How to Write an Urban Farm Business Plan

Your urban farm may be only plants, or plants and animals.

Urban farming was a typical activity in early America. Women grew many of the fruits, vegetables and herbs and tended the small animals their families needed. They sold or traded the excess to earn a profit from their labor. As cities passed ordinances restricting the types of activities and businesses people could run from their homes, urban farming for profit nearly died out. Since it is a business with the intention of earning a profit, you can increase your chance of success by writing an urban farm business plan.

Difficulty:

Moderately Challenging

Instructions

1. Write a mission statement. It describes the name and purpose of your business. For example, if you plan to grow plants and flowers for sale, state why you are growing them. You may plan to sell wholesale to local gift shops and street vendors, or perhaps will grow rare heirlooms for specialty gardeners or the seed companies.

2. State your goals, separated into short-term and long-term. A short-term goal is something your company will accomplish in less than one year. Everything else is a long-term goal. Goals include the quantity of product you intend to produce and the associated steps or method for attaining that quantity. Marketing and advertising, along with the legal issues of starting and running a business, are goals included in this part of your business plan. Finally, mention the amount of profit that you expect to attain from your urban farm, along with the math to support your numbers.

3. List the address where the urban farm will be located, the business start date, business structure (i.e. sole proprietorship or LLC), management and/or principal stockholder names and other pertinent information a prospective loan officer would want to know, such as which external professionals will advise your business for legal or accounting matters. Additionally, list any zoning or other variances your urban farm needs. This may include a traffic-impact study if you plan to sell directly to the public from your property, such as running a u-pick in the middle of downtown.

4. Address personnel issues, including how many employees you will hire, whether they are family members (different labor laws apply in some states), the cost of salaries and benefits as well as your workplace policies.

5. Develop a financial estimate that includes your costs, selling prices, potential customers and an accurate assessment of your competitors. Determine your competitors' strengths and weaknesses so you can develop an effective business strategy. Your financial estimate should also include specifics on your suppliers. State who is putting money into the company, repayment terms and whether the urban farm needs to borrow money from outside sources, such as a bank or credit union, to start operations. Calculate the financial projections for your company's short-term and long-term goals.

Tips & Warnings

• Consumer research is one of the most important parts of a successful business plan. Who are your customers?

References

• Kansas State University Extension: Building a Business Plan for Your Farm: Important First Steps; Rodney Jones; August 2003
• Minnesota Institute for Sustainable Agriculture; Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses; Gigi DiGiacomo, et al.; 2003
• University of Maryland Extension: Farm Business Planning