Farm and business Management (FBM), is the practice where you coordinate all aspects of your farming operation to maximize income and profit. This process requires a broad range of skills, including management, economic analysis, and marketing.
The following are the key practices to implement for managing your farm and business:
Marketing – selling your products or services; financing – loans to finance your operation; risk management – ensuring that your operation is safe from disasters.
Financial – creating pro-forma and http://www.mountaincountryfarm.com/mountain-farm-relaxation-by-board-room/ actual enterprise budgets to help forecast income and expenses; calculating ratios; setting financial goals.
First, you should write down a strategy for how you will achieve your goals. This will allow you to think about the different functions of your business and identify any weaknesses.
You’ll need to find out if your property is zoned as production land or if zoning laws limit the kind of production that you can do. Check with the township or county to determine if there is any restriction and how it might affect your plan.
You will also require adequate public facilities such as parking, signage and customer service. These will be necessary to accommodate customers and guests to your farm/ranch. They should also be maintained in compliance of zoning, environmental laws and food safety laws.
Your business will ultimately need to be self sufficient and a reliable source of income. This means you must have enough off-farm revenue to cover your expenses and save for your future business.