Farm and business management is the http://www.mountaincountryfarm.com practice of coordinating your agricultural operation so that you can maximize your profit potential and generate income. A broad set of skills and knowledge is used in this process including planning, management, economic analysis and marketing.
The following are the key practices to implement for managing your farm and business:
Marketing – the sale of your products or services to consumers; financing – loans to finance your operations; risk management – ensuring your operation is secure from disasters.
Financial – creating pro forma and actual enterprise budgets in order to forecast income and expenses, calculating ratios, and setting financial goals.
The first step to achieving your objectives is to create a plan. This will help to identify the weaknesses in your business by thinking through the different functions.
You will then need to determine whether your land is zoned production or if there are zoning restrictions that limit what you can produce. You should check with your township and county to see if there are restrictions that could affect your plans.
Your business may also require public facilities like parking areas, signs, and customer service. These will be required to accommodate customers and visitors to your farm/ranch and should be maintained in compliance with zoning, food safety and environmental laws.
Ultimately, your business will need to be self-sustaining and a viable source of income. It is important to have enough income off-farm to cover all living expenses as well as save for future business.
