Ag Business Background and History
To assist the reader of the business plan to understand your business concept you need to give a short history of not only your background, but maybe a little about the motivation for getting into an agribusiness enterprise. Ag business isn’t for everyone, and for some it’s just a dream or a hobby. But agriculture on any level is hard work for a variable income. You need to have a desire, willingness and the motivation to do the work needed. It’s not just about hard work however; you need to know what you are doing.
It’s perfectly acceptable to be in agriculture on a part-time basis or to be relatively new to the industry. Critical knowledge is needed to be successful in the business however. If you are entering into an area that is new to you, the reader will want to know what you have done to prepare.
The Agribusiness Location and Facilities
Because agriculture enterprises are intimately tied to the soil you should paint a mental picture of the enterprise for your reader. As people drive down the road they see neat, clean places as well as junky, rundown buildings and fences. Which one are you? Be articulate and clear without going into grinding details. You should describe to the reader what the enterprise looks like, how it operates and the people that are doing the work.
In agriculture experience is the best teacher. Every piece of ground and every crop raised, processed or sold has its own unique set of characteristics. Trial and error can cause a whole season to be lost. These issues increase the risk of something going wrong. To mitigate the risk of failure the reader of your plan is looking for evidence that you are not likely to make catastrophic mistakes.
Agribusiness Enterprise Structure
Historically agriculture has been a family run operation. While that has changed a lot in the past few years, it is important to detail not only the structure of the business, but how decisions are made and who controls which parts of the enterprise. Many agribusinesses are corporations – some with extensive national and international members. Be clear when describing your enterprise so that the reader gets a full understanding of how the organization operates.