Running a business or farm in the country requires a wide range of economic, technical, and human conceptual and analytic skills. This includes identifying the needs of customers that your farming operation is uniquely positioned to meet, establishing a plan for marketing and production and ensuring that the resources you have are used effectively and efficiently. It is also crucial to regularly evaluate the effectiveness of current practices and most current technology.
A sound financial plan is essential for a successful farm operation. This includes the creation of annual budgets, plans for the farm and cash flow statements. These are then used to create management action plans and to assess the performance of the company in relation to achieving its objectives. It is essential to develop an emergency plan of action for what could happen to the company if it is struck by disaster or deciding to sell the business or reduce it to hobby status.
It is essential to seek guidance and support from other people, whether it be a sounding board for ideas that are bouncing around your head or scribbled on scrap paper or a business consultant with expertise in agricultural business. There are numerous organizations throughout the state of Wisconsin which are specifically dedicated to helping food-related and farms businesses grow and start. Farm Answers is one example. It provides a how-to library, advice and a directory of beginning farmers training programs.
Farm managers who are successful have a plan to prepare their children or close family members to inherit the business in the future. This process is not always straightforward and may be a source of tension, but it’s best to start the discussion early.