Business plan
- Thread starter Ben04
- Start date
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cow pollinater
Well-known member
It would be so highly localized and specific to your management style I doubt anyone could give you an acurate answer. You kind of have to jump in and keep your pencil sharp and make sure new opertunities pencil out before you do it. :lol:
Every spreadsheet that I've seen looked so different from mine that there was no use comparing them.
Every spreadsheet that I've seen looked so different from mine that there was no use comparing them.
backhoeboogie
Well-known member
Mine is pretty simple. Limit costs below $20K a year for fertilizer, meds, supplements, fence repairs, equipment repairs, fuel, - everything.
Secondly is to sell 100 calves a year. Drought cut the herd so I am not selling 100 calves a year.
Hence, I am failing my plan.
Edit: Have you ever known someone to have a dire need but no capital? I remember my grandaddy telling me back in the days before anti-freeze that they simply drained the water out of everything. They had to remember to put it back in beforer they cranked up. It seems some people manage to get things done without spending a bundle of money. I strive to be one of those people and usually come up a little short. You can be penny wise and dollar foolish or else you can just be a fool too.
Secondly is to sell 100 calves a year. Drought cut the herd so I am not selling 100 calves a year.
Hence, I am failing my plan.
Edit: Have you ever known someone to have a dire need but no capital? I remember my grandaddy telling me back in the days before anti-freeze that they simply drained the water out of everything. They had to remember to put it back in beforer they cranked up. It seems some people manage to get things done without spending a bundle of money. I strive to be one of those people and usually come up a little short. You can be penny wise and dollar foolish or else you can just be a fool too.
Caustic Burno
Well-known member
Ben04":tt7syf0c said:
The best thing to do is find a mentor in your area and learn.
Every region is different in cost and you will have to tweak whatever you learn to your management strategy.
SRBeef
Well-known member
Ben, I commend you for trying to come up with a business plan. Basically you should start on the sales end: what is your saleable end product? How many are you going to sell to whom when and at what price. It may take some time to get to your target herd size... herd size is also dependent on your land and other resources available. This process will give you a gross income figure to work with.
Then go to the expense side - how are you going to raise your end product, what facility and other initial investments are required to get to your target herd size, how long can you amortize them.... What are your annual production costs likely to be once at your target herd size...
Basically then take your gross sales - your annual production costs - amortization of your initial investment/startup costs = what's left for your living expenses and profit.
The trick is getting your income up and expenses down so there is something left to repay your startup costs, provide living expenses and hopefully a reasonable profit.
In a nutshell that will get you started.
Best of luck.
Jim
Then go to the expense side - how are you going to raise your end product, what facility and other initial investments are required to get to your target herd size, how long can you amortize them.... What are your annual production costs likely to be once at your target herd size...
Basically then take your gross sales - your annual production costs - amortization of your initial investment/startup costs = what's left for your living expenses and profit.
The trick is getting your income up and expenses down so there is something left to repay your startup costs, provide living expenses and hopefully a reasonable profit.
In a nutshell that will get you started.
Best of luck.
Jim
