Farm & Workforce Development
Business Planning
Business Plan
Business planning is essential for the success of farms, serving as a roadmap for growth and sustainability. It enables farmers to clearly define their goals, assess market opportunities, allocate resources efficiently, and manage risks. A well-structured business plan allows farmers to make informed decisions, adapt to evolving market conditions, and maximize profitability.
Business planning plays a crucial role in communicating a farm’s vision to stakeholders, securing financing, and tracking progress over time. With a solid plan in place, farms can operate more efficiently, sustainably, and competitively in today’s dynamic agricultural environment.
A business plan is a detailed document that outlines a business’s objectives and the strategies to achieve them. It serves as a roadmap for both financial and operational matters and is intended for both internal and external audiences. Not only does it guide decision-making within the farming operation, but it’s also essential for securing funding from financial institutions, grants, and government programs.
Although it is especially beneficial for new businesses, every farm should have a business plan. Ideally, the plan is reviewed and updated periodically to reflect evolving goals and progress. In some cases, an established business may create a new business pan when deciding to shift direction to explore new opportunities.
Check out the resources listed on the left to help you navigate the processes of developing a business plan, marketing your products, and managing your finances.
Resources to Help You Get Started
These resources are designed to support farmers at every stage of their business planning journey, from launching a new farm to navigating complex decisions about growth, legal structure, and financial strategy.
ThinkFARM offers valuable information and resources for new farmers in Nova Scotia. This tool helps you define your goals, create a detailed business plan, and provide practical steps to start your farming operation. It’s an excellent starting point for those new to farming or in the process of refining their business plan.
New Farm Launch Plan – updated link
Developed by Farm Management Canada, this online resource provides five comprehensive modules that guide you through the process of launching a new far business or navigating a farm business transfer. You can choose to create a login to track your progress or proceed without a login if you just need quick access. This tool is particularly useful for farmers who are new to the industry or are considering succession planning.
Farm Credit Canada offers a wealth of resources to guide you through every stage of business planning. From financial strategies to operational insights, this collection of resources helps farmers create solid plans that are designed to ensure long-term success, whether you’re just starting out of explaining your existing farm business. Check out their free business plan bundle, designed specifically for agriculture, to help make writing your business plan easier.
Before you can register your business in Nova Scotia, you must select the appropriate legal structure. This resource explains the different options available and how to register your business with the Registry of Joint Stock Companies. Understanding your legal options is crucial for managing risk, taxes, and liability, so this resource helps ensure you’re set up for success from the start.
This online tool provides step-by-step guidance for starting or growing a business in Nova Scotia. It’s a great resource for farmers who need a structured approach to planning, offering templates and tips that help streamline the process of developing a solid business plan. Whether you’re just beginning or looking to scale, this tool supports farmers at any stage of the planning process.
Marketing
Marketing is a critical tool for success in the agriculture industry. It’s not just about selling products; it’s about creating and maintaining demand, relevance, and reputation in a competitive market. How you market your farm or food business influences customer engagement, your brand’s identity, and ultimately, the growth of your operation.
A well-developed marketing strategy can:
- Engage Customers and Build Relationships: Effective marketing helps create a connection with your target audience. By building trust and loyalty through regular communication, you not only attract customers but keep them coming back, turning first-time buyers into repeat customers.
- Build and Maintain Your Reputation: A strong marketing presence keeps your business top of mind and establishes your reputation as a reliable, quality producer. Whether through positive customer reviews, social media engagement, or community involvement, your marketing efforts can enhance how others perceive your farm.
- Communicate the Value of Your Products: Marketing is how you communicate the story behind your farm, the value of your products, and why your offerings stand out in the marketplace. Clear, compelling messaging is essential to ensuring that customers understand the unique benefits of what you’re offering.
In an increasingly digital world, social media has become one of the most powerful tools for farmers to connect with their audience. The SkillsPass Marketplace offers online courses in social media for business, helping you learn how to use these platforms to your advantage. As a member, you can take these courses for free at your own pace – allowing you to strengthen your online presence and marketing skills.
The NSFA also provides valuable resources to help farmers tell their story on social media. Their three-part series, “Using Social Media to Tell Your Story,” is available on the NSFA YouTube channel, providing practical advice on using social media to enhance customer engagement and brand awareness.
For those interested in direct marketing, Farmers’ Markets of Nova Scotia offers resources, training, and guidance to help you connect directly with consumers. This training focuses on effectively reaching market-goers and optimizing your sales at farmers’ markets.
In addition, Perennia offers a wealth of online video resources in their “Take Your Product to Market” webinar series, which covers everything from marketing basics to discussions on retail trends with major retailers like Walmart, Sobeys, and Loblaws. These webinars are available on their YouTube channel and provide valuable insights on how to expand your reach in the retail space.
The NSFA Public Trust Program also offers resources to help farmers improve their social media presence. With information on different social media platforms, key messaging, and tips for increasing your reach, these resources are designed to help you enhance your visibility online. If you prefer print materials, you can contact the NSFA office to request copies.
Marketing isn’t just a one-time effort; it’s an ongoing process that helps keep your business relevant and competitive. These resources are designed to support farmers in improving their marketing strategies and expanding their reach. From social media to direct marketing, there are tools and training available to help you grow your farm’s visibility and customer base.
Financial Planning
Financial planning is essential for farms to ensure long-term viability and sustainability. It provides farmers with the tools to make informed decisions, optimize cash flow, and strategically allocate resources for maximum growth. Without a solid financial plan, farms are left vulnerable to market fluctuations, unexpected costs, and missed opportunities.
Here’s why financial planning is so important for farms:
- Cash Flow Management: Understanding cash flow helps farmers track their income and expenses, ensuring they have the necessary funds to meet day-to-day operational needs and invest in future growth. By forecasting future financial needs, farmers can avoid cash shortages and plan for seasonal variations in revenue.
- Effective Budgeting: A clear budget allows farmers to allocate resources to the most critical areas of their operations, whether it’s investing in new equipment, expanding infrastructure, or covering labor costs. A well-planned budget helps farmers avoid overspending and maintain financial discipline.
- Strategic Investment Decisions: Financial planning gives farmers the ability to evaluate potential investments carefully. Whether it’s upgrading technology, expanding acreage, or diversifying production, having a comprehensive financial plan helps farmers make smart, well-timed investments that will yield long-term benefits.
- Anticipating Financial Challenges: By forecasting income and expenses, farmers can anticipate financial difficulties before they arise. For example, if market prices for a product are expected to decrease, a solid financial plan can help farmers prepare by adjusting expenses or diversifying income sources.
- Securing Financing and Managing Debt: Financial planning is crucial when seeking financing or managing existing debt. A clear and accurate financial plan demonstrates to lenders and investors that the farm is well-managed and capable of repaying loans, making it easier to access capital when needed.
- Building Resilience Against Market Fluctuations: The agricultural market is inherently volatile, with prices subject to weather conditions, trade agreements, and consumer demand. Financial planning helps farms build resilience against these fluctuations by ensuring they have emergency funds and contingency plans in place.
The Farm Financials Toolkit from Farm Management Canada is a valuable resource that helps farmers organize their financial data into standardized categories. This tool is designed for farm accountants and farmers with intermediate to advanced accounting skills. By using the Toolkit, farmers can calculate financial ratios, which provide performance benchmarks and help identify areas of improvement. This aligns with international accounting standards and ensures accurate, actionable financial insights.
Additionally, Farm Credit Canada provides Market Prices and Information, a service that offers up-to-date market prices in U.S. dollars (except for Canola, which is shown in CAD). Understanding current market trends and prices is vital for making informed decisions about when to sell products, how to price them competitively, and which markets to target.
Incorporating these resources into your financial planning process can help you streamline your farm’s financial management, optimize profitability, and reduce risks. With the right financial tools, farmers can position their business for long-term success, ensuring it remains resilient in the face of economic challenges.