Making More from Sheep Australian Wool Innovation Limited Meat & Livestock Australia
MODULE 1: Plan for Success
Tool 1.3
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Before embarking on any new enterprise or undertaking major changes to the farm business, prepare a detailed business plan. This is a formal plan that brings together the physical, financial and human resources needed for the operation, and examines the costs, risks and possible rewards from the enterprise.

How to prepare a business plan

Identify what you want to achieve
  • What is the purpose of the enterprise?
  • What is the scale of the operation?
  • What resources do you have or require?
  • What are the critical factors for achieving the desired product and level of profitability?
Identify clients and customers
  • Which clients will provide the services, collaboration and expertise your business will need?
  • What are the requirements and product specifications of your customers?
Identify the key financial and production risks
  • How will you first know if things are going wrong?
  • What can be done to minimise the risks?
Write your plan using available information, practical experience, financial and market research
  • Prepare a detailed operational plan to account for the scale of the operation.
  • Outline the procedures, labour requirements, target market specifications and financial involvement to be used.
  • Prepare a detailed budget to include the likely variables in costs and returns.
  • Specify targets to be achieved.
  • At critical stages in the production cycle, have a back-up plan to include possible exit strategies.
  • Determine an appropriate recording system to enable on-going monitoring and financial analysis.
Review the plan with an independent person
  • Seek assistance from a technical and financial adviser or industry representative familiar with the proposed enterprise.
Update periodically to retain relevance
  • As technical, financial or operational changes occur the plan should be reviewed and updated.