versatile structures suited to projects of all sizes in terms of number of founders, number of employees and amount of capital.

They are a bit more complex to operate than individual businesses with more formalities, stringent accounting requirements, more complex tax implications, etc.

In return, they offer stronger protections to their shareholders. They usually benefit from having their own legal identity and limited liability, meaning co-founders and investors can only ever lose the amount of money they have put into the company.

For instance, if things were to go south (the company files for bankruptcy or there is a legal issue), the company would take the hit, safeguarding the personal assets of the founders and investors.

How should I choose my agricultural machinery repair shop's legal structure?

Deciding on a legal form is easy once you've estimated your sales, decided whether or not you need employees and figured out the number of co-founders joining you.

It's essential to remember that a solid business idea will succeed no matter which legal structure you pick. Tax laws change regularly, so you can't rely on specific tax advantages tied to a particular structure when starting a business.

A proven approach is to look at what legal structures your top competitors are using, and go with the most common option as a working assumption. Once your idea is mature enough, and you're getting closer to officially registering your business, you can get advice from a lawyer and an accountant to confirm your choice.

Can I switch my agricultural machinery repair shop's legal structure if I get it wrong?

Yes, changing your legal structure later is possible, though it may involve selling the old entity to a new entity in some cases, which adds further expenses. If you want to save on such costs, it makes sense to pick the correct legal form for your business the first time around.

Calculating the budget to open an agricultural machinery repair shop

The next step to opening an agricultural machinery repair shop involves thinking about the equipment and staff needed to launch and run your business on a day-to-day basis.

Each project has its own characteristics, which means that it is not possible to estimate the budget for opening an agricultural machinery repair shop without building a complete financial forecast.

So be careful when you see estimates circulating on the Internet. As with all figures, ask yourself these questions:

• Is my project similar (location, concept, size, etc.)?
• How recent is the information?
• Is it from a trustworthy source?

Startup costs and investments to open an agricultural machinery repair shop

For an agricultural machinery repair shop, the initial working capital requirements and investments may include the following elements:

• Agricultural machinery: This includes tractors, combines, harvesters, and other heavy equipment that is necessary for repairing and maintaining agricultural machinery. These are essential fixed assets that you will need to invest in to run your repair shop.
• Tools and equipment: In addition to agricultural machinery, you will also need a variety of tools and equipment to perform repairs. This can include wrenches, sockets, pliers, and other specialized tools specific to the agricultural industry.
• Workshop space: You will need a dedicated workshop space to perform repairs on agricultural machinery. This can include leasing or purchasing a building, as well as any necessary renovations or construction to make the space suitable for your repair shop.
• Inventory: To run a successful agricultural machinery repair shop, you will need to keep a stock of necessary parts and components for various types of machinery. This can include items such as filters, belts, and bearings.
• Software and technology: Investing in software and technology can help streamline your repair processes and improve efficiency. This can include inventory management software, accounting software, and diagnostic tools for troubleshooting machinery issues.

Of course, you will need to adapt this list to your company's specific needs.

Staffing plan to operate an agricultural machinery repair shop

To establish an accurate financial forecast for your agricultural machinery repair shop, you will also need to assess your staffing requirements.

The extent to which you need to recruit will of course depend on your ambitions for the company's growth, but you might consider recruiting for the following positions:

Once again, this list is only indicative and will need to be adjusted according to the specifics of your agricultural machinery repair shop.

Other operating expenses required to run an agricultural machinery repair shop

You also need to consider operating expenses to run the business:

• Staff costs: This includes salaries, wages, and benefits for all employees working at your agricultural machinery repair shop. This may also include any training costs for your employees.
• Accountancy fees: You will need to hire an accountant to help you with your financial record-keeping, tax preparation, and other financial matters. These fees may vary depending on the complexity of your business.
• Insurance costs: It is essential to have insurance coverage for your agricultural machinery repair shop, including liability insurance, property insurance, and workers' compensation insurance.
• Software licenses: You may need to purchase software licenses for your accounting, inventory management, and other business operations. The cost of these licenses will depend on the software you choose.
• Banking fees: You will need to open a business bank account to manage your finances, and there may be fees associated with maintaining this account, such as monthly service fees and transaction fees.
• Rent: If you are leasing a space for your agricultural machinery repair shop, you will need to budget for monthly rent payments.
• Utilities: This includes electricity, water, and other utility costs for your shop.
• Supplies: You will need to purchase supplies such as tools, spare parts, and other equipment to repair agricultural machinery.
• Marketing and advertising: You may need to budget for marketing and advertising expenses to promote your business and attract new customers.
• Vehicle expenses: If you have a company vehicle for your agricultural machinery repair business, you will need to budget for gas, maintenance, and insurance costs.
• Telephone and internet: You will need to have a telephone and internet connection for your business, and there may be monthly fees associated with these services.
• Professional fees: You may need to hire outside professionals, such as lawyers or consultants, for certain aspects of your business, and their fees should be included in your operating expenses.
• Taxes and licenses: As a business owner, you will be responsible for paying taxes and obtaining any necessary licenses or permits for your agricultural machinery repair shop.
• Maintenance and repairs: You will need to budget for maintenance and repairs for your equipment and tools used for repairing agricultural machinery.
• Office expenses: This includes any office supplies, such as paper, printer ink, and pens, needed for your daily business operations.

This list will need to be adapted to the specifics of your agricultural machinery repair shop but should be a good starting point for your budget.

Create a sales & marketing plan for your agricultural machinery repair shop

The next step to launching your agricultural machinery repair shop is to think about the actions you need to take to promote your products and services and build customer loyalty.

Here, you'll be looking at the following issues:

• What is the best method to attract as many new customers as possible?
• How to build customer loyalty and spread word of mouth?
• What human and financial resources will be required to implement the planned actions?
• What level of sales can I expect to generate in return?

The precise sales and marketing levers to activate will depend on the size of your agricultural machinery repair shop. But you could potentially leverage some of the initiatives below.

Besides your sales and marketing plan, your sales forecast will be affected by seasonal patterns related to the nature of your business, such as fluctuations during the holiday season, and your competitive landscape.

Let's now look at the financial projections you will need to prepare in order to open an agricultural machinery repair shop.

What is an agricultural machinery repair shop's financial projection?

Your financial forecast will help you budget your project so that you can evaluate:

• Its expected sales and growth potential
• Its expected profitability, to ensure that the business will be viable
• Its cash generation and financing requirements

Making your financial forecast is the only way to determine the amount of initial financing required to create your agricultural machinery repair shop.

There are lots of business ideas out there, but very few of them are viable, and making a financial forecast is the only way to ensure that your project makes economic and financial sense.

Creating an agricultural machinery repair shop financial projection is an iterative process, as you'll need to refine your figures as your business idea matures.

You'll start with a first high-level version to decide whether or not to continue working on the project.

Then, as your project takes shape, your forecasts will become increasingly accurate. You'll also need to test different assumptions to ensure that your idea of starting an agricultural machinery repair shop holds up even if your trading environment deteriorates (lower sales than expected, difficulties in recruiting, sudden cost increases or equipment failure problems, for example).

Your financial forecast will be part of your overall business plan, which we'll look at in more detail later. Your financial partners will use your business plan to decide if they want to finance you.

Once you've launched your business, you can compare your actual accounting figures with your forecasts, to analyze where the discrepancies come from, and then update your forecasts to maintain visibility over your future cash flows.

Financial forecasts are, therefore, a financial management tool that will be with you throughout the life of your company.

What does a financial projection look like?

Your agricultural machinery repair shop forecast will be presented using the following financial tables.

The projected P&L statement

The projected P&L statement for an agricultural machinery repair shop shows how much revenue and profits your business is expected to generate in the future.

The projected balance sheet of your agricultural machinery repair shop

Your agricultural machinery repair shop's projected balance sheet provides a snapshot of your business’s financial position at year-end.

The cash flow forecast

A projected cash flow statement for an agricultural machinery repair shop is used to show how much cash the business is expected to consume or generate in the years to come.

What is the best financial forecasting tool for starting your agricultural machinery repair shop?

The simplest and easiest way to create your agricultural machinery repair shop's projections is to use professional online financial forecasting software such as the one we offer at The Business Plan Shop.

There are several advantages to using specialised software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You have access to complete financial forecast templates
• You get a complete financial forecast ready to be sent to your bank or investors
• The software helps you identify and correct any inconsistencies in your figures
• You can create scenarios to stress-test your forecast's main assumptions to stress-test the robustness of your business model
• After you start trading, you can easily track your actual financial performance against your financial forecast, and recalibrate your forecast to maintain visibility on your future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you are interested in this type of solution, you can try our forecasting software for free by signing up here .

Choose a name and register your agricultural machinery repair shop

The next phase in launching your agricultural machinery repair shop involves selecting a name for your company.

This stage is trickier than it seems. Finding the name itself is quite fun; the difficulty lies in finding one that is available and being the first to reserve it.

You cannot take a name that is similar to a name already used by a competitor or protected by a registered trademark without inevitably risking legal action.

So you need to find a name that is available, and be able to register it before someone else can.

In addition, you will probably want to use the same name for:

• Your company’s legal name - Example LTD
• Your business trading name - Example
• The trademark - Example ® 
• Your company’s domain name - Example.com

The problem is that the procedures for registering these different names are carried out in different places, each with their own deadlines:

• Registering a domain name takes only a few minutes
• Registering a new trademark takes at least 12 weeks (if your application is accepted)
• The time taken to register a new business depends on the country, but it's generally fast

You will therefore be faced with the choice of: either registering everything at once and hoping that your name will be accepted everywhere, or proceeding step by step in order to minimise costs, but taking the risk that someone else will register one of the names you wanted in the meantime.

Our advice is to discuss strategy with your legal counsel (see further down in this guide) and prioritise your domain names and registered trademarks. You'll always have the option of using a trade name that's different from your company's legal name, and that's not a big deal.

To check that the name you want is not already in use, you should consult:

• Your country's business register
• The relevant trademark registers depending on which countries you want to register your trade mark in
• A domain name reservation company such as GoDaddy
• An Internet search engine

In this area too, your legal counsel will be able to help with the research and formalities.

Deciding upon the corporate identity of your agricultural machinery repair shop

The next step in opening an agricultural machinery repair shop is to look at your company's visual identity. 

Your company's “visual identity” plays a crucial role in shaping your brand image. It helps you to be recognizable and to stand out from your competitors. 

Although you can define your visual identity yourself, it is generally advisable to call on the services of a designer or marketing agency to achieve a professional result.

At a minimum, you will need to define the following elements: 

Brand guidelines

Business cards, website theme.

Your agricultural machinery repair shop's logo allows others to quickly identify your company. It will be used on all your communication media (website, social networks, business cards, etc.) and official documents (invoices, contracts, etc.).

In addition to its design, it's important that your logo is available in a variety of colors, so that it can be seen on all media (white, dark background, etc.).

Having brand guidelines enables you to maintain consistency in formatting across all your communications media and official documents. 

Brand guidelines define the font (family and size), design and colours used by your brand. 

In terms of fonts, for example, you may use Roboto in size 20 for your titles and Lato in size 14 for your texts. 

The colours used to represent your brand should generally be limited to five: 

• The main colour, 
• A secondary colour (the accent),
• A dark background colour (blue or black),
• A grey background colour (to vary from white),
• Possibly another secondary colour.

Designing business cards for your agricultural machinery repair shop is a must, as they will allow you to communicate your contact details to your customers, suppliers, partners, potential recruits, etc. 

In principle, they will include your logo and the brand guidelines that we mentioned above.

In the same way, the theme of your agricultural machinery repair shop website will be based on your logo and the brand guidelines we mentioned above.

This involves defining the look and feel of your site's main graphic elements:

Navigate the legal and regulatory requirements for launching your agricultural machinery repair shop

The next thing to do in getting an agricultural machinery repair shop off the ground is to handle all the legal and regulatory requirements. We recommend that you be accompanied by a law firm for all of the steps outlined below.

Intellectual property

One of your priorities will be to ensure that your company's intellectual property is adequately protected.

As explained before, you can choose to register a trademark. Your lawyer can help you with a detailed search to make sure your chosen trademark is unique and doesn't clash with existing ones.

They'll assist in preparing the required documents and steer you in picking the right categories and locations for trademark registration.

Moreover, your lawyer can offer guidance on additional measures to protect other intellectual property assets your company may have.

Getting your agricultural machinery repair shop paperwork in order

For day-to-day operations, your agricultural machinery repair shop will need to rely on a set of contractual documents. 

Your exact needs in this respect will depend on the country in which you are launching your agricultural machinery repair shop, the number of partners and the envisaged size of the company. 

However, you will probably need at least the following documents:

• Employment contracts 
• General terms and conditions of sale
• General terms and conditions of use for your website
• Privacy Policy for your website
• Cookie Policy for your website

Applying for licences and permits and registering for various taxes

Operating your business legally may require licences and business permits. The exact requirements applicable to your situation will depend on the country in which you set up your agricultural machinery repair shop.

The lawyers who advise you will also be able to guide you with regard to all the rules applicable to your business.

Similarly, your accountant will be able to help you take the necessary steps to comply with the tax authorities.

Writing a business plan for your agricultural machinery repair shop

The next step in opening an agricultural machinery repair shop is to draw up your business plan.

What is a agricultural machinery repair shop's business plan?

A business plan serves as a comprehensive roadmap outlining the objectives, strategies, and key components of your venture. 

There are two essential parts to a business plan:

• A numerical part, the financial forecast we mentioned earlier in this guide, which highlights the amount of initial financing needed to launch the business and its potential profitability over the next 3 to 5 years,
• A written part, which presents in detail the project of creating an agricultural machinery repair shop and provides the necessary context to enable the reader of the business plan to judge the relevance and coherence of the figures included in the forecast.

Your business plan helps guide decision-making by showcasing your vision and financial potential in a coherent manner.

Your business plan will also be essential when you're looking for financing, as your financial partners will ask you for it when deciding whether or not to finance your project to open an agricultural machinery repair shop. So it's best to produce a professional, reliable, and error-free business plan.

In essence, your business plan is the blueprint to turn your idea into a successful reality. 

What tool should you use to create your agricultural machinery repair shop business plan?

If you want to write a convincing business plan quickly and efficiently, a good solution is to use an online business plan software for business start-ups like the one we offer at The Business Plan Shop.

Using The Business Plan Shop to create a business plan for an agricultural machinery repair shop has several advantages :

• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete startup business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can create scenarios to stress test your forecast's main assumptions
• You can easily track your actual financial performance against your financial forecast by importing accounting data
• You can easily update your forecast as time goes by to maintain visibility on future cash flows

If you're interested in using our solution, you can try The Business Plan Shop for free by signing up here .

Once your business plan has been drafted, you’ll need to think about how you might secure the financing necessary to open your agricultural machinery repair shop.

The amount of initial financing required will obviously depend on the size of your agricultural machinery repair shop and the country in which you wish to set up.

Businesses have access to two main categories of financing: equity and debt. Let's take a closer look at how they work and what sources are available.

Equity funding

At a high level, the equity of your agricultural machinery repair shop will consist of the money that founders and potential investors will invest to launch the company.

Equity is indispensable as it provides the company with a source of long-term (often permanent) financing and demonstrates the founders' conviction in the company's chances of success, since their investments would be lost in the event of bankruptcy.

Equity investors can generate a return on their investment through dividends (which can only be paid out if the company is profitable) or capital gains on the resale of their shares (if the company is attractive enough to attract a buyer).

As you can see, the equity investors' position is extremely risky, since their capital is at risk and can be lost in the event of bankruptcy, and the company must be profitable or resellable before they can hope to generate a return on their investment.

On the other hand, the return on investment that equity investors can expect to generate by investing in an agricultural machinery repair shop can be very substantial if the company is successful.

This is why equity investors look for start-up ideas with very high growth or profitability potential, in order to offset their risk with a high potential return on investment.

In technical terms, equity includes:

• Share capital and premiums: which represent the amount invested by the shareholders. This capital is considered permanent as it is non-refundable. In return for their investment, shareholders receive shares that entitle them to information, decision-making power (voting in general assembly), and the potential to receive a portion of any dividends distributed by the company.
• Director loans: these are examples of non-permanent capital advanced to the company by the shareholders. This is a more flexible way of injecting some liquidity into your company than doing so as you can repay director loans at any time.
• Reserves: these represent the share of profits set aside to strengthen the company's equity. Allocating a percentage of your profits to the reserves can be mandatory in certain cases (legal or statutory requirement depending on the legal form of your company). Once allocated in reserves, these profits can no longer be distributed as dividends.
• Investment grants: these represent any non-refundable amounts received by the company to help it invest in long-term assets.
• Other equity: which includes the equity items which don't fit in the other categories. Mostly convertible or derivative instruments. For a small business, it is likely that you won't have any other equity items.

The main sources of equity are as follows:

• Money put into the business from the founders' personal savings.
• Money invested by private individuals, which can include business angels, friends, and family members.
• Funds raised through crowdfunding, which can take the form of either equity or donations (often in exchange for a reward).
• Government support to start-ups, for example, loans on favourable terms to help founders build up their start-up capital.

Debt funding

The other way to finance your agricultural machinery repair shop is to borrow. From a financial point of view, the risk/return profile of debt is the opposite of that of equity: lenders' return on investment is guaranteed, but limited.

When it borrows, your company makes a contractual commitment to pay the lenders by interest, and to repay the capital borrowed according to a pre-agreed schedule.

As you can see, the lenders' return on investment is independent of whether or not the company is profitable. In fact, the only risk taken by lenders is the risk of the company going bankrupt.

To avoid this risk, lenders are very cautious, only agreeing to finance when they are convinced that the borrowing company will be able to repay them without problems.

From the point of view of the company and its stakeholders (workforce, customers, suppliers, etc.), debt increases the risk of the venture, since the company is committed to repaying the capital whether or not it is profitable. So there's a certain distrust towards heavily indebted companies.

Companies borrow in two ways:

• Against their assets: this is the most common way of borrowing. The bank finances a percentage of the price of an asset (a vehicle or a building, for example) and takes the asset as collateral. If the company cannot repay, the bank seizes the asset and sells it to limit its losses.
• Against their future cash flows: the bank reviews the company's financial forecast to estimate how much the company can comfortably borrow and repay, and what terms (amount, interest rate, term, etc.) the bank is prepared to offer given the credit risk posed by the company.

When creating an agricultural machinery repair shop, the first option is often the only one available, as lenders are often reluctant to lend on the basis of future cash flows to a structure that has no track record.

The type of assets that can be financed using the first method is also limited. Lenders will want to be sure that they can dispose of foreclosed assets if needed, so they need to be assets that have an established second-hand market.

That being said, terms and conditions also depend on the lender: some banks are prepared to finance riskier projects, and not all have the same view of your company's credit risk. It also depends on the collateral you can offer to reduce risk, and on your relationship with the bank.

In terms of possible sources of borrowing, the main sources here are banks and credit institutions.

In some countries, it's also possible to borrow from private investors (directly or via crowdlending platforms) or other companies, but not everywhere.

Takeaways on how to finance an agricultural machinery repair shop

Multiple options are available to help you raise the initial financing you need to launch your agricultural machinery repair shop.

There are two types of financing available to companies. To open an agricultural machinery repair shop, an equity investment will be required and may be supplemented by bank financing.

Launching your agricultural machinery repair shop is the beginning of an exciting entrepreneurial adventure, and the culmination of your efforts to turn your idea into a reality. But this is also when the real work begins.

As you know, nearly half of all new businesses fail, so you'll need to do everything you can to make your business sustainable right from the start.

Estimating the future financial performance of an agricultural machinery repair shop inevitably involves a degree of uncertainty. That's why we recommend simulating several scenarios: a central case with the most likely scenario, an optimistic case, and a pessimistic case designed to test the limits of your business model.

Normally, your company's actual financial performance, observed after you start trading, should fall somewhere between your pessimistic and optimistic cases.

The important thing will be to quickly measure and compare this actual performance with the figures in your forecast to see where you stand, then update the forecast to re-estimate the future cash flows and cash position of your agricultural machinery repair shop.

This forward-looking financial management exercise is the only way to know where you stand and where you're going. And, when your figures fall short of expectations, to quickly implement actions to turn things around before the company runs out of cash.

There's nothing more dangerous than waiting until you have your accounts, which takes up to nine months after the end of your financial year (if you are in the UK, abroad your mileage will vary), to then realize that you're not on the right track and that your agricultural machinery repair shop won't have enough cash to operate over the next twelve months.

This is where using a forecasting solution that integrates actuals vs. forecast tracking, like The Business Plan Shop's financial dashboards do, can simplify the financial management of your business and help reduce the risk associated with your start-up project.

• This guide outlines the 15 key steps to open an agricultural machinery repair shop.
• The financial forecast is the tool that will enable you to validate the financial viability of your business idea.
• The business plan is the document that will enable you to approach your financial and commercial partners to convince them of the strengths of your project and secure the financing you need to launch your business.
• The real work begins once you've launched your business, and the only way to maintain visibility of your company's future cash flow is to keep your forecast up to date.
• Using a financial planning and analysis platform that combines forecasting, business planning and actual vs. forecast tracking and monitoring, such as The Business Plan Shop, makes the process easier and reduces the risks involved in starting a business.

We hope this guide has helped you understand how to start an agricultural machinery repair shop. Please don't hesitate to contact us if you have any questions.

Also on The Business Plan Shop

• Business plan samples for start-ups

Do you know someone who wants to know how to open an agricultural machinery repair shop? Share our guide with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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