Farm and business management is the practice of coordinating your agricultural operation so that you can maximize your profit potential and generate income. In this process, a variety of skills are used, including planning management, economics and marketing.
Key practices for managing a country farm or business include:
Marketing – the sale of goods or services to consumers. Financing – loans that finance your operations. Risk management – making sure your operation is protected from disasters.
Financial – Creating pro-forma and real enterprise budgets that help forecast incomes and expenses. Calculating ratios.
Write down how you plan to achieve your objectives. This will allow you to think about the different functions of your business and identify any weaknesses.
Next, you will need to determine if your land is zoned for production or if it has zoning regulations that limit the type of production you can do. Check with your county or township to see if they have any restrictions.
Your business will need public facilities as well, such parking areas, signage and customer assistance. These facilities are required to accommodate visitors and customers to your farm/ranch.
Ultimately, you will need a business that is self-sustaining and generates a steady income. This means having enough off-farm income to cover living expenses and saving for the future of your business.