What is a Business Plan

A business plan is a document that describes the operational and financial goals of a business. It tells the world what you want to do and how you’re going to do it.  Download this example business plan from the Small Business Administration (SBA) to see what a finished plan looks like. Another great source for writing a farm business plan is the University of Minnesota’s AgPlan app. AgPlan guides you through writing every business plan item.

A farm is a business. Just like any other type of business, a farm needs a business plan. Knowing a farm’s legal structure—what type of organization you want to run and what laws apply—will help you with running the farm and with tax purposes.  

A farm’s legal structure might be sole proprietorship, a partnership, a Limited Liability Company, a cooperative or a corporation.

Understanding the how and why of a farm’s business structure is the first step in writing a business plan. Knowing how money works when it comes to the farm and different markets can help. 

In this section, you will learn how to write a business plan and where to find planning resources.