this ppt is is more help to Agri-Business management student

1. Agribusiness venture
and
preparing a business plan
Sathyendra Kumar. A.D.
1st M.B.A.(Agri-Business)
Institute of development studies.
University of Mysore..

2. Content
 Introduction
 Venture
 Agri-business venture
 Agribusiness ventures: How to start right
 What is business plan
 Why Business Plan Essentials
 Benefits of having a business plan
 Disadvantages of Business Plan
 SWOT ANALYSIS
 Step-by-step approach in drafting a agribusiness plan
 Things to be considered when embarking on a livestock business
 Things to be considered when embarking on horticulture or
agronomic business.
 Things to be considered when embarking on a livestock business
 Where do I get the information to prepare my business
plan?
 Business Overview
 Marketing Plan
 Human Resources Plan
 Production Plan
 Financial Plan
 Reasons for business failures
 Reference

3. Introduction
Future outcomes are a function of today’s decisions.
A business plan is a formal statement of a set of business
goals, the reasons they are believed attainable, and the plan
for reaching those goals.
Business plans may also target changes in perception and
branding by the customer, client, taxpayer, or larger
community.
Business plans may be internally or externally focused.
 In agricultural businesses, planning may be even more vital because
of the inherent uncertainty associated with agriculture Production.

4. venture
 an undertaking involving uncertainty as to the outcome,
especially a risky or dangerous one: a mountain-
climbing venture.
 a business enterprise or speculation in which something
is risked in the hope of profit; a commercial or other
specula.
 the money, ship, cargo, merchandise, or the like, on
which risk is taken in a business enterprise or
speculation.
 Obsolete . hazard or risk.

5. Agri-business venture
 It is a one of agri-business activity or
starting the one of the agri related
business in the risky manner and ensures
the profit.
Ex: bee-keeping, poultry forming, preparing
vermicompost and sell it etc,….

6. Agribusiness ventures: How
to start right
 Start your business before you retire.
 Practice integrated farming system.
 Consider your environment.
 Get product knowledge.
 Interest.
 Know your market or create your market.
 Budget money for publicity.
 Create multiple streams of income.
 Make friends with professionals.
 Envisage business downturns or challenges.

7. Business Plans…
….Need to be employed by
anyone who is in business
…Set a strategy for future
growth and can be used to
attract investors and loans

8. What is business plan
A business plan is any plan that works for a business to
look ahead, allocate resources, focus on key points,
and prepare for problems and opportunities.
A business plan is a document/plan of how a business
owner, manager or entrepreneur intends to organise an
entrepreneurial endeavour and implement activities
necessary and sufficient for the venture to succeed.
It is an essential tool for planning, direction and
running a business. It clarifies the operational and
financial objectives of a business and contains the
detailed plans and budgets showing how the objectives
are to be realised.

9. Why Business Plan
Essentials:
 Getting an integrated view of your business.
 Informing partners.
 Determining financial needs and applying for funds.
 Approval from board of directors/shareholders.
 Recruiting.
 Deriving objectives for employees.
 Informing employees.
 Informing lenders.
 Mutual understanding within the management team.

10. Benefits of having a
business plan.
 Helping you to clarify your vision and deciding whether or
not to forge ahead with the idea.
 Determining if your product and/or service has a sufficient
market to support it and whether or not it will be
profitable.
 Providing an estimate of your start-up costs and how much
you'll need to invest or finance.
 Convincing investors and lenders to fund your business.
 Defining your target market (who your customers are or
will be) and how to best reach them through strategic
marketing actions or expanding market coverage or reach.
 Setting a value on a business for sale or for legal purposes.
 Defining corporate objectives and programs to achieve
those objectives.

11. Disadvantages of Business
Plan.
 Not Involving the Right People.
 Spending Too Much Time on Non-Essentials.
 Lack of Accountability and Poor Implementation.
 It can be a costly process because you will need the
assistance of your accountant or financial adviser.
 In order to obtain capital to fund the business, a
lengthy detailed business plan must be put together.
 All of the details of starting the business, including
licenses, marketing, naming the business, finding
product sources, etc. are the responsibility of the
owner.

12. SWOT ANALYSIS
 Strengths are attributes of a person or of your business that can
contribute in you achieving your objectives.
 Weaknesses are attributes of a person or of your business that can lead
to you not achieving your objectives.
 Opportunities are external conditions that will contribute to your
achievement of your objectives.
 Threats are external conditions that can lead to not achieving your
objectives.
 Strengths and Weaknesses are factors internal to your business and
 Opportunities and Threats are factors, outside or externally, of your
business.

13. Step-by-step approach in drafting a
agri-business plan
1. Secure the identified land – proof of ownership or lease agreement.
2. Get a farm map or geographical map of the farm that includes farm
boundaries and or watering points.
3. Identify potential markets and requirements for entrance into the
market.
4. Identify resources available for utilisation to develop potential
commodity.
5. Take into consideration your ability, knowledge and access to
support before deciding on the commodity to be farmed with.
6. Calculate viability and economic feasibility on potential commodity
and possible opportunities for value adding.
7. If favourable, go forward, and if not, repeat steps 3 – 6
8. Source information on the different forms of businesses.
9. Decide on what business form will be the best for the situation.
10. If the business form needs to be registered proceed with the
process.

14. Things to be considered when
embarking on horticulture or
agronomic business.
 Soil and water need to be analysed for quality, and
determine the strength of the water source for quantity.
 Consider all risks.
 Source information on the weather conditions for the area.
 Source information on the chemicals and fertilisers that
would be required for the specific commodity to be
produced.
 Identify potential strategic partners like suppliers and
potential mentors.
 Identify rotational crops, if any.
 Formulate a crop production plan/crop rotation plan.

15. Things to be considered when
embarking on a livestock business
 Consider all risks.
 Source information on all regulations, especially if
the business is close to a town.
 Do a veld assessment/natural resource assessment.
 Seek technical advice on the number of animals that
can be placed on the available land for grazing.
 Do a fodder flow and establish the gaps, and identify
possible gap fillers.
 Establish the optimal production system that would
best suite a marketing strategy.
 Once relevant information is obtained, then you can
start drafting the business plan.

16. Where do I get the information to
prepare my business
plan?
 Interviews With Other Producers.
 Extension Specialists.
 Personal Work Experience.
 Industry Consultants.
 Library Research.
 Trade Suppliers.
 Trade Magazines and Journals.
 Demographic Studies.
 Industry Associations.
 Newspaper Articles, etc.

17. Business Overview
 Title Page.
 Table of Contents.
 Business Profile and Summary.
 Business Organization:
• Proprietorship.
• Partnership.
• Limited Company.
• Co-operative.

18. Marketing Plan
Preparing a Marketing Plan:
 Where are we now? Where do we want to go? How do we get there?
 What Products or Services do you Intend to Sell?
 Who are Your Existing and Potential Customers and What are Their
Profiles?
 Who is Your Competition and What are They up to?
 How will new Technology Affect Your Future Business Operations?

19. Continue…….,
 How will Changes in Legislation and Other Circumstances Beyond Your
Control Affect Your Future Business Operations?
 How will you Advertise Your Products and get the Message to Your
Customers?
 How will you Monitor the Results of Your Marketing Plan?
 Set Your Marketing and Business Goals. Be Specific as to Achievable
Time Frames.
 Define the Problems and Opportunities Facing Your Business.
 List the Actions you will Take to Achieve Your Goals and the Expected
results?

20. Human Resources Plan
1. Organizational Chart.
2. Labour Requirements.
3. Job Descriptions.
4. Training.
5. Compensation and Benefits.
6. Labour Management and Control.
7. Employer Responsibility.

21. Production Plan
What resources do you need to produce your products?
 Land ▸ Buildings ▸ Equipment.
 Materials ▸ Supplies.
 Site Layout ▸ Construction Plans ▸ Timetables.
 Production Process.
 Construction Schedules.
 Environmental Assessment.
 Zoning ▸ Political Influences ▸ Regulations.
 Transportation.

22. Financial Plan
1) Overhead and Cropping Budget.
2) Income Statement.
3) Projected Balance Sheet and Net Worth Statement.
4) Capital Purchases.
5) Loan Summary.
6) Projected Cash Flow Summary (Next 3 Years).
7) Financial Performance and Risk Assessment.
8) Long Range Plan (next 5, 10 or more years).

23. Reasons for business failures
1.Management reasons:
 A poor management team with insufficient experience and/or the wrong
skills mix for the needs of the business.
 A narrow customer base and inadequate marketing skills.
 Inadequate marketing planning.
 Under or overpricing products and/or services offered by the business.
 Overtrading and running short of working capital.
 Poor product and service quality.
 Owner/managers who are autocratic, inflexible and make strategic
decisions based on emotion.
 A weak business concept, in that the product/market mix is not clearly
defined and developed.
 A failure to identify and manage risks.

24. Continue…….,
2.Financial factors:
 Businesses without proper record/account of the financial transaction
of the business.
 Insufficient information on financial performance required for basic
decision making.
 Financial information based on incomplete or inferior technologies.
 Insufficient supporting evidence on financial track record to obtain
additional funds/loans.
 Poor management of accounts payable and receivable.
 Poor forecasting and management of sales and cash flow.
 Insufficient working capital to fund its operations.
 The business has borrowed too much money in relation to the owner’s
investment in the business (high debt/equity ratio).

25. Continue…….,
3.Other factors:
 No access to loan finance.
 No access to developed markets.
 No access to managerial support.
 No access to capacity development programmes.
 Weather conditions.

26. Conclusions
 Every agribusiness venture is included there own rick so you have choose
good venture and start.
 Before you can prepare a agribusiness plan you consult knowledgeable
person.
 Systematic approach to problem solving can be of great benefit.
 Steps are similar to the seven steps of the scientific method.
 Recognize the problem.
 Determine your alternatives.
 Gather information.
 Evaluate the alternatives.
 Select a workable solution.
 Carry out your solutions.
 Evaluate your results.

27. Reference….
 www.tutor2u.net
 www.retai.about.com
 Preparing an agribusiness plan pdf
 Business plan guidelines pdf
 Agribusiness plan pdf

28. Presented to : Dr. H. M. Chandrashekar
Assistant Professor in Agri-Business
Management
Institute Of Development Studies.
Agri-Business
venture and
preparing business
plan.