Farm and Business Management (FBM) is a practice that involves coordinating all aspects your agricultural operation to maximize your income and profit potential. This process requires a wide range skills and knowledge including planning and management, economics analysis and marketing.
The following are key practices for the management of country farms and businesses:
Marketing – the sale of goods or services to consumers. Financing – loans that finance your operations. Risk management – making sure your operation is protected from disasters.
Financial – Creating pro-forma and real enterprise budgets that help forecast incomes and expenses. Calculating ratios.
Write down your plan for achieving your goals. This will enable you to identify your weaknesses and think through all the functions that are involved in your company.
You will also need to check if the land you own is zoned for production, or if there are any zoning regulations which limit the type production you can do. Check with the township or county to determine if there is any restriction and how it might affect your plan.
You will also require adequate public facilities such as parking, signage and customer service. These will need to be available to customers and visitors of your farm/ranch. They must also be maintained according to zoning and more food safety laws.
Your business will ultimately need to be self sufficient and a reliable source of income. This means earning enough money to cover your daily expenses and save up for the future.
