Steps to the successful farm project
It is not always easy to get the whole family to agree, obtaining the consent or even getting the funds from the financial institution for you new business farming idea. To enable farmers to avoid the possible pitfall, the law firms, banks and accountants have joined their forces and created a success plan that will enable you succeed in that new farming project.
Collect all the required information required. You can do this by speaking to you family about it and also speaking to people who have a better understanding in the field you are interested in. Get the idea of cost and therefore create a good draft business plan.
2.Consult with the accountant.
Do a rough estimate of the project budget by considering the tax and the cash flow and determine if the project is feasible. It is advisable to be easy with thing and also be proactive. Look into issues like capital gain tax, income tax and also the element of inheritance tax.
3.Consult with the lawyer
It is important to ensure that the business has the correct legal structure. Check the regulatory requirements and the planning permission. Establish and understand the power of attorney and all the people who are concerned with the firm.
4.Approach the financial institution
Discuss the idea with your bank. Give details on the financial needs. It is imperative that you have a good understanding of the project and the involved risk and benefits. Also know the future prospect of the business farming. Practical considerations will include the labor, financial implication on housing and also feeding the animal. Also establish if the loan will be secured, therefore the assets will have to be valued.
5.Have a business meeting
Have a realistic discussions of costs involved and you should be in agreement to continue. Point out who will be the project manger and who will have the focus on the core business.
6.Have a detailed plan and research
Prepare the detailed budget forecast, costing tenders and timings for building up the farming business. Most projects succeed if they are put into proper timeframe. It is also important to consult with people in order to allay their fears. Also include the budget of professional consultations and do not fear to negotiate the cost in advance.
9.Speak to the bank for the second time
After you have finished compiling all the necessary requirement of the bank, i.e. the business plan, future projections accounts take them to the bank for application of a loan.
At this point the bank should have agreed to lend. The bank will then want to discuss with you the terms of repayment of the loan and they will also want to know how long the business will take before it will break even.
10.Before implementing the project
Check on the contract with the lawyers sort, out the safety and health regulatory issue and also obtain the insurance policy.
Pay attention to the project cost and manage changes and also make a regular report to the bank on a periodical basis. It is also essential that you keep track on the project as it was planned. Establish the budgeted cost and the actual cost and determine the discrepancies.
You do not require much skill to be a farmtrepreneur as long as you are open to new ideas and find research enjoyable. Such ventures cost so little but they have major returns for the dedicated farmer. For more brilliant ideas like this one visithttp://farmtrepreneur.com/the site dedicated to all things ‘farming’.