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Building a Sustainable Business
Worksheet
4.19Filling Workforce Needs
Use the space below to flesh out new position titles and task descriptions for each new enterprise or existing enterprise that is
short on labor. Next, if adding labor, describe the type of position that will be created—full-time or part-time, temporary or
permanent, seasonal or year-round—as well as the skills desired for each position. Lastly, describe your strategy for addressing
workforce gaps and acquiring and training labor. Workforce strategies may include: reassigning current labor; adding new labor
(family, employees, volunteers, interns); hiring out work to custom operators or consultants; or developing work trade arrange-
ments with neighbors or relatives.You might also consider reducing some of your labor needs through the use of additional
equipment and machinery or through new business arrangements.
Position/Task
(title)
Type of Position
(full time/part time,
temporary/permanent)
Skills/Experience Desired Acquisition Strategy
TASK
4
CONTINUED
208 BuilDiNg a SuStaiNaBle BuSiNeSS
Position/Tas
k
(Title)
Type of
Position
Part/full
time
Temp/
permane
nt
Skills/
Experien
ce
Desired
Acquisitio
n
Strategy
Herdsman Full time Experien
ce with
rotational
grazing
College,
rotational
grazing
schools
Offer part
ownership
in the
herd.
Field
Supervisor
Full Time Supervis
ory
experien
ce
Knowled
ge of
vegetabl
e
productio
n
Conferenc
es on
CSA’s,
Contact
other
growers,
Advertise
in trade
pub.
Worksheet
Position/Task
(title)
4.19Filling Workforce Needs
Type of Position
(full time/part time,
temporary/permanent)
Skills/Experience Desired Acquisition Strategy
CONTINUED
TASK
4
1. Describe training that may be required for new positions or new members of the workforce:
2. How will training be accomplished?
BuilDiNg a SuStaiNaBle BuSiNeSS 209
Describe training needed for new positions or
new members of the workforce.
Safety training for new employees
Rotational grazing schools
Gap training for a new positions in a CSA
Oklahoma Food and Technology Center
How will the training be accomplished?
Contact Oklahoma Food and Tech. Center for
GAP
Contact a local EMS or Vo-tech for Safety training
Attend conf., look in trade pub., talk to extension
about opportunities for grazing education
Worksheet
4.20Compensation
Research and record standard wage, salary and benefits for each new job or position. If you plan to create more than
four new positions, make copies of this Worksheet or use additional sheets of paper.
Position/Job
1
Position/Job
2
Position/Job
3
Position/Job
4
Average industry
wage/salary/fees
($/hour):
TASK
Typical industry benefits:
4
Tax rate:
210 BuilDiNg a SuStaiNaBle BuSiNeSS
Research and record standard wage, salary and
benefits for each new job or position.
Position/Job
1
Herdsman
Position/job
2
Field
Supervisor
Avg.
industry
wage/salar
y
($/hour)
Typical
Industry
Benefits
Vacation
Sick Leave
Tax Rate Income
taxes
Fica
Medicare/
Medicade
Workers
Comp.
Worksheet
4.21Human Resources Expense Estimates
Use the space below to estimate and record your human resources input expenses for all family members and hired
labor. Make these estimates as realistic as possible—use your research about industry standards and tax rates as well as
your own compensation goals.
Position/Job Position/Job Position/Job Position/Job
1 2 3 4
Job title/description
Name
Wages/salary/fees
($/hour)
Benefits
(health care,
retirement)
TASK
4
Taxes
Insurance (workers
compensation)
Other
Total labor
expenses
Total hours
worked
(a)
(b)
Total labor expenses/hour
(a) / (b)
BuilDiNg a SuStaiNaBle BuSiNeSS 211
Worksheet
4.22Management Strategy
Return to your skills assessment in Worksheet 2.7.Are you ready to manage the operation? If not, who will? As you answer
the following questions, try to be honest and realistic.Then, develop a strategy for whole farm business management.
1. Are you willing and ready to manage the operation and hired labor? If so, what skills do you bring to the
management position? Are you a good communicator?
2. Will you share management responsibilities? If so, how will you divide tasks? Will you develop a written
management agreement? What skills do other management team members bring to the business?
TASK
43. Can the business function without you? Who will manage the operation when you are gone or ill? Who is
your back-up?
4. How often will you check in with family and other members of your workforce?
5. Our management strategy can be summarized as follows:
212 BuilDiNg a SuStaiNaBle BuSiNeSS
Are you willing and ready to manage the operation
and hired labor? If so, what skills do you bring to
the management position? Are you a good
communicator?
I have management and supervisory experience
from xxx corp.
Part of my former job was to present detailed
reports to staff about ongoing projects.
Will you share management responsibilities? If so,
how will you divide tasks? Will you develop a
written management agreement? What skills do
other management team members bring to the
business?
I have a business partner with whom I will share
management responsibilities. Tasks are divided
based on areas of expertise. There will be a
written management plan outlining
responsibilities.
Can the business function without you? Who will
manage the operation when you are gone or ill?
Who is your back-up?
At this time (startup) no, but my goal is to develop
two employees as quickly as possible to manage
the business in my absence.
How often will you check in with family and other
members of your workforce?
Once a week meeting with management and
depending on the season, every other week for
non-management personnel
Our management strategy can be summarized as
follows
Worksheet
4.23Human Resources Strategy Summary
Complete this Worksheet for each major enterprise. Compile your research (from Worksheets 4.18–4.22) for each year in
your transition period (if appropriate) and for the long run or expected market outlook. Begin with a description of workload
requirements. Next, describe your labor and management strategy for meeting workload requirements. Use additional paper if
needed. Next, record your human resources expenses for this enterprise.You will use this expense information when evaluat-
ing the business’ projected financial performance. Finally, summarize your human resources strategies for this enterprise or the
whole farm. Be sure to include a SWOT (strengths, weaknesses, opportunities, threats) analysis for each strategy.This will be
the start of your human resources strategy section for the written business plan.
Enterprise:
Workload (hours/month)
Labor and Acquisition
Management
Expenses
Recruitment
Wages
Fees
Training
Education
Salary
Benefits
Taxes
Insurance
Other
Business Plan Input - Human Resources Strategy Summary:
Long Run
(Expected) Year 1
Transition Period
Year 2 Year 3
TASK
4
BuilDiNg a SuStaiNaBle BuSiNeSS 213
Enterprise
Livestock
CSA
Long Run
Expected
Year 1 Year2 Year 3
Workload
Hours/
Month
200
hrs/mont
h
240
hrs
month
220 hrs
month
210 hrs
month
Labor and
Acquisition
Have a
core
group of
full time
Trained
staff
Hire
neede
d
Worker
s and
train
Have two
backup
manage
ment
employe
es in
place
Manageme
nt
Set up
prelimi
nary
staff
chart
Modify as
needed
Expenses Ask bank
for
extension
Secure
3 year
operati
ng
loan
Make
payment
s
Make
payment
s
Summary
Human
Resources
Develop a team who mutually support
each other and the business. Keep staff
informed in a timely manner of changes.
Provide shares (meat share/CSA) in
addition to wages as benefit. Having
employees use the product will help
maintain good GAP practices.
Worksheet
4.24Risk Management
Complete this Worksheet for each enterprise or the whole farm as appropriate. Briefly rank your business’ exposure to
market, production, environmental and personal risk.Talk over risk management ideas with members of your planning team, a
financial consultant, or an accountant. List tools that you might use to reduce future risk.Then, summarize your strategy for
managing and minimizing your business’ risk exposure.
Enterprise:
Production Risk
Exposure to production risk:
Type of production risk:
Tools to minimize production risk:
_____Low _____Medium _____High
Market Risk
Exposure to market risk:
Type of market risk:
TASK
_____Low _____Medium _____High
4
Tools to minimize market risk:
Financial Risk
Exposure to financial risk:
Type of financial risk:
Tools to minimize financial risk:
_____Low _____Medium _____High
Personal Risk
Exposure to personal risk:
Type of personal risk:
Tools to minimize personal risk:
_____Low _____Medium _____High
Our risk management strategy can be summarized as follows:
214 BuilDiNg a SuStaiNaBle BuSiNeSS
Enterprise
Livestock/
CSA
Production
Risk
Low Medium
X
High
Types of
prod. Risk
Tools to
minimize
Weather, spray drift, conception
rates
Drip irrigate, Hedgerows+inform
neighbors, good nutrition program
Market
Risk
x
Storage coolers
Backup generators
Financial
Risk
X
Cash flow during the first three years
Make sure to borrow enough to
cover expenses and set up an
operating line of credit
Personal
Risk
x
Knowledgeable about business and
agri.
Seek opportunities to learn each
year. Budget for it.
Our Risk Good budgeting, educated
workforce, insurance, working
Worksheet
4.25Business Organization
Use the space below to record information about the organizational alternatives that you are considering for the business.
Your state’s Small Business Association is an excellent place to begin your research. If you are planning a major reorganization
of the business, be sure to consult a lawyer regarding necessary documentation and tax ramifications. Be sure to note
advantages and disadvantages of each alternative as it pertains to your current situation, business vision and personal goals.
Organizational Alternative 1
Ownership:
Tax rates:
Filing requirements:
Advantages:
Disadvantages:
Organizational Alternative 2
Ownership:
Tax rates:
Filing requirements:
TASK
4
Advantages:
Disadvantages:
Organizational Alternative 3
Ownership:
Tax rates:
Filing requirements:
Advantages:
Disadvantages:
BuilDiNg a SuStaiNaBle BuSiNeSS 215
Organization
al Alt. 1
Sole proprietorship
Ownership Family
Tax Rates Personnel
Filing
Requirement
s
Quarterly payroll taxes
Advantages Full Control
Disadvantag
es
Full liability, risk all assets personnel +
business
Worksheet
4.26Farmland Affordability
Use this Worksheet to estimate what price you can afford to pay for farmland.
Gross cash farm income
Cash expenses (excluding interest)
Income taxes
Principal payments on term debt
Depreciation reserve
Social security taxes
TASK
=
–
–
–
–
–
______________________
______________________
______________________
______________________
______________________
______________________
4
Total cash family living investments
& nonfarm capital purchases
Nonfarm income
–
+
______________________
______________________
Cash available for principal and
interest on added land debt
Down payment on land
Maximum financially feasible
land price
=
+
______________________
______________________
=______________________
This worksheet was adapted from Analyzing Land Investments, videotape, Gayle S. Willett, 1988.
216 BuilDiNg a SuStaiNaBle BuSiNeSS
Worksheet
4.27Finance
Use the space below to begin developing your financing strategy for any start-up, annual operating, and longer-term capital
and real estate needs associated with each major business strategy alternative (for marketing, operations, and human
resources). Begin by having each member of your planning team (if appropriate) evaluate the importance of the financing cri-
teria described in Figure 82 (control, cost, risk, liquidity). Next list money that will be needed to finance start-up, operating,
and long-term needs as well as one or more financing strategy for each. If any of your strategies include the use of external
financing, be sure to research and record interest rates and financing conditions in the space provided. Be sure to talk with
your local lender, accountant or Extension educator—they can help you locate and evaluate which finance strategy best fits
your personal criteria and business needs.
Strategy Criteria
Rank the importance of each of the following finance strategy criteria:
Control _____Low _____Medium _____High
Cost _____Low _____Medium _____High
Risk _____Low _____Medium _____High
Liquidity _____Low _____Medium _____High
Financing Needs
List money needed for each expense category.Then, briefly describe one or more financing strategies for each.
Value Strategy One StrategyTwo
One-time start-up needs$________________ _____________________________ _____________________________
Annual operating needs$________________ _____________________________ _____________________________
Intermediate needs (5-7 years) $________________ _____________________________ _____________________________
Long-term needs (7-10 years)$________________ _____________________________ _____________________________
Real estate needs $________________ _____________________________ _____________________________
Finance Options
If you plan to seek outside financing (including government cost-share payments), research interest rates and other financing
conditions (such as easement terms) from up to three sources for each financial need.
Need Source/Institution Interest Rate Conditions
Start-up
TASK
4
Operating
Intermediate
Long-term
Real estate
BuilDiNg a SuStaiNaBle BuSiNeSS 217
Strategy
Criteria
Low Medium High
Control x
Cost x
Risk x
Liquidity x
Financing
Needs
Value Strategy
One
Strategy
two
Start-up
Annual
Operating
Intermediat
e (5-7yrs)
Long Term
(7-10yrs)
Finance
Operations
Source Interest
Rate
Conditions
Start-up
Operating
Intermediat
e
Long-term
Real Estate
Worksheet
4.28Financial Strategy Summary
Complete this Worksheet for each enterprise or for the whole farm. Use information from Worksheets 4.24–4.26 to record
information about your strategies for risk management, organization and financing. If appropriate, describe how your strategies
will change throughout your transition period.Then, list available financial expense information. Last, summarize your financial
strategy for this enterprise and the whole farm. Be sure to include a SWOT (strengths, weaknesses, opportunities, threats)
analysis in your strategy summary.
Enterprise:
Risk exposure and
management
Long Run
(Expected) Year 1
Transition Period
Year 2 Year 3
Organization and taxes
Financing needs ($) and
strategy
TASK
4Financial Expenses
Consultant
Filing fees
Software
Membership fees/collateral
Interest on operating loan
Interest on intermediate debt
Interest on long-term debt
Insurance
Other
Business Plan Input–Financial Strategy Summary:
218 BuilDiNg a SuStaiNaBle BuSiNeSS
Worksheet
4.29Summarize a Whole Farm Strategic Plan of Action
Ask yourself if each of the marketing, operations, human resources, and finance strategy alternatives you’ve identified are com-
patible as a system. If you are considering more than one functional strategy (such as two marketing strategies or two finance
strategies), be sure to explore on paper how these different strategies will affect the business as a whole. How will they affect
other functional areas of the business? Rule out those strategies that are not compatible with one another or your business
vision as a whole.Then, use the space below to name one or more system-wide business strategies for your whole farm and
describe, in one to two paragraphs, how each strategy addresses your critical planning needs, vision, mission and goals.
Whole Farm Strategy Alternative # 1:
TASK
4
Whole Farm Strategy Alternative # 2:
BuilDiNg a SuStaiNaBle BuSiNeSS 219

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Building a Sustainable Business

  • 2. Worksheet 4.19Filling Workforce Needs Use the space below to flesh out new position titles and task descriptions for each new enterprise or existing enterprise that is short on labor. Next, if adding labor, describe the type of position that will be created—full-time or part-time, temporary or permanent, seasonal or year-round—as well as the skills desired for each position. Lastly, describe your strategy for addressing workforce gaps and acquiring and training labor. Workforce strategies may include: reassigning current labor; adding new labor (family, employees, volunteers, interns); hiring out work to custom operators or consultants; or developing work trade arrange- ments with neighbors or relatives.You might also consider reducing some of your labor needs through the use of additional equipment and machinery or through new business arrangements. Position/Task (title) Type of Position (full time/part time, temporary/permanent) Skills/Experience Desired Acquisition Strategy TASK 4 CONTINUED 208 BuilDiNg a SuStaiNaBle BuSiNeSS
  • 3. Position/Tas k (Title) Type of Position Part/full time Temp/ permane nt Skills/ Experien ce Desired Acquisitio n Strategy Herdsman Full time Experien ce with rotational grazing College, rotational grazing schools Offer part ownership in the herd. Field Supervisor Full Time Supervis ory experien ce Knowled ge of vegetabl e productio n Conferenc es on CSA’s, Contact other growers, Advertise in trade pub.
  • 4. Worksheet Position/Task (title) 4.19Filling Workforce Needs Type of Position (full time/part time, temporary/permanent) Skills/Experience Desired Acquisition Strategy CONTINUED TASK 4 1. Describe training that may be required for new positions or new members of the workforce: 2. How will training be accomplished? BuilDiNg a SuStaiNaBle BuSiNeSS 209
  • 5. Describe training needed for new positions or new members of the workforce. Safety training for new employees Rotational grazing schools Gap training for a new positions in a CSA Oklahoma Food and Technology Center How will the training be accomplished? Contact Oklahoma Food and Tech. Center for GAP Contact a local EMS or Vo-tech for Safety training Attend conf., look in trade pub., talk to extension about opportunities for grazing education
  • 6. Worksheet 4.20Compensation Research and record standard wage, salary and benefits for each new job or position. If you plan to create more than four new positions, make copies of this Worksheet or use additional sheets of paper. Position/Job 1 Position/Job 2 Position/Job 3 Position/Job 4 Average industry wage/salary/fees ($/hour): TASK Typical industry benefits: 4 Tax rate: 210 BuilDiNg a SuStaiNaBle BuSiNeSS
  • 7. Research and record standard wage, salary and benefits for each new job or position. Position/Job 1 Herdsman Position/job 2 Field Supervisor Avg. industry wage/salar y ($/hour) Typical Industry Benefits Vacation Sick Leave Tax Rate Income taxes Fica Medicare/ Medicade Workers Comp.
  • 8. Worksheet 4.21Human Resources Expense Estimates Use the space below to estimate and record your human resources input expenses for all family members and hired labor. Make these estimates as realistic as possible—use your research about industry standards and tax rates as well as your own compensation goals. Position/Job Position/Job Position/Job Position/Job 1 2 3 4 Job title/description Name Wages/salary/fees ($/hour) Benefits (health care, retirement) TASK 4 Taxes Insurance (workers compensation) Other Total labor expenses Total hours worked (a) (b) Total labor expenses/hour (a) / (b) BuilDiNg a SuStaiNaBle BuSiNeSS 211
  • 9. Worksheet 4.22Management Strategy Return to your skills assessment in Worksheet 2.7.Are you ready to manage the operation? If not, who will? As you answer the following questions, try to be honest and realistic.Then, develop a strategy for whole farm business management. 1. Are you willing and ready to manage the operation and hired labor? If so, what skills do you bring to the management position? Are you a good communicator? 2. Will you share management responsibilities? If so, how will you divide tasks? Will you develop a written management agreement? What skills do other management team members bring to the business? TASK 43. Can the business function without you? Who will manage the operation when you are gone or ill? Who is your back-up? 4. How often will you check in with family and other members of your workforce? 5. Our management strategy can be summarized as follows: 212 BuilDiNg a SuStaiNaBle BuSiNeSS
  • 10. Are you willing and ready to manage the operation and hired labor? If so, what skills do you bring to the management position? Are you a good communicator? I have management and supervisory experience from xxx corp. Part of my former job was to present detailed reports to staff about ongoing projects. Will you share management responsibilities? If so, how will you divide tasks? Will you develop a written management agreement? What skills do other management team members bring to the business? I have a business partner with whom I will share management responsibilities. Tasks are divided based on areas of expertise. There will be a written management plan outlining responsibilities. Can the business function without you? Who will manage the operation when you are gone or ill? Who is your back-up? At this time (startup) no, but my goal is to develop two employees as quickly as possible to manage the business in my absence. How often will you check in with family and other members of your workforce? Once a week meeting with management and depending on the season, every other week for non-management personnel Our management strategy can be summarized as follows
  • 11. Worksheet 4.23Human Resources Strategy Summary Complete this Worksheet for each major enterprise. Compile your research (from Worksheets 4.18–4.22) for each year in your transition period (if appropriate) and for the long run or expected market outlook. Begin with a description of workload requirements. Next, describe your labor and management strategy for meeting workload requirements. Use additional paper if needed. Next, record your human resources expenses for this enterprise.You will use this expense information when evaluat- ing the business’ projected financial performance. Finally, summarize your human resources strategies for this enterprise or the whole farm. Be sure to include a SWOT (strengths, weaknesses, opportunities, threats) analysis for each strategy.This will be the start of your human resources strategy section for the written business plan. Enterprise: Workload (hours/month) Labor and Acquisition Management Expenses Recruitment Wages Fees Training Education Salary Benefits Taxes Insurance Other Business Plan Input - Human Resources Strategy Summary: Long Run (Expected) Year 1 Transition Period Year 2 Year 3 TASK 4 BuilDiNg a SuStaiNaBle BuSiNeSS 213
  • 12. Enterprise Livestock CSA Long Run Expected Year 1 Year2 Year 3 Workload Hours/ Month 200 hrs/mont h 240 hrs month 220 hrs month 210 hrs month Labor and Acquisition Have a core group of full time Trained staff Hire neede d Worker s and train Have two backup manage ment employe es in place Manageme nt Set up prelimi nary staff chart Modify as needed Expenses Ask bank for extension Secure 3 year operati ng loan Make payment s Make payment s Summary Human Resources Develop a team who mutually support each other and the business. Keep staff informed in a timely manner of changes. Provide shares (meat share/CSA) in addition to wages as benefit. Having employees use the product will help maintain good GAP practices.
  • 13. Worksheet 4.24Risk Management Complete this Worksheet for each enterprise or the whole farm as appropriate. Briefly rank your business’ exposure to market, production, environmental and personal risk.Talk over risk management ideas with members of your planning team, a financial consultant, or an accountant. List tools that you might use to reduce future risk.Then, summarize your strategy for managing and minimizing your business’ risk exposure. Enterprise: Production Risk Exposure to production risk: Type of production risk: Tools to minimize production risk: _____Low _____Medium _____High Market Risk Exposure to market risk: Type of market risk: TASK _____Low _____Medium _____High 4 Tools to minimize market risk: Financial Risk Exposure to financial risk: Type of financial risk: Tools to minimize financial risk: _____Low _____Medium _____High Personal Risk Exposure to personal risk: Type of personal risk: Tools to minimize personal risk: _____Low _____Medium _____High Our risk management strategy can be summarized as follows: 214 BuilDiNg a SuStaiNaBle BuSiNeSS
  • 14. Enterprise Livestock/ CSA Production Risk Low Medium X High Types of prod. Risk Tools to minimize Weather, spray drift, conception rates Drip irrigate, Hedgerows+inform neighbors, good nutrition program Market Risk x Storage coolers Backup generators Financial Risk X Cash flow during the first three years Make sure to borrow enough to cover expenses and set up an operating line of credit Personal Risk x Knowledgeable about business and agri. Seek opportunities to learn each year. Budget for it. Our Risk Good budgeting, educated workforce, insurance, working
  • 15. Worksheet 4.25Business Organization Use the space below to record information about the organizational alternatives that you are considering for the business. Your state’s Small Business Association is an excellent place to begin your research. If you are planning a major reorganization of the business, be sure to consult a lawyer regarding necessary documentation and tax ramifications. Be sure to note advantages and disadvantages of each alternative as it pertains to your current situation, business vision and personal goals. Organizational Alternative 1 Ownership: Tax rates: Filing requirements: Advantages: Disadvantages: Organizational Alternative 2 Ownership: Tax rates: Filing requirements: TASK 4 Advantages: Disadvantages: Organizational Alternative 3 Ownership: Tax rates: Filing requirements: Advantages: Disadvantages: BuilDiNg a SuStaiNaBle BuSiNeSS 215
  • 16. Organization al Alt. 1 Sole proprietorship Ownership Family Tax Rates Personnel Filing Requirement s Quarterly payroll taxes Advantages Full Control Disadvantag es Full liability, risk all assets personnel + business
  • 17. Worksheet 4.26Farmland Affordability Use this Worksheet to estimate what price you can afford to pay for farmland. Gross cash farm income Cash expenses (excluding interest) Income taxes Principal payments on term debt Depreciation reserve Social security taxes TASK = – – – – – ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ 4 Total cash family living investments & nonfarm capital purchases Nonfarm income – + ______________________ ______________________ Cash available for principal and interest on added land debt Down payment on land Maximum financially feasible land price = + ______________________ ______________________ =______________________ This worksheet was adapted from Analyzing Land Investments, videotape, Gayle S. Willett, 1988. 216 BuilDiNg a SuStaiNaBle BuSiNeSS
  • 18. Worksheet 4.27Finance Use the space below to begin developing your financing strategy for any start-up, annual operating, and longer-term capital and real estate needs associated with each major business strategy alternative (for marketing, operations, and human resources). Begin by having each member of your planning team (if appropriate) evaluate the importance of the financing cri- teria described in Figure 82 (control, cost, risk, liquidity). Next list money that will be needed to finance start-up, operating, and long-term needs as well as one or more financing strategy for each. If any of your strategies include the use of external financing, be sure to research and record interest rates and financing conditions in the space provided. Be sure to talk with your local lender, accountant or Extension educator—they can help you locate and evaluate which finance strategy best fits your personal criteria and business needs. Strategy Criteria Rank the importance of each of the following finance strategy criteria: Control _____Low _____Medium _____High Cost _____Low _____Medium _____High Risk _____Low _____Medium _____High Liquidity _____Low _____Medium _____High Financing Needs List money needed for each expense category.Then, briefly describe one or more financing strategies for each. Value Strategy One StrategyTwo One-time start-up needs$________________ _____________________________ _____________________________ Annual operating needs$________________ _____________________________ _____________________________ Intermediate needs (5-7 years) $________________ _____________________________ _____________________________ Long-term needs (7-10 years)$________________ _____________________________ _____________________________ Real estate needs $________________ _____________________________ _____________________________ Finance Options If you plan to seek outside financing (including government cost-share payments), research interest rates and other financing conditions (such as easement terms) from up to three sources for each financial need. Need Source/Institution Interest Rate Conditions Start-up TASK 4 Operating Intermediate Long-term Real estate BuilDiNg a SuStaiNaBle BuSiNeSS 217
  • 19. Strategy Criteria Low Medium High Control x Cost x Risk x Liquidity x Financing Needs Value Strategy One Strategy two Start-up Annual Operating Intermediat e (5-7yrs) Long Term (7-10yrs) Finance Operations Source Interest Rate Conditions Start-up Operating Intermediat e Long-term Real Estate
  • 20. Worksheet 4.28Financial Strategy Summary Complete this Worksheet for each enterprise or for the whole farm. Use information from Worksheets 4.24–4.26 to record information about your strategies for risk management, organization and financing. If appropriate, describe how your strategies will change throughout your transition period.Then, list available financial expense information. Last, summarize your financial strategy for this enterprise and the whole farm. Be sure to include a SWOT (strengths, weaknesses, opportunities, threats) analysis in your strategy summary. Enterprise: Risk exposure and management Long Run (Expected) Year 1 Transition Period Year 2 Year 3 Organization and taxes Financing needs ($) and strategy TASK 4Financial Expenses Consultant Filing fees Software Membership fees/collateral Interest on operating loan Interest on intermediate debt Interest on long-term debt Insurance Other Business Plan Input–Financial Strategy Summary: 218 BuilDiNg a SuStaiNaBle BuSiNeSS
  • 21. Worksheet 4.29Summarize a Whole Farm Strategic Plan of Action Ask yourself if each of the marketing, operations, human resources, and finance strategy alternatives you’ve identified are com- patible as a system. If you are considering more than one functional strategy (such as two marketing strategies or two finance strategies), be sure to explore on paper how these different strategies will affect the business as a whole. How will they affect other functional areas of the business? Rule out those strategies that are not compatible with one another or your business vision as a whole.Then, use the space below to name one or more system-wide business strategies for your whole farm and describe, in one to two paragraphs, how each strategy addresses your critical planning needs, vision, mission and goals. Whole Farm Strategy Alternative # 1: TASK 4 Whole Farm Strategy Alternative # 2: BuilDiNg a SuStaiNaBle BuSiNeSS 219