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Farm Business Description

The first step in every business is to develop a description of your business. A good business description provides the purpose of the business and covers all aspects of the business, such as the name, location, and history. The description must include the general idea of the business, the mission, vision, and goals of the business, a summary of past performance for an existing business or a start-up plan for a new one, and the organizational type of the business. This should be easy to understand a measurable. When describing your farm business, you should include the following:

• 1. Name of the Business

  A good name for any company should be easy to remember and, most importantly, it tells the client something about your business. For example, for a farm that sells eggs, a good name could be Happy Hen Egg Farms. This title is easy to remember, provides a statement about the health of the chicken (stating that they are happy and clients can associate this with healthy chickens), and provides information about the agricultural commodity in production by mentioning eggs.

• 2. Logo and Brand

  A logo is a unique symbol utilized by a business to help it get identified by its clients. Not all businesses have a logo. On the other hand, having a logo can create an identity/brand for your farm and distinguish it from other similar businesses. A logo must be easy to understand, recognizable, and relevant to your business. It is important to trademark any logo created for your business to prevent anybody else from using it.

• 3. Location and Contact Information

  Providing contact information to your clients can help them locate your business and provide a way for them to reach you. This will include the address of your business, a phone number, email, and website, including social media. Your location can also help you determine what may be your possible local clients may be and what trends local customers may have that could improve your business.

• 4. Mission Statement

  A mission statement defines the type, necessities, market, and public image of a company.

  • A mission statement must answer the following question: What is the purpose of the business?
  • An example of a mission statement could be the following: A farm establishment dedicated to raising laying hens to sell locally grown eggs.
• 5. Vision Statement

  A vision statement defines and describes the future situation of the business. The purpose of the vision is to guide the members of the business to reach a desired status.

  • The vision statement helps to answer the following question: What do we expect of the business in the next few years?
  • An Example of a mission statement could be the following: Be the number one local egg seller in the market.
• 6. Objectives

  The objectives should determine the success of the company and the strategies that will be used to achieve such success. They must be specific, measurable, realistic, and relevant to the vision.

  A good example of a business goal could be the following: Gain 5% of the local egg market within a year, and after 2 years, obtain 10%.

• 7. SWOT Analysis

  A SWOT analysis is a tool that can help you identify the strengths, weaknesses, opportunities, and threats of your business.

  • Strengths are aspects of your business that are well-established and provide an advantage over your competitors.
  • Weaknesses are aspects of your business that may be lacking and may limit its potential.
  • Opportunities are aspects that the business can take advantage of and grow.
  • Threats are aspects of the business that are out of our control that could affect it negatively.

  It is recommended to create a SWOT analysis for any new or existing business and update it regularly.

  An example of a SWOT Analysis could be the following:

  

• 8. Legal Organization Type

  The legal organization of a business is a classification that defines how a business can operate in terms of the law. Depending on the type of organization, some aspects of the business will vary, such as:

  • How many taxes will be paid by the business?
  • What liabilities and risk exposure does the business have?
  • How much recordkeeping should the business have?
  • What forms need to be submitted to local, state, and federal agencies?

  The type of organization a business owner chooses will depend on the capital, goals, and the type of business. The following are the most common business structures:

  Proprietorship – A person who has the legal capacity for the business. This owner will have full responsibility for the business and will not have to share any profits. This type of organization is less regulated than corporations, but it is more difficult to find capital.

  Partnership – A contract in which 2 or more people agree to provide capital, goods, structures, or any other relevant assets to the business. They will share responsibilities and profits from the business.

  Corporation – A group of enterprises or partnerships that independently execute various jobs or services, that share responsibilities and gain profits as one entity. This type of organization is more regulated than proprietorships and may pay more taxes, but they have more access to capital, assets are easier to transfer, and they have continuity.

For more information about Small Business Start-UPS, click on the following “Ask IFAS” publication:

Frequently Asked Questions for Small Business Start-Ups