A business plan is a set of documents prepared to summarize the operational and financial goals of a business, plus how they will be achieved. It acts as a plan that will inform and guide a company’s strategies and policies. It is dynamic in nature as it can be updated periodically as the operating environment changes or new prospects emerge. Once the business plan is intended to be presented to a potential investor or financier, it becomes a detailed forecast of the company’s results. The pig farm is not exempt from having a business plan. Therefore, we discuss tips for writing a business plan for the pigsty.
Why is the Piggery business plan necessary?
There are a number of reasons why the pig business plan needs to be worked out. There are cases where a prospective pig breeder has to look for funding. It can be from investors or financial institutions. The business plan will be a tool to convince them of how valuable the business is. There may also be times when the pig breeder wants to scale their business or approach potential business partners. The business plan serves as a comprehensive collection of information that can be used in decision making. Even apart from all these purposes, a business plan can simply be a working or reference document while building the pig business. Never be wary of the importance of a pig business plan. Here are tips to help you find the best business plan for pig farming:
Do not develop a generic pig farm business plan
We have already established that your pigsty business plan may have various causes. For your business plan to be compelling, you need to draw it up with the intended recipient in mind. Is it for an investor? Is it for a financial institution, eg a bank or microfinance? Is it for a target business partner? All of these possible recipients mean that your pig business plan needs to be tailored differently. What an investor looks for in your pig business plan is different from what a microfinance institution is looking for. You will discover that some of these recipients may have formats they want you to follow. Therefore, it might defeat the purpose if you just draw up a generic business plan for pig farming. To increase your chances of getting the answer you want, the recipient of your business plan needs to see that it is tailored specifically to them.
Make sure the essential parts are included
This is the first thing you need to be aware of. The formats of the business plan vary, but there are core parts that need to be covered in it. There must be a summary that provides an overview of the pig farm. This should also include why this business plan is being put together. This must be followed by the company or company description. This involves introducing your business (who it is and what it offers) and an overview of its position in the pig industry. You can also include vision, mission and core values under it.
Market analysis and competition analysis are a must. The former is about demonstrating your understanding of the market, while the latter is about your competitors. The next part is operations – basically how you want to execute and manage your business plan. Then we have the marketing plan, an important part considering its importance for revenue generation. The finances are the most important part of your pigsty’s business plan. Your finances should cover past, present and future projections. These are essential parts that you need to include in your pig business plan.
Be straight to the point and do not use jargon
Simplicity is the ultimate sophistication. Any business involving writing should follow this principle. Write as if you were writing to an 8-year-old. That means you have to use simple English; Avoid big or complex words. Be brief when using sentences of reasonable size. Where possible, avoid text, but rather use charts, illustrations, tables, pictures, graphs, and the like. It is understandable that pig farming involves a certain jargon. By all means try to avoid jargon, or if you can not avoid it, explain what it means. All of this helps make your business plan as short, simple and clear as possible.
Do not overestimate your financial forecasts
Financial accounting plays a big role in convincing investors or financiers to bankroll your pig business. However, be careful when you come up with your financial projections. The pig business is subject to unforeseen circumstances. For example, there may be an outbreak of disease, or there may be sudden adverse weather conditions. You may even experience theft or run out of capital, among many other possible circumstances.
It is also possible for your pigs to experience poor reproduction rates despite your best input and efforts. It can also happen that the pigs do not achieve noticeable market weight. All of these and more can bulge your bloated financial projections. Therefore, it is wise to be extremely conservative when coming up with your financial projections. It is better to underestimate and then hand over than to overestimate and underdeliver.
Engage experienced pig breeders for guidance
Pig farming is technical in so many ways. There are a number of variables that influence the content of a pig farm plan. If you’re working on a business plan for pig farming, it’s likely to be your first time. Do not assume things or guess when in doubt. Look for expert advice or statements on details in your business plan. For example, an experienced pig breeder will have a solid understanding of the financial aspects of the business. They also want a solid grip on the pig industry and competitors. This information will be useful in the preparation of a factual business plan for the pigsty.
If you follow these 5 tips, you will come up with a winning pig business plan. Following these tips will help you develop a business plan that is factual, realistic, comprehensive, not too long and compelling.